Section 9 - Subsidiaries; how created(1) The corporation shall have the right to exercise and perform its powers and functions through one or more subsidiary corporations. The corporation by resolution may direct any of its directors, officers or employees to organize a subsidiary corporation pursuant to either the business corporation law, the not-for-profit corporation law or articles two, four, five or eleven of the private housing finance law. Such resolution shall prescribe the purposes for which such subsidiary corporation is to be formed. Such corporation shall be deemed a subsidiary corporation whenever and so long as (a) more than half of any voting shares of such subsidiary are owned or held by the corporation or (b) a majority of the directors, trustees or members of such subsidiary are designees of the corporation.
(2) In the case of a subsidiary incorporated pursuant to provisions of articles two, four, five or eleven of the private housing finance law, the corporation shall cause the certificate of incorporation of such subsidiary to state that such subsidiary corporation shall have seven directors, of whom four shall be officers or employees of the corporation and of whom three shall be persons from the community in which the project to be undertaken by such subsidiary corporation is to be located; the latter three directors shall be appointed by the directors of the corporation upon recommendation of the membership council.(3) The corporation may transfer to any subsidiary corporation any moneys, real or personal or mixed property or any project in order to carry out the purposes of this act. Each such subsidiary corporation shall have all the privileges, immunities and exemptions of the corporation to the extent the same are not inconsistent with the statute or statutes pursuant to which such subsidiary was incorporated.N.Y. Urban Development Research Corporation Act § 9