§ 555 — Financial structure

§ 555. Financial structure. 1. (a) The entire amount to be paid in\ncash or property by the stockholders and income debenture holders of a\nhousing company acquiring fee title to a project shall be equivalent to\nat least twenty per centum of the cost of acquisition of such project as\ncertified by the commissioner in the case of companies organized\npursuant to the provisions of article four of this chapter, or at least\nten per centum of the cost of acquisition in the case of companies\norganized pursuant to the provisions of article two of this chapter, as\ncertified by the commissioner or supervising agency, as the case may be.\n (b) The entire amount to be paid in cash or property by the\nstockholders and income debenture holders of a housing company acquiring\na project by lease shall be determined by the commissioner or\nsupervising agency, as the case may be. In the event a state-aided\nproject shall be acquired by a municipally-aided company by lease, the\napproval of the commissioner shall be required in addition to the\napproval of the supervising agency.\n 2. The provisions of subdivision one hereof shall not be applicable to\nany housing company organized pursuant to article four of this chapter\nif such company shall receive a loan from the federal government or any\ninstrumentality thereof, or if any mortgage or mortgage bonds insured by\nthe federal housing administration are used in financing the project, or\nthe acquisition thereof, in whole or in part. In such case the equity\nrequired shall be the difference between the amount of such loan or\nmortgage and the cost of acquisition.\n