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This entry was published on 2014-09-22
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SECTION 122-A
Modification of trust mortgages given in prior re-organizations
Real Property (RPP) CHAPTER 50, ARTICLE 4
§ 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.