2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 5 - (100 - 128) REDEVELOPMENT COMPANIES
123 - Dissolution.

 
    §  123. Dissolution. 1. After termination of any tax exemption granted
  pursuant to section one hundred twenty-five of this article, whether  by
  expiration or by any other cause, or in the event that prior thereto the
  redevelopment company elects to pay to the municipality the total of all
  accrued  taxes  for  which  such  exemption  was  granted  and received,
  together with interest at the rate of  five  per  centum  per  annum,  a
  redevelopment  company  which is a corporation or partnership or limited
  liability company  may  voluntarily  dissolve  or,  in  the  case  of  a
  redevelopment  company which is a trust, may terminate, and title to the
  project may be conveyed in fee to the owner or owners of its capital  or
  to  any  corporation,  partnership,  limited  liability company or trust
  designated by it or them for the purpose, or the  redevelopment  company
  may be dissolved or terminated and reconstituted pursuant to appropriate
  laws   relating   to   the   formation   and  conduct  of  corporations,
  partnerships, limited liability companies or trusts, after providing, in
  any case, for the payment of  all  current  operating  expenses,  taxes,
  indebtedness  and  all  accrued  interest  thereon, and the par value or
  amount  of  the  capital  of  the  redevelopment  company  and   accrued
  distributions  in  respect  thereof. If, after making such provision and
  after the conveyance of the project,  a  cash  surplus  remains  in  the
  treasury  of  the  redevelopment  company, such cash surplus shall, upon
  dissolution or termination,  be  paid  into  the  general  fund  of  the
  municipality.  After  such  dissolution or termination and conveyance or
  such reconstitution, the provisions of this article shall become and  be
  inapplicable  to  any  such project and its owner or owners, and any tax
  exemption granted to such redevelopment company pursuant to section  one
  hundred twenty-five of this article shall cease and terminate.
    2.  If  prior  to  the termination of any tax exemption the project is
  sold for  any  reason,  the  redevelopment  company  shall  dissolve  or
  terminate,  and  any tax exemption granted to such redevelopment company
  pursuant to section one hundred twenty-five of this article shall  cease
  and  terminate,  except  as  otherwise  provided  in section one hundred
  twenty-two of this article. In such  case  the  shareholders,  partners,
  members  or  beneficiaries,  as  the  case  may be, and income debenture
  certificate holders shall in no event receive more than the par value of
  their shares or amount of their capital and  the  face  value  of  their
  income  debenture  certificates with accrued and unpaid distributions or
  interest in respect of such capital and income  debenture  certificates,
  and  any  remaining  surplus  shall be paid into the general fund of the
  municipality.
    3. In no event shall a redevelopment company be voluntarily  dissolved
  or  terminated  unless  provision is made for the payment in full of the
  remaining balance of principal and  interest  due  or  unpaid  upon  any
  mortgage  on its property or any part thereof, but any project may, with
  the consent of the  local  legislative  body  of  the  municipality,  be
  conveyed  and  transferred  to the municipality subject to such mortgage
  and accrued interest.
    4. Unless the local legislative body of the municipality shall consent
  to the voluntary dissolution or termination of a redevelopment  company,
  such a company shall not dissolve or terminate except in accordance with
  subdivisions  one  and two of this section or upon the expiration of its
  term as stated in the certificate creating the redevelopment company.
    5.  With  the  consent  of  the  local  legislative   body   and   the
  superintendent of financial services, a redevelopment company heretofore
  or  hereafter  organized  may voluntarily dissolve or terminate prior to
  the termination of any tax exemption granted  pursuant  to  section  one
  hundred  twenty-five  of  this  article  and title to the project may be
  conveyed, and all other assets of  such  redevelopment  company  may  be

  transferred,  to an insurance company, whether or not such project shall
  have been theretofore completed. After such dissolution  or  termination
  and conveyance such tax exemption shall continue for the period of years
  originally  provided  for  in the contract, or for the unexpired portion
  thereof if such period shall  have  theretofore  commenced,  subject  to
  prior termination pursuant to section one hundred twenty-four or section
  one  hundred  twenty-five  of  this  article, and the provisions of this
  article shall thereafter be applicable  to  such  project  and  to  such
  insurance  company to the same extent and with the same force and effect
  as though such project had been initially undertaken by  such  insurance
  company  pursuant  to  section  one hundred twenty-four of this article;
  provided, however, that nothing herein  contained  shall  be  deemed  to
  require  the  resubmission  of  the plan of the project and the contract
  relating thereto for approval pursuant to section one  hundred  fourteen
  of this article.
    6.   The  contract  with  the  municipality  may  contain  such  other
  provisions for the  dissolution  or  termination  of  the  redevelopment
  company as may be deemed advisable, not inconsistent with the provisions
  of  this article. In case of a dissolution or termination and conveyance
  in accordance with subdivision five of this section, the contract may be
  modified consistently with the provisions of said subdivision  five  and
  section  one hundred twenty-four of this article, any such modifications
  to be approved by the superintendent of financial services and the local
  legislative body.
    7. Upon dissolution or termination as provided in this  section,  this
  article shall become and be inapplicable to the project and its owner or
  owners  except  as  otherwise  contemplated  by subdivision five of this
  section.