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This entry was published on 2014-09-22
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SECTION 504
Re-entry of lands sold or leased
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 9
§ 504. Re-entry of lands sold or leased. 1. After the expiration of
one year from the sale or lease of real property by the municipality to
a housing company, the municipality shall have the right of re-entry in
the manner hereinafter provided. Such right of re-entry may, where the
property has been sold, be exercised at any time prior to twenty years
after such sale, or where the property has been leased, at any time
prior to the termination of the lease. The local legislative body may
by resolution determine to re-enter the real property of any housing
company which has purchased or leased property from the municipality.

2. A certified copy of such resolution shall be filed in the office of
the county clerk or register in which the deed or lease of such property
is recorded, and shall be served upon the housing company and also upon
all obligees, mortgagees or holders of liens upon the real property or
upon any interest therein. Upon the filing of such resolution all
indebtedness of the housing company shall become immediately due and
payable.

3. The municipality shall, within ninety days after the filing of the
resolution to re-enter, or as soon thereafter as may be feasible, pay to
the company a sum which, together with the assets of such company, shall
be sufficient to discharge all the indebtedness of the company, pay the
reasonable expenses of liquidation and dissolution and return to the
holders of stock and debentures then outstanding, the par value thereof
plus interest at the rate of six per centum per annum and any accrued
and unpaid dividends or interest on such outstanding stock and
debentures.

4. Upon the making of such payment the housing company shall deliver
to the municipality proper instruments evidencing the cancellation of
the indebtedness and the surrender of the rights of the company and
thereupon the repossession by the municipality shall be complete.

5. In the event of a foreclosure of a mortgage or other lien held by
any other person, bodies, institutions, associations, or corporations
specified in section eighty-one the right of re-entry by the
municipality shall terminate upon the entry of a judgment of foreclosure
and sale.