§ 121 — Sinking fund

New York § 121

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 5: Redevelopment Companies

Text

§ 121. Sinking fund. Unless other provision be made therefor in the\ncontract with the municipality, the supervising agency, if it shall deem\nit feasible at any time, subject to the limitation contained in section\none hundred seven of this article, may require a redevelopment company\nto provide out of earnings, after provision for distributions and\ninterest, a sinking fund in an amount to be fixed by such supervising\nagency for the gradual retirement of the capital and income debenture\ncertificates of such company. Such sinking fund may be used either for\nthe purchase or retirement, from time to time, of capital or income\ndebenture certificates at a price approved by the supervising agency not\nexceeding par value thereof with accrued and unpaid distributions or\ninterest, or if it be not practicable to purchase or retire such capital\nor such income debenture certificates at a price so approved, the moneys\nin such sinking fund may be added to the surplus of such company. Any\ncapital evidenced by shares or income debenture certificates purchased\nor retired out of such sinking fund shall be cancelled and shall not be\nreissued.\n