130-B - Managing agents and management companies. - New York Statutes

§ 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. 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.