NY Priv Hous Fin L § 124 (2021)
2021 New York Laws PVH - Private Housing Finance Article 5 - Redevelopment Companies 124 - Participation by Certain Corporations.

§  124.  Participation  by certain corporations. One or more insurance   companies shall have the power to organize, or cause to be organized,  a   redevelopment company formed pursuant to the provisions of this article,   and  to  purchase  for  cash  or  to  receive  and  hold in exchange for   property, and to own and control, the  stock  or  the  income  debenture   certificates  or  both  of any redevelopment company and shall also have   power to invest, singly or jointly, in a bond and first mortgage  or  in   an  issue of bonds secured by mortgage or trust indenture constituting a   first lien upon any project as provided in this  article.  An  insurance   company, however, which owns stock or income debenture certificates of a   redevelopment  company  and also owns bonds or a bond and mortgage or an   interest in a bond and mortgage of the same redevelopment company  shall   not, without the consent of the supervising agency, sell all or any part   of  such bonds or such bond and mortgage or of its interest in such bond   and mortgage unless it shall simultaneously sell  such  stock  and  such   income debenture certificates owned by it.Notwithstanding  any  other  provision of law, an insurance company or   companies operating a redevelopment project or owning all of  the  stock   of a redevelopment company are hereby expressly authorized to enter into   contracts contemplated by this article and to agree by contract with the   municipality  not to sell, assign, or otherwise transfer such project or   the stock, income debentures or mortgage  bonds  of  such  redevelopment   company  during the period of tax exemption provided for by the contract   pursuant to this article without the consent of  the  local  legislative   body  of  the municipality. An insurance company or companies owning all   of the stock of a redevelopment company are hereby expressly  authorized   to make such capital contributions to any such redevelopment company, in   cash  or by cancellation of securities or otherwise, as may be necessary   to enable such redevelopment  company  to  comply  with  all  conditions   precedent   to  its  dissolution  and  conveyance  of  its  property  in   accordance with section one hundred twenty-three of  this  article,  and   upon  dissolution  of  such  a  redevelopment  company,  to  acquire the   project, complete the same if not theretofore  completed,  and  own  and   operate the same as a permanent investment for such period as it or they   may  deem desirable either directly or through acquisition and ownership   of the capital stock of any corporation which may acquire title  to  the   project pursuant to subdivision one of section one hundred twenty-three.An  insurance company, instead of investing its funds in the stock and   debentures or other obligations of a redevelopment company, may  through   direct ownership and/or lease acquire, own, construct, manage or operate   as  an  investment for such period as it may deem desirable, one or more   projects, in which event the provisions of subsection one of section one   hundred twelve of this article  applicable  to  redevelopment  companies   shall  be  applicable  to  such insurance company in its operations with   respect to any such project but not otherwise. Said provisions  and  the   ensuing  provision  of  this section shall cease to be applicable to any   such project and to  such  insurance  company  in  its  operations  with   respect  to  such project after termination of any tax exemption granted   pursuant to section one hundred twenty-five of this article with respect   to such project, whether such termination shall be by expiration  or  by   any  other  cause,  or  in  the  event  that prior thereto the insurance   company elects to pay 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. If any  such  project   shall be sold by an insurance company, the tax exemption with respect to   such  project  shall  thereupon  cease  and  terminate  unless the local   legislative body shall otherwise provide. Until the termination of any tax exemption granted pursuant to section   one hundred twenty-five of this article or until the provisions of  this   article shall otherwise cease to be applicable:1.  An insurance company shall be entitled to earn and retain annually   on a cumulative  basis  in  respect  of  each  project  operated  by  it   hereunder,  before  depreciation  but  after providing for all expenses,   taxes and assessments attributable to such  project  or  to  the  income   therefrom,  a sum equal to but not exceeding six per centum of the total   actual final cost of the  project  as  defined  by  subdivision  two  of   section one hundred twelve of this article.2.  Separate  accounts  shall  be kept for each project operated by an   insurance company.3. If the income from  any  such  project  for  any  year,  after  all   expenses,  taxes  and  assessments attributable thereto or to the income   therefrom, shall be in excess of six per  centum  of  the  total  actual   final  cost of such project as defined by subdivision two of section one   hundred twelve of this article, such  excess  shall  be  credited  to  a   special reserve account.4.  If  the  income  from  any  such  project  for any year, after all   expenses, taxes and assessments attributable thereto or  to  the  income   therefrom  shall  be less than six per centum of such total actual final   cost, such deficiency shall be  charged  against  such  special  reserve   account.The  amount  of  any  accrued  taxes  and  interest thereon paid by an   insurance company pursuant  to  the  second  paragraph  of  section  one   hundred  twenty-five of this article may be charged against such special   reserve account. An amount equal to any balance remaining to the  credit   of  such special reserve account on the termination of the period of tax   exemption shall be paid into the general fund of the municipality.    If   any project shall be conveyed to an insurance company in accordance with   subdivision five of section one hundred twenty-three of this article, an   amount  equal  to  all  accrued  and  unpaid  interest, amortization and   dividends  on  the  stock  and  evidences   of   indebtedness   of   the   redevelopment company theretofore accumulated in accordance with section   one  hundred  seven of this article shall be charged against the special   reserve account except to the extent  included  in  total  actual  final   cost,  and any remaining cash surplus derived from earnings remaining in   the treasury of the redevelopment company shall be transferred  to  such   insurance  company  and  shall  be credited by it to the special reserve   account provided for in this section applicable to such project.Except as specifically provided  herein  this  article  shall  not  be   deemed  to limit or restrict any power or authority granted to insurance   companies or to any other corporation or to any fiduciary by  any  other   provision of law heretofore or hereafter enacted.