2023 New York Laws › RPP - Real Property › Article 4 - Uses and Trusts › 122 - Procedure of Reorganization and Expenses in Connection Therewith.

§   122.  Procedure  of  reorganization  and  expenses  in  connection
  therewith.  The reorganization plan may be presented to the  court  with
  the  complaint  for  foreclosure, or thereafter by the trustee or by any
  persons owning or representing twenty-five per centum of  the  principal
  amount  of  the  securities  covered  by such mortgage, deed of trust or
  indenture at any time prior to the  foreclosure  sale.  The  plan  shall
  contain  a  statement  of the minimum and maximum sums which the trustee
  shall bid for the property, which sums may be varied by the  court  upon
  its  approval of the plan; and the trustee shall not incur any liability
  by reason of its failure to bid more than said maximum sum. The  trustee
  shall   not   be  liable  for  any  action  in  executing  the  plan  of
  reorganization approved by the court except for its  wilful  misconduct,
  fraud,  bad faith or gross negligence. Hearings 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. The trustee and any
  person beneficially interested  in  said  mortgage,  deed  of  trust  or
  indenture,  and  any  person  whose  rights  may  be  affected  by  such
  reorganization, may appear upon the return day  of  the  order  to  show
  cause  or  at  any  adjournment  thereof,  and  submit objections to and
  modifications of the plan or an alternate plan, and the court shall hear
  the parties by affidavit or summarily or otherwise, as in its discretion
  it  may  direct,  and  thereupon   finally   determine   the   plan   of
  reorganization  and fix the time and method for persons affected by such
  reorganization to become parties thereto. Where neither the mortgage  or
  indenture,   nor  the  statute  relating  to  the  particular  class  of
  securities nor  any  other  statute,  authorizes  the  purchase  of  the
  property  on behalf of all the holders of bonds or certificates of parts
  or shares, then if any holder, within twenty days after the approval  of
  the  plan,  shall  file  with  the  court  a  duly  acknowledged dissent
  therefrom, the court shall determine the cash value of the  property  as
  if sold at a public sale and such dissenting holder shall be entitled to
  be  secured  for  his  ratable  share  of such amount as a condition for
  declaring the plan effective. In all other cases the reorganization plan
  shall be deemed binding on all  holders  of  bonds  or  certificates  of
  shares or parts unless within twenty days after the approval of the plan
  one-third  in  principal  sum  of such holders shall file with the court
  duly acknowledged dissents therefrom; in which event  the  plan  may  be
  abandoned or may be further modified as the court shall direct, with the
  same  right of dissent as aforesaid as to any subsequently amended plan.
  Notice  of  the  court's  approval  of  the  plan  shall  be  given   by
  publication,  mailing  or otherwise as the court may in particular cases
  or by general rule direct. Any person  aggrieved  by  any  determination
  hereunder  shall have such rights of appeal as are granted to a party to
  a special proceeding. The expenses and compensation of the  trustee  and
  of  any  committee  or  person  who  shall  have  submitted  a  plan  of
  reorganization or modifications thereof shall be fixed at  such  sum  as
  the court may deem reasonable and shall be chargeable as a lien upon the
  property  or collectible through their assumption by the new corporation
  or in such other manner as the court may approve.   All proceedings  and
  appeals  in  respect  to the plan of reorganization shall be entitled to
  preference over all other civil causes  next  in  order  to  actions  or
  special  proceedings  in  which  the people of the state or any officer,
  board or political subdivision thereof shall be a party.