§ 1822 — Loans to local development corporations

§ 1822. Loans to local development corporations. a. No mortgage loan\nshall be made by the authority under the provisions of subtitle II with\nrespect to a project unless: (1) the local development corporation has\nobtained firm commitments satisfactory to the authority from responsible\nfinancial sources, which may but need not include a federal agency or\nthe project occupant, for the total project cost exclusive of any loan\nrequested from the authority, (2) the local development corporation has\nobtained a firm commitment satisfactory to the authority from the\nproject occupant or from a business enterprise described in section\neighteen hundred twenty-seven to lease or use the project after\nconstruction, acquisition, rehabilitation or improvement is completed,\n(3) the authority approves the terms of such lease or use and is\nsatisfied that the project occupant or a business enterprise described\nin section eighteen hundred twenty-seven may reasonably be expected to\ncomply with the terms thereof, (4) the principal amount of such loan is\nforty percent or less of the project cost, except as set forth in\nparagraphs (a) and (b) of subdivision two of section eighteen hundred\nthree and paragraph (a) of subdivision seven of section eighteen hundred\ntwenty-three of this chapter, (5) such loan is secured by a mortgage on\nthe project, and (6) such mortgage is not a junior encumbrance on the\nproject by more than fifty percent of the project cost.\n b. No loan shall be made by the authority under the provisions of\nsubtitle III with respect to a project unless: (1) the local development\ncorporation has obtained firm commitments satisfactory to the authority\nfrom responsible financial sources, which may but need not include a\nfederal agency or the project occupant, for the total project cost\nexclusive of any loan requested from the authority, (2) the local\ndevelopment corporation has obtained a firm commitment satisfactory to\nthe authority from the project occupant to lease or use the project\nafter construction, acquisition, rehabilitation or improvement is\ncompleted, (3) the authority approves the terms of such lease or use and\nis satisfied that the project occupant may reasonably be expected to\ncomply with the terms thereof, (4) the amount of such loan is ninety per\ncent or less of the project cost and the term of such loan is twenty\nyears or less, (5) the authority finds that the facilities to be\nfinanced through the loan are intended to meet or exceed applicable\nstate or federal requirements to abate, prevent or control a pollution,\nand the commissioner of environmental conservation approves the\nconstruction plans for any such facilities.\n c. No loan shall be guaranteed by the authority with respect to a\nproject unless: (1) the project occupant has obtained firm commitments\nsatisfactory to the authority from banking organizations for the\nfinancing of the project cost exclusive of the amount to be provided by\nthe project occupant, (2) the authority is satisfied that the project\noccupant may be reasonably expected to comply with the terms of any loan\nfor which a guarantee is sought, (3) the amount of the guarantee is\neighty percent or less of the project cost, (4) the loan is secured by a\nmortgage or security instrument which is not a junior encumbrance on the\nproject.\n