N.Y. Real Property Law § 130-b: Managing agents and management companies

§ 130-b. Managing agents and management companies. 1. A person, firm,

association or corporation appointed, designated or employed by a

trustee entering or taking possession of mortgaged property to collect

rents from, or to manage or supervise the operation and maintenance of

property shall be bonded by a surety bond, approved by the court as to

form and sufficiency, in a sum equivalent to at least the gross rental

or income of the property for the three months immediately preceding

such appointment, designation or employment, running to the trustee,

during the period of his or its possession for the benefit of the

bondholders, conditioned upon the faithful performance by such person,

firm, association or corporation, of his or its duties and the due

accounting for all moneys received by him or it during the course of his

or its employment. The cost or premium of such bond may, in the

discretion of the court, be a charge against and paid for from the

income of the mortgaged property.

2. No trustee or committee shall employ as a managing agent any

management company or corporation any of whose officers, directors or

stockholders are also officers, directors or employees of the trustee or

members or employees of the committee.

3. No voting trustee, officer or director of a corporation acquiring

the title to property in or through a reorganization of such property

and no corporation of which he shall be an officer, director or

stockholder, shall be employed as a managing agent for the reorganized

property except with the approval of the persons owning or holding at

least fifty-one per centum of the securities issued by the reorganized

company.