§ 2863 — Payment out of earnings of limited-profit nursing home companies

§ 2863. Payment out of earnings of limited-profit nursing home\ncompanies. There shall be paid annually out of the earnings of the\nlimited-profit nursing home company, after providing for all taxes,\nassessments and expenses, a sum for interest on an amortization of the\nmortgage indebtedness of all mortgages of the company, depreciation\ncharges and reserves if, when and to the extent deemed necessary by the\ncommissioner, plus a dividend of six per centum on outstanding shares\nand interest not exceeding six per centum on the outstanding debentures\nof the company; the obligation in respect to such payments shall be\ncumulative, and any deficiency in interest, amortization, depreciation,\nreserves, if any, and dividends in any year shall be paid either from\nany cash surplus derived from earnings remaining in the treasury of such\ncompany in excess of the amount necessary to provide such cumulative\nannual sums or from the first available earnings in subsequent years.\nIf, at the end of any three year period, the gross receipts should\nexceed the payments or charges necessary for the purposes of the project\nor projects and are not needed for a sinking fund, reserves or other\npurposes, the balance may be paid in further reduction of any\nindebtedness to the extent and upon terms and conditions approved by the\ncommissioner. A sinking fund may be authorized by the commissioner to\npurchase and retire debentures or shares of the company at a price\napproved by the commissioner not exceeding par value thereof with\naccrued or unpaid dividends or interest or, if it is not practical to\npurchase such shares or debentures at a price so approved, the money in\nsuch sinking fund may be added to the surplus of such company. Any\nshares or debentures purchased out of such sinking fund shall be\ncancelled and shall not be reissued.\n