N.Y. Public Housing Law § 72: Terms and security for state loans

§ 72. Terms and security for state loans. 1. Loans shall be made at

the rate of interest paid or to be paid by the state for the funds

loaned to the authority or municipality, plus a proportionate share of

the actual direct cost of the borrowing as certified by the state

comptroller. Such loan shall be repaid in equal annual installments over

or within a period of fifty years, but in no case to exceed the probable

life of the buildings and improvements of the project or part thereof to

which the proceeds thereof are to be applied. The probable life of the

buildings and improvements of such projects is hereby determined to be

fifty years. Each installment shall equal the amount payable by the

state for moneys borrowed for the loan and shall be paid not later than

five days before each such payment by the state is required.

2. The loan contract shall provide that upon any date when an

installment of principal shall become due and payable the authority may

anticipate any installment which would otherwise thereafter become due

and payable. In the case of loans to municipalities, the loan contract

may contain such a provision.

3. Should the authority or municipality fail to make payment of

interest or principal upon any due date, the state comptroller may

deduct and retain from any moneys otherwise payable by the state to such

authority or municipality, the amount of such interest and principal and

credit such authority or municipality with the amount of such deduction.