N.Y. Public Authorities Law § 1822: Loans to local development corporations

§ 1822. Loans to local development corporations. a. No mortgage loan

shall be made by the authority under the provisions of subtitle II with

respect to a project unless: (1) the local development corporation has

obtained firm commitments satisfactory to the authority from responsible

financial sources, which may but need not include a federal agency or

the project occupant, for the total project cost exclusive of any loan

requested from the authority, (2) the local development corporation has

obtained a firm commitment satisfactory to the authority from the

project occupant or from a business enterprise described in section

eighteen hundred twenty-seven to lease or use the project after

construction, acquisition, rehabilitation or improvement is completed,

(3) the authority approves the terms of such lease or use and is

satisfied that the project occupant or a business enterprise described

in section eighteen hundred twenty-seven may reasonably be expected to

comply with the terms thereof, (4) the principal amount of such loan is

forty percent or less of the project cost, except as set forth in

paragraphs (a) and (b) of subdivision two of section eighteen hundred

three and paragraph (a) of subdivision seven of section eighteen hundred

twenty-three of this chapter, (5) such loan is secured by a mortgage on

the project, and (6) such mortgage is not a junior encumbrance on the

project by more than fifty percent of the project cost.

b. No loan shall be made by the authority under the provisions of

subtitle III with respect to a project unless: (1) the local development

corporation has obtained firm commitments satisfactory to the authority

from responsible financial sources, which may but need not include a

federal agency or the project occupant, for the total project cost

exclusive of any loan requested from the authority, (2) the local

development corporation has obtained a firm commitment satisfactory to

the authority from the project occupant to lease or use the project

after construction, acquisition, rehabilitation or improvement is

completed, (3) the authority approves the terms of such lease or use and

is satisfied that the project occupant may reasonably be expected to

comply with the terms thereof, (4) the amount of such loan is ninety per

cent or less of the project cost and the term of such loan is twenty

years or less, (5) the authority finds that the facilities to be

financed through the loan are intended to meet or exceed applicable

state or federal requirements to abate, prevent or control a pollution,

and the commissioner of environmental conservation approves the

construction plans for any such facilities.

c. No loan shall be guaranteed by the authority with respect to a

project unless: (1) the project occupant has obtained firm commitments

satisfactory to the authority from banking organizations for the

financing of the project cost exclusive of the amount to be provided by

the project occupant, (2) the authority is satisfied that the project

occupant may be reasonably expected to comply with the terms of any loan

for which a guarantee is sought, (3) the amount of the guarantee is

eighty percent or less of the project cost, (4) the loan is secured by a

mortgage or security instrument which is not a junior encumbrance on the

project.