Section 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.