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.
Terms Used In N.Y. Real Property Law 130-B
- Committee: shall mean and include a person or group of persons, however known or designated, appointed by agreement, assignment, proxy, consent, authorization, power of attorney, or other similar instrument to act as an agency to receive and hold mortgage investments deposited by bondholders and to administer or do any act in respect to the same for the bondholders. See N.Y. Real Property Law 125
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Property: shall mean and include all of the real property or any incidental personal property constituting the underlying security for mortgage investments. See N.Y. Real Property Law 125
- Trustee: A person or institution holding and administering property in trust.
- Trustee: shall mean and include any person, firm, association or corporation named, appointed or designated as such in any deed of trust, trust indenture or other similar instrument or any successor of such trustee. See N.Y. Real Property Law 125
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.