N.Y. Private Housing Finance Law § 121: Sinking fund

§ 121. Sinking fund. Unless other provision be made therefor in the

contract with the municipality, the supervising agency, if it shall deem

it feasible at any time, subject to the limitation contained in section

one hundred seven of this article, may require a redevelopment company

to provide out of earnings, after provision for distributions and

interest, a sinking fund in an amount to be fixed by such supervising

agency for the gradual retirement of the capital and income debenture

certificates of such company. Such sinking fund may be used either for

the purchase or retirement, from time to time, of capital or income

debenture certificates at a price approved by the supervising agency not

exceeding par value thereof with accrued and unpaid distributions or

interest, or if it be not practicable to purchase or retire such capital

or such income debenture certificates at a price so approved, the moneys

in such sinking fund may be added to the surplus of such company. Any

capital evidenced by shares or income debenture certificates purchased

or retired out of such sinking fund shall be cancelled and shall not be

reissued.