§ 179-Z — Not-for-profit short-term revolving loans

New York § 179-Z

• Jurisdiction: New York
• Law STF: State Finance
• Art. 11-B: Prompt Contracting and Interest Payments For Not-for-profit Organizations

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§ 179-z. Not-for-profit short-term revolving loans. 1. The state\ncomptroller is authorized to provide loans from the not-for-profit\nshort-term revolving loan fund established by section ninety-seven-jj of\nthis chapter to any not-for-profit organization in receipt of a written\ndirective from a state agency. The state comptroller may provide such a\nloan to a not-for-profit organization upon receipt of a written\nagreement providing reasonable assurances of repayment that is\nsatisfactory to the comptroller. Such loan shall not bear interest and\nrepayment of such loan may be prorated over the term of the expected or\nrenewal contract, provided the term of the loan does not exceed one\nyear. The amount of each such loan shall not exceed one-half of the\nfirst quarter payment of the subject contract.\n 2. The state comptroller shall only make loans after finding that the\nnot-for-profit organization has a written directive from a state agency\nand cannot provide or continue to provide services without a loan from\nthe not-for-profit short-term revolving loan fund.\n 3. The state comptroller shall promulgate rules and regulations within\nninety days of the enactment date of this act for the operation of the\nnot-for-profit short-term revolving loan fund which shall include, but\nnot be limited to, the criteria to be used in determining not-for-profit\norganizations eligible for assistance; a procedure and any necessary\ninformation that not-for-profit organizations need to submit\napplications for a loan from the not-for-profit short-term revolving\nloan fund; a schedule for reviewing such applications, not to exceed\nthirty days, and notification to an applicant of approval or disapproval\nof such application for interim funding, and any other requirements\ndeemed necessary by the state comptroller.\n 4. Any not-for-profit organization receiving a loan from the\nnot-for-profit short-term revolving loan fund shall be ineligible to\nreceive interest from a state agency, notwithstanding the provisions of\nsection one hundred seventy-nine-v of this article and shall be\nineligible to receive advance payments, notwithstanding section one\nhundred seventy-nine-u of this article.\n