New York Laws
Article 6 - Urban Redevelopment Corporations
212 - Limited Return on Income Debentures and Stock.

§ 212. Limited return on income debentures and stock. 1. No
redevelopment corporation shall pay any interest on its income
debentures or dividends on its stock during any dividend year, unless
there shall exist at the time of any such payment no default under any
amortization requirements with respect to its indebtedness.

2. No redevelopment corporation shall pay or declare as interest on
its income debentures and as dividends on its stock during any dividend
year during any portion of which there shall exist pursuant to section
two hundred eleven of this article any exemption from local taxation on
any of its real property, an amount which in the aggregate is in excess
of the maximum dividend, except as provided in paragraphs three and four
of this section two hundred twelve.

3. In the event that in any dividend year the maximum exemption period
with respect to some of the parcels of real property held by a
redevelopment corporation shall have expired, and with respect to some
such parcels shall not have expired, then that portion of its net
earnings which may be paid or declared as interest on its income
debentures and as dividends on its stock during such dividend year shall
be determined as follows: multiply the net earnings of the corporation
subject to payment or declaration as such interest or dividends, by a
fraction the numerator of which is the total of the maximum assessed
valuation of all real property for which the maximum exemption period
has not expired and the denominator of which is the total of the maximum
assessed valuation of all the real property of the corporation; and the
result will be the apportioned net earnings restricted as to payment as
such interest or dividends; compute the amount of the maximum dividend
as though no apportionment of the same were to be affected and multiply
the amount so arrived at by the same fraction; and the result will be
the apportioned maximum dividend; only that portion of such apportioned
net earnings which does not exceed such apportioned maximum dividend may
be paid or declared as such interest or dividends; and that portion of
the net earnings obtained by subtracting from total net earnings such
apportioned net earnings restricted as to payment as such interest and
dividends may be paid or declared without restriction as such interest
or dividends.

4. In the event that in any one or more prior dividend years the total
amount paid or declared as interest on the corporation's income
debentures or as dividends on its stock shall have been less than the
amounts allowable pursuant to paragraphs two and three of this section
two hundred twelve, then cumulative interest and dividends equal to the
difference may be paid out of any net income applicable thereto in any
subsequent dividend year despite the limitation imposed by paragraph two
of this section two hundred twelve.