N.Y. Private Housing Finance Law § 88: Surplus

§ 88. Surplus. The amount of net earnings transferable to surplus in

any year after making or providing for the payments specified in items

(a), (b) and (c) of subdivision one of section eighty-five of this

article shall be subject to the approval of the commissioner. The amount

of such surplus shall not exceed twelve per centum of the outstanding

capital and income debentures of the housing company, but the surplus so

limited shall not be deemed to include any increase in assets due to

reduction of mortgage or amortization or similar payments. On

dissolution of any housing company, organized as a corporation, the

shareholders shall in no event receive more than the par value of their

shares plus accumulated, accrued or unpaid dividends at the rate of six

per centum per annum; on dissolution of a housing company organized as a

partnership, the partners shall in no event receive more than the value

of their paid in capital plus accumulated, accrued or unpaid

distributions on capital at the rate of six per centum per annum; on

termination of a housing company organized as a trust, the beneficiaries

shall in no event receive more than the value of the money or property

subject to the trust plus accumulated, accrued or unpaid distributions

on capital at the rate of six per centum per annum; on dissolution of

any housing company income debenture holders shall in no event receive

more than the face value of income debentures outstanding plus

accumulated, accrued and unpaid interest at the rate of six per centum

per annum. Any remaining surplus shall be paid into the general fund of

the state of New York, if the buildings and the improvements of the

project have not received exemption from taxation by the municipality

pursuant to subdivision three or four of section ninety-three and if the

company has not received a loan from the municipality, but if such tax

exemption or loan has been received, any remaining surplus shall be paid

into the general fund of the municipality.