§53-36  Dissolution.  (a)  Aftertermination of any tax exemption granted pursuant to section 53-38, whether byexpiration or by any other cause, or if prior thereto the redevelopmentcorporation elects to pay to the county the total of (1) all accrued taxes forwhich the exemption was granted and received, (2) interest at the rate of fiveper cent a year thereon, and (3) any additional amount with or withoutinterest, not exceeding five per cent a year, prescribed in the contractbetween the redevelopment agency and the corporation as a condition precedentto the enjoyments of the privileges granted by this section, the redevelopmentcorporation may voluntarily dissolve, and title to the project may be conveyedin fee to the owner or owners of its capital stock or to any corporationdesignated by it or them for the purpose, or the redevelopment corporation maybe dissolved and reconstituted pursuant to appropriate laws relating to theformation and conduct of corporations, after providing, in any case, for thepayment of all current operating expenses, taxes, indebtedness and all accruedinterest thereon, and the par value of and accrued dividends on the outstandingstock of the redevelopment corporation.  If, after making the provision andafter the conveyance of the project, a cash surplus remains in the treasury ofthe redevelopment corporation, the cash surplus shall, upon dissolution, bepaid into the redevelopment fund of the county.  After the dissolution andconveyance or the reconstitution, any tax exemption granted to theredevelopment corporation pursuant to section 53-38 shall cease and terminate,and the provisions of this part regulating redevelopment corporations onlyshall become and be inapplicable to the project.

(b)  If prior to the expiration of thethirty-five-year period the project is sold for any reason, the redevelopmentcorporation shall dissolve and any tax exemption granted to the redevelopmentcorporation pursuant to section 53-38 shall cease and terminate.  In such casethe stockholders and income debenture certificate holders shall in no eventreceive more than the par value of their stock and the face value of theirincome debenture certificates with accrued and unpaid dividends or interestupon such stock and income debenture certificates, and any remaining surplusshall be paid into the redevelopment fund of the agency.

(c)  In no event shall a redevelopmentcorporation be voluntarily dissolved unless provision is made for the paymentin full of the remaining balance of principal and interest due or unpaid uponany mortgage on its property or any part thereof, but any project may, with theconsent of the agency, be conveyed and transferred to the agency subject to themortgage and accrued interest.

(d)  Unless the agency consents to thevoluntary dissolution of a redevelopment corporation, the corporation shall notdissolve except in accordance with subsections (a) and (b) of this section orupon the expiration of the period of corporate existence as fixed by itsarticles.

(e)  The contract with the agency may containsuch other provisions for the dissolution of the redevelopment corporation asmay be deemed advisable, not inconsistent with the provisions of this section.

(f)  Upon dissolution as provided in thissection, the provisions of this part regulating redevelopment corporations onlyshall become and be inapplicable to the project and its owner or owners.

(g)  Nothing in this section shall have theeffect of releasing the successors in interest of the redevelopment corporationfrom covenants, conditions, restrictions, and limitations running with the landand not appropriate solely to a redevelopment corporation. [L 1949, c 379, §19;RL 1955, §143-35; HRS §53-36]