N.Y. Arts and Cultural Affairs Law § 21.13: Special provisions relating to the financing and development of combined-use facilities or public television facilities

§ 21.13. Special provisions relating to the financing and development

of combined-use facilities or public television facilities. 1.

Notwithstanding any of the powers granted to the trust by this article

or by article twenty of this title, the trust shall neither convey nor

cause to be conveyed any real property that is part of a combined-use

facility unless the instrument of such conveyance, or an agreement

relating thereto, contains a provision that no person other than the

trust or a participating cultural institution may acquire, directly or

indirectly, an interest in the institutional portion of a combined-use

facility developed or designed to be developed for use or occupancy by

such institution, at any time prior to the date on which all bonds and

notes of the trust issued to finance construction of such portion have

been fully paid, which interest would entitle such person to a deduction

for depreciation with respect to such interest under the provisions of

the United States internal revenue code of 1986, as amended, or any

successor federal tax or revenue act, if the development of any part of

such portion has been financed in whole or in part by bonds or notes

issued by the trust.

2. No individual who serves on the board of trustees, or equivalent

body, of a participating cultural institution shall be a developer of,

or share in any profits arising from the development of, the

non-institutional portion of a combined-use facility developed or

designed to be developed for use or occupancy by such institution;

provided that: (a) a person in which such individual has a financial

interest not exceeding five per centum of the equity of such person may

be a developer of, and may share in any profits arising from the

development of, such non-institutional portion, if such individual

refrains from voting at any meeting of the board of trustees, or

equivalent body, of such institution on any matter relating to the

approval by the trust of such person as a developer of such portion and

the terms and conditions of any agreement relating thereto; (b) a person

in which such individual has a financial interest may make a loan to the

trust, to a developer or to any other person in the ordinary course of

business in connection with such development; and (c) any such

individual may purchase or rent an apartment, or any interest therein,

in such portion, for fair market value.

3. No trustee of the trust and no person in which such trustee has a

financial interest shall be a developer of the non-institutional portion

of any combined-use facility.