New York Laws
Article 5 - Redevelopment Companies
121 - Sinking Fund.

§ 121. Sinking fund. Unless other provision be made therefor in the
contract with the municipality, the supervising agency, if it shall deem
it feasible at any time, subject to the limitation contained in section
one hundred seven of this article, may require a redevelopment company
to provide out of earnings, after provision for distributions and
interest, a sinking fund in an amount to be fixed by such supervising
agency for the gradual retirement of the capital and income debenture
certificates of such company. Such sinking fund may be used either for
the purchase or retirement, from time to time, of capital or income
debenture certificates at a price approved by the supervising agency not
exceeding par value thereof with accrued and unpaid distributions or
interest, or if it be not practicable to purchase or retire such capital
or such income debenture certificates at a price so approved, the moneys
in such sinking fund may be added to the surplus of such company. Any
capital evidenced by shares or income debenture certificates purchased
or retired out of such sinking fund shall be cancelled and shall not be
reissued.

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