§ 277 — Modification and extension of mortgage investment

§ 277. Modification and extension of mortgage investment. 1.\nCorporations, trustees, executors, administrators, guardians,\ncommittees, conservators and other persons holding trust funds, savings\nbanks and other corporations that shall have made or shall own or hold\nan investment, with the specified ratio of real property security, in a\nbond and mortgage or share or part thereof or series or group of bonds\nand mortgages or in any instrument evidencing any collateral or other\ninterest in such a bond and mortgage or share or part thereof or such\nseries or group of bonds and mortgages, or in any participation or other\ncertificate secured by the deposit of, or evidencing any share, part or\ninterest in the principal sum of any such bond and mortgage or share or\npart thereof or series or group of bonds and mortgages, whether any of\nsuch investments, instruments or certificates be guaranteed or not, may,\nprior to April first, nineteen hundred sixty-nine waive or modify, or\nagree to waive or modify, either with or without consideration and prior\nor subsequent to maturity, any terms and conditions thereof, including\nthe rate of interest, due or to become due and extend or re-extend or\nagree to extend or re-extend such bond and mortgage or share or part\nthereof, or such series or group or such evidencing instrument or\nparticipation or other certificate for a period of not more than five\nyears from the time of such extension, by agreement with the owner of\nthe real property subject to the lien of such bond and mortgage or bonds\nand mortgages or by agreement with the issuer or guarantor of any such\nevidencing instrument or participation or other certificate,\nnotwithstanding that, at the time of such waiver, modification,\nextension or agreement, the value of such real property may be less than\nthat required by law for an original investment of such an amount\ntherein by such holder and, in case any such investment is guaranteed,\nany such holder thereof may also extend or re-extend or agree to extend\nor re-extend the time of payment under the guaranty for a like period\nfrom its due date, and may release or agree to release such guaranty or\nfrom time to time waive or modify or agree to waive or modify any terms\nor conditions thereof, including the rate of interest due or to become\ndue.\n 2. In addition to the provisions of subdivision one hereof, any\ncorporation, trustee, executor, administrator, guardian, committee,\nconservator or other person, including any official of the state or any\npolitical subdivision thereof, holding trust funds, or any savings bank\nor other corporation that shall have made or shall own or hold such\ninvestment, may prior to April first, nineteen hundred sixty-nine join\nin promulgating, participate in, consent to or pay any assessment under\nor incur any necessary expense in connection with participation in any\nplan providing for the readjustment, modification or reorganization of\nsuch investment, which plan is required by the terms thereof or the\nprovisions of law applicable thereto to be approved by a court of this\nor any other state or of the United States, having competent\njurisdiction over proceedings for such readjustment, modification or\nreorganization, and if such plan shall have been or shall hereafter be\nduly approved by any such court, may execute such instruments and do\nsuch acts as may be required thereby, and as may be necessary or\ndesirable for the consummation thereof, and may accept and hold, as\nlegal investments, any securities or obligations, secured or unsecured,\nissued pursuant to such plan so approved, notwithstanding, without\nlimiting the generality of the foregoing, that such plan may provide for\nthe extension of the maturity or reduction of the principal, or of the\nrate of interest, or for any other modification of such investment or of\nany bond and mortgage or bonds and mortgages held as security for or for\nthe benefit of the holders of such investment.\n 3. This section shall be construed so as to effectuate its purpose as\na grant of powers. The limitations and restrictions contained herein\nshall not apply to powers granted by any other law but only to the\npowers granted herein.\n