88. Surplus. The amount of net earnings transferable to surplus in any year after making or providing for the payments specified in items (a), (b) and (c) of subdivision one of section eighty-five of this article shall be subject to the approval of the commissioner. The amount of such surplus shall not exceed twelve per centum of the outstanding capital and income debentures of the housing company, but the surplus so limited shall not be deemed to include any increase in assets due to reduction of mortgage or amortization or similar payments. On dissolution of any housing company, organized as a corporation, the shareholders shall in no event receive more than the par value of their shares plus accumulated, accrued or unpaid dividends at the rate of six per centum per annum; on dissolution of a housing company organized as a partnership, the partners shall in no event receive more than the value of their paid in capital plus accumulated, accrued or unpaid distributions on capital at the rate of six per centum per annum; on termination of a housing company organized as a trust, the beneficiaries shall in no event receive more than the value of the money or property subject to the trust plus accumulated, accrued or unpaid distributions on capital at the rate of six per centum per annum; on dissolution of any housing company income debenture holders shall in no event receive more than the face value of income debentures outstanding plus accumulated, accrued and unpaid interest at the rate of six per centum per annum. Any remaining surplus shall be paid into the general fund of the state of New York, if the buildings and the improvements of the project have not received exemption from taxation by the municipality pursuant to subdivision three or four of section ninety-three and if the company has not received a loan from the municipality, but if such tax exemption or loan has been received, any remaining surplus shall be paid into the general fund of the municipality.
Last modified: February 3, 2019