N.Y. State Finance Law § 99-o: Arts institutions revolving loan fund

§ 99-o. Arts institutions revolving loan fund. 1. There is hereby

established within the custody of the state comptroller a new fund to be

known as the "arts institutions revolving loan fund".

2. The fund shall consist of all moneys appropriated for its purpose,

all moneys transferred to such fund pursuant to law, and all moneys

required by this section or any other law to be paid into or credited to

this fund, including all moneys received by the fund or donated to it,

and payments of principal on loans made from the fund.

3. Moneys of the fund, when allocated, shall be available to the

chairperson of the council on the arts to make loans as provided in this

section. Up to five percent of the moneys of the fund or fifty thousand

dollars, whichever is less, may be used to pay the expenses, including

personal service and maintenance and operation, in connection with the

administration of such loans.

4. (a) The chairperson of the council on the arts, on recommendation

of the members of the council may make, upon application duly made, up

to the amounts available by appropriation, loans for project support at

arts institutions.

(b) No loan authorized by this section shall have an interest rate

greater than two and one-half percent. The minimum amount of any loan

shall be five thousand dollars. The period of any loan shall not exceed

the period of one year. The chairperson of the council on the arts may

make loans under this section subject to such other terms and conditions

the council board deems proper.

(c) The council board shall have the power to make such rules and

regulations as may be necessary and proper to effectuate the purposes of

this section.

(d) The council board shall annually report by March fifteenth to the

governor and the legislature describing the activities and operation of

the loan program authorized by this section. Such report shall set forth

the number of loan applications received and approved; the names of the

arts institutions receiving loans together with the amount and purpose

of the loan, and the outstanding balance; and the balance remaining in

the arts institutions revolving loan fund.

5. (a) Application for loans may be made by an arts institution,

including but not limited to museums, orchestras, dance companies and

theatre groups.

(b) Every application shall be in the form acceptable to the chairman

of the council on the arts. Every application shall accurately reflect

the conditions which give rise to the proposed expenditure and

accurately reflect the ability of the applicant to make such an

expenditure without the proceeds of a loan under this section.

(c)(i) The council board shall give preference to those applications

which demonstrate the greatest need and benefit to the arts community

and public at large.

(ii) In making determinations on loan applications, the council board

shall assure that loan fund moneys are equitably distributed among all

sectors of the arts community and all geographical areas of the state.

(d) An application shall be referred by the chairperson of the council

on the arts to the council board as defined by article three of the arts

and cultural affairs law.

(e) An application shall not be approved:

(i) if the applicant is in arrears on any prior loan under this

section,

(ii) if it shall be shown that at any time in the prior ten years, the

applicant used state funds to repay all or part of any loan made under

this section.

(f) The council board shall, to the maximum extent feasible, and

consistent with the other provisions of this section, seek to provide

that loans authorized by this section reflect an appropriate geographic

distribution and are distributed equitably.