Anything in this article to the contrary notwithstanding:
(a) With the approval of the supervising agency, any person owning a project may convey
such project to a mutual redevelopment company and a mutual redevelopment company
may be organized to acquire an existing project prior to expiration of an initial
tax exemption granted pursuant to section one hundred twenty-five, and may own, maintain, operate, sell, and convey such project pursuant to this article. In part payment of the purchase price therefor, such company may execute and deliver
a bond and mortgage or an issue of bonds under a trust indenture, the aggregate principal
amount of which does not exceed ninety per centum of such purchase price, and which
shall be secured by a first mortgage upon all the real property of which such project
consists. Such bonds are hereby declared securities in which all public officers and bodies
of the state and of its municipal subdivisions, all insurance companies and associations,
all savings banks and savings institutions, including savings and loan associations,
executors, administrators, guardians, trustees, and all other fiduciaries in the state
may properly and legally invest the funds within their control. The total capital created and bonds or debentures issued by such mutual redevelopment
company shall not exceed the total cost of the purchase of the project and an allowance
for working capital not greater in amount than three per centum of such cost.
(b) With the consent of the local legislative body, any initial tax exemption granted
pursuant to section one hundred twenty-five, shall continue after conveyance of a project to a mutual redevelopment company for
the period of years originally provided for in the contract, or for the unexpired
portion thereof if such period shall have commenced, subject to prior termination
pursuant to section one hundred twenty-four or section one hundred twenty-five, and this article shall continue to be applicable to such project as though such
project had been initially undertaken by such mutual redevelopment company; provided,
however, that nothing herein shall require the resubmission of the plan of the project
and the contract relating thereto for approval pursuant to section one hundred fourteen. The contract may, with the approval of the local legislative body and of the holder
of the mortgage on the project, be modified in a manner consistent with this section.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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