New York Laws
Article 5 - Redevelopment Companies
124 - Participation by Certain Corporations.

§ 124. Participation by certain corporations. One or more insurance
companies shall have the power to organize, or cause to be organized, a
redevelopment company formed pursuant to the provisions of this article,
and to purchase for cash or to receive and hold in exchange for
property, and to own and control, the stock or the income debenture
certificates or both of any redevelopment company and shall also have
power to invest, singly or jointly, in a bond and first mortgage or in
an issue of bonds secured by mortgage or trust indenture constituting a
first lien upon any project as provided in this article. An insurance
company, however, which owns stock or income debenture certificates of a
redevelopment company and also owns bonds or a bond and mortgage or an
interest in a bond and mortgage of the same redevelopment company shall
not, without the consent of the supervising agency, sell all or any part
of such bonds or such bond and mortgage or of its interest in such bond
and mortgage unless it shall simultaneously sell such stock and such
income debenture certificates owned by it.

Notwithstanding any other provision of law, an insurance company or
companies operating a redevelopment project or owning all of the stock
of a redevelopment company are hereby expressly authorized to enter into
contracts contemplated by this article and to agree by contract with the
municipality not to sell, assign, or otherwise transfer such project or
the stock, income debentures or mortgage bonds of such redevelopment
company during the period of tax exemption provided for by the contract
pursuant to this article without the consent of the local legislative
body of the municipality. An insurance company or companies owning all
of the stock of a redevelopment company are hereby expressly authorized
to make such capital contributions to any such redevelopment company, in
cash or by cancellation of securities or otherwise, as may be necessary
to enable such redevelopment company to comply with all conditions
precedent to its dissolution and conveyance of its property in
accordance with section one hundred twenty-three of this article, and
upon dissolution of such a redevelopment company, to acquire the
project, complete the same if not theretofore completed, and own and
operate the same as a permanent investment for such period as it or they
may deem desirable either directly or through acquisition and ownership
of the capital stock of any corporation which may acquire title to the
project pursuant to subdivision one of section one hundred twenty-three.

An insurance company, instead of investing its funds in the stock and
debentures or other obligations of a redevelopment company, may through
direct ownership and/or lease acquire, own, construct, manage or operate
as an investment for such period as it may deem desirable, one or more
projects, in which event the provisions of subsection one of section one
hundred twelve of this article applicable to redevelopment companies
shall be applicable to such insurance company in its operations with
respect to any such project but not otherwise. Said provisions and the
ensuing provision of this section shall cease to be applicable to any
such project and to such insurance company in its operations with
respect to such project after termination of any tax exemption granted
pursuant to section one hundred twenty-five of this article with respect
to such project, whether such termination shall be by expiration or by
any other cause, or in the event that prior thereto the insurance
company elects to pay the municipality the total of all accrued taxes
for which such exemption was granted and received, together with
interest at the rate of five per centum per annum. If any such project
shall be sold by an insurance company, the tax exemption with respect to
such project shall thereupon cease and terminate unless the local
legislative body shall otherwise provide.

Until the termination of any tax exemption granted pursuant to section
one hundred twenty-five of this article or until the provisions of this
article shall otherwise cease to be applicable:

1. An insurance company shall be entitled to earn and retain annually
on a cumulative basis in respect of each project operated by it
hereunder, before depreciation but after providing for all expenses,
taxes and assessments attributable to such project or to the income
therefrom, a sum equal to but not exceeding six per centum of the total
actual final cost of the project as defined by subdivision two of
section one hundred twelve of this article.

2. Separate accounts shall be kept for each project operated by an
insurance company.

3. If the income from any such project for any year, after all
expenses, taxes and assessments attributable thereto or to the income
therefrom, shall be in excess of six per centum of the total actual
final cost of such project as defined by subdivision two of section one
hundred twelve of this article, such excess shall be credited to a
special reserve account.

4. If the income from any such project for any year, after all
expenses, taxes and assessments attributable thereto or to the income
therefrom shall be less than six per centum of such total actual final
cost, such deficiency shall be charged against such special reserve
account.

The amount of any accrued taxes and interest thereon paid by an
insurance company pursuant to the second paragraph of section one
hundred twenty-five of this article may be charged against such special
reserve account. An amount equal to any balance remaining to the credit
of such special reserve account on the termination of the period of tax
exemption shall be paid into the general fund of the municipality. If
any project shall be conveyed to an insurance company in accordance with
subdivision five of section one hundred twenty-three of this article, an
amount equal to all accrued and unpaid interest, amortization and
dividends on the stock and evidences of indebtedness of the
redevelopment company theretofore accumulated in accordance with section
one hundred seven of this article shall be charged against the special
reserve account except to the extent included in total actual final
cost, and any remaining cash surplus derived from earnings remaining in
the treasury of the redevelopment company shall be transferred to such
insurance company and shall be credited by it to the special reserve
account provided for in this section applicable to such project.

Except as specifically provided herein this article shall not be
deemed to limit or restrict any power or authority granted to insurance
companies or to any other corporation or to any fiduciary by any other
provision of law heretofore or hereafter enacted.