2017 New York Laws
BNK - Banking
Article 15 - General Provisions Applicable to Banking Stock Corporations, Limited Liability Investment Companies, and Limited Liability Trust Companies
Title 5 - Corporate Finance
5010 - Share Distributions and Changes.

 5010. Share distributions and changes. 1. A corporation may make pro
  rata  distributions  of its authorized but unissued shares to holders of
  any class or series of its outstanding shares, subject to the  following
  conditions:
(a) Such shares shall be issued at not less than the par value thereof
  and  there  shall  be  transferred  to capital stock at the time of such
  distribution an amount of undivided profits  or  surplus  equal  to  the
  aggregate par value of such shares.
(b)  A  distribution of shares of any class or series may be made only
  to holders of the same class or series of shares unless the organization
  certificate permits distribution, subject to the  preemptive  rights  of
  holders of any outstanding shares, to holders of another class or series
  or unless such distribution is authorized, when there are no outstanding
  preemptive rights, by the affirmative vote or the written consent of the
  holders  of  a majority of the outstanding shares of the class or series
  to be distributed.
2. A corporation making a pro  rata  distribution  of  authorized  but
  unissued  shares  to  the  holders of any class or series of outstanding
  shares may at its option make an equivalent distribution  upon  treasury
  shares  of the same class or series, and any shares so distributed shall
  be treasury shares.
3. A change  of  issued  shares  of  any  class  which  increases  the
  aggregate  par  value  of  those  shares  may  be made if the sum of the
  undivided profits and surplus of the corporation is sufficient to permit
  the transfer, and  a  transfer  is  concurrently  made,  from  undivided
  profits  or  surplus  to  capital  stock,  of  an  amount  equal to such
  increase.