New York Consolidated Laws, Business Corporation Law - BSC § 518. Corporate bonds

(a) No corporation shall issue bonds except for money or other property, tangible or intangible;  labor or services actually received by or performed for the corporation or for its benefit or in its formation or reorganization;  a binding obligation to pay the purchase price thereof in cash or other property;  a binding obligation to perform services having an agreed value;  or a combination thereof.  In the absence of fraud in the transaction, the judgment of the board as to the value of the consideration received shall be conclusive.

(b) If a distribution of its own bonds is made by a corporation to holders of any class or series of its outstanding shares, there shall be concurrently transferred to the liabilities of the corporation in respect of such bonds an amount of surplus equal to the principal amount of, and any accrued interest on, such bonds.  The amount of the surplus so transferred shall be the consideration for the issue of such bonds.

(c) A corporation may, in its certificate of incorporation, confer upon the holders of any bonds issued or to be issued by the corporation, rights to inspect the corporate books and records and to vote in the election of directors and on any other matters on which shareholders of the corporation may vote.