§ 9 — Subsidiaries; how created

§ 9. Subsidiaries; how created. (1) The corporation shall have the\nright to exercise and perform its powers and functions through one or\nmore subsidiary corporations. The corporation by resolution may direct\nany of its directors, officers or employees to organize a subsidiary\ncorporation pursuant to either the business corporation law, the\nnot-for-profit corporation law or articles two, four, five or eleven of\nthe private housing finance law. Such resolution shall prescribe the\npurposes for which such subsidiary corporation is to be formed.\n Such corporation shall be deemed a subsidiary corporation whenever and\nso long as (a) more than half of any voting shares of such subsidiary\nare owned or held by the corporation or (b) a majority of the directors,\ntrustees or members of such subsidiary are designees of the corporation.\n (2) In the case of a subsidiary incorporated pursuant to provisions of\narticles two, four, five or eleven of the private housing finance law,\nthe corporation shall cause the certificate of incorporation of such\nsubsidiary to state that such subsidiary corporation shall have seven\ndirectors, of whom four shall be officers or employees of the\ncorporation and of whom three shall be persons from the community in\nwhich the project to be undertaken by such subsidiary corporation is to\nbe located; the latter three directors shall be appointed by the\ndirectors of the corporation upon recommendation of the membership\ncouncil.\n (3) The corporation may transfer to any subsidiary corporation any\nmoneys, real or personal or mixed property or any project in order to\ncarry out the purposes of this act. Each such subsidiary corporation\nshall have all the privileges, immunities and exemptions of the\ncorporation to the extent the same are not inconsistent with the statute\nor statutes pursuant to which such subsidiary was incorporated.\n