N.Y. State Finance Law § 179-z: Not-for-profit short-term revolving loans

§ 179-z. Not-for-profit short-term revolving loans. 1. The state

comptroller is authorized to provide loans from the not-for-profit

short-term revolving loan fund established by section ninety-seven-jj of

this chapter to any not-for-profit organization in receipt of a written

directive from a state agency. The state comptroller may provide such a

loan to a not-for-profit organization upon receipt of a written

agreement providing reasonable assurances of repayment that is

satisfactory to the comptroller. Such loan shall not bear interest and

repayment of such loan may be prorated over the term of the expected or

renewal contract, provided the term of the loan does not exceed one

year. The amount of each such loan shall not exceed one-half of the

first quarter payment of the subject contract.

2. The state comptroller shall only make loans after finding that the

not-for-profit organization has a written directive from a state agency

and cannot provide or continue to provide services without a loan from

the not-for-profit short-term revolving loan fund.

3. The state comptroller shall promulgate rules and regulations within

ninety days of the enactment date of this act for the operation of the

not-for-profit short-term revolving loan fund which shall include, but

not be limited to, the criteria to be used in determining not-for-profit

organizations eligible for assistance; a procedure and any necessary

information that not-for-profit organizations need to submit

applications for a loan from the not-for-profit short-term revolving

loan fund; a schedule for reviewing such applications, not to exceed

thirty days, and notification to an applicant of approval or disapproval

of such application for interim funding, and any other requirements

deemed necessary by the state comptroller.

4. Any not-for-profit organization receiving a loan from the

not-for-profit short-term revolving loan fund shall be ineligible to

receive interest from a state agency, notwithstanding the provisions of

section one hundred seventy-nine-v of this article and shall be

ineligible to receive advance payments, notwithstanding section one

hundred seventy-nine-u of this article.