§ 23-b. Participation in loan or investment. Notwithstanding any other\nprovisions of this article or of any general, special or local law,\nwhere a municipality has made or contracted to make a mortgage loan to a\ncompany to finance a project: one or more banking organizations as\ndefined in subdivision eleven of section two of the banking law,\neducational institutions, hospitals, medical research institutes,\ninsurance companies, trustees or fiduciaries, including fiduciaries\nholding funds for investment, the New York city housing development\ncorporation, other public corporations, or other entities which\npurchase, invest, or deal in first mortgage loans in the normal course\nof their business, or any combination of the foregoing, shall have the\npower to participate in such loan or make or participate in a new loan\nsecured by a bond or note and a single participating mortgage, or by\nseparate bonds or notes and separate mortgages, or to invest, singly or\njointly, with the municipality in a bond or note and single\nparticipating mortgage or in separate bonds or notes and mortgages or in\na new mortgage or mortgages with respect to all or a portion of the loan\nby a municipality to a company; and the supervising agency shall have\nthe power, upon the mortgagor's consent, to modify the terms and\nconditions of the original bond or bonds or note or notes and mortgage\nor mortgages and any other documents executed in connection with such\noriginal loan, as the supervising agency may deem necessary or desirable\nto provide for such participation, new loan or investment as provided in\nthis section, including but not limited to (i) modification of the rate\nand time of payment of interest on the original loan or rate and time of\namortization of principal thereof, (ii) providing for priority for\npayment of the principal of and interest on that portion of the mortgage\nindebtedness attributable to such participation, new loan or investment\nby one or more of such entities or organizations, (iii) subordination of\nthe interest of the municipality to the interest of one or more of such\norganizations or entities in such participation, new loan or investment,\nand (iv) otherwise providing that the interest of each upon such\nparticipation, new loan or investment need not be of equal priority as\nto lien, or be equal as to interest rate, time or rate of amortization\nof principal or time of payment of interest or otherwise; provided,\nhowever, that the aggregate amount of the loan or loans to a company\ndoes not exceed the amount authorized pursuant to section twenty-three\nof this article. When consent of a company is required for any\nparticipation, new loan or investment pursuant to this section and such\nparticipation, new loan or investment will be substantially equivalent\nto a refinancing of indebtedness pursuant to section twenty-three-a or\nsubdivision twenty-two-a of section six hundred fifty-four of this\nchapter, then; (i) the provisions of this article, including without\nlimitation the provisions of section twenty-three-a, limiting total\nindebtedness of a company after a refinancing shall apply to total\nindebtedness of the company after such participation, new loan or\ninvestment; (ii) the provisions of this article applicable to a mortgage\nof a company insured by the federal government in connection with such\nrefinancing shall apply to a mortgage securing the interest of entities\nor organizations other than the municipality in such participation, new\nloan or investment; (iii) the provisions of this article concerning\nresidual indebtedness, such residual indebtedness having been calculated\nas if the mortgage referred to in clause (ii) of this sentence were a\nfederally insured mortgage, shall apply to an interest of the\nmunicipality after such participation, new loan or investment which is\nsecured by a mortgage; (iv) the provisions of this article concerning\nresidual receipts obligations shall apply to a
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