127 - Acquisition by mutual redevelopment companies.

§ 127. Acquisition by mutual redevelopment companies. Anything in this  article to the contrary notwithstanding:    (a)  With  the approval of the supervising agency, any person owning a  project may convey such project to a mutual redevelopment company and  a  mutual  redevelopment  company  may  be organized to acquire an existing  project prior to expiration of an initial tax exemption granted pursuant  to section one hundred twenty-five,  and  may  own,  maintain,  operate,  sell,  and convey such project pursuant to this article. In part payment  of the purchase price therefor, such company may execute and  deliver  a  bond  and  mortgage  or  an  issue of bonds under a trust indenture, the  aggregate principal amount of which does not exceed ninety per centum of  such purchase price, and which shall be secured by a first mortgage upon  all the real property of which such project  consists.  Such  bonds  are  hereby  declared  securities  in which all public officers and bodies of  the state and of its municipal subdivisions, all insurance companies and  associations, all savings  banks  and  savings  institutions,  including  savings  and  loan  associations,  executors, administrators, guardians,  trustees, and all other  fiduciaries  in  the  state  may  properly  and  legally invest the funds within their control. The total capital created  and  bonds  or  debentures  issued  by such mutual redevelopment company  shall not exceed the total cost of the purchase of the  project  and  an  allowance  for  working  capital  not  greater  in amount than three per  centum of such cost.    (b) With the consent of the local legislative body,  any  initial  tax  exemption  granted  pursuant  to  section one hundred twenty-five, shall  continue after conveyance of a project to a mutual redevelopment company  for the period of years originally provided for in the contract, or  for  the  unexpired  portion  thereof  if  such  period shall have commenced,  subject to prior termination pursuant to section one hundred twenty-four  or section one hundred twenty-five, and this article shall  continue  to  be  applicable to such project as though such project had been initially  undertaken by such mutual redevelopment company; provided, however, that  nothing herein shall require the resubmission of the plan of the project  and the contract relating thereto for approval pursuant to  section  one  hundred  fourteen.  The  contract  may,  with  the approval of the local  legislative body and of the holder of the mortgage on  the  project,  be  modified in a manner consistent with this section.