Section 23-C. Mortgage modifications

1. For the purposes of this section,
  the following terms shall have the meanings set forth below:
    (a)  "Existing  mortgage"  shall  mean  any  mortgage  held   by   the
  municipality  securing  a  loan  made by such municipality in accordance
  with the provisions of this article, and any  note  or  bond  evidencing
  indebtedness  thereon, including, but not limited to, any mortgage, note
  or bond securing residual indebtedness and any mortgage,  note  or  bond
  securing a loan to finance the construction of a project.
    b.  "Non-recoverable  debt  service"  shall  mean, with respect to any
  increase in indebtedness executed or approved pursuant to  this  section
  that  is  not attributable to project cost, all payments of interest and
  principal on such portion of the indebtedness.
    (c) "Restrictive agreement" shall mean a binding agreement  between  a
  company  and the supervising agency, which (i) prohibits the dissolution
  of the company pursuant to the provisions of section thirty-five of this
  article for not less than six years from the date of such agreement, and
  (ii) prohibits the consideration of non-recoverable debt service in  any
  rent  increase  pursuant to the provisions of section thirty-one of this
  article at any time subsequent to the date of such agreement.
    2. Notwithstanding the provisions of this article or the provisions of
  any law, general or special, a company that enters  into  a  restrictive
  agreement  on  or  after  the effective date of a chapter of the laws of
  2004 which added this  subdivision,  may,  with  the  approval  of  such
  supervising agency:
    (a)  substitute  a new mortgage approved by the supervising agency for
  any existing mortgage;
    (b) extend or modify any existing mortgage in such manner and for such
  term as shall be determined by the supervising agency;
    (c) subordinate any existing mortgage in any manner  approved  by  the
  supervising  agency to the lien of any mortgage held by a lender that is
  authorized to participate in loans pursuant to section twenty-three-b of
  this article; and
    (d) borrow funds and secure the repayment thereof by note and mortgage
  or in any other manner approved by the supervising agency.