§ 35. Voluntary dissolution. 1. A company aided by a loan made prior\nto May first, nineteen hundred fifty-nine, may voluntarily be dissolved,\nwith the consent of the commissioner or of the supervising agency, as\nthe case may be, not less than thirty-five years after the occupancy\ndate upon the payment in full of the remaining balance of principal and\ninterest due and unpaid upon the mortgage held by the state or a\nmunicipality pursuant to this article and payment to the municipality of\na sum equal to the total of all accrued taxes for which tax exemption\nwas granted and received pursuant to section thirty-three of this\narticle, provided however that such payment of accrued taxes shall be\nwaived if a company is voluntarily dissolved subsequent to the original\nmaturity date of any mortgage held by the state or a municipality\npursuant to this article.\n 2. A company aided by a loan made after May first, nineteen hundred\nfifty-nine, may voluntarily be dissolved, without the consent of the\ncommissioner or of the supervising agency, as the case may be, not less\nthan twenty years after the occupancy date upon the payment in full of\nthe remaining balance of principal and interest due and unpaid upon the\nmortgage or mortgages and of any and all expenses incurred in effecting\nsuch voluntary dissolution.\n 3. Upon such dissolution, title to the project may be conveyed in fee\nto the owner or owners of its capital stock or to any corporation\ndesignated by it or them for the purpose, or the company may be\nreconstituted pursuant to appropriate laws relating to the formation and\nconduct of corporations, provided, however, that prior to any such\ndissolution and conveyance or reconstitution, payment shall be made of\nall current operating expenses, taxes, indebtedness and all accrued\ninterest thereon and the par value of and accrued dividends on the\noutstanding stock of such company. If after making such payments, and\nafter conveyance of the project, a surplus remains in the treasury of\nthe company, such surplus, except in the case of a project aided by a\nstate loan made after May first, nineteen hundred fifty-nine, shall upon\ndissolution, be paid into the general fund of the municipality which\ngranted tax exemption. After such dissolution and conveyance, or such\nreconstitution, the provisions of this article shall become and be\ninapplicable to any such project and its owner or owners and any tax\nexemption granted with respect to such project pursuant to section\nthirty-three hereof shall cease and terminate.\n 4. (a) Notwithstanding any contrary provision of subdivision one or\nthree of this section or of any other law or local law, consent to\ndissolve a company aided by a loan made prior to May first, nineteen\nhundred fifty-nine shall be given by the commissioner or the supervising\nagency, as the case may be, thirty-five years or more after the\noccupancy date, provided that:\n (i) such company's project or projects is or are located in a city of\nless than one million and more than three hundred thousand persons;\n (ii) the dissolution of such company is part of a refinancing plan to\ncontinue the operation of the existing project or projects under this\nchapter by a new company organized pursuant to the provisions of this\narticle in corporate, partnership, or individual ownership form as the\nexisting stockholders shall agree;\n (iii) if the refinancing is done by a new first mortgage, the new\ncompany shall be bound to pay from the proceeds of such refinancing the\nremaining balance of the principal and interest on the original mortgage\nand any interest due to debenture holders if such interest cannot first\nbe paid out of the original company's surplus or reserves; or if the\nrefinancing is done by a second mortgage, the new company shall be bound\nto pay from the proceeds of such refinancing the interest due to\ndebenture holders if such interest cannot first be paid out of the\noriginal compan
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.