New York Laws
Article 5 - Redevelopment Companies
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.