§ 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.