Legislation

Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 120
Regulation of redevelopment companies
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 5
§ 120. Regulation of redevelopment companies. The supervising agency
shall:

Examine each redevelopment company and keep informed as to its general
condition, its capitalization and the manner in which its property is
constructed, leased, operated or managed with respect to its compliance
with all provisions of law and orders of the supervising agency.

The supervising agency may:

1. Either itself or through its inspectors or employees duly
authorized by it, enter in or upon and inspect the property, equipment,
buildings, plants, offices, apparatus and devices of any redevelopment
company; examine all books, contracts, records, documents and papers of
any redevelopment company and by subpoena duces tecum compel the
production thereof.

2. In its discretion, prescribe uniform methods and forms of keeping
accounts, records and books to be observed by redevelopment companies,
and after a hearing to prescribe by order accounts in which particular
outlays and receipts shall be entered, charged or credited.

3. Require specific answers to questions upon which it may desire
information and require the filing of periodic reports in the form,
covering the period, and at the time prescribed by it.

4. In the event of a violation by a company of any provision of its
certificate or of law or any rules and regulations promulgated pursuant
to the provisions of this article, the supervising agency may, by
written notice to all of the directors, partners, members or trustees,
as the case may be, of a company, at their last known address,
specifying the reasons therefor, advise such directors, partners,
members or trustees, as the case may be, of its intention to remove any
or all of the existing directors or to appoint a manager or managers of
the limited liability company, partnership or trust who shall
exclusively exercise all of the powers of such partners, members or
trustees, as the case may be, for the duration of the appointment of
such manager or managers. A copy of any such notices shall be mailed to
the mortgagee of record. In the event that the company fails to comply
with the requirements of the supervising agency within thirty days from
date of mailing of said written notice, the supervising agency may, with
the written approval of the mortgagee and without further notice to the
company or to its directors, partners, members or trustees, as the case
may be, remove such directors in the case of a redevelopment company
which is a corporation or any of them from office and appoint such
person or persons as the supervising agency, in its sole discretion,
deems advisable, including officers or employees of the supervising
agency, as new directors to serve in the places of those removed, or
appoint such manager or managers in the case of a redevelopment company
which is a partnership, limited liability company or trust, who shall
exclusively exercise all of the powers of such partners, members or
trustees, as the case may be. Directors or managers so appointed need
not meet qualifications which may be prescribed by the certificate,
by-laws, partnership agreement, articles of organization or operating
agreement of the limited liability companies or trust agreement, or
other rules or regulations of the company. In the absence of fraud or
bad faith directors or managers so appointed shall not be personally
liable for debts, obligations or liabilities of the company. Directors
or managers so appointed shall serve only for a period coexistent with
the duration of such violation or until the supervising agency is
assured, in a manner satisfactory to it, against violations of a similar
nature. Officers or employees of the supervising agency who are
appointed as such directors or managers shall serve in such capacity
without compensation.