New York Laws
Article 2 - Limited-Profit Housing Companies
36 - Sale of Project Prior to Termination of Tax Exemption.

§ 36. Sale of project prior to termination of tax exemption. 1.
Except as otherwise provided in this article and prior to the expiration
of thirty-five years from the date of occupancy, a project, other than a
project aided by a loan made after May first, nineteen hundred
fifty-nine, shall not be sold except to a company organized pursuant to
the provisions of this article; prior to the expiration of twenty years
from the date of occupancy, a project aided by a loan made after May
first, nineteen hundred fifty-nine, shall not be sold except to a
company organized pursuant to the provisions of this article. Such
successor company shall acquire such project subject to all the
provisions of the loan and mortgage contract and the provisions of this
article, and shall be entitled to all the benefits provided in such
contract or granted under this article, and a company so conveying all
its projects may be dissolved with the consent of the commissioner or
the supervising agency, as the case may be.

2. In the event of any sale described in this section, the
stockholders of the dissolving company shall in no event receive more
than the par value of their stock with accrued and unpaid dividends upon
such stock.

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