353.040. Life insurance company operating as urban redevelopment corporation--limitation on earnings--disposition of surplus.
Life insurance company operating as urban redevelopmentcorporation--limitation on earnings--disposition of surplus.
353.040. 1. Any life insurance company operating as anurban redevelopment corporation under this chapter shall belimited in its net earnings derived exclusively from theownership or operation of any redevelopment project on realproperty owned by, or leased to, any such life insurance company,and constructed pursuant to a redevelopment plan to an amount notto exceed eight percent per annum of the cost to such company ofthe redevelopment project including the cost of the land, or thebalances of such cost as reduced by amortization payments;provided, that the net earnings derived from any redevelopmentproject shall in no event exceed a sum equal to eight percent perannum upon the entire cost thereof. Such net earnings shall becomputed after deducting from gross earnings the following:
(1) All costs and expenses of maintenance and operation;
(2) Amounts paid for taxes, assessments, insurance premiumsand other similar charges;
(3) An annual amount sufficient to amortize the cost of theentire project at the end of the period, which shall be not morethan sixty years from the date of completion of the project.
2. The development plan may contain provisions satisfactoryto the legislative authority authorizing such plan that anysurplus earnings in excess of the rate of net earnings providedin this chapter may be held by the company as a reserve formaintenance of such rate of return in the future and may be usedby the company to offset any deficiency in such rate of returnwhich may have occurred in prior years; or may be used toaccelerate the amortization payments; or for the enlargement ofthe project; or for reduction in rentals therein; provided, thatany excess of such surplus earnings remaining at the terminationof the tax relief granted pursuant to section 353.110 shall beturned over by the company to the city.
(L. 1945 p. 1242 § 4, A.L. 1947 V. I p. 393)