§ 1816 — Rate of interest

§ 1816. Rate of interest. Any loan made by the authority with special\npurpose funds shall bear interest at such rate as the authority may\ndetermine but such rate shall not be less than a rate which is one\npercent below the average annual net interest cost to the authority, as\ndetermined by the authority, on special purpose bonds the proceeds of\nwhich, in the opinion of the authority, are available to make such loan,\nor if no such proceeds are then available in a sufficient amount to make\nsuch loan, the average annual net interest cost to the authority, as\ndetermined by the authority not more than six months previous to the\nmaking of such loan, which would have been incurred by the authority on\nspecial purpose bonds having an average maturity of twenty years if such\nbonds had been issued on a date within thirty days of such\ndetermination. The rental or other amount required to be paid by a\nproject occupant or by a business enterprise described in section\neighteen hundred twenty-seven to a local development corporation under a\nlease or other agreement for use of the said project shall include an\ninterest element computed at such rate as the authority shall determine\nbut such rate shall not be less than the interest rate charged by the\nauthority to the local development corporation in accordance with the\npreceding sentence of this section.\n