N.Y. State Finance Law § 236: Definitions

§ 236. Definitions. When used in this article, unless the context

clearly indicates otherwise, the following terms shall have the

following meanings:

1. "Corporation" means the New York state environmental facilities

corporation, as continued by section twelve hundred eighty-two of the

public authorities law.

2. "Eligible borrower" means any recipient, including any entity

receiving or eligible to receive an agricultural assessment pursuant to

article twenty-five-AA of the agriculture and markets law and any

individual or small business eligible to undertake an eligible project

related to residential and small business on-site wastewater treatment

systems.

3. "Eligible project" shall mean a project for the implementation of a

management program established under section 319 of the Federal Water

Pollution Control Act related to agricultural operations, the upgrade or

replacement of residential and small business on-site wastewater

treatment systems with a system approved by the state or local

department of health, or the abandonment of residential and small

business on-site wastewater treatment systems and connection to a sewer,

when a sewer becomes available.

4. "Lender" means any state or federally-chartered savings bank,

savings and loan association, federal savings bank, federal savings and

loan association, farm credit system institution, or commercial bank or

trust company designated by the corporation to participate in the

program.

5. "Linked deposit" means financial assistance undertaken by the

corporation for the construction of an eligible project through a

deposit, or for a farm credit system institution an investment eligible

to be held by such institution, placed with a lender by the corporation

bearing interest at the linked deposit interest rate, provided the

lender has agreed to:

(a) lend the equivalent value of such deposit to an eligible borrower

at the linked loan interest rate; and

(b) permit the deposit to be comprised of a series of certificates of

deposit each bearing an interest rate equal to the linked deposit

interest rate fixed at the time the original linked deposit is placed.

Each linked deposit shall be continuously and fully secured by direct

obligations of the state or the United States of America or by

obligations the principal and interest on which are guaranteed by the

state or the United States of America.

This article and related statutes that refer to this article do not

grant savings banks, savings and loan associations, farm credit system

institutions, federal savings banks, or federal savings and loan

associations eligibility to accept public funds or public moneys from

public entities for investment purposes. A linked deposit is intended to

enable a lender to make a linked loan to an eligible borrower and such

deposit earns a yield lower than posted rates in order to accomplish the

goals of this article.

6. "Linked deposit interest rate" means a fixed rate of interest which

is below the market rate.

7. "Linked loan" means a loan for purposes of an eligible project, in

an amount equal to a linked deposit and bearing interest at the linked

loan interest rate.

8. "Linked loan interest rate" means a fixed rate below the fixed

interest rate the lender would have charged for the loan in the absence

of a linked deposit based on its usual credit considerations.

9. "Program" means the water pollution control linked deposit program.

10. "Recipient" means any person which is: (a) an individual or small

business which is eligible to undertake an eligible project related to

residential and small business on-site wastewater treatment systems; or

(b) an entity receiving or eligible to receive an agricultural

assessment pursuant to article twenty-five-AA of the agriculture and

markets law which is eligible to undertake an eligible project; or (c)

any two or more of the foregoing which are acting jointly in connection

with an eligible project.

11. "Residential and small business on-site wastewater treatment

system" means a system serving a residence or small business that

provides for the treatment and/or disposition of the combination of

human and sanitary waste with water not exceeding one thousand gallons

per day.

12. "Small business" means any business which is resident in this

state, independently owned and operated, not dominant in its field, and

employing not more than one hundred individuals.