§ 130-B — Managing agents and management companies

New York § 130-B

• Jurisdiction: New York
• Law RPP: Real Property
• Art. 4-A: Trust Indentures and Interests Therein

Text

§ 130-b. Managing agents and management companies. 1. A person, firm,\nassociation or corporation appointed, designated or employed by a\ntrustee entering or taking possession of mortgaged property to collect\nrents from, or to manage or supervise the operation and maintenance of\nproperty shall be bonded by a surety bond, approved by the court as to\nform and sufficiency, in a sum equivalent to at least the gross rental\nor income of the property for the three months immediately preceding\nsuch appointment, designation or employment, running to the trustee,\nduring the period of his or its possession for the benefit of the\nbondholders, conditioned upon the faithful performance by such person,\nfirm, association or corporation, of his or its duties and the due\naccounting for all moneys received by him or it during the course of his\nor its employment. The cost or premium of such bond may, in the\ndiscretion of the court, be a charge against and paid for from the\nincome of the mortgaged property.\n 2. No trustee or committee shall employ as a managing agent any\nmanagement company or corporation any of whose officers, directors or\nstockholders are also officers, directors or employees of the trustee or\nmembers or employees of the committee.\n 3. No voting trustee, officer or director of a corporation acquiring\nthe title to property in or through a reorganization of such property\nand no corporation of which he shall be an officer, director or\nstockholder, shall be employed as a managing agent for the reorganized\nproperty except with the approval of the persons owning or holding at\nleast fifty-one per centum of the securities issued by the reorganized\ncompany.\n