N.Y. Private Housing Finance Law § 96: Voluntary dissolution

§ 96. Voluntary dissolution. 1. Notwithstanding any provisions in

this article to the contrary, a housing company organized pursuant to

this article after April first, nineteen hundred sixty-two, may

voluntarily be dissolved, or in the case of a housing company which is a

trust, be terminated, without the consent of the commissioner, not less

than twenty years after the occupancy date upon the payment in full of

the remaining balance of principal and interest due and unpaid upon the

mortgage or mortgages and of any and all expenses incurred in

effectuating such voluntary dissolution or termination.

2. Upon such dissolution or termination, title to the project may be

conveyed in fee to the owner or owners of its capital or to any

corporation, partnership or trust designated by it or them for the

purpose, or the company may be reconstituted pursuant to appropriate

laws relating to the formation and conduct of corporations, partnerships

or trusts, provided, however, that prior to any such dissolution or

termination and conveyance or reconstitution payment shall be made of

all current operating expenses, taxes, indebtedness and all accrued

interest thereon and the par value of the shares or amount of the

capital of such company and accrued distributions in respect thereof.

If after making such payments and after conveyance of the project, a

surplus remains in the treasury of the housing company, such surplus

shall, upon dissolution or termination be distributed to the

shareholders, partners or beneficiaries, as their interests may appear.

After such dissolution or termination and conveyance, or such

reconstitution, the provisions of this article shall become and be

inapplicable to any such project and its owner or owners, and any tax

exemption granted with respect to such project pursuant to section

ninety-three hereof shall cease and terminate.