§ 1814 — Loans and loan guarantees for machinery and equipment

§ 1814. Loans and loan guarantees for machinery and equipment. 1.\nNotwithstanding any other provisions of this title, the authority may\nmake loans to local development corporations to assist in financing the\ncost of machinery and equipment, provided, however,\n (a) that the amount of such loan shall not exceed forty percent of the\ncost of such machinery and equipment, except as provided in paragraph\n(b) of subdivision two of section eighteen hundred three and paragraph\n(a) of subdivision seven of section eighteen hundred twenty-three of\nthis chapter;\n (b) that the loan shall be evidenced by a bond, note or other\nobligation of a local development corporation, a project occupant, or\nother person, firm or corporation and secured by a security agreement,\nchattel paper, loan agreement, or such other instruments or documents\ndeemed necessary or convenient to perfect a security interest in the\nmachinery and equipment financed and to protect the interests of the\nauthority; and\n (c) that such security interest taken by the authority shall not be\nsubordinate, but may be a participating interest which, when added to\nthe security interests of other lenders, does not exceed ninety percent\nof the cost of such machinery and equipment.\n 2. Notwithstanding any other provisions of this title, the authority\nmay issue a loan guarantee to a banking organization to assist in\nfinancing the cost of machinery and equipment, provided, however,\n (a) that the amount of the loan guarantee shall not exceed eighty\npercent of the amount of the cost of the machinery and equipment; and\n (b) that the loan of the banking organization shall be evidenced by a\nbond, note or other obligation of a project occupant, or other person,\nfirm or corporation and secured by a security agreement, chattel paper,\nloan agreement, or such other instruments or documents deemed necessary\nor convenient by the authority to perfect a security interest in the\nmachinery and equipment financed and to protect the interests of the\nauthority.\n