N.Y. Private Housing Finance Law § 108: Consideration for capital and bonds

§ 108. Consideration for capital and bonds. No redevelopment company

which is a corporation shall issue shares, nor shall a redevelopment

company which is a partnership credit sums to the partners on capital

account, nor shall a redevelopment company which is a limited liability

company credit sums to the members on capital account, nor shall a

redevelopment company which is a trust subject amounts to the trust, and

no redevelopment company shall issue bonds or income debenture

certificates except for money or property actually received for the use

and lawful purposes of the redevelopment company, provided, however,

that a mutual redevelopment company may issue shares for home owners

purchase notes if the purchase transaction has received the written

endorsement of the commissioner in accordance with supplementary rules

and regulations of the commissioner made therefor and if at least two

hundred dollars in money or property is received by such mutual

redevelopment company toward the issuance of such shares. The

consideration for all capital, bonds or income debenture certificates

based upon property received shall equal a valuation approved by the

supervising agency and such a valuation shall be used in computing

actual or estimated cost.