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.