NY Priv Hous Fin L § 123 (2021)
2021 New York Laws PVH - Private Housing Finance Article 5 - 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.