New York § 108 - 108Consideration for capital and bonds

§ 108. 108Consideration 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.