N.Y. Banking Law § 212: Purposes, powers and operation

§ 212. Purposes, powers and operation. 1. (a) The purposes of such

corporation shall be to assist, promote, encourage and, through the

cooperative efforts of the institutions and corporations which shall,

from time to time, become members thereof, develop and advance the

business prosperity and economic welfare of the state; to encourage and

assist in the location of new business and industry in the state and to

rehabilitate and retain existing business and industry; to stimulate and

assist in the expansion of all kinds of business activity which will

tend to promote the business development and maintain the economic

stability of the state, provided maximum opportunities for employment,

encourage thrift and improve the standard of living of the citizens of

the state; to cooperate and act in conjunction with other organizations,

public or private, the objects of which are the promotion and

advancement of industrial, commercial, agricultural and recreational

developments in the state; to furnish money and credit to approved and

deserving applicants, for the promotion, development and conduct of all

kinds of business activity in the state, thereby establishing a source

of credit not otherwise readily available; and to provide financial

assistance in the form of loans to small businesses unable to obtain

financing from other private sources, including, but not limited to,

assistance to women and minority-owned business enterprises and small

businesses located in economically distressed areas. For the purposes of

this article, "economically distressed areas" shall mean areas

determined by the commissioner of the department of economic development

on the basis of criteria indicative of economic distress, including

poverty rates, numbers of persons receiving public assistance,

unemployment rates, rate of employment decline, population loss, rate of

per capita income change, decline in economic activity and private

investment, and such other indicators as the commissioner deems

appropriate. Economically distressed areas may include cities,

municipalities, block numbering areas, and census tracts.

(b) The corporation shall undertake the following programs in

furtherance of the above objectives: (i) establish regional offices at

locations throughout New York, with sufficient staffing to advise,

develop and package financial assistance for small and medium sized

businesses; (ii) develop a comprehensive outreach program to increase

the visibility and awareness of the corporation's programs, including

allocating budget and staff to establish and maintain an aggressive and

extensive marketing program of the corporation's program of assistance

to small and medium sized businesses, providing for specific outreach to

minority and women-owned enterprises, and entering into cooperative

relationships with local chambers of commerce, local development

agencies, local development corporations and other community based

financial intermediaries as set forth in subdivision three of this

section; (iii) establish and operate, or affiliate with a small business

investment company and a specialized small business investment company;

(iv) establish a pilot export financing program, using personnel from

the private sector, to evaluate whether the corporation can play a

significant role in the growth of the export industry in the state and

(v) establish a program in cooperation with the empire state development

corporation that shall focus on small businesses located in highly

distressed areas and minority and women-owned business enterprises

(MWBEs) as such designations are defined by the New York state urban

development corporation act, through which the corporation shall be

authorized to: (A) act as third-party agent for the capital access

program established by section sixteen-k of section one of chapter one

hundred seventy-four of the laws of nineteen hundred sixty-eight,

constituting the urban development corporation act; (B) process, fund

and approve qualifying program loans made by the corporation or a

participating financial institution pursuant to section sixteen-k of

section one of chapter one hundred seventy-four of the laws of nineteen

hundred sixty-eight, constituting the urban development corporation act;

(C) maintain and service a portfolio of qualifying loans made pursuant

to the capital access program; and (D) engage in outreach and marketing

to financial institutions to increase awareness of the program

established under this subparagraph. The corporation shall undertake the

programs enumerated herein at such times as its board of directors

determines that the corporation's capital base and available funds are

adequate to support the operation of such program. The programs

enumerated herein may be modified by the corporation as may be necessary

to meet the changing needs of the state's economy, as determined by the

board of directors.

2. In furtherance of the purposes set forth in subdivision one of this

section, and in addition to the powers conferred on stock corporations

by general laws, such corporation shall, subject to the restrictions and

limitations contained in this article, have the following powers:

(a) To borrow money and otherwise incur indebtedness for any of its

purposes; to issue its bonds, debentures, notes or other evidences of

indebtedness, whether secured or unsecured, therefor; and to secure the

same by mortgage, pledge, deed of trust or other lien on its property,

franchises, rights and privileges of every kind and nature or any part

thereof.

(b) To assist, promote, encourage and through the cooperative efforts

of the institutions and corporations which shall, from time to time,

become members thereof, develop and advance the business prosperity and

economic welfare of the state; to encourage and assist in the location

of new business and industry in the state and to rehabilitate existing

business and industry; to evaluate, assess and determine the value of a

patent right and to take, sell or transfer an agreement or note pursuant

to section five hundred fifty of the general business law, to lend money

to, and to guarantee, endorse, or act as surety on the bonds, notes,

contracts, or other obligations of, or otherwise assist financially, any

person, firm, corporation or association, and to establish and regulate

the terms and conditions with respect to any such loans or financial

assistance and the charges for interest and service connected therewith;

provided, however, that it shall not be the intention hereof to take

from banking organizations any such loans or commitments as may be

desired by such organizations generally in the ordinary course of their

business.

(c) To purchase, receive, hold, lease, or otherwise acquire, and to

sell, convey, mortgage, lease, pledge, or otherwise dispose of, upon

such terms and conditions as its board of directors may deem advisable,

real and personal property, together with such rights and privileges as

may be incidental and appurtenant thereto and the use thereof,

including, but not restricted to, any real or personal property acquired

by such corporation from time to time in the satisfaction of debts or

enforcement of obligations.

(d) To acquire the good will, business, rights, real and personal

property and other assets, or any part thereof, of such persons, firms,

corporations, joint stock companies, associations or trusts as may be in

furtherance of the corporate purposes provided herein, and to assume,

undertake, guarantee or pay the obligations, debts and liabilities of

any such person, firm, corporation, joint stock company, association or

trust; to acquire improved or unimproved real estate for the purpose of

constructing industrial plants or other business establishments thereon

or for the purpose of disposing of such real estate to others for the

construction of industrial plants or other business establishments, and,

in furtherance of the corporate purposes provided herein, to acquire,

construct, or reconstruct, alter, repair, maintain, operate, sell,

lease, or otherwise dispose of industrial plants or business

establishments.

(e) To acquire, subscribe for, own, hold, sell, assign, transfer,

mortgage, pledge or otherwise dispose of the stock, shares, bonds,

debentures, notes or other securities and evidences of interest in, or

indebtedness of, any person, firm, corporation, joint stock company,

association or trust, and while the owner or holder thereof, to exercise

all the rights, powers and privileges of ownership, including the right

to vote thereon.

(f) To cooperate with and avail itself of the facilities of the state

department of commerce and any other government agencies; and to

cooperate with and assist, and otherwise encourage, local organizations

in the various communities in the state in the promotion, assistance and

development of the business prosperity and economic welfare of such

communities and of the state.

(g) (1) To acquire a patent right or any part thereof, from such

persons, firms, corporations, joint stock companies, associations or

trusts as may be in furtherance of the corporate purposes provided

herein; (2) to assume, undertake, guarantee or pay the obligations,

debts and liabilities of any such person, firm, corporation, joint stock

company, association or trust; (3) to set forth specific criteria and

standards by which the corporation shall evaluate the patent and the

value of patent rights evolving from that patent; and (4) to allow

ownership of the patent to remain with the borrower and to accept a

percentage of the patent rights as collateral on a loan for capital

formation of a business.

(h) With respect to funds administered by the corporation, to obtain

loan guarantees from any state or federal program to guarantee loans

made to small businesses by the corporation with such funds.

3. The corporation may contract or otherwise affiliate with local

development corporations and other local development organizations

certified for this purpose by the commissioner of the department of

economic development throughout the state, including, but not limited

to, not-for-profit corporations established pursuant to article nine of

the economic development law, to market the programs of the corporation

to small and medium sized businesses, to provide technical, financial

packaging and loan application assistance to business owners seeking

financial assistance from the corporation, including but not limited to

minority owned business enterprises and small and medium sized

businesses located in economically distressed areas.