N.Y. Urban development guarantee fund of New York 175/68 § 5: Powers and limitations

§ 5. Powers and limitations. 1. In addition to the powers granted by

the business corporation law and except as otherwise provided by this

act, the fund shall have power to:

(a) Guarantee loan repayments to a lending institution that has

provided the funding for a small business project or housing project, as

defined herein, not to exceed eighty percentum of the amount of such

loan, upon such terms and conditions as the fund may prescribe, and for

such purposes, the fund may enter into such agreement or agreements with

lending institutions or other persons as required.

(b) Accept gifts, grants or loans from, and enter into contract or

other transaction with, any federal or state agency, any municipality,

any private organization or any other source.

(c) Enter into agreements with prospective lending institutions and

borrowers for the purpose of planning, designing, constructing,

acquiring, altering and financing projects.

(d) When it becomes desirable for the fund to safeguard itself from

losses, it may acquire, purchase, manage and operate, hold and dispose

of real and personal property, take assignments of rentals and leases

and make and enter into all contracts, leases, agreements and

arrangements necessary or incidental to the performance of its duties.

(e) In order to further the purposes of this act, or to safeguard the

loan guarantee fund, purchase, acquire and take assignments of notes,

mortgages, and other forms of security and evidences of indebtedness,

purchase, acquire, attach, seize, accept or take title to any project by

conveyance, or when an insured loan thereon is in default, foreclose,

sell, lease or rent the subject matter provided for by the loan.

(f) Prescribe standards and criteria by which applications for loan

guarantees for small business projects and housing projects will be

judged, insofar as such standards and criteria are not inconsistent with

the purposes of this act.

(g) Guarantee to any bonding agency authorized to do business in this

state any bond necessary to the activity of the small business or for

the undertaking of a small business project or housing project. Such

guarantee shall not exceed eighty percentum of the face amount of any

loss incurred by the bonding agency.

(h) Issue and sell its debentures, bearing such interest rates and

having such maturities and other terms and provisions as may be

determined by the fund.

(i) To do any and all things necessary or convenient to carry out its

purposes and exercise the powers given and granted under this act, or

under any other law, special, general or local.

2. No part of the net earnings of the fund shall inure to the benefit

of any individual and no employee, director or officer of the fund shall

receive any pecuniary benefit from the fund except reasonable

compensation for services actually rendered to the fund. The fund shall

not carry on propaganda or otherwise attempt to influence legislation.

3. The fund shall not issue shares nor shall any debentures of the

fund be convertible to shares.