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This entry was published on 2014-09-22
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Managing agents and management companies
Real Property (RPP) CHAPTER 50, ARTICLE 4-A
§ 130-b. Managing agents and management companies. 1. A person, firm,
association or corporation appointed, designated or employed by a
trustee entering or taking possession of mortgaged property to collect
rents from, or to manage or supervise the operation and maintenance of
property shall be bonded by a surety bond, approved by the court as to
form and sufficiency, in a sum equivalent to at least the gross rental
or income of the property for the three months immediately preceding
such appointment, designation or employment, running to the trustee,
during the period of his or its possession for the benefit of the
bondholders, conditioned upon the faithful performance by such person,
firm, association or corporation, of his or its duties and the due
accounting for all moneys received by him or it during the course of his
or its employment. The cost or premium of such bond may, in the
discretion of the court, be a charge against and paid for from the
income of the mortgaged property.

2. No trustee or committee shall employ as a managing agent any
management company or corporation any of whose officers, directors or
stockholders are also officers, directors or employees of the trustee or
members or employees of the committee.

3. No voting trustee, officer or director of a corporation acquiring
the title to property in or through a reorganization of such property
and no corporation of which he shall be an officer, director or
stockholder, shall be employed as a managing agent for the reorganized
property except with the approval of the persons owning or holding at
least fifty-one per centum of the securities issued by the reorganized