N.Y. Real Property Law § 277: Modification and extension of mortgage investment

§ 277. Modification and extension of mortgage investment. 1.

Corporations, trustees, executors, administrators, guardians,

committees, conservators and other persons holding trust funds, savings

banks and other corporations that shall have made or shall own or hold

an investment, with the specified ratio of real property security, in a

bond and mortgage or share or part thereof or series or group of bonds

and mortgages or in any instrument evidencing any collateral or other

interest in such a bond and mortgage or share or part thereof or such

series or group of bonds and mortgages, or in any participation or other

certificate secured by the deposit of, or evidencing any share, part or

interest in the principal sum of any such bond and mortgage or share or

part thereof or series or group of bonds and mortgages, whether any of

such investments, instruments or certificates be guaranteed or not, may,

prior to April first, nineteen hundred sixty-nine waive or modify, or

agree to waive or modify, either with or without consideration and prior

or subsequent to maturity, any terms and conditions thereof, including

the rate of interest, due or to become due and extend or re-extend or

agree to extend or re-extend such bond and mortgage or share or part

thereof, or such series or group or such evidencing instrument or

participation or other certificate for a period of not more than five

years from the time of such extension, by agreement with the owner of

the real property subject to the lien of such bond and mortgage or bonds

and mortgages or by agreement with the issuer or guarantor of any such

evidencing instrument or participation or other certificate,

notwithstanding that, at the time of such waiver, modification,

extension or agreement, the value of such real property may be less than

that required by law for an original investment of such an amount

therein by such holder and, in case any such investment is guaranteed,

any such holder thereof may also extend or re-extend or agree to extend

or re-extend the time of payment under the guaranty for a like period

from its due date, and may release or agree to release such guaranty or

from time to time waive or modify or agree to waive or modify any terms

or conditions thereof, including the rate of interest due or to become

due.

2. In addition to the provisions of subdivision one hereof, any

corporation, trustee, executor, administrator, guardian, committee,

conservator or other person, including any official of the state or any

political subdivision thereof, holding trust funds, or any savings bank

or other corporation that shall have made or shall own or hold such

investment, may prior to April first, nineteen hundred sixty-nine join

in promulgating, participate in, consent to or pay any assessment under

or incur any necessary expense in connection with participation in any

plan providing for the readjustment, modification or reorganization of

such investment, which plan is required by the terms thereof or the

provisions of law applicable thereto to be approved by a court of this

or any other state or of the United States, having competent

jurisdiction over proceedings for such readjustment, modification or

reorganization, and if such plan shall have been or shall hereafter be

duly approved by any such court, may execute such instruments and do

such acts as may be required thereby, and as may be necessary or

desirable for the consummation thereof, and may accept and hold, as

legal investments, any securities or obligations, secured or unsecured,

issued pursuant to such plan so approved, notwithstanding, without

limiting the generality of the foregoing, that such plan may provide for

the extension of the maturity or reduction of the principal, or of the

rate of interest, or for any other modification of such investment or of

any bond and mortgage or bonds and mortgages held as security for or for

the benefit of the holders of such investment.

3. This section shall be construed so as to effectuate its purpose as

a grant of powers. The limitations and restrictions contained herein

shall not apply to powers granted by any other law but only to the

powers granted herein.