N.Y. Banking Law § 5015: Capital notes and debentures

§ 5015. Capital notes and debentures. No corporation shall issue

capital notes or debentures except for money or other property, tangible

or intangible, or labor or services actually received by or performed

for the corporation or for its benefit or in its formation or

reorganization, or a combination thereof. In the absence of fraud in

the transaction, the judgment of the board as to the value of the

consideration received shall be conclusive.