2006 New York Code - Payment Out Of Earnings Of Limited-profit Nursing Home Companies.

 
    §  2863.  Payment  out  of  earnings  of  limited-profit  nursing home
  companies. There shall be paid annually  out  of  the  earnings  of  the
  limited-profit  nursing  home  company,  after  providing for all taxes,
  assessments and expenses, a sum for interest on an amortization  of  the
  mortgage  indebtedness  of  all  mortgages  of the company, depreciation
  charges and reserves if, when and to the extent deemed necessary by  the
  commissioner,  plus  a  dividend of six per centum on outstanding shares
  and interest not exceeding six per centum on the outstanding  debentures
  of  the  company;  the  obligation  in respect to such payments shall be
  cumulative, and any deficiency in interest, amortization,  depreciation,
  reserves,  if  any,  and dividends in any year shall be paid either from
  any cash surplus derived from earnings remaining in the treasury of such
  company in excess of the amount necessary  to  provide  such  cumulative
  annual  sums  or  from the first available earnings in subsequent years.
  If, at the end of any three  year  period,  the  gross  receipts  should
  exceed the payments or charges necessary for the purposes of the project
  or  projects  and  are  not needed for a sinking fund, reserves or other
  purposes,  the  balance  may  be  paid  in  further  reduction  of   any
  indebtedness to the extent and upon terms and conditions approved by the
  commissioner.  A  sinking  fund may be authorized by the commissioner to
  purchase and retire debentures or shares  of  the  company  at  a  price
  approved  by  the  commissioner  not  exceeding  par  value thereof with
  accrued or unpaid dividends or interest or, if it is  not  practical  to
  purchase  such shares or debentures at a price so approved, the money in
  such sinking fund may be added to  the  surplus  of  such  company.  Any
  shares  or  debentures  purchased  out  of  such  sinking  fund shall be
  cancelled and shall not be reissued.