§ 78. Consideration for capital and bonds. No housing company which is
a corporation shall issue shares, nor shall a housing company which is a
partnership credit sums to the partners on capital account, nor shall a
housing company which is a trust subject amounts to the trust, and no
housing company shall issue bonds or income debentures, except for money
or property actually received for the use and lawful purposes of the
housing company, provided, however, that a mutual housing company may
issue shares for home owners purchase notes if the purchase transaction
has received the written endorsement of the commissioner in accordance
with supplementary rules and regulations of the commissioner made
therefor and if at least two hundred dollars in money or property is
received by such mutual housing company toward the issuance of such
shares. The consideration for all capital, bonds or income debentures
based upon property received shall equal a valuation approved by the
commissioner and such valuation shall be used in computing actual or
estimated cost.

In no event shall the capital of, and income debentures issued by, the
housing company be less than the total of twenty per centum of the
actual cost, as defined in this article, of any project or projects
undertaken pursuant to this article.

The commissioner may permit capital to be increased, or income
debentures to be issued, to an amount not exceeding three per centum of
the estimated total cost, or three per centum of the actual cost, if
actual cost should exceed estimated cost, of a project for working
capital to be used in connection with such project.