N.Y. Private Housing Finance Law § 654-a: Subsidiaries; how created

§ 654-a. Subsidiaries; how created. 1. The corporation by resolution

may direct any of its members, officers or employees to organize a

subsidiary corporation whenever, in the sole discretion of the

corporation, it has become necessary to acquire a project in the case of

sale under foreclosure or in lieu of foreclosure and it is beneficial to

effectuate the purpose of this chapter for the subsidiary to hold title

to the project.

2. Each such subsidiary corporation shall be wholly owned by the

corporation and shall be organized pursuant to the business corporation

law, the not-for-profit corporation law or article two or article eleven

of this chapter.

3. The corporation may transfer to any subsidiary corporation any

money, real or personal or mixed property or may convey to it any

project in order to carry out the purposes of this article. Each such

subsidiary corporation shall have all the privileges, immunities, tax

exemptions and other exemptions of the corporation to the extent the

same are not inconsistent with the statute or statutes pursuant to which

such subsidiary was incorporated. Except as may be inconsistent with the

provisions of this article, such subsidiary, if organized pursuant to

article two or article eleven of this chapter, shall have all the rights

and powers granted to housing companies by this chapter and by any other

statute pursuant to which such subsidiary corporation was organized.

4. No member or officer of the corporation shall receive any

additional compensation, either direct or indirect, other than

reimbursement for actual and necessary expenses incurred in the

performance of such person's duties, by reason of such person's serving

as a member, director, trustee or officer of any subsidiary corporation.