120. Regulation of redevelopment companies. The supervising agency shall:
Examine each redevelopment company and keep informed as to its general condition, its capitalization and the manner in which its property is constructed, leased, operated or managed with respect to its compliance with all provisions of law and orders of the supervising agency.
The supervising agency may:
1. Either itself or through its inspectors or employees duly authorized by it, enter in or upon and inspect the property, equipment, buildings, plants, offices, apparatus and devices of any redevelopment company; examine all books, contracts, records, documents and papers of any redevelopment company and by subpoena duces tecum compel the production thereof.
2. In its discretion, prescribe uniform methods and forms of keeping accounts, records and books to be observed by redevelopment companies, and after a hearing to prescribe by order accounts in which particular outlays and receipts shall be entered, charged or credited.
3. Require specific answers to questions upon which it may desire information and require the filing of periodic reports in the form, covering the period, and at the time prescribed by it.
4. In the event of a violation by a company of any provision of its certificate or of law or any rules and regulations promulgated pursuant to the provisions of this article, the supervising agency may, by written notice to all of the directors, partners, members or trustees, as the case may be, of a company, at their last known address, specifying the reasons therefor, advise such directors, partners, members or trustees, as the case may be, of its intention to remove any or all of the existing directors or to appoint a manager or managers of the limited liability company, partnership or trust who shall exclusively exercise all of the powers of such partners, members or trustees, as the case may be, for the duration of the appointment of such manager or managers. A copy of any such notices shall be mailed to the mortgagee of record. In the event that the company fails to comply with the requirements of the supervising agency within thirty days from date of mailing of said written notice, the supervising agency may, with the written approval of the mortgagee and without further notice to the company or to its directors, partners, members or trustees, as the case may be, remove such directors in the case of a redevelopment company which is a corporation or any of them from office and appoint such person or persons as the supervising agency, in its sole discretion, deems advisable, including officers or employees of the supervising agency, as new directors to serve in the places of those removed, or appoint such manager or managers in the case of a redevelopment company which is a partnership, limited liability company or trust, who shall exclusively exercise all of the powers of such partners, members or trustees, as the case may be. Directors or managers so appointed need not meet qualifications which may be prescribed by the certificate, by-laws, partnership agreement, articles of organization or operating agreement of the limited liability companies or trust agreement, or other rules or regulations of the company. In the absence of fraud or bad faith directors or managers so appointed shall not be personally liable for debts, obligations or liabilities of the company. Directors or managers so appointed shall serve only for a period coexistent with the duration of such violation or until the supervising agency is assured, in a manner satisfactory to it, against violations of a similar nature. Officers or employees of the supervising agency who are appointed as such directors or managers shall serve in such capacity without compensation.
Last modified: February 3, 2019