N.Y. Public Authorities Law § 1825: Local development corporations

§ 1825. Local development corporations. To be eligible for loans from

the authority, a local development corporation shall meet the following

requirements in addition to any others imposed by the provisions of this

title:

1. The corporation shall (a) be incorporated or reincorporated under

section fourteen hundred eleven of the not-for-profit corporation law,

or (b) be incorporated under article four of the not-for-profit

corporation law, in addition to other purposes, to construct new

industrial or manufacturing plants or new research and development

buildings and acquire machinery and equipment deemed related thereto or

acquire, rehabilitate, and improve for use by others, industrial or

manufacturing plants in the area of the state in which an assisted

project is to be located, to assist financially in such construction,

acquisition, rehabilitation and improvement and to maintain such plants,

buildings and equipment for others, and may also be authorized to study

and promote, alone or in concert with local officials and interested

local groups, the economic growth and business prosperity of the area

and the solution of other civic problems of the region which includes

such areas.

2. The corporation shall have no member or employee thereof who owns

beneficially more than five per cent of the capital stock of the project

occupant, or of the business enterprise described in section eighteen

hundred twenty-seven and if any member or employee of the corporation

has any material financial interest in, is employed by, or is a

consultant to any such project occupant or business enterprise or any

other business enterprise including a bank or other lending institution

having a material financial relationship with such project occupant or

business enterprise, such member or employee shall fully disclose any

such interest or involvement to the corporation and to the authority in

such form and manner as the authority board shall prescribe and such

member or employee shall not participate in any evaluation of, or

decision concerning, an application pursuant to section eighteen hundred

twenty-four of this title regarding such project applicant or business

enterprise.

3. The corporation shall agree to be bound by the rules and

regulations of the authority relating to assisted projects and the

operations of local development corporations, including the use of the

loan evaluation criteria and methods established by the authority

pursuant to subdivision thirteen-b of section eighteen hundred four of

this title and the criteria established by the authority pursuant to

subdivision thirteen-c of section eighteen hundred four of this title,

and shall submit to examination of its books of account and corporate

records by the authority at such times as the authority may require

during the term of any loan made to it by the authority.

4. The corporation shall develop, promote and ensure that, where

possible, minority groups which traditionally have been disadvantaged,

and women, are afforded equal opportunity for loans from the authority

through the corporation and for contracts in connection with the

construction of the projects financed by loans from the authority

through the corporation; provided, however, that the corporation may

request that the authority implement the provisions of this subdivision.