§ 1163 — Financing agreements

§ 1163. Financing agreements. The corporation and any recipient having\nthe power to contract with respect to the financing of an eligible\nproject may enter into a loan or other financing agreement providing for\nthe construction and financing of eligible projects. The corporation\nshall prepare each financing agreement, which shall include but is not\nlimited to the following provisions:\n 1. A description of the eligible project;\n 2. An estimate of the eligible project cost;\n 3. A right of the corporation to approve any contracts for services\nand construction funded pursuant to a financing agreement, and to\ninspect and review the construction of eligible projects;\n 4. Notwithstanding the provisions of any other law, general, special\nor local, inconsistent with this section, a right of the corporation to\ninvest proceeds of the corporation's bonds or notes, including proceeds\nof bonds or notes of the recipient, as provided in subdivision four of\nsection twelve hundred eighty-four of the public authorities law and as\nprovided in subdivision six of section twelve hundred eighty-five-m of\nthe public authorities law.\n Such right shall include the right to invest such monies together with\nany other monies held by the corporation pursuant to the provisions of\nsection twelve hundred eighty-five-m of the public authorities law;\n 5. Remedies in the event of a recipient's failure to comply with the\nterms of a financing agreement;\n 6. An agreement by the corporation to:\n (a) lend to the recipient for the construction of an eligible project\na specified amount from the proceeds of the corporation's bonds or\nnotes, not to exceed the estimated reasonable cost of construction of\nthe eligible project established in the financing agreement, subject to\nthe ability of the corporation to provide such financing, including any\nother approvals required by state or federal law and such other\nconditions as the corporation shall determine necessary or desirable;\n (b) use reasonable efforts to issue its bonds or notes in an amount\nsufficient to finance the estimated reasonable cost of the eligible\nproject, including but not limited to costs of issuance, credit support\nfees, if any, trustees' fees, interest during construction, and such\nreserve funds, if any, as may be necessary to secure such bonds or\nnotes;\n (c) for any financial assistance made from the proceeds of the\ncorporation's bonds or notes, establish an allocation and provide to the\nrecipient an interest rate subsidy allocation for the eligible project\nin accordance with this title and section twelve hundred eighty-five-m\nof the public authorities law;\n (d) in the alternative, provide financial assistance to the recipient\nfor the construction of an eligible project in a specified amount from\nany moneys in or available for deposit in the fund, not to exceed the\nestimated reasonable cost of construction of the eligible project\nestablished in the loan or other financing agreement, as determined by\nthe corporation;\n (e) administer the investment of funds held in accordance with such\nagreement, including funds of the recipient;\n 7. An agreement by the recipient to:\n (a) proceed expeditiously with and complete the eligible project in\naccordance with plans approved;\n (b) commence operation of the eligible project on completion of the\nproject, and not abandon, discontinue operation of, sell, transfer or\notherwise dispose of the eligible project as long as a loan or other\nfinancial assistance to the recipient for such project remains\noutstanding, without approval of the commissioner; provided, however,\nthat the commissioner shall not approve disposition of the eligible\nproject without the concurrent approval of the corporation. None of the\nforegoing shall limit the commissioner's authority to terminate or\nimpose conditions upon the operation of an eligible project pursuant to\nthe provisions of this chapter and any implementing regulations thereto;\n (c) operate and maintain the eligible project in accordance with\napplicable requirements of federal and state law;\n (d) establish and maintain project accounts in accordance with the\nfinancing agreement and generally accepted accounting standards;\n (e) establish a dedicated source of revenue (which may include a\ngeneral obligation of the recipient) providing for:\n (i) operation and maintenance costs of the eligible project and\nequipment renewal and replacement; and\n (ii) loan repayment regardless of whether the eligible project is in\noperation;\n (f) notwithstanding the provisions of any other law, general, special\nor local, inconsistent with this section, delegate to the corporation\nthe authority to invest proceeds of bonds or notes issued by the\ncorporation or the recipient on behalf of the recipient; and\n (g) permit any reviews or audits and provide assistance determined to\nbe reasonable and necessary by the department or the corporation;\n 8. Such other agreements or covenants as may be deemed necessary or\ndesirable in connection with the issuance by the corporation of its\nbonds or notes.\n