§ 120 — Regulation of redevelopment companies

§ 120. Regulation of redevelopment companies. The supervising agency\nshall:\n Examine each redevelopment company and keep informed as to its general\ncondition, its capitalization and the manner in which its property is\nconstructed, leased, operated or managed with respect to its compliance\nwith all provisions of law and orders of the supervising agency.\n The supervising agency may:\n 1. Either itself or through its inspectors or employees duly\nauthorized by it, enter in or upon and inspect the property, equipment,\nbuildings, plants, offices, apparatus and devices of any redevelopment\ncompany; examine all books, contracts, records, documents and papers of\nany redevelopment company and by subpoena duces tecum compel the\nproduction thereof.\n 2. In its discretion, prescribe uniform methods and forms of keeping\naccounts, records and books to be observed by redevelopment companies,\nand after a hearing to prescribe by order accounts in which particular\noutlays and receipts shall be entered, charged or credited.\n 3. Require specific answers to questions upon which it may desire\ninformation and require the filing of periodic reports in the form,\ncovering the period, and at the time prescribed by it.\n 4. In the event of a violation by a company of any provision of its\ncertificate or of law or any rules and regulations promulgated pursuant\nto the provisions of this article, the supervising agency may, by\nwritten notice to all of the directors, partners, members or trustees,\nas the case may be, of a company, at their last known address,\nspecifying the reasons therefor, advise such directors, partners,\nmembers or trustees, as the case may be, of its intention to remove any\nor all of the existing directors or to appoint a manager or managers of\nthe limited liability company, partnership or trust who shall\nexclusively exercise all of the powers of such partners, members or\ntrustees, as the case may be, for the duration of the appointment of\nsuch manager or managers. A copy of any such notices shall be mailed to\nthe mortgagee of record. In the event that the company fails to comply\nwith the requirements of the supervising agency within thirty days from\ndate of mailing of said written notice, the supervising agency may, with\nthe written approval of the mortgagee and without further notice to the\ncompany or to its directors, partners, members or trustees, as the case\nmay be, remove such directors in the case of a redevelopment company\nwhich is a corporation or any of them from office and appoint such\nperson or persons as the supervising agency, in its sole discretion,\ndeems advisable, including officers or employees of the supervising\nagency, as new directors to serve in the places of those removed, or\nappoint such manager or managers in the case of a redevelopment company\nwhich is a partnership, limited liability company or trust, who shall\nexclusively exercise all of the powers of such partners, members or\ntrustees, as the case may be. Directors or managers so appointed need\nnot meet qualifications which may be prescribed by the certificate,\nby-laws, partnership agreement, articles of organization or operating\nagreement of the limited liability companies or trust agreement, or\nother rules or regulations of the company. In the absence of fraud or\nbad faith directors or managers so appointed shall not be personally\nliable for debts, obligations or liabilities of the company. Directors\nor managers so appointed shall serve only for a period coexistent with\nthe duration of such violation or until the supervising agency is\nassured, in a manner satisfactory to it, against violations of a similar\nnature. Officers or employees of the supervising agency who are\nappointed as such directors or managers shall serve in such capacity\nwithout compensation.\n