§ 304. Limitations upon payments on indebtedness and stock. A railroad redevelopment corporation shall not declare or pay any dividends on its capital stock or make any payments of interest or principal upon any bonds or other indebtedness of such corporation which its certificate of approval, with the consent of any bondholders or other creditors affected thereby, specifically provides shall not be made. In no event shall any such corporation pay dividends on its stock at a rate in excess of five per centum per annum. No bondholder or creditor or stockholder of such corporation shall receive any payments which are prohibited hereunder.

Terms Used In N.Y. Railroad Law 304

  • certificate of approval: when used in this article, shall mean the certificate of approval as it may be amended from time to time. See N.Y. Railroad Law 303
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
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