2010 New York Code
BSC - Business Corporation
Article 5 - (501 - 520) CORPORATE FINANCE
512 - Redeemable shares.

§ 512. Redeemable shares.
    (a)  Subject  to  the restrictions contained in section 513 (Purchase,
  redemption and certain other transactions by a corporation with  respect
  to  its own shares) and paragraph (b) of this section, a corporation may
  provide in its certificate of incorporation for one or more  classes  or
  series  of  shares  which  are  redeemable,  in whole or in part, at the
  option of the corporation, the holder or  another  person  or  upon  the
  happening of a specified event.
    (b)  No  redeemable  common  shares,  other than shares of an open-end
  investment  company,  as  defined  in  an  act  of   congress   entitled
  "Investment Company Act of 1940", as amended, or of a member corporation
  of  a  national  securities  exchange  registered under a statute of the
  United States such as the Securities Exchange Act of 1934,  as  amended,
  or  of  a  corporation  described  in this paragraph, shall be issued or
  redeemed unless the corporation at the time has outstanding a  class  of
  common  shares that is not subject to redemption. Any common shares of a
  corporation which directly or through a  subsidiary  has  a  license  or
  franchise  to  conduct  its  business,  which  license  or  franchise is
  conditioned upon some or all of the holders of such corporation's common
  shares possessing prescribed qualifications,  may  be  made  subject  to
  redemption  by  the  corporation  to the extent necessary to prevent the
  loss of, or to reinstate, such license or franchise.
    (c) Shares of any class or series which may be made  redeemable  under
  this  section  may be redeemed for cash, other property, indebtedness or
  other securities of the same or another corporation,  at  such  time  or
  times,  price or prices, or rate or rates, and with such adjustments, as
  shall be stated in the certificate of incorporation.
    (d) Nothing in this section shall prevent a corporation from  creating
  sinking funds for the redemption or purchase of its shares to the extent
  permitted  by  section  513  (Purchase,  redemption  and  certain  other
  transactions by a corporation with respect to its own shares).