We investigate a class of infinite-dimensional modular, graded Lie algebra
in which the homogeneous components have dimension at most two. A subclass
of these algebras can be obtained via a twisted loop algebra construction f
rom certain finite-dimensional, simple Lie algebras of Albert-Frank type.
Another subclass of these algebras is strictly related to certain graded Li
e algebras of maximal class, and exhibits a wide range of behaviours.