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.
Terms Used In N.Y. Private Housing Finance Law 108
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- mutual: when applied to a redevelopment company shall mean a redevelopment company which is a corporation operated exclusively for the benefit of the persons or families who are entitled to occupancy in a project of such redevelopment company by reason of ownership of shares in such redevelopment company. See N.Y. Private Housing Finance Law 102
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.