N.Y. Banking Law § 5009: Dividends or other distributions in cash or property

§ 5009. Dividends or other distributions in cash or property. Subject

to sections one hundred ten, one hundred twelve and five hundred

seventeen of this chapter, a corporation may declare and pay dividends

or make other distributions in cash or property, including the shares or

bonds of other corporations, on its outstanding shares, out of net

profits or surplus, except when there is any impairment of capital

stock, or when the declaration, payment, or distribution would be

contrary to any restrictions contained in the organization certificate.