S T A T E O F N E W Y O R K
________________________________________________________________________
897
2009-2010 Regular Sessions
I N S E N A T E
January 21, 2009
___________
Introduced by Sen. KRUGER -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development
AN ACT to amend the private housing finance law, in relation to the
reserves for the retirement of stocks and debentures
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 28 of the private housing finance
law, as amended by chapter 628 of the laws of 1962, is amended to read
as follows:
1. There shall be paid annually out of the earnings of the company,
after providing for all taxes, assessments and expenses, a sum for
interest on and amortization of the mortgage indebtedness of all mort-
gages of the company, depreciation charges and reserves if, when and to
the extent deemed necessary by the commissioner or the supervising agen-
cy, as the case may be, plus a dividend of six per centum on outstanding
stock and interest not exceeding six per centum on the outstanding
income debentures of the company; the obligation in respect of such
payments shall be cumulative, and any deficiency in interest, amorti-
zation, 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 the 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 condi-
tions approved by the commissioner and the state comptroller or by the
supervising agency, as the case may be. A sinking fund may be author-
ized by the commissioner or the supervising agency, to purchase and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06429-01-9
S. 897 2
retire bonds, income debentures or stock of the company at a price
approved by the commissioner or the supervising agency, as the case may
be, not exceeding par value thereof with accrued or unpaid dividends or
interest or if it be not practical to purchase such stock or income
debentures at a price so approved, the money in such sinking fund may be
added to the surplus of such company. SUCH SINKING FUND SHALL BE
AUTHORIZED ONLY WHEN THE EARNINGS OF THE HOUSING COMPANY EXCEED SIX PER
CENTUM. DEPOSITS TO A SINKING FUND SHALL NOT BE A FACTOR IN THE DETER-
MINATION OF RENTS. Any stock or income debentures purchased out of such
sinking fund shall be cancelled and shall not be reissued.
S 2. This act shall take effect on the first of July next succeeding
the date on which it shall have become a law.