§ 2863. Payment out of earnings of limited-profit nursing home
companies. There shall be paid annually out of the earnings of the
limited-profit nursing home company, after providing for all taxes,
assessments and expenses, a sum for interest on an amortization of the
mortgage indebtedness of all mortgages of the company, depreciation
charges and reserves if, when and to the extent deemed necessary by the
commissioner, plus a dividend of six per centum on outstanding shares
and interest not exceeding six per centum on the outstanding debentures
of the company; the obligation in respect to such payments shall be
cumulative, and any deficiency in interest, amortization, 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 such
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 conditions approved by the
commissioner. A sinking fund may be authorized by the commissioner to
purchase and retire debentures or shares of the company at a price
approved by the commissioner not exceeding par value thereof with
accrued or unpaid dividends or interest or, if it is not practical to
purchase such shares or debentures at a price so approved, the money in
such sinking fund may be added to the surplus of such company. Any
shares or debentures purchased out of such sinking fund shall be
cancelled and shall not be reissued.