§ 212 — Limited return on income debentures and stock

§ 212. Limited return on income debentures and stock. 1. No\nredevelopment corporation shall pay any interest on its income\ndebentures or dividends on its stock during any dividend year, unless\nthere shall exist at the time of any such payment no default under any\namortization requirements with respect to its indebtedness.\n 2. No redevelopment corporation shall pay or declare as interest on\nits income debentures and as dividends on its stock during any dividend\nyear during any portion of which there shall exist pursuant to section\ntwo hundred eleven of this article any exemption from local taxation on\nany of its real property, an amount which in the aggregate is in excess\nof the maximum dividend, except as provided in paragraphs three and four\nof this section two hundred twelve.\n 3. In the event that in any dividend year the maximum exemption period\nwith respect to some of the parcels of real property held by a\nredevelopment corporation shall have expired, and with respect to some\nsuch parcels shall not have expired, then that portion of its net\nearnings which may be paid or declared as interest on its income\ndebentures and as dividends on its stock during such dividend year shall\nbe determined as follows: multiply the net earnings of the corporation\nsubject to payment or declaration as such interest or dividends, by a\nfraction the numerator of which is the total of the maximum assessed\nvaluation of all real property for which the maximum exemption period\nhas not expired and the denominator of which is the total of the maximum\nassessed valuation of all the real property of the corporation; and the\nresult will be the apportioned net earnings restricted as to payment as\nsuch interest or dividends; compute the amount of the maximum dividend\nas though no apportionment of the same were to be affected and multiply\nthe amount so arrived at by the same fraction; and the result will be\nthe apportioned maximum dividend; only that portion of such apportioned\nnet earnings which does not exceed such apportioned maximum dividend may\nbe paid or declared as such interest or dividends; and that portion of\nthe net earnings obtained by subtracting from total net earnings such\napportioned net earnings restricted as to payment as such interest and\ndividends may be paid or declared without restriction as such interest\nor dividends.\n 4. In the event that in any one or more prior dividend years the total\namount paid or declared as interest on the corporation's income\ndebentures or as dividends on its stock shall have been less than the\namounts allowable pursuant to paragraphs two and three of this section\ntwo hundred twelve, then cumulative interest and dividends equal to the\ndifference may be paid out of any net income applicable thereto in any\nsubsequent dividend year despite the limitation imposed by paragraph two\nof this section two hundred twelve.\n