2006 New York Code - 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.