§ 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.