N.Y. Public Authorities Law § 1837-b: Loans to local development corporations

§ 1837-b. Loans to local development corporations. 1. No loan shall be

made by the authority under the provisions of this subtitle with respect

to an eligible project unless: (a) the local development corporation has

obtained firm commitments satisfactory to the authority from responsible

financial sources, which may include a federal agency or the project

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

from the authority; (b) the local development corporation has obtained a

firm commitment satisfactory to the authority from the project occupant

to lease or use the project after it has been completed; (c) the

principal amount of such loan is forty percent or less of the project

cost, except as provided 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; and (d) if such

loan is secured by a mortgage on the project, such mortgage is not a

junior encumbrance on the project by more than fifty percent of the

project cost.

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

project unless: (a) 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; (b) 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; (c) the amount of the guarantee is

eighty percent or less of the project cost; and (d) the loan is secured

by a mortgage or security instrument which is not a junior encumbrance

or other collateral deemed satisfactory to protect the authority's

interest.