N.Y. Real Property Actions & Proceedings Law § 1315: Action by owner of junior participating interest

§ 1315. Action by owner of junior participating interest. An action

may be maintained by the owner of a junior participating share or

interest in a bond or note secured by a mortgage on real, or on real and

personal property, for the payment of principal and interest and for

foreclosure of such bond or note and mortgage in its entirety, or in the

alternative, subject to the interest of the owner of the senior share,

notwithstanding that the entire mortgage debt may be due and payable

according to its terms, in the event that the owner of the senior share,

to whom is given the right in the participating agreement to enforce

such bond or note and mortgage shall fail or refuse to commence an

action for the enforcement of such bond or note and mortgage in any

manner permitted thereby, after ten days' written notice and demand to

commence any such action, following default in the performance of any of

the terms and covenants of such bond or note and mortgage. Upon such

failure or refusal, such junior participant may exercise any and all

options and remedies provided in such bond or note and mortgage or

otherwise available to any holder thereof.