2013 Kentucky Revised Statutes CHAPTER 198A - LOW-COST HOUSING 198A.060 Requirements for loan agreement or articles of incorporation of assisted entities -- Limit on return of investment of stockholders or members.
Download as PDF
198A.060 Requirements for loan agreement or articles of incorporation of
assisted entities -- Limit on return of investment of stockholders or
members.
(1)
(2)
The loan agreement or the articles of incorporation, association, partnership or
other governing documents of any sponsor, builder or developer assisted
under this chapter shall contain, in addition to other requirements of law:
(a) That the corporation, cooperative or association has been organized to
provide housing facilities and such social, recreational, commercial and
community facilities as may be incidental or appurtenant thereto for
persons or families of lower and moderate income;
(b) That the operations of the corporation, cooperative or association may be
supervised by the Kentucky Housing Corporation and that the
corporation, cooperative or association shall enter into such agreements
with the Kentucky Housing Corporation as the Kentucky Housing
Corporation from time to time requires, providing for regulation by the
Kentucky Housing Corporation of the planning, development and
management of any residential housing undertaken by the corporation,
cooperative or association and their disposition of the property and
franchises;
(c) That the Kentucky Housing Corporation shall have the power to appoint
to the board of directors of the corporation, cooperative or association a
number of new directors, which number shall be sufficient to constitute a
majority of the board, if the corporation, cooperative or association has
received a loan or advance under this chapter and the Kentucky Housing
Corporation determines that the loan or advance is in jeopardy of not
being repaid, or that the residential housing for which the loan or advance
was made is in jeopardy of not being constructed.
The articles of incorporation, association, partnership or other governing
documents of any limited dividend corporation, association or entity of any
sponsor, builder or developer assisted under this chapter shall provide, in
addition to other requirements of law, that every stockholder or member shall
be deemed to have agreed that he shall not receive from the corporation,
association or entity in repayment of his investment any sums in excess of the
face value of the investment attributable to his respective interest plus
cumulative dividend payments at such rate as the Kentucky Housing
Corporation deems to be reasonable and proper.
Effective:July 15, 1982
History: Amended 1982 Ky. Acts ch. 99, sec. 5, effective March 23, 1982; and
ch. 182, sec. 4, effective July 15, 1982. -- Amended 1976 Ky. Acts ch. 364,
sec. 3. -- Created 1972 Ky. Acts ch. 70, sec. 7.
Legislative Research Commission Note. This section was amended by two 1982
Acts which do not appear to be in conflict and have been compiled together.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.