N.Y. Private Housing Finance Law § 19: Consideration for issuance of stock, bonds or income debentures

§ 19. Consideration for issuance of stock, bonds or income debentures.

No company shall issue stock, bonds, or income debentures except for

money or property actually received for the use and lawful purposes of

the company, provided, however, that a mutual company may issue stock

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 company toward the issuance of such stock. No stock, bonds or

income debentures shall be issued for property except upon a valuation

approved by the supervising agency or by the commissioner, as the case

may be, and such valuations shall be used in computing the estimated or

actual project cost.