N.Y. Banking Law § 228-c: Purposes, powers and operation

§ 228-c. Purposes, powers and operation. 1. (a) The purposes of the

NYSBIC shall be to serve the needs of the small business community in

the state of New York. The NYSBIC shall direct its efforts towards

providing small business with start-up, venture, operating or working

capital, particularly where general economic and historical conditions,

such as recent employment displacement caused by international,

national, state, regional, and local economic developments, have

prevented traditional capital sources from extending credit to such

small businesses.

(b) The purposes of the NYSSBIC shall be to provide financing to

facilitate small business ownership by minorities and persons who reside

in highly distressed areas as defined in section two hundred

twenty-eight-b of this article, neighborhood based alliance communities,

and persons eligible for the earned income tax credit under an act to

amend the internal revenue code of 1954, Pub. L. 94-12, 89 Stat. 30

(1975), as amended, and the regulations promulgated thereunder, whose

participation in the free enterprise system is hampered by an inability

to compete effectively for capital in the marketplace due to prevailing

or past restrictive practices provided, however, in approving

applications for assistance, priority shall be given to minorities

residing in neighborhood based alliance communities, designated empire

zones or highly distressed areas. The NYSSBIC shall direct its efforts

toward providing these businesses with start-up, venture, operating or

working capital. The NYSSBIC will adopt an investment policy consistent

with the policy set forth in Section 301(d).

(c) The NYSBIC and the NYSSBIC shall function as licensees and perform

the respective functions set forth in Title III and applicable

regulations.

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 the business corporation law, the NYSBIC and the NYSSBIC shall,

subject to the restrictions and limitations contained in this article

and without limiting any power otherwise conferred herein, have the

following powers:

(a) To lend money and conduct other financing transactions at such

rate or rates as may be available to banking organizations licensed

under this chapter; and

(b) To enter such business and financing transactions and arrangements

at such rates and under such terms and conditions as may be permitted to

licensees under Sections 301(c), 301(d) and applicable regulations.