N.Y. PVH Law § 23-C

§ 23-c. Mortgage modifications. 1. For the purposes of this section,\nthe following terms shall have the meanings set forth below:\n (a) "Existing mortgage" shall mean any mortgage held by the\nmunicipality securing a loan made by such municipality in accordance\nwith the provisions of this article, and any note or bond evidencing\nindebtedness thereon, including, but not limited to, any mortgage, note\nor bond securing residual indebtedness and any mortgage, note or bond\nsecuring a loan to finance the construction of a project.\n b. "Non-recoverable debt service" shall mean, with respect to any\nincrease in indebtedness executed or approved pursuant to this section\nthat is not attributable to project cost, all payments of interest and\nprincipal on such portion of the indebtedness.\n (c) "Restrictive agreement" shall mean a binding agreement between a\ncompany and the supervising agency, which (i) prohibits the dissolution\nof the company pursuant to the provisions of section thirty-five of this\narticle for not less than six years from the date of such agreement, and\n(ii) prohibits the consideration of non-recoverable debt service in any\nrent increase pursuant to the provisions of section thirty-one of this\narticle at any time subsequent to the date of such agreement.\n 2. Notwithstanding the provisions of this article or the provisions of\nany law, general or special, a company that enters into a restrictive\nagreement on or after the effective date of a chapter of the laws of\n2004 which added this subdivision, may, with the approval of such\nsupervising agency:\n (a) substitute a new mortgage approved by the supervising agency for\nany existing mortgage;\n (b) extend or modify any existing mortgage in such manner and for such\nterm as shall be determined by the supervising agency;\n (c) subordinate any existing mortgage in any manner approved by the\nsupervising agency to the lien of any mortgage held by a lender that is\nauthorized to participate in loans pursuant to section twenty-three-b of\nthis article; and\n (d) borrow funds and secure the repayment thereof by note and mortgage\nor in any other manner approved by the supervising agency.\n