§53-23 Redevelopment corporations; how created. A redevelopment corporation may be created in the manner provided by the general corporation laws with the following additional requirements and special limitations to be included in the articles of association:

(1) The name of the proposed corporation, which name shall include the words "redevelopment corporation" or "redevelopment company."

(2) The purposes for which it is to be formed which shall include the following: To acquire by purchase one or more areas under a plan or plans, and to construct, own, maintain, operate, sell, and convey projects pursuant to the terms and provisions of the Urban Redevelopment Act.

(3) The amount of the capital stock, and if any is preferred stock, the preference thereof.

(4) The number of shares of which the capital shall consist, all of which shall have a par value.

(5) The county and locality therein in which its principal business office is to be located.

(6) Its duration, which shall not be less than thirty-five years.

(7) The number of directors, which shall not be less than three and who need not be stockholders.

(8) The names and post office addresses of the directors for the first year.

(9) The names and post office addresses of the subscribers to the capital stock and a statement of the number of shares of stock which each agrees to take in the redevelopment corporation.

(10) A provision that if income debenture certificates are issued by the redevelopment corporation the owners thereof may be given the same right to vote as they would have if possessed of certificates of stock of the amount and par value of the income debenture certificates held by them. If provision is made for the issuance of income debenture certificates, interest shall be paid by the redevelopment corporation on income debenture certificates only out of net earnings of the corporation that would be applicable to payment of dividends if there were no income debentures.

(11) A provision that, so long as the provisions of this part regulating redevelopment corporations remain applicable to any project of the redevelopment corporation, the real property of the corporation shall not be sold, transferred, leased, mortgaged, assigned, or otherwise disposed of, except as permitted by the terms and provisions of this part.

(12) A declaration that the redevelopment corporation has been organized to serve a public purpose and that it shall be and remain subject to the supervision and control of the agency except as provided in this part, so long as the provisions of this part regulating redevelopment corporations remain applicable to any project of the redevelopment corporation; that all real and personal property acquired by it and all structures erected by it, shall be deemed to be acquired or created for the promotion of the purposes of this part.

(13) A declaration that, after providing for all expenses, taxes, and assessments, there shall be paid annually out of the earnings of the redevelopment corporation, after providing for all expenses, taxes, assessments, and depreciation on improvements, or, in the case of a lease, for amortization, a sum equal to but not exceeding eight per cent of the total actual final cost of the projects as defined by [paragraph] (2) of section 53-32; that the obligation in respect of the payments shall be cumulative, and any deficiency in interest, amortization, depreciation, and dividends in any year shall be paid from the first available earnings in subsequent years; and that any cash surplus derived from earnings remaining in the treasury of the redevelopment corporation in excess of the amount necessary to provide the cumulative annual sums shall, upon dissolution of the corporation, be paid into the redevelopment fund of the agency.

(14) A declaration that, upon the dissolution of the corporation pursuant to subsection (a) of section 53-36, the property may be conveyed in fee as provided in the subsection.

(15) A declaration that mortgage indebtedness, income debenture certificates, and stock of the redevelopment corporation may be retired if, as, and when there shall be funds available for amortization purposes in the treasury of the redevelopment corporation. [L 1949, c 379, §6; am L 1951, c 244, §5; am L 1955, c 271, §1(k), (l); RL 1955, §143-22; HRS §53-23; am L 1983, c 167, §17; am L 1985, c 270, §4]