§ 72 — Terms and security for state loans

§ 72. Terms and security for state loans. 1. Loans shall be made at\nthe rate of interest paid or to be paid by the state for the funds\nloaned to the authority or municipality, plus a proportionate share of\nthe actual direct cost of the borrowing as certified by the state\ncomptroller. Such loan shall be repaid in equal annual installments over\nor within a period of fifty years, but in no case to exceed the probable\nlife of the buildings and improvements of the project or part thereof to\nwhich the proceeds thereof are to be applied. The probable life of the\nbuildings and improvements of such projects is hereby determined to be\nfifty years. Each installment shall equal the amount payable by the\nstate for moneys borrowed for the loan and shall be paid not later than\nfive days before each such payment by the state is required.\n 2. The loan contract shall provide that upon any date when an\ninstallment of principal shall become due and payable the authority may\nanticipate any installment which would otherwise thereafter become due\nand payable. In the case of loans to municipalities, the loan contract\nmay contain such a provision.\n 3. Should the authority or municipality fail to make payment of\ninterest or principal upon any due date, the state comptroller may\ndeduct and retain from any moneys otherwise payable by the state to such\nauthority or municipality, the amount of such interest and principal and\ncredit such authority or municipality with the amount of such deduction.\n