N.Y. BSC Law § 512

§ 512. Redeemable shares.\n (a) Subject to the restrictions contained in section 513 (Purchase,\nredemption and certain other transactions by a corporation with respect\nto its own shares) and paragraph (b) of this section, a corporation may\nprovide in its certificate of incorporation for one or more classes or\nseries of shares which are redeemable, in whole or in part, at the\noption of the corporation, the holder or another person or upon the\nhappening of a specified event.\n (b) No redeemable common shares, other than shares of an open-end\ninvestment company, as defined in an act of congress entitled\n"Investment Company Act of 1940", as amended, or of a member corporation\nof a national securities exchange registered under a statute of the\nUnited States such as the Securities Exchange Act of 1934, as amended,\nor of a corporation described in this paragraph, shall be issued or\nredeemed unless the corporation at the time has outstanding a class of\ncommon shares that is not subject to redemption. Any common shares of a\ncorporation which directly or through a subsidiary has a license or\nfranchise to conduct its business, which license or franchise is\nconditioned upon some or all of the holders of such corporation's common\nshares possessing prescribed qualifications, may be made subject to\nredemption by the corporation to the extent necessary to prevent the\nloss of, or to reinstate, such license or franchise.\n (c) Shares of any class or series which may be made redeemable under\nthis section may be redeemed for cash, other property, indebtedness or\nother securities of the same or another corporation, at such time or\ntimes, price or prices, or rate or rates, and with such adjustments, as\nshall be stated in the certificate of incorporation.\n (d) Nothing in this section shall prevent a corporation from creating\nsinking funds for the redemption or purchase of its shares to the extent\npermitted by section 513 (Purchase, redemption and certain other\ntransactions by a corporation with respect to its own shares).\n