Frankowski v. Palermo

— Order unanimously reversed, with costs, and summary judgment granted plaintiff in accordance with the following memorandum: A cash purchase of par value stock cannot he made under section 504 of the Business Corporation Law for less than par value (Stone v. Young, 210 App. Div. 303; 2 White, New York Corporations [13th ed.], par. 504.02). In determining whether full par value has been paid for the issuance of par value stock, the cancellation of a corporation debt is considered equivalent to a cash payment in the amount of the debt (Feeder v. Mudgett, 95 N". Y. 295, 315; 2 White, New York…