N.Y. Private Housing Finance Law § 108

§ 108. Consideration for capital and bonds. No redevelopment company\nwhich is a corporation shall issue shares, nor shall a redevelopment\ncompany which is a partnership credit sums to the partners on capital\naccount, nor shall a redevelopment company which is a limited liability\ncompany credit sums to the members on capital account, nor shall a\nredevelopment company which is a trust subject amounts to the trust, and\nno redevelopment company shall issue bonds or income debenture\ncertificates except for money or property actually received for the use\nand lawful purposes of the redevelopment company, provided, however,\nthat a mutual redevelopment company may issue shares for home owners\npurchase notes if the purchase transaction has received the written\nendorsement of the commissioner in accordance with supplementary rules\nand regulations of the commissioner made therefor and if at least two\nhundred dollars in money or property is received by such mutual\nredevelopment company toward the issuance of such shares. The\nconsideration for all capital, bonds or income debenture certificates\nbased upon property received shall equal a valuation approved by the\nsupervising agency and such a valuation shall be used in computing\nactual or estimated cost.\n