2023 New York Laws › RPP - Real Property › Article 4 - Uses and Trusts › 122-A - Modification of Trust Mortgages Given in Prior Re-Organizations.

§   122-a.   Modification   of   trust   mortgages   given   in  prior
  re-organizations. Any such banking corporation or any individual  acting
  as  trustee  in respect to any mortgage, deed of trust or indenture upon
  real property, or any leasehold interest therein, against  which  bonds,
  certificates,  shares or any other evidence of interests therein (herein
  called "debts") shall have been issued to the public, and which mortgage
  shall have been given to such trustee by a corporation  organized  under
  section   one   hundred   twenty-one  hereof,  pursuant  to  a  plan  of
  reorganization approved by the court and which  became  effective  under
  section one hundred twenty-two hereof, or which mortgage shall have been
  given to or is held by such trustee pursuant to, or by reason of, a plan
  of  reorganization  heretofore or hereafter approved and confirmed under
  the bankruptcy acts of the United States or which  mortgage  shall  have
  been given to such trustee under a voluntary plan of reorganization by a
  corporation  caused  to be organized by a bondholders' committee for the
  purpose of acquiring the property secured by such mortgage, may, without
  foreclosure of such mortgage,  and  whether  or  not  a  default  exists
  thereunder, present to the supreme court in the county where all or part
  of  the  real property affected by such mortgage is situated, a plan for
  the reorganization of such mortgage, deed of  trust  or  indenture.  The
  plan  of  reorganization  may  provide  for:  (1)  the  extension of the
  maturity of the mortgage, deed of  trust  or  indenture  and  the  debts
  secured  thereby;  (2)  the modification of the provisions for interest,
  amortization or sinking funds; and (3) such other changes, modifications
  or amendments as may be fair and feasible and for the best interests  of
  the  security holders. Such plan may likewise be presented by holders or
  representatives of twenty-five per centum in principal  amount  of  such
  securities.  Such  plan  may cover one or more mortgages with respect to
  said property. If no default shall exist in the payment of principal  or
  interest, such plan may be presented by the mortgagor or by the owner of
  the  property covered by such mortgage. Hearing upon such reorganization
  plan  shall  be  at  such  time  and  place  and  upon  such  notice  by
  publication,  mailing or otherwise as the court shall fix in an order to
  show cause why the plan  should  not  be  approved.  No  plan  shall  be
  approved unless the court, after such hearing shall determine that it is
  fair,  feasible  and for the best interests of the security holders. The
  affirmative consent of the holders of two-thirds of the principal amount
  of the outstanding securities shall constitute a  presumption  that  the
  plan  is  fair,  feasible  and  for  the  best interests of the security
  holders. All proceedings hereunder and the rights of the parties hereto,
  including  the  hearing,  the  final  order  determining  the  plan   of
  reorganization embodying such modifications, the time and method for the
  persons  affected by such plan becoming parties thereto and the right of
  appeal from  any  order,  shall  be  governed  by  section  one  hundred
  twenty-two  hereof;  except  that  if  the  reorganization  shall become
  effective it shall be without prejudice to the right of  any  particular
  holder  of  such securities who has duly dissented therefrom to have the
  court determine the cash value of such securities as he may  have  owned
  on  or before the date of the presentation of the plan of reorganization
  pursuant to this section, and providing for the payment or securing  his
  ratable  share  of  such  amount  as  a condition for declaring the plan
  effective. Upon the order becoming effective the plan shall  be  binding
  upon all the security holders.
If  any provision of this section or of section one hundred twenty-two
  hereof or any clause, sentence, paragraph or any part of such section or
  the application thereof to any person  or  circumstance  shall  be  held
  unconstitutional  or invalid, such decision or judgment shall not affect
  or impair the constitutionality or validity of  the  remainder  thereof,

  but  shall  be  confined  in  its  operation  to  the  clause, sentence,
  paragraph  or  part  thereof  directly  involved  in  such  decision  or
  judgment.