§ 1825 — Local development corporations

§ 1825. Local development corporations. To be eligible for loans from\nthe authority, a local development corporation shall meet the following\nrequirements in addition to any others imposed by the provisions of this\ntitle:\n 1. The corporation shall (a) be incorporated or reincorporated under\nsection fourteen hundred eleven of the not-for-profit corporation law,\nor (b) be incorporated under article four of the not-for-profit\ncorporation law, in addition to other purposes, to construct new\nindustrial or manufacturing plants or new research and development\nbuildings and acquire machinery and equipment deemed related thereto or\nacquire, rehabilitate, and improve for use by others, industrial or\nmanufacturing plants in the area of the state in which an assisted\nproject is to be located, to assist financially in such construction,\nacquisition, rehabilitation and improvement and to maintain such plants,\nbuildings and equipment for others, and may also be authorized to study\nand promote, alone or in concert with local officials and interested\nlocal groups, the economic growth and business prosperity of the area\nand the solution of other civic problems of the region which includes\nsuch areas.\n 2. The corporation shall have no member or employee thereof who owns\nbeneficially more than five per cent of the capital stock of the project\noccupant, or of the business enterprise described in section eighteen\nhundred twenty-seven and if any member or employee of the corporation\nhas any material financial interest in, is employed by, or is a\nconsultant to any such project occupant or business enterprise or any\nother business enterprise including a bank or other lending institution\nhaving a material financial relationship with such project occupant or\nbusiness enterprise, such member or employee shall fully disclose any\nsuch interest or involvement to the corporation and to the authority in\nsuch form and manner as the authority board shall prescribe and such\nmember or employee shall not participate in any evaluation of, or\ndecision concerning, an application pursuant to section eighteen hundred\ntwenty-four of this title regarding such project applicant or business\nenterprise.\n 3. The corporation shall agree to be bound by the rules and\nregulations of the authority relating to assisted projects and the\noperations of local development corporations, including the use of the\nloan evaluation criteria and methods established by the authority\npursuant to subdivision thirteen-b of section eighteen hundred four of\nthis title and the criteria established by the authority pursuant to\nsubdivision thirteen-c of section eighteen hundred four of this title,\nand shall submit to examination of its books of account and corporate\nrecords by the authority at such times as the authority may require\nduring the term of any loan made to it by the authority.\n 4. The corporation shall develop, promote and ensure that, where\npossible, minority groups which traditionally have been disadvantaged,\nand women, are afforded equal opportunity for loans from the authority\nthrough the corporation and for contracts in connection with the\nconstruction of the projects financed by loans from the authority\nthrough the corporation; provided, however, that the corporation may\nrequest that the authority implement the provisions of this subdivision.\n