N.Y. Real Prop. Law § 122-A
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.
N.Y. Real Prop. Law § 122-A