§7616. Development by corporations; surplus profits

A. Notwithstanding R.S. 33:7625, but consistent therewith, a corporation may, itself, or through the use of one or more subsidiary corporations, or through partnerships or joint ventures, as permitted in R.S. 33:7610, develop, construct, operate or maintain any facilities, structures, and appurtenances, provided, however, that the corporation shall not engage in any such activities unless or until the board of directors of the corporation, after review of all available information and data, shall determine that it would not be economically feasible or practical for such development, construction, operation or maintenance to be undertaken by private enterprise acting alone.

B. Any profits derived from the developmental activities of a corporation shall be applied by its board of directors to meet the needs, goals and objectives of the new community, including, but not limited to the development of programs designed to meet social objectives, the development of amenities for the residents of the new community development area and for such related purposes as the board of directors shall determine.

C. The board of directors of a corporation shall from time to time review the financial condition of any new community project and determine if there are surplus profits available for distribution by the corporation to the parish or municipality. In the event that the board of directors determines that there are surplus profits available for distribution to the parish or municipality, it shall so certify to the governing body and immediately transfer such surplus profits to the treasury of the parish or municipality. Upon such certification, the governing body, by ordinance or resolution, shall determine how and for what purposes the surplus profits shall be expended.

D. Subsections B and C of this section shall be subject to any agreement with noteholders, bondholders, guarantors or others interested in any evidence of indebtedness of a corporation.

Acts 1972, No. 553, §11.