N.Y. Private Housing Finance Law § 256: Mortgage loans

§ 256. Mortgage loans. The New York state housing finance agency may

enter into contracts for loans to community development corporations for

one or more projects. No loan shall be made in an amount greater than

ninety-five per centum of the project cost, plus working capital in an

amount not to exceed two per centum of the project cost. Any such loan

shall be secured by a first mortgage lien upon all of the real property

of which the project consists and upon all fixtures and articles of

personal property attached to or used in conjunction with the operation

of such project. The agency may make temporary loans or advances to a

community development corporation in anticipation of such loan and no

such temporary loan or advance shall be deemed to constitute part of

such loan unless such temporary loan or advance has been made out of the

proceeds of definitive bonds sold by the agency pursuant to the

provisions of section forty-six of this chapter.