N.Y. Real Property Law Section 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.

Source: Section 277 — Modification and extension of mortgage investment, https://www.­nysenate.­gov/legislation/laws/RPP/277 (updated Sep. 22, 2014; accessed Jul. 13, 2024).

240
Definitions and use of terms
240‑B
Certain conveyances authorized
240‑C
Joint tenancy severance
241
Ancient conveyances abolished
242
Disclosure prior to the sale of real property
243
Grant of fee or freehold
244
When grant takes effect
245
Estate which passes by grant or devise
246
Certain deeds declared grants
247
Conveyance by tenant for life or years of greater estate than possessed
248
Effect of conveyance where property is leased
249
Covenants in mortgages
251
Covenants not implied
252
Lineal and collateral warranties abolished
253
Construction of covenants in grants of freehold interests
254
Construction of clauses and covenants in mortgages and bonds or notes
254‑A
Right of election of mortgagee in certain cases
254‑B
Limitation on late charges
254‑C
Right to a copy of real property appraisals and consumer reports in certain cases
254‑D
Fees by mortgagee for direct payment of real property taxes by mortgagor prohibited
255
Construction of grant of appurtenances and of all the rights and estate of grantor
256
Construction of grant in executor’s or trustee’s deed of appurtenances, and of the estate of testator and grantor
257
Covenants bind representatives of grantor and mortgagor and inure to the benefit of whom
258
Short forms of deeds and mortgages
259‑C
Provision in lease of real property for waiver of trial by jury in actions for personal injury or property damage
260
Lands adversely held may be conveyed or mortgaged
261
Maintenance of telegraph or other electric wires raises no presumption of grant
265
Fraudulent intent, question of fact
265‑A
Home equity theft prevention
265‑B
Distressed property consulting contracts
266
Rights of purchaser or incumbrancer for valuable consideration protected
267
Conveyances with power to revoke, determine or alter
268
Disaffirmance of fraudulent act by executor and others
269
When remainderman may pay interest owed by life tenant
270
Powers of courts of equity not abridged
271
Construction of covenants in mortgages on leases of real property and bonds or notes
272
Construction of grant of appurtenances, and all of the rights and estate of the mortgagor
273
What form of mortgage on lease of real property
274
Transfers and mortgages of interest in decedents’ estates
274‑A
Certificate of principal amount unpaid on mortgages of real property
275
Certificate of discharge of mortgage required
276
Effect of certain easements on the right to invest in mortgages
277
Modification and extension of mortgage investment
277‑A
Powers of fiduciaries and others holding guaranteed mortgages or mortgage investments
278
Exchange of mortgage investment
278‑A
Sale or exchange of certain real property or mortgage investments therein authorized
279
Graduated payment mortgage
280
Reverse mortgage loans for persons sixty years of age or older
280‑A
Reverse mortgage loans for persons seventy years of age or older
280‑B
Federal home equity conversion mortgage regulation
280‑D
Federal home equity conversion mortgage default and foreclosure regulation
281
Credit line mortgage
282
Mortgagor’s right to recover attorneys’ fees in actions or proceedings arising out of foreclosures of residential property

Accessed:
Jul. 13, 2024

Last modified:
Sep. 22, 2014

§ 277’s source at nysenate​.gov

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