Chapter 173 of the laws of 1968
NEW YORK STATE URBAN
DEVELOPMENT AND RESEARCH CORPORATION ACT
Section 1. Short title.
2. Statement of legislative findings and purposes.
3. Definitions.
4. Corporation for urban development and research of New York.
5. Membership council.
6. Purposes of the corporation.
7. Powers and limitations.
8. Cooperation with municipalities.
9. Subsidiaries; how created.
10. Acquisition of real property.
11. Acquisition of real property acquired by a municipality or
urban renewal agency.
12. Designation and service of process on secretary of state and
registered agent.
13. Limitation of liability.
14. Bonds and notes of the corporation.
15. Security for bonds or notes; construction and acquisition of
projects.
16. Reserve funds.
17. Trust funds.
18. Bonds and notes as legal investment.
19. Agreement of the state.
20. Remedies of bondholders and noteholders.
21. Monies of the corporation.
22. Permissible relations.
23. Inconsistent provisions of other laws superseded.
24. Construction.
25. Actions against corporation.
26. Separability.
§ 1. Short title. This act shall be known and may be cited as the "New
York state urban development and research corporation act".
§ 2. Statement of legislative findings and purposes. The legislature
hereby finds, determines and declares that there exists in this state:
(a) a seriously inadequate supply of safe and sanitary dwelling
accommodations within the financial reach of a substantial number of
families and persons, including aged persons, living within the state;
(b) a substantial number of dwelling accommodations, including many
sheltering one to four families, which are structurally sound, but
substandard or deteriorating;
(c) a serious condition of involuntary unemployment and
underemployment causing severely adverse social and economic
consequences, including the waste of human resources, the growth of
crime and delinquency, the loss of educational opportunities for many of
our youth, and the burden on the state and local governments of
increasing public assistance payments and decreasing tax revenues;
(d) many residential, commercial and industrial areas which are
substandard and insanitary or which are becoming substandard and
insanitary because of blighted, obsolete, deteriorated or deteriorating
conditions;
(e) a serious need for extensive and in-depth research and
experimentation to discover new, better, and cheaper methods of
constructing and rehabilitating low cost housing; of constructing,
reconstructing, rehabilitating and improving commercial, manufacturing
and industrial facilities; of rehabilitating, reconstructing and
renewing substandard, deteriorated and deteriorating areas; and of
protecting against the hazards of involuntary unemployment and
underemployment.
The legislature further finds and declares that such conditions cannot
be corrected by the ordinary operations of private enterprise and are
contrary to the public interest. They threaten the health, safety,
welfare, morale, comfort and security of the people of this state.
The legislature hereby declares it to be the policy of this state to
provide an adequate supply of safe and sanitary dwelling accommodations;
to increase job opportunities and protect against involuntary
unemployment and underemployment by promoting, attracting, stimulating
and revitalizing business, commerce, industry and manufacturing in the
urban areas of the state; and to arrest the spread of deterioration and
blight and promote the economic and physical development of such areas
through the construction, reconstruction, rehabilitation and improvement
of residential, commercial and industrial structures and facilities
therein.
For these purposes, there should be created a nonprofit corporation
known as "Corporation for Urban Development and Research of New York"
which, with grants and loans from private sources, through the issuance
of bonds and notes to the investing public, and through participation in
federal, state, and local programs, may independently and in cooperative
effort with the New York state urban development corporation and the
urban development guarantee fund of New York, acquire, construct,
reconstruct, rehabilitate and improve, and finance the acquisition,
construction, reconstruction, rehabilitation and improvement of, housing
accommodations and industrial, manufacturing, commercial and
recreational structures and facilities; clear, replan, reconstruct, and
rehabilitate such substandard and insanitary areas; and conduct research
and experimentation in all these fields.
The legislature further finds and declares that such a non-profit
corporation organized for such purposes and with the powers and
authorities necessary to accomplish them cannot be created under any
general law; that such a corporation being necessary and proper to
obtain the ends here recited, it should be created by a special act of
the legislature.
§ 3. Definitions. As used in this act, the following words and terms
shall have the following meanings unless the context shall indicate
another or different meaning or intent:
(a) "Corporation". The corporation for urban development and research
of New York created by section four of this act.
(b) "Urban development guarantee fund of New York". The fund created
by the urban development guarantee fund of New York act.
(c) "New York state urban development corporation". The public benefit
corporation created by the New York state urban development corporation
act.
(d) "Bonds" and "notes". The bonds and notes respectively issued by
the corporation pursuant to this act.
(e) "Comptroller". The comptroller of the state.
(f) "Housing Development Fund Company". A company incorporated
pursuant to the provisions of article eleven of the private housing
finance law.
(g) "Limited-Profit Housing Company". A company incorporated pursuant
to the provisions of article two of the private housing finance law or a
company incorporated pursuant to the provisions of article two of such
law and the not-for-profit corporation law.
(h) "Limited Dividend Housing Company". A company incorporated
pursuant to the provisions of article four of the private housing
finance law.
(i) "Redevelopment Company". A company incorporated pursuant to the
provisions of article five of the private housing finance law.
(j) "Local Development Corporation". A corporation incorporated or
reincorporated pursuant to the provisions of article fourteen of the
not-for-profit corporation law.
(k) "Project". A specific work or improvement including lands,
buildings, improvements, real and personal properties or any interest
therein, acquired, owned, constructed, reconstructed, rehabilitated or
improved by the corporation or any subsidiary thereof. The term
"project" as used herein shall include a project, or projects, or any
portion thereof.
(1) "Housing project". A project designed and intended for the purpose
of providing housing accommodations for persons or families which cannot
afford the prices or rentals of housing provided by the unaided efforts
of private enterprise, including such recreational, educational,
cultural and other community facilities as may be incidental or
appurtenant thereto.
(2) "Industrial project". A project designed and intended for the
purpose of providing facilities for manufacturing, warehousing research
or other industrial, business or commercial purposes, including but not
limited to machinery and equipment deemed necessary for the operation
thereof (excluding raw material, work in process or stock in trade).
(l) "Project cost". The sum total of all costs incurred by the
corporation in carrying out all works and undertakings which the
corporation deems reasonable and necessary for the development of a
project. These shall include but are not necessarily limited to the
costs of all necessary studies, surveys, plans and specifications,
architectural, engineering or other special services, acquisition of
land and any buildings thereon, site preparation and development,
construction, reconstruction, rehabilitation, improvement and the
acquisition of such machinery and equipment as may be deemed necessary
in connection therewith (other than raw materials, work in process or
stock in trade); the necessary expenses incurred in connection with the
initial occupancy of the project; an allocable portion of the
administrative and operating expenses of the corporation; the cost of
financing the project, including interest on bonds and notes issued by
the corporation to finance the project from the date thereof to the date
when the corporation shall determine that the project be deemed
substantially occupied; and the cost of such other items, including any
indemnity and surety bonds and premiums on insurance, legal fees, fees
and expenses of trustees, depositories and paying agents for the bonds
and notes issued by the corporation; and relocation costs, all as the
corporation shall deem necessary.
(m) "Real property". Lands, structures, franchises and interests in
land, including lands under water and riparian rights, space rights and
air rights and any and all other things and rights usually included
within said term. Real property shall also mean and include any and all
interests in such property less than full title, such as easements,
incorporeal hereditaments and every estate, interest or right, legal or
equitable, including terms for years and liens thereon by way of
judgments, mortgages or otherwise, and also all claims for damages for
such real estate.
(n) "State". The state of New York.
(o) "State agency". Any officer, department, board, commission,
bureau, division, public corporation, agency or instrumentality of the
state.
(p) "Subsidiary corporation". A corporation created by the corporation
in accordance with section nine of this act.
(q) "Substandard or insanitary area". Such area as is defined by
section five hundred two of the general municipal law.
(r) "Municipality". Any county, city, town and village.
(s) "Local governing body". The board of supervisors, county
legislature, board of aldermen, common council, commission, or other
elective governing board or body now or hereafter vested by state
statute, charter or other law with jurisdiction to initiate and adopt
local laws, whether or not such local laws or ordinances require the
approval of the elective chief executive officer or other official or
body to become effective, and except that with respect to a city having
a population of one million or more the term "local governing body"
shall mean the board of estimate.
§ 4. Corporation for urban development and research of New York. 1.
There is hereby created a non-profit corporation which shall be known as
the "Corporation for Urban Development and Research of New York." Except
as otherwise provided in this act, the corporation shall have all the
powers, privileges and immunities which are now or may hereafter be
conferred on business corporations by the business corporations law.
2. The business of the corporation shall be managed by, and its
powers, functions and duties shall be exercised through a board of
directors, consisting of nine directors who shall be the directors of
the New York state urban development corporation.
3. The chairman of the corporation shall be the chairman of the New
York State urban development corporation. The directors shall serve
without salary, but each director shall be entitled to reimbursement for
his actual and necessary expenses incurred in the performance of his
official duties with the corporation.
4. Notwithstanding any inconsistent provisions of law, general,
special or local, no officer or employee of the state or of any civil
division thereof, shall be deemed to have forfeited or shall forfeit his
office or employment by reason of his acceptance of membership on the
corporation created by this section; provided, however, a director who
holds such other public office or employment shall receive no additional
compensation or allowance for services rendered pursuant to this act,
but shall be entitled to reimbursement for his actual and necessary
expenses incurred in the performance of such services.
5. The corporation and its corporate existence shall continue until
terminated by law, provided, however, that no such law shall take effect
so long as the corporation shall have bonds, notes and other obligations
outstanding, unless adequate provision has been made for the payment
thereof in the documents securing the same. Upon termination of the
existence of the corporation, all its rights and properties shall pass
to and be vested in the state.
6. The powers of the corporation shall be exercised by affirmative
vote of no less than five of the directors thereof then in office,
except as otherwise provided by subdivision two of section eight hereof.
The corporation may delegate to one or more of its directors, or its
officers, agents and employees, such powers and duties as it may deem
proper.
§ 5. Membership council. (1) The corporation shall establish a
membership council which shall have the powers and duties specified
herein. The council shall consist of no less than fifteen nor more than
forty-five members. The members of the council shall be elected by vote
of the certificate holders as provided in subdivision two of this
section at the first annual meeting of such certificate holders and at
each annual meeting thereafter. If a vacancy occurs in the membership
council through death, resignation or otherwise, the remaining members
shall elect a person to fill such vacancy for the unexpired term.
(2) Corporations, trusts, associations, partnerships and individuals,
including without implied limitation, any banking institution, insurance
or surety company, labor union, employers' association, educational
institution, utility or railroad, located or authorized to do business
in New York may be admitted to membership in the corporation at any time
by action of the directors of the corporation. Membership shall be
evidenced by membership certificates in amounts of multiples of five
hundred dollars. Members shall pay such annual dues as shall be
determined by the directors of the corporation. Each member shall have
one vote for each five hundred dollars of stated value represented by
the membership certificates of such member. Each member entitled to vote
may vote by proxy. No voting rights shall arise with respect to any
payment or transfer which shall be made to the corporation in the form
of a contribution, bequest or devise.
(3) The membership council shall elect a chairman from among the
members of the council. The council shall meet at the call of the
chairman or on petition of any three members thereof. A majority of the
council shall constitute a quorum to transact the business of the
council. The council shall advise and assist the corporation in carrying
out its corporate purposes. It shall coordinate the activities and
programs of the corporation with business interests in the community and
shall seek to enlist the support and membership of such businesses and
of institutional lenders. The council shall have the following
additional duties:
(a) to cause such studies, research and investigations to be made as
it may deem advisable and necessary;
(b) to collect and compile information and data relating to the
planning and development of urban areas and the investment of private
capital therein;
(c) to recommend to the corporation the undertaking of specific
housing and industrial projects or any combination thereof;
(d) to assist and cooperate with municipalities and with civic and
planning associations in furtherance of the corporate purposes of the
corporation;
(e) to recommend to the directors of the corporation persons to serve
as directors of subsidiary corporations, pursuant to section nine of
this act.
(4) All actions of the membership council involving an estimated
expenditure of more than one thousand dollars shall be subject to the
approval of the directors of the corporation.
§ 6. Purposes of the corporation. (1) To facilitate the comprehensive
development of urban areas throughout the state and to promote the
health, safety, welfare and prosperity of the people of the state by
maximizing the resources, talents and energies of the private sector of
the economy, by encouraging local initiative and local participation in
the projects of the corporation, and by relieving the burdens of
government in connection with such development.
(2) In cooperation with the private sector of the economy and with
federal, state and local government, to assist in providing safe and
decent housing for persons and families which cannot afford the prices
and rentals of housing provided through the unaided efforts of private
enterprise, and in connection therewith:
(a) To carry out and to facilitate the acquisition, construction,
reconstruction, and rehabilitation of housing projects, as defined
herein and to sell or lease such projects to families which would
otherwise be unable to afford safe and decent housing accommodations.
(b) To make loans or grants for the acquisition, construction,
reconstruction and rehabilitation of housing projects, as defined herein
and in connection therewith to provide technical advice and assistance
to persons and firms undertaking such rehabilitation and to encourage
new means and technologies to carry out such rehabilitation to the end
that persons previously unable to enjoy the benefits of home ownership
will be able to afford their own homes.
(c) To utilize the state capital grant low rent assistance program,
pursuant to section forty-four-a of the private housing finance law, in
housing projects of the corporation, in order to increase the
availability of housing accommodations for persons and families of low
income.
(3) In order to reduce unemployment, provide opportunities for
additional and maximum employment, the creation of better job
opportunities, and the improvement of individual job skills, to attract
new industries to urban areas of the state and to promote the economy
and prosperity of such areas, to carry out, facilitate and make loans
for the acquisition, construction, reconstruction and rehabilitation of
industrial plants and facilities, including the furnishing of machinery
and equipment therein, manufacturing, commercial, research and warehouse
and other business facilities; and to lease space in such facilities to
qualified users thereof.
(4) To acquire land, whether or not such land constitutes a
substandard or insanitary area, for any of its corporate purposes,
including the development of housing and industrial projects, as defined
herein, to clear, improve and prepare such land for development, to
carry out the development of such land, or to make the same available by
sale, lease or otherwise to private investors and developers when such
disposition is, in the judgment of the corporation, necessary or
desirable for the development of the community in which such land is
situated.
(5) To cooperate with the private sector of the economy, including the
urban development guarantee fund of New York, and with the federal,
state and local governments, and agencies thereof, including the New
York state urban development corporation, in order to coordinate public
and private efforts in the development of urban areas throughout the
state, including housing, industry and commerce, educational and
recreational facilities, and transportation and other public services
and facilities.
(6) To encourage and facilitate, in connection with any of its
projects, participation in construction work by residents of the area in
which such projects are to be located, and to encourage and facilitate
participation by such residents in the business operations of tenants
and occupants of industrial projects of the corporation.
(7) To conduct, assist, promote and encourage scientific,
technological and administrative research and experimentation in the
fields of low cost housing, of rehabilitating, reconstructing and
renewing blighted, deteriorated and deteriorating areas, and of
protecting against the hazards of unemployment and underemployment; of
developing and testing and encouraging the development and testing of
new methods of constructing, rehabilitating and improving low cost
housing, of developing and testing and encouraging the development and
testing of new methods of rehabilitating, reconstructing, and renewing
blighted, deteriorated and deteriorating areas; of planning for the
comprehensive development of communities; of acting as a clearing house
and distributing agency of the results of such research and
experimentation, and of conducting, assisting and encouraging research
and experimentation on such other aspects of providing safe, sanitary
and adequate low cost housing; of rehabilitating, reconstructing and
renewing blighted or deteriorated and deteriorating areas, and of
providing increased job opportunities as the corporation shall deem
advisable.
§ 7. Powers and limitations. (1) In addition to the powers granted by
the business corporation law and except as otherwise limited by this act
the corporation shall have power:
(a) to provide advisory, consultative, training and educational
services, technical assistance and advice to any person, firm,
partnership or corporation, either public or private.
(b) to acquire, construct, reconstruct, rehabilitate, improve, alter
or repair, or provide for the acquisition, construction, reconstruction,
improvement, alteration or repair of any project.
(c) to sell, lease, exchange, mortgage, donate or convey any project
and to grant options to renew any leases entered into in connection with
any project.
(d) to create subsidiaries pursuant to the provisions of the business
corporation law, not-for-profit corporation law or articles two, four,
five or eleven of the private housing finance law, as provided in
section nine of this act.
(e) to lend or donate monies, whether secured or unsecured to any
subsidiary, and to purchase the shares, bonds, or obligations or
securities of such subsidiary.
(f) as security for the payment of the principal of and interest on
any bonds issued by the corporation and any agreements made in
connection therewith, to mortgage and pledge any or all of its projects
or any part or parts thereof, whether then owned or thereafter acquired,
and to pledge the revenues and receipts therefrom or from any thereof,
and to assign or pledge the lease or leases on any portion or all of
said projects and to assign or pledge the income received by virtue of
said lease or leases.
(g) to do any and all things necessary or convenient to carry out its
purposes and exercise the powers given and granted under this act, or
under any other law, special, general or local.
(2) No part of the net earnings of the corporation shall inure to the
benefit of any individual and no member, employee, director or officer
of the corporation shall receive any pecuniary benefit from the
corporation except reasonable compensation for services actually
rendered to the corporation. The corporation shall not carry on
propaganda or otherwise attempt to influence legislation.
(3) The corporation shall not issue shares nor shall any bonds, notes
or debentures of the corporation be convertible to shares.
§ 8. Cooperation with municipalities. (1) In effectuating the purposes
of this act, the corporation shall work closely, consult and cooperate
with local elected officials and community leaders at the earliest
practicable time. The corporation shall give primary consideration to
local needs and desires and shall foster local initiative and
participation in connection with the planning and development of its
projects. Wherever possible, activities of the corporation shall be
coordinated with local urban renewal and other community projects, and
the corporation shall assist localities in carrying out such projects.
Consideration shall also be given to local and regional goals and
policies as expressed in urban renewal, community renewal and local
comprehensive land use plans and regional plans.
(2) Except with respect to a project consisting in whole or in part of
real property acquired by the corporation pursuant to section eleven of
this act, before commencing the acquisition, construction,
reconstruction, rehabilitation, alteration or improvement of any
project: (a) the corporation shall file a copy of the general project
plan in its corporate offices and in the office of the clerk of any
municipality in which the project is to be located, and shall provide a
copy thereof to the chief executive officer of any such municipality,
the chairman of the planning board or commission of any such
municipality, or if there is no planning board or commission, to the
presiding officer of the local governing body. Upon request, any other
person shall be furnished with a digest of such plan; (b) the
corporation shall publish a notice of the filing of such plan and the
availability of digests thereof in one newspaper of general circulation
within the municipality, which notice shall also state that a public
hearing will be held to consider the plan at a specified time and place
on a date not less than thirty days after such publication; (c) the
corporation shall conduct a public hearing pursuant to such notice; (d)
any person shall have the opportunity to present written comments on the
plan within thirty days after the public hearing; (e) any municipality
within which the project is to be located, by majority vote of its
planning board or commission, or in the event there is no planning board
or commission, by majority vote of its local governing body, may
recommend approval, disapproval or modification of the plan, which
recommendation shall be submitted in writing to the corporation within
thirty days after such hearing: (f) after due consideration of such
testimony and comments and municipal recommendations, if any, the
corporation may affirm, modify or withdraw the plan in the manner
provided for the initial filing of such plan in paragraph (a) of this
subdivision, provided, however, that in the event any such municipality
has recommended disapproval or modification of the plan, as provided
herein, the corporation may affirm the plan only by a vote of two-thirds
of the directors thereof then in office.
(3) After consultation with local officials, as provided in
subdivision one of this section, the corporation and any subsidiary
thereof shall, in constructing, reconstructing, rehabilitating, altering
or improving any project, comply with the requirements of local laws,
ordinances, codes, charters or regulations applicable to such
construction, reconstruction, rehabilitation, alteration or improvement,
provided however, that when, in the discretion of the corporation, such
compliance is not feasible or practicable, the corporation and any
subsidiary thereof shall comply with the requirements of the state
building construction code, formulated by the state building code
council pursuant to article eighteen of the executive law, applicable to
such construction, reconstruction, rehabilitation, alteration or
improvement. No municipality shall have power to modify or change the
drawings, plans or specifications for the construction, reconstruction,
rehabilitation, alteration or improvement of any project of the
corporation or of any subsidiary thereof, or the construction, plumbing,
heating, lighting or other mechanical branch of work necessary to
complete the work in question, nor to require that any person, firm or
corporation employed on any such work shall perform any such work in any
other or different manner than that provided by such plans and
specifications, nor to require that any such person, firm or corporation
obtain any other or additional authority, approval, permit or
certificate from such municipality in relation to the work being done,
and the doing of any such work by any person, firm or corporation in
accordance with the terms of such drawings, plans, specifications or
contracts shall not subject said person, firm or corporation to any
liability or penalty, civil or criminal, other than as may be stated in
such contracts or incidental to the proper enforcement thereof; nor
shall any municipality have power to require the corporation or any
subsidiary thereof or successor in interest thereto to obtain any other
or additional authority, approval, permit, certificate or certificate of
occupancy from such municipality as a condition of owning, using,
maintaining, operating or occupying any project acquired, constructed,
reconstructed, rehabilitated, altered or improved by the corporation or
by any subsidiary thereof. The foregoing provisions shall not preclude
any municipality from exercising the right of inspection for the purpose
of requiring compliance by any such project with local requirements for
operation and maintenance, affecting the health, safety and welfare of
the occupants thereof, provided, however, that such compliance does not
require changes, modifications or additions to the original construction
of such project.
(4) Each municipality or political subdivision, including but not
limited to a county, city, town, village or district, in which any
project of the corporation or of any subsidiary thereof is located,
shall provide for such project, whether then owned by the corporation,
any subsidiary thereof or any successor in interest thereto, police,
fire, sanitation, health protection and other municipal services of the
same character and to the same extent as those provided for other
residents of such municipality or political subdivision.
§ 9. Subsidiaries; how created. (1) The corporation shall have the
right to exercise and perform its powers and functions through one or
more subsidiary corporations. The corporation by resolution may direct
any of its directors, officers or employees to organize a subsidiary
corporation pursuant to either the business corporation law, the
not-for-profit corporation law or articles two, four, five or eleven of
the private housing finance law. Such resolution shall prescribe the
purposes for which such subsidiary corporation is to be formed.
Such corporation shall be deemed a subsidiary corporation whenever and
so long as (a) more than half of any voting shares of such subsidiary
are owned or held by the corporation or (b) a majority of the directors,
trustees or members of such subsidiary are designees of the corporation.
(2) In the case of a subsidiary incorporated pursuant to provisions of
articles two, four, five or eleven of the private housing finance law,
the corporation shall cause the certificate of incorporation of such
subsidiary to state that such subsidiary corporation shall have seven
directors, of whom four shall be officers or employees of the
corporation and of whom three shall be persons from the community in
which the project to be undertaken by such subsidiary corporation is to
be located; the latter three directors shall be appointed by the
directors of the corporation upon recommendation of the membership
council.
(3) The corporation may transfer to any subsidiary corporation any
moneys, real or personal or mixed property or any project in order to
carry out the purposes of this act. Each such subsidiary corporation
shall have all the privileges, immunities and exemptions of the
corporation to the extent the same are not inconsistent with the statute
or statutes pursuant to which such subsidiary was incorporated.
§ 10. Acquisition of real property. (1) Real property may be acquired
by the corporation or by a subsidiary, or by a municipality for the
corporation or a subsidiary, by gift, grant, devise, purchase,
condemnation or otherwise.
(2) The corporation or a subsidiary, electing to acquire real property
through acquisition, may petition the municipality to institute
proceedings pursuant to the provisions of the eminent domain procedure
law, to acquire property described in the petition for a project. The
resolution granting the petition shall set forth the amount to be paid
by the corporation or subsidiary to the municipality for such property
or, in lieu thereof, that the corporation or subsidiary shall pay to the
municipality all sums expended or required to be expended by the
municipality in the acquisition thereof, and the time of payment and
manner of securing payment thereof, and may require that the
municipality shall receive, before proceeding with the acquisition of
such property, such assurances as to payment or reimbursement by the
corporation or subsidiary or otherwise as the municipality may deem
advisable. Upon the passage of a resolution by the local governing body
of the municipality granting the petition, the corporation or subsidiary
shall cause two copies of surveys or maps of the property described in
the petition to be made, one of which shall be filed in the office of
the corporation or subsidiary, one in the office of the corporation
counsel or chief law officer of the municipality. The filing of such
copies of surveys or maps shall be conclusive evidence of the acceptance
by the corporation or subsidiary of the terms and conditions of such
resolution. When title to the property shall have vested in the
municipality, it shall convey the same to the corporation or subsidiary
upon payment by the corporation or subsidiary of the sums or the giving
of the security required by the resolution granting the petition. As
soon as title shall have vested in the municipality, the corporation or
subsidiary may, upon the authorization of the chief executive officer,
enter upon the property taken, take over and dispose of existing
improvements, and carry out the terms of the project with respect
thereto. Whenever in connection with such proceedings, requirement is
made in any applicable general, special or local law for the performance
of an act by a department or officer of the municipality, it shall be
regarded for the purposes of this section as compliance therewith if
with the approval of the chief executive officer such act is performed
by the corporation or subsidiary or by persons specially designated by
it.
(3) In any proceedings for the assessment of compensation and damages
for property taken or to be taken by condemnation by or for the
corporation or subsidiary, the following provisions shall be applicable:
(a) Evidence of the price and other terms upon any sale or the rent
received or reserved, whichever is less, and other terms upon any
option, lease or tenancy relating to any of the property taken or to be
taken or to any similar property in the vicinity when the option, sale
or lease was given, occurred or the tenancy existed, within a reasonable
time of the trial, shall be admissible on direct examination. At any
stage of the proceedings, the court or tribunal may require such prior
notice to be given of an intention to introduce evidence as to the sale,
option, leasing or tenancy of property other than the property directly
involved in the proceeding and of particulars relating thereto as it may
deem necessary to prevent surprise.
(b) The deposition of any person, whether or not a party, may be taken
in the manner provided by article thirty-one of the civil practice law
and rules, and the provisions of this section. Such deposition may be
taken upon any question or issue in the proceeding, including the facts
as to any sale, option, lease or tenancy admissible in evidence pursuant
to this subdivision. The deposition may be taken at the instance of the
corporation or subsidiary, the municipality or of any owner or at the
direction of the court, at any time during the pendency of the action or
proceeding. At least five days' notice shall be given of the taking of
the testimony, if on the part of an owner, to the corporation or
subsidiary and to all other owners who have appeared in the proceeding;
if by the corporation or subsidiary or a municipality, to all owners who
have appeared in the proceeding.
(c) Any time during pendency of such action or proceedings the
corporation or subsidiary, municipality or an owner may apply to the
court for an order directing an owner or the corporation or subsidiary
or the municipality as the case may be, to show cause why further
proceedings should not be expedited, and the court may upon such
application make an order requiring that hearings proceed and that any
other steps be taken with all possible expedition.
(d) For the purposes of this act, the award of compensation shall not
be increased by reason of any increase in the value of the property
caused by the clearance, reconstruction or proposed clearance or
reconstruction of the property or of the area in which the property is
situated. No allowance shall be made for improvements begun on property
after notice to the owner of such property of the institution of the
proceedings to condemn such property.
(e) Evidence shall be admissible bearing upon the insanitary, unsafe
or substandard condition of the premises, or the illegal use thereof, or
the enhancement of rentals from such illegal use, and such evidence may
be considered in fixing the compensation to be paid, notwithstanding
that no steps to remedy or abate such conditions have been taken by the
department or officers having jurisdiction. If a violation order is on
file against the premises in any such department, it shall constitute
prima facie evidence of the existence of the condition specified in such
order.
(f) If any of the property included within the project is devoted to a
public use, it may nevertheless be acquired provided that no property
belonging to the municipality or to any government may be acquired
without its consent, and no property belonging to a public utility
corporation may be acquired without the approval of the commission or
other officer or tribunal having regulatory power over such corporation.
(g) Upon the trial, evidence of the price and other terms upon a sale
or assignment or of a contract for the sale or assignment of a mortgage,
award, proposed award, transfer of a tax lien or lien of a judgment
relating to property taken, shall be relevant, material and competent,
upon the issue of value or damage and shall be admissible on direct
examination.
(h) Upon the trial a statement, affidavit, deposition, report,
transcript of testimony in an action or proceeding, or appraisal made or
given by any owner or prior owner of the premises taken, or by any
person on his behalf, to any court, governmental bureau, department or
agency respecting the value of the property for tax purposes, shall be
relevant, material and competent upon the issue of value or damage and
shall be admissible on direct examination.
(4) A municipality may take private property for the corporation or
subsidiary for the purposes provided by this act and for recreational
and other facilities incidental or appurtenant thereto, but in excess of
that required for public use after such purposes have been accomplished.
A municipality or the corporation or subsidiary may improve and utilize
such excess property or may leave or sell such excess property with
restrictions to preserve and protect the project or projects.
Proceedings to acquire such excess property may be brought by the
municipality for the corporation or subsidiary in the same manner as for
real property required for the project and may be included in the
proceedings for the acquisition of real property required for the
project.
(5) (a) The local governing body of a municipality, by resolution, may
determine that real property of the municipality, specified and
described in such resolution is not required for use by the municipality
and may authorize the municipality to sell or lease such real property
to the corporation or subsidiary.
(b) Notwithstanding the provisions of any general, special or local
law or ordinance, such sale or lease may be made without appraisal,
public notice or public bidding for such price or rental and upon such
terms (and, in case of a lease, for such term not exceeding fifty years
with a right to one renewal term of thirty years) as may be agreed upon
between the municipality and the corporation or subsidiary.
(c) Before any sale or lease to the corporation or subsidiary shall be
authorized, a public hearing shall be held by the local governing body
to consider the proposed sale or lease.
(d) Notice of such hearing shall be published at least ten days before
the date set for the hearing in such publication and in such manner as
may be designated by the local governing body.
(e) The deed or lease of such property shall be executed in the same
manner as a deed or lease by the municipality for other real property
and shall contain appropriate conditions and provisions to enable the
municipality to re-enter the property in the event of a violation by the
corporation or subsidiary of any of the provisions of this act relating
to the corporation or subsidiary or of the conditions or provisions of
such deed or lease.
(f) The corporation or subsidiary purchasing or leasing land from a
municipality shall not, without the written approval of the
municipality, use such land for any purpose except in connection with a
project approved under this act. The deed shall contain a condition that
the corporation or subsidiary will devote the land granted only for the
purposes of a project, subject to the restrictions of this act for
breach of which the municipality shall have the right to re-enter and
repossess itself of the land.
§ 11. Acquisition of real property acquired by a municipality or urban
renewal agency. Notwithstanding anything to the contrary contained in
article fifteen or article fifteen-a of the general municipal law or in
any general, special or local law applicable to the sale of real
property by a municipality or an urban renewal agency, a municipality or
an urban renewal agency may, in addition to employing any other lawful
method of utilizing or disposing of any real property and appurtenances
thereto or any interest therein owned by such municipality or urban
renewal agency or acquired by such municipality or urban renewal agency
pursuant to article fifteen or article fifteen-a of the general
municipal law, sell, lease for a term not exceeding ninety-nine years,
or otherwise dispose of any such real property and appurtenances thereto
or any interest therein to the corporation for the effectuation of any
of the purposes of an urban renewal program, without public auction, or
sealed bids or public notice.
§ 12. Designation and service of process on secretary of state and
registered agent. The directors of the corporation shall file with the
secretary of state a certificate setting forth the street address and
the city and county in which the principal office of the corporation is
located within ten days of the establishment of such office. The
secretary of state shall note such address upon his records. The
provisions of sections three hundred four, three hundred five and three
hundred six of the business corporation law shall be applicable to the
corporation.
§ 13. Limitation of liability. Neither the directors nor any member,
officer or employee of the corporation, while acting within the scope of
his authority, shall be subject to any personal liability resulting from
the activities of the corporation.
§ 14. Bonds and notes of the corporation. (1) Subject to the
provisions of subdivision (2) of section sixteen of this act, the
corporation shall have the power and is hereby authorized from time to
time to issue its negotiable bonds and notes in such principal amounts,
as, in the opinion of the corporation, shall be necessary to provide
sufficient funds for achieving any of its corporate purposes, including
the payment of interest on bonds and notes of the corporation,
establishment of reserves to secure such bonds and notes, and all other
expenditures of the corporation incident to and necessary or convenient
to carry out its corporate purposes and powers.
(2) All bonds and notes issued by the corporation shall be general
obligations of the corporation payable out of any revenues or monies of
the agency, subject only to any agreements with the holders of
particular notes or bonds pledging any particular revenues or receipts,
except as may otherwise be expressly provided by the corporation. Such
bonds and notes may be executed and delivered by the corporation at any
time and from time to time, may be in such form and denominations and of
such tenor and maturities, may be in bearer form or in registered form,
as to principal and interest or as to principal alone, all as the
corporation may determine.
(3) Bonds may be payable in such installments and at such time or
times as shall be determined by the corporation, not exceeding fifty
years from the date thereof.
(4) Notes, or any renewals thereof, may be payable in such
installments and at such time or times as shall be determined by the
corporation, not exceeding ten years from the date of the original issue
of such notes.
(5) Bonds and notes may be payable at such place or places whether
within or without the state, may bear interest at such rate or rates
payable at such time or times and at such place or places and evidenced
in such manner, and may contain such provisions not inconsistent
herewith, all as shall be provided in the proceedings of the corporation
under which the bonds or notes shall be authorized to be issued.
(6) If deemed advisable by the corporation, there may be retained in
the proceedings under which any bonds or notes of the corporation are
authorized to be issued an option to redeem all or any part thereof as
may be specified in such proceedings at such price or prices and after
such notice or notices and on such terms and conditions as may be set
forth in such proceedings, and as may be recited on the face of the
bonds or notes, but nothing herein contained shall be construed to
confer on the corporation any right or option to redeem any bonds or
notes except as may be provided in the proceedings under which they
shall be issued.
(7) Any bonds or notes of the corporation may be sold at such price or
prices, at public or private sale, in such manner and from time to time
as may be determined by the corporation, and the corporation may pay all
expenses, premiums and commissions which it may deem necessary or
advantageous in connection with the issuance and sale thereof. No bonds
or notes of the corporation may be sold at private sale, however, unless
such sale and the terms thereof have been approved in writing by (a) the
comptroller where such sale is not to the comptroller or (b) the state
director of the budget, where such sale is to the comptroller.
(8) Any moneys of the corporation, including proceeds from the sale or
any bonds or notes, and revenues, receipts and income from any of its
projects or mortgages, may be invested and reinvested in such
obligations, securities and other investments as shall be provided in
the resolution or resolutions under which such bonds or notes are
authorized.
(9) The resolution under which the bonds or notes are authorized to be
issued shall contain provisions that
(a) title to any industrial project for the acquisition, construction,
reconstruction, rehabilitation or improvement of which bonds or notes
are authorized to be issued shall pass to the state upon retirement of
such indebtedness, and
(b) the state shall have the option to purchase, subject to the rights
of any lessee, mortgagee or beneficiary of any deed of trust, any
industrial project for the acquisition, construction, reconstruction,
rehabilitation or improvement of which bonds or notes are authorized to
be issued at any time for an amount equal to the indebtedness then
outstanding, together with the interest thereon, with interest on any
unpaid installments of interest. In the event of any such sale to the
state, the corporations shall either
(i) redeem the bonds or notes which were issued to acquire, construct,
reconstruct, rehabilitate or improve the industrial project so sold the
state, or
(ii) create a special reserve fund for the payment of the principal of
and interest on such bonds or notes and pay into such reserve fund the
receipts derived from such sale. The funds paid into such reserve fund
may be invested and reinvested in obligations of or guaranteed by the
United States of America, or in certificates of deposit or time deposits
secured in such manner as the corporation shall determine, maturing at
such time or times as shall be appropriate to assure the prompt payment
of the principal of and interest on such bonds or notes. Any moneys
received by the corporation from the sale of such project to the state
after the redemption of such bonds or notes or the creation of such
reserve fund may be used by the corporation in any lawful manner.
(10) Issuance by the corporation of one or more series of bonds or
notes for one or more purposes shall not preclude it from issuing other
bonds or notes in connection with the same project or any other project,
but the proceedings whereunder any subsequent bonds or notes may be
issued shall recognize and protect any prior pledge or mortgage made for
any prior issue of bonds or notes unless in the proceedings authorizing
such prior issue the right is reserved to issue subsequent bonds or
notes on a parity with such prior issue.
(11) The corporation is authorized to provide for the issuance of its
bonds or notes for the purpose of refunding any bonds or notes of the
corporation then outstanding, including the payment of any redemption
premium thereon and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase or maturity of such bonds or
notes, and, if deemed advisable by the corporation, for the additional
purpose of paying all or any part of the cost of acquiring,
constructing, reconstructing, rehabilitating, or improving any project,
or the making of any mortgage loan on any project. The proceeds of any
such bonds or notes issued for the purpose of refunding outstanding
bonds or notes, may, in the discretion of the corporation, be applied to
the purchase or retirement at maturity or redemption of such outstanding
bonds or notes either on their earliest or any subsequent redemption
date, and may, pending such application, be placed in escrow to be
applied to such purchase or retirement at maturity or redemption on such
date as may be determined by the corporation. Any such escrowed
proceeds, pending such use, may be invested and reinvested in
obligations of or guaranteed by the United States of America, or in
certificates of deposit or time deposits secured in such manner as the
corporation shall determine, maturing at such time or times as shall be
appropriate to assure the prompt payment, as to principal, interest and
redemption premium, if any, on the outstanding bonds or notes to be so
refunded. The interest, income and profits, if any, earned or realized
on any such investment may also be applied to the payment of the
outstanding bonds or notes to be so refunded. After the terms of the
escrow have been fully satisfied and carried out, any balance of such
proceeds and interest, income and profits, if any, earned or realized on
the investments thereof may be returned to the corporation for use by it
in any lawful manner. The portion of the proceeds of any such bonds or
notes issued for the additional purpose of paying all or any part of the
cost of acquiring, constructing, reconstructing, rehabilitating, or
improving any project, or the making of any mortgage loan on any
project, may be invested and reinvested in obligations of or guaranteed
by the United States of America, maturing not later than the time or
times when such proceeds will be needed for the purpose of paying all or
any part of such cost or the making of any such mortgage loan. The
interest, income and profits, if any, earned or realized on such
investments may be applied to the payment of all or any part of such
cost or the making of any such mortgage loan or may be used by the
corporation in any lawful manner. All such bonds or notes shall be
issued and secured and shall be subject to the provisions of this act in
the same manner and to the same extent as any other bonds or notes
issued pursuant to this act.
(12) All bonds or notes authorized under this section and the interest
coupons applicable thereto are hereby made and shall be construed to be
negotiable instruments.
§ 15. Security for bonds or notes; construction and acquisition of
projects. (1) The principal of and interest on any bonds or notes issued
by corporation may be secured by a pledge of any revenues and receipts
of the corporation and may be secured by a mortgage or other instrument
covering all or any part of a project, including any additions,
improvements, extensions to or enlargements of any projects thereafter
made.
(2) Bonds or notes issued for the acquisition, construction,
reconstruction, rehabilitation, or improvement of a project may also be
secured by an assignment of any lease of or mortgage on such project and
by an assignment of the revenues and receipts derived by the corporation
from any such lease or mortgage.
(3) The resolution under which the bonds or notes are authorized to be
issued and any such mortgage, lease or other instrument may contain
agreements and provisions respecting the maintenance of the projects
covered thereby, the fixing and collection of rents or other revenues
therefrom, including monies received in repayment of mortgage loans, and
interest thereon, the creation and maintenance of special funds from
such rents or other revenues and the rights and remedies available in
the event of default, all as the corporation shall deem advisable.
(4) Each pledge, agreement, mortgage or other instrument made for the
benefit or security of any of the bonds or notes of the corporation
shall continue effective until the principal of and interest on the
bonds or notes for the benefit of which the same were made shall have
been fully paid, or until provision shall have been made for such
payment in the manner provided in the resolution or resolutions under
which the same may be authorized.
(5) The corporation may provide that any proceedings under which bonds
or notes may be authorized that any project or part thereof may be
constructed, reconstructed, rehabilitated or improved by the
corporation, any subsibidiary or any lessee or any designee of the
corporation and may also provide in such proceedings for the time and
manner of and requisites for disbursements to be made for the cost of
such construction, and for all such certificates and approvals of
construction and disbursements as the corporation shall deem necessary
and provide for in such proceedings.
§ 16. Reserve funds. (1) The corporation may create and establish one
or more reserve funds to be known as debt service reserve funds and may
pay into such reserve funds (a) any proceeds of sale of bonds and notes
to the extent provided in the resolution of the corporation authorizing
the issuance thereof, and (b) any other moneys which may be made
available to the corporation for the purposes of such funds from any
other source or sources. The moneys held in or credited to any debt
service reserve fund established under this subdivision, except as
hereinafter provided, shall be used solely for the payment of the
principal of bonds of the corporation secured by such reserve fund, as
the same mature, the purchase of such bonds of the corporation, the
payment of interest on such bonds of the corporation or the payment of
any redemption premium required to be paid when such bonds are redeemed
prior to maturity; provided, however, that moneys in any such fund shall
not be withdrawn therefrom at any time in such amount as would reduce
the amount of such fund to less than the maximum amount of principal and
interest maturing and becoming due in any succeeding calendar year on
the bonds of the corporation then outstanding and secured by such
reserve fund, except for the purpose of paying principal and interest on
the bonds of the corporation secured by such reserve fund maturing and
becoming due and for the payment of which other moneys of the
corporation are not available. Any income or interest earned by, or
increment to, any such debt service reserve fund due to the investment
thereof may be transferred to any other fund or account of the
corporation to the extent it does not reduce the amount of such debt
service reserve fund below the maximum amount of principal and interest
maturing and becoming due in any succeeding calendar year on all bonds
of the corporation then outstanding and secured by such reserve fund.
(2) The corporation shall not issue bonds at any time if the maximum
amount of principal and interest maturing and becoming due in a
succeeding calendar year on the bonds outstanding and then to be issued
and secured by a debt service reserve fund will exceed the amount of
such reserve fund at the time of issuance, unless the corporation, at
the time of issuance of such bonds, shall deposit in such reserve fund
from the proceeds of the bonds so to be issued, or otherwise, an amount
which together with the amount then in such reserve fund, will be not
less than the maximum amount of principal and interest maturing and
becoming due in any succeeding calendar year on the bonds then to be
issued and on all other bonds of the corporation then outstanding and
secured by such reserve fund.
(3) In computing any debt service reserve fund for the purposes of
this section, securities in which all or a portion of such reserve fund
shall be invested shall be valued at the lower of cost or market value.
(4) With respect to any project, the corporation may create and
establish a special fund to be known as the project reserve fund and
deposit therein (a) such amount as may be determined by the corporation
in connection with any lease by the corporation to others to be charged
to such lessee for deposit in such fund, and (b) any other moneys which
may be made available to the corporation for the purpose of such fund
from any other source or sources. All moneys held in or credited to any
project reserve fund shall be first used for the payment of the
principal of and interest on the bonds or notes of the corporation
issued for the project secured by such project reserve fund in the event
that other moneys of the corporation, other than moneys held in the debt
service fund, are not available for such purpose. Upon the retirement of
the bonds or notes of the corporation issued for the project secured by
such project reserve fund, moneys so held in such fund may be used by
the corporation for any lawful purpose.
§ 17. Trust funds. All moneys received pursuant to the authority of
this act, whether as proceeds from the sale of bonds or notes or as
revenues, receipts or income, shall be deemed to be trust funds to be
held and applied solely as provided in the proceedings under which such
bonds or notes are authorized. Any officer with whom or any bank or
trust company with which, such moneys shall be deposited as trustee
thereof shall hold and apply the same for the purposes thereof, subject
to such provisions as this act and the proceedings authorizing the bonds
or notes of any issue or the trust agreement securing such bonds or
notes may provide.
§ 18. Bonds and notes as legal investment. The bonds and notes of the
corporation are hereby made securities in which all public officers and
bodies of this state and all municipalities and municipal subdivisions,
all insurance companies and associations, and other persons carrying on
an insurance business, all banks, bankers, trust companies, savings
banks and savings associations, including savings and loan associations,
building and loan associations, investment companies and other persons
carrying on a banking business, all administrators, guardians,
executors, trustees and other fiduciaries, and all other persons
whatsoever who are now or may hereafter be authorized to invest in bonds
or other obligations of the state, may properly and legally invest
funds, including capital, in their control or belonging to them.
§ 19. Agreement of the state. The state does hereby pledge to and
agree with the holders of any bonds or notes issued under this act that
the state will not limit or alter the rights hereby vested in the
corporation to fulfill the terms of any agreements made with the holders
thereof, or in any way impair the rights and remedies of such holders
until such bonds or notes, together with the interest thereon, with
interest on any unpaid installments of interest, and all costs and
expenses in connection with any action or proceeding by or on behalf of
such holders, are fully met and discharged. The corporation is
authorized to include this pledge and agreement of the state in any
agreement with the holders of such bonds or notes.
§ 20. Remedies of bondholders and noteholders. (1) In the event that
the corporation shall default in the payment of principal of or interest
on any issue of bonds or notes after the same shall become due, whether
at maturity or upon call for redemption, and such default shall continue
for a period of thirty days, or in the event that the corporation shall
fail or refuse to comply with the provision of this act, or shall
default in any agreement made with the holders of any issue of bonds or
notes, the holders of twenty-five per centum in aggregate principal
amount of the notes or bonds of such issue then outstanding, by
instrument or instruments filed in the office of the clerk of the county
of Albany and approved or acknowledged in the same manner as a deed to
be recorded, may appoint a trustee to represent the holders of such
bonds or notes, for the purposes herein provided.
(2) Such trustee may, and upon written request of the holders of
twenty-five per centum in principal amount of such bonds or notes then
outstanding shall, in his or its own name:
(a) by suit, action or proceeding in accordance with the civil
practice law and rules, enforce all rights of the bondholders or
noteholders, to require the corporation to carry out any other
agreements with the holders of such bonds or notes and to perform its
duties under this act;
(b) bring suit upon such bonds or notes;
(c) by action or suit, require the corporation to account as if it
were the trustee of an express trust for the holders of such bonds or
notes;
(d) by action or suit, enjoin any acts or things which may be unlawful
or in violation of the rights of the holders of such bonds or notes;
(e) declare all such bonds or notes due and payable, and if all
defaults shall be made good, then, with the consent of the holders of
twenty-five per centum of the principal amount of such bonds or notes
then outstanding, to annul such declaration and its consequences.
(3) Such trustee shall in addition to the foregoing have and possess
all of the powers necessary or appropriate for the exercise of any
functions specifically set forth herein or incident to the general
representation of bondholders or noteholders in the enforcement and
protection of their rights.
(4) The supreme court shall have jurisdiction of any suit, action or
proceeding by the trustee on behalf of such bondholders or noteholders.
The venue of any such suit, action or proceeding shall be laid in the
county of Albany.
§ 21. Monies of the corporation. (1) The corporation shall have power
to contract with the holders of any of its bonds or notes, as to the
custody, collection, securing, investment, and payment of any monies of
the corporation, of any monies held in trust or otherwise for the
payment of bonds or notes, and to carry out such contract. Monies held
in trust or otherwise for the payment of bonds and notes or in any way
to secure bonds or notes and deposits of such monies may be secured by
obligations of the United States or the state of a market value equal at
all times to the amount of the deposit and all banks and trust companies
are authorized to give such security for such deposits.
(2) Subject to agreements with bondholders and noteholders, the
corporation shall prescribe a system of accounts.
(3) The comptroller, or his legally authorized representative, is
hereby authorized and empowered from time to time to examine the books
and accounts of the corporation including its receipts, disbursements,
contracts, reserve funds, sinking funds, investments, and any other
matters relating to its financial standing.
(4) The corporation shall submit to the governor, chairman of the
senate finance committee, chairman of the assembly ways and means
committee and the comptroller,
(a) within thirty days of the receipt thereof by the corporation, a
copy of the report of every external examination of the books and
accounts of the corporation other than copies of the reports of such
examinations made by the comptroller;
(b) within ninety days after the end of its fiscal year, a complete
and detailed report setting forth: (1) its operations and
accomplishments; (2) its receipts and expenditures during such fiscal
year in accordance with the categories or classifications established by
the corporation for its operating and capital outlay purposes, including
a listing of all private consultants engaged by the corporation on a
contract basis and a statement of the total amount paid to each such
private consultant; (3) its assets and liabilities at the end of its
fiscal year, including a schedule of its leases and other commitments
and the status of reserve, special or other funds; and (4) a schedule of
its bonds and notes outstanding at the end of its fiscal year, together
with a statement of the amounts redeemed and incurred during such fiscal
year.
§ 22. Permissible relations. (1) Notwithstanding any rule at common
law or any provision of any general, special or local law, the
corporation may purchase from, sell to, borrow from, loan to, contract
with or otherwise deal with any person, corporation, trust, association,
partnership or other entity which is a member of the corporation and/or
in which any director of the corporation has a financial interest,
direct or indirect, provided that such interest is disclosed in the
minutes of the corporation and provided further that no director having
such a financial interest may participate in any decision affecting such
transaction.
§ 23. Inconsistent provisions of other laws superseded. Insofar as the
provisions of this act are inconsistent with the provisions of any other
law, general, special or local, the provisions of this act shall be
controlling.
§ 24. Construction. This act, being necessary for the welfare of the
state and its inhabitants, shall be liberally construed so as to
effectuate its purposes.
§ 25. Actions against corporation. Except in an action for wrongful
death, in any case founded upon tort a notice of claim shall be required
as a condition precedent to the commencement of an action or special
proceeding against the corporation, any of its subsidiary corporations,
or any officer, appointee or employee thereof, and the provisions of
section fifty-e of the general municipal law shall govern the giving of
such notice. No such action shall be commenced more than one year and
ninety days after the cause of action therefor shall have accrued. An
action for wrongful death shall be commenced in accordance with the
notice of claim and time limitation provisions of title eleven of
article nine of the public authorities law.
§ 26. Separability. If any clause, sentence, paragraph, section or
part of this act shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph, section or part thereof directly
involved in the controversy in which such judgment shall have been
rendered.
Last modified: February 3, 2019