N.Y. Urban development guarantee fund of New York 175/68 § 8: Guarantee of loans

§ 8. Guarantee of loans. (a) The fund is authorized to guarantee

repayments of a loan made by a lending institution to provide funding

for small business or housing project as defined herein, not to exceed

eighty per centum of the principal amount of the obligation, upon such

terms and conditions as the fund may prescribe, provided that the

aggregate amount of the unpaid balance of all obligations so guaranteed

and outstanding at any one time shall not exceed one million dollars

during the first fiscal year of operations of the fund, and in any

succeeding fiscal year, five times the average annual balance in the

loan guarantee fund for the preceding fiscal year, and provided further,

however, that the total potential liability of the fund to a lending

institution on behalf of any one borrower shall not exceed one hundred

fifty thousand dollars.

(b) The fund is also authorized to guarantee repayments of loans made

by a lending institution to a purchaser of either a condominium unit in

a multiple dwelling organized under the condominium act, or shares of

stock in a cooperative corporation which owns a multiple dwelling, where

such purchaser intends to reside in such condominium unit or such

cooperatively-owned multiple dwelling. The amount of such guarantee

shall not exceed the lesser of eighty per centum of the purchase price

of the unit or of the shares of stock allocable to the unit, as the case

may be, or $25,000; and the term of the guarantee shall not exceed

twenty-five years. No loan shall be guaranteed if interest thereon

exceeds the legal rate. The aggregate amount of the unpaid balance of

all obligations guaranteed under this subdivision and subdivision (a)

hereof shall not exceed one million dollars during the first fiscal year

of operation hereunder and in any succeeding fiscal year, five times the

average annual balance in the loan guarantee fund for the preceding

fiscal year hereunder.