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

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

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

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

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

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

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

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

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

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

(10)  A provision that if income debenture certificatesare issued by the redevelopment corporation the owners thereof may be given thesame right to vote as they would have if possessed of certificates of stock ofthe amount and par value of the income debenture certificates held by them.  Ifprovision is made for the issuance of income debenture certificates, interestshall be paid by the redevelopment corporation on income debenture certificatesonly out of net earnings of the corporation that would be applicable to paymentof dividends if there were no income debentures.

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

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

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

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

(15)  A declaration that mortgage indebtedness, incomedebenture certificates, and stock of the redevelopment corporation may beretired if, as, and when there shall be funds available for amortizationpurposes 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]