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This entry was published on 2014-09-22
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SECTION 16
Limited-profit housing companies; partnership relations
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 2
§ 16. Limited-profit housing companies; partnership relations.
Notwithstanding any provisions in this article to the contrary, but
subject to such regulations as may be prescribed by the commissioner or
the supervising agency, as the case may be:

1. (a) Any company may be a partner (general or limited) in a
partnership (general or limited) formed for the purpose of providing
such company with capital. Any company incorporated pursuant to the
provisions of this article may, with the consent of the commissioner or
the supervising agency as the case may be, become a partner (general or
limited) in a partnership (general or limited) upon the consent of the
company to the refinancing of its original mortgage loan by a mortgage
loan insured by the Federal government; such a partnership shall have
the same powers and duties as provided by this article as a partnership
formed for the purpose of providing a company with capital.

(b) Any partner (general or limited) of any partnership (general or
limited) in which a company is a partner (general or limited) may be the
owner or holder of any shares, bonds, income debentures, notes or other
securities of such company.

(c) Any company which is a partner (general or limited) in any such
partnership (general or limited) may exercise all the rights and powers
and shall be subject to all the duties and obligations of a company in
accordance with this article.

2. The capital structure of a company which is a partner (general or
limited) in a partnership (general or limited) formed pursuant to
paragraph (a) of subdivision one of section sixteen may include
withdrawals from the capital of such a partnership (general or limited).

The provisions of this article relating to shares and income
debentures shall be deemed to include withdrawals from the capital of a
partnership (general or limited) of which a company is a partner
(general or limited).

3. For the purposes of this section, the term partner shall be deemed
to include a member of a limited liability company, and the term
partnership shall be deemed to include a limited liability company,
provided there is disclosure of the identity of the managing member,
including the identity of the natural person who is responsible for the
housing development. Notwithstanding any provision of this section to
the contrary, any change in general partner of a partnership or managing
member of a limited liability company shall be subject to the prior,
written approval of the commissioner or supervising agency.