§ 123 — Dissolution

§ 123. Dissolution. 1. After termination of any tax exemption granted\npursuant to section one hundred twenty-five of this article, whether by\nexpiration or by any other cause, or in the event that prior thereto the\nredevelopment company elects to pay to the municipality the total of all\naccrued taxes for which such exemption was granted and received,\ntogether with interest at the rate of five per centum per annum, a\nredevelopment company which is a corporation or partnership or limited\nliability company may voluntarily dissolve or, in the case of a\nredevelopment company which is a trust, may terminate, and title to the\nproject may be conveyed in fee to the owner or owners of its capital or\nto any corporation, partnership, limited liability company or trust\ndesignated by it or them for the purpose, or the redevelopment company\nmay be dissolved or terminated and reconstituted pursuant to appropriate\nlaws relating to the formation and conduct of corporations,\npartnerships, limited liability companies or trusts, after providing, in\nany case, for the payment of all current operating expenses, taxes,\nindebtedness and all accrued interest thereon, and the par value or\namount of the capital of the redevelopment company and accrued\ndistributions in respect thereof. If, after making such provision and\nafter the conveyance of the project, a cash surplus remains in the\ntreasury of the redevelopment company, such cash surplus shall, upon\ndissolution or termination, be paid into the general fund of the\nmunicipality. After such dissolution or termination and conveyance or\nsuch reconstitution, the provisions of this article shall become and be\ninapplicable to any such project and its owner or owners, and any tax\nexemption granted to such redevelopment company pursuant to section one\nhundred twenty-five of this article shall cease and terminate.\n 2. If prior to the termination of any tax exemption the project is\nsold for any reason, the redevelopment company shall dissolve or\nterminate, and any tax exemption granted to such redevelopment company\npursuant to section one hundred twenty-five of this article shall cease\nand terminate, except as otherwise provided in section one hundred\ntwenty-two of this article. In such case the shareholders, partners,\nmembers or beneficiaries, as the case may be, and income debenture\ncertificate holders shall in no event receive more than the par value of\ntheir shares or amount of their capital and the face value of their\nincome debenture certificates with accrued and unpaid distributions or\ninterest in respect of such capital and income debenture certificates,\nand any remaining surplus shall be paid into the general fund of the\nmunicipality.\n 3. In no event shall a redevelopment company be voluntarily dissolved\nor terminated unless provision is made for the payment in full of the\nremaining balance of principal and interest due or unpaid upon any\nmortgage on its property or any part thereof, but any project may, with\nthe consent of the local legislative body of the municipality, be\nconveyed and transferred to the municipality subject to such mortgage\nand accrued interest.\n 4. Unless the local legislative body of the municipality shall consent\nto the voluntary dissolution or termination of a redevelopment company,\nsuch a company shall not dissolve or terminate except in accordance with\nsubdivisions one and two of this section or upon the expiration of its\nterm as stated in the certificate creating the redevelopment company.\n 5. With the consent of the local legislative body and the\nsuperintendent of financial services, a redevelopment company heretofore\nor hereafter organized may voluntarily dissolve or terminate prior to\nthe termination of any tax exemption granted pursuant to section one\nhundred twenty-five of this article and title to the project may be\nconveyed, and all other assets of such redevelopment company may be\ntransferred, to an insurance company, whether or not such project shall\nhave been theretofore completed. After such dissolution or termination\nand conveyance such tax exemption shall continue for the period of years\noriginally provided for in the contract, or for the unexpired portion\nthereof if such period shall have theretofore commenced, subject to\nprior termination pursuant to section one hundred twenty-four or section\none hundred twenty-five of this article, and the provisions of this\narticle shall thereafter be applicable to such project and to such\ninsurance company to the same extent and with the same force and effect\nas though such project had been initially undertaken by such insurance\ncompany pursuant to section one hundred twenty-four of this article;\nprovided, however, that nothing herein contained shall be deemed to\nrequire the resubmission of the plan of the project and the contract\nrelating thereto for approval pursuant to section one hundred fourteen\nof this article.\n 6. The contract with the municipality may contain such other\nprovisions for the dissolution or termination of the redevelopment\ncompany as may be deemed advisable, not inconsistent with the provisions\nof this article. In case of a dissolution or termination and conveyance\nin accordance with subdivision five of this section, the contract may be\nmodified consistently with the provisions of said subdivision five and\nsection one hundred twenty-four of this article, any such modifications\nto be approved by the superintendent of financial services and the local\nlegislative body.\n 7. Upon dissolution or termination as provided in this section, this\narticle shall become and be inapplicable to the project and its owner or\nowners except as otherwise contemplated by subdivision five of this\nsection.\n