§ 213 — Definitions

New York § 213

• Jurisdiction: New York
• Law STF: State Finance
• Art. 15: Excelsior Linked Deposit Act

Text

§ 213. Definitions. When used in this article, unless a different\nmeaning clearly appears from the context, the following terms shall have\nthe following meanings:\n 1. "Authorized depositor" means the comptroller with respect to linked\ndeposits made by the comptroller and the commissioner of taxation and\nfinance with respect to linked deposits made by the commissioner of\ntaxation and finance.\n 2. "Census" means the decennial census performed by the bureau of the\ncensus of the United States department of commerce.\n 3. "Census bureau" means the bureau of the census of the United States\ndepartment of commerce.\n 4. "Certified business" means a business located in an empire zone\ncreated pursuant to article eighteen-B of the general municipal law and\ncertified pursuant to such article as eligible for the benefits referred\nto in section nine hundred sixty-six of such article.\n 5. "Certified minority-or women-owned business" means any minority-or\nwomen-owned business enterprise as defined in section three hundred ten\nof the executive law and certified pursuant to section three hundred\nfourteen of the executive law.\n 6. "Comptroller" means the comptroller of the state of New York.\n 7. "Defense industry manufacturer" means a manufacturing firm as\ndefined in subdivision eighteen of this section, twenty-five percent or\nmore of the gross revenues of which derive, either directly as a prime\ncontractor or indirectly as a subcontractor of a prime contractor, from\ndepartment of defense or other military contracts.\n 8. "Department" means the department of economic development.\n 9. "Department of defense" means the United States department of\ndefense.\n 10. "Empire zone" means an empire zone created pursuant to article\neighteen-B of the general municipal law.\n 11. "Eligible business" means:\n (a) a manufacturing firm or agricultural business which employs five\nhundred or fewer employees within the state on a full-time basis; or\n (b) any certified business in an empire zone which business employs\none hundred or fewer employees within the state on a full-time basis; or\n (b-1) during the whole or any portion of a period in which an area\ncontinues to be designated as a renewal community, any renewal community\nbusiness located in such area that employs one hundred or fewer\nemployees within the state on a full-time basis; or\n (b-2) during the whole or any portion of a period in which an area\ncontinues to be designated as an empowerment zone, any business located\nin such area that employs one hundred or fewer employees within the\nstate on a full-time basis; or\n (b-3) during the whole or any portion of a period in which an area\ncontinues to be designated as an enterprise community, any business\nlocated in such area that employs one hundred or fewer employees within\nthe state on a full-time basis; or\n (c) any firm seeking financing through the program for an export\nproject, which firm employs one hundred or fewer employees within the\nstate on a full-time basis; or\n (d) any business located in a highly distressed area, which business:\n (i) is not a retail business, unless financing provided through the\nprogram would promote the preservation of existing jobs or an increase\nin the overall number of retail jobs in the area; and\n (ii) employs one hundred or fewer employees within the state on a\nfull-time basis; or\n (e) any certified minority-or women-owned business seeking financing\nnecessary to carry out a procurement contract with an agency or\nauthority or other entity of the state or federal government; or\n (f) any service business that is independently owned and operated, is\nnot dominant in its field, employs one hundred or fewer persons on a\nfull-time basis within the state, and is seeking financing through the\nprogram for a project that will result in the retention or creation of\npermanent private sector jobs within the state, other than a business\nthat sells a service rendered at a facility personally by an individual\nfor another individual, directly, without the intervention of a third\nparty, or a professional service business such as health, legal,\naccounting, engineering, or architectural services; or\n (g) a qualifying technology or innovation business which business\nemploys one hundred or fewer employees within the state on a full-time\nbasis and engages in:\n (1) biotechnologies, which shall be defined as technologies involving\nthe scientific manipulation of living organisms, especially at the\nmolecular and/or the sub-molecular genetic level, to produce products\nconducive to improving the lives and health of plants, animals, and\nhumans; and the associated scientific research, pharmacological,\nmechanical, and computational applications and services connected with\nthese improvements;\n (2) information and communication technologies, equipment and systems\nthat involve advanced computer software and hardware, visualization\ntechnologies, and human interface technologies;\n (3) advanced materials and processing technologies that involve the\ndevelopment, modification, or improvement of one or more materials or\nmethods to produce devices and structures with improved performance\ncharacteristics or special functional attributes, or to activate, speed\nup, or otherwise alter chemical, biochemical, or medical processes;\n (4) electronic and photonic devices and components for use in\nproducing electronic, optoelectronic, mechanical equipment and products\nof electronic distribution with interactive media content;\n (5) energy efficiency, renewable energy and environmental\ntechnologies, products, devices and services; or\n (6) small scale systems integration and packaging; or\n * (h) a community development financial institution.\n * NB There are 2 par (h)'s\n * (h) any certified service-disabled veteran-owned business\nenterprises seeking financing necessary to carry out a procurement\ncontract with an agency or authority or other entity of the state or\nfederal government.\n * NB There are 2 par (h)'s\n 12. "Eligible projects" means:\n (a) export projects designed to increase a firm's export activities;\nor\n (b) for manufacturing, agricultural and service firms, projects which\ninvolve the preparation of strategic plans for improving productivity\nand competitiveness; the introduction of modern equipment and/or an\nexpansion of facilities as part of a modernization plan; the\nintroduction of advanced technologies to improve productivity and\nquality; improvements in production processes and operations, including\nagricultural operations; introduction of computerized information,\nreporting and control systems; reorganization or improvement of work\nplace systems and the introduction of total quality and employee\nparticipation programs; development and introduction of new products;\nidentification and development of new markets, including entry into\nforeign markets; financial restructuring for purposes of enabling\nmodernization activities; buyouts of viable companies by employees or\nlocal owners residing in the state; and the provision of working capital\nfor other modernization activities that will improve the competitiveness\nand productivity of a firm and result in the creation or retention of\njobs; or\n (c) for certified businesses located in empire zones, for retail\nbusinesses located in highly distressed areas, for eligible businesses\nthat are defined in paragraph (b-1) of subdivision eleven of this\nsection that are located in a renewal community, for eligible businesses\nthat are defined in paragraph (b-2) of subdivision eleven of this\nsection that are located in an empowerment zone, and for eligible\nbusinesses that are defined in paragraph (b-3) of subdivision eleven of\nthis section that are located in an enterprise community, projects that\nwill create or retain full-time, permanent jobs within the empire zone\nor empowerment zone or enterprise community or highly distressed area or\nrenewal community, as the case may be; or\n (d) for defense industry manufacturers, projects designed to reduce\ndependence on department of defense and other military contracts and to\nchange or diversify production in order to take advantage of any market\nother than that serving the department of defense or other military\nprocurers; or\n (e) for certified minority-and women-owned businesses, projects to\nprovide financing necessary to carry out a procurement contract with an\nagency or authority or other entity of the state or federal government;\nor\n * (f) projects in which community development financial institutions\nmake loans.\n * NB There are 2 par (f)'s\n * (f) for certified service-disabled veteran-owned business\nenterprises, projects to provide financing necessary to carry out a\nprocurement contract with an agency or authority or other entity of the\nstate or federal government.\n * NB There are 2 par (f)'s\n 12-a. "Empowerment zone" means an area within the state that has been\ndesignated by such term pursuant to section 1391 of the federal Internal\nRevenue Code (26 United States Code § 1391) under the federal Community\nRenewal Tax Relief Act of 2000.\n 12-b. "Enterprise community" means an area within the state that has\nbeen designated by such term pursuant to section 1391 of the federal\nInternal Revenue Code (26 United States Code § 1391) under the federal\nCommunity Renewal Tax Relief Act of 2000.\n 13. "Highly distressed area" means: (a) a census tract or tracts or\nblock numbering area or areas or such census tract or block numbering\narea contiguous thereto which, according to the most recent census data\navailable, has:\n (i) a poverty rate of at least twenty percent for the year to which\nthe data relates or at least twenty percent of the households receiving\npublic assistance; and\n (ii) an unemployment rate of at least one and twenty-five one\nhundredths times the statewide unemployment rate for the year to which\nthe data relates; or\n (b) a city, town, village or county within a city with a population of\none million or more for which: (i) the ratio of the full value property\nwealth, as determined by the comptroller for the most recent year\ndetermined, per resident to the statewide average full value property\nwealth per resident; and (ii) the ratio of the income per resident, as\nshown in the most recent census to the statewide average income per\nresident; are each fifty-five percent or less of the statewide average;\nprovided, however, that an empire zone shall not be considered a highly\ndistressed area for purposes of this article.\n 14. "Lender" means:\n (a) any commercial bank which is or shall become an approved\ndepository of state funds under the provisions of section one hundred\nfive of this chapter and which agrees to participate in the program; or\n (b) any thrift or credit union which an authorized depositor\ndetermines is eligible to accept linked deposits based upon criteria\napplied by the authorized depositor in making determinations under\nsection one hundred five of this chapter, and which agrees to\nparticipate in the program, provided that any linked deposit in such\nthrift or credit union shall be secured in the same manner as moneys\ndeposited pursuant to section one hundred five of this chapter and such\nthrifts or credit unions shall pledge assets or furnish other security\nsatisfactory in form and amount to the authorized depositor for the\nrepayment of moneys. Until April first, nineteen hundred ninety-six, in\nthe determination of thrifts eligible to accept linked deposits, the\nauthorized depositor shall give priority to applications by those\nthrifts seeking to make linked loans in economic development regions in\nwhich fewer than ten linked loans have been made on or before April\nfirst, nineteen hundred ninety-five. Provided, however, that the\ngranting of such priority shall in no way relieve an authorized\ndepositor of his or her duty and obligation to review all thrift\napplications from all economic development regions in the state on a\ntimely basis.\n (c) any farm credit system institution which agrees to participate in\nthe program.\n (d) the New York business development corporation.\n 15. "Linked deposit" means a deposit, or for farm credit system\ninstitutions and the New York business development corporation an\ninvestment eligible to be held by such institution or corporation placed\nwith a lender by the comptroller or the commissioner of taxation and\nfinance for a period of four years at the linked deposit interest rate,\nprovided the lender agrees to:\n (a) lend the equivalent value of such deposit to an eligible business\nat the interest rate provided in section two hundred eighteen of this\narticle; and\n (b) permit the deposit to be comprised of a series of ninety day\ndeposits each bearing an interest rate equal to the linked deposit\ninterest rate fixed at the time the original deposit is placed.\n This article and the related statutes that refer to this article do\nnot grant thrifts, credit unions, farm credit system institutions or the\nNew York business development corporation eligibility to accept public\nfunds or public moneys from public entities for investment purposes. For\nfarm credit system institutions, the linked deposit program is available\nfor loans with an agricultural purpose as defined by the farm credit act\nof nineteen hundred seventy-one, as amended and regulations promulgated\nthereunder. A linked deposit is intended to enable a lender to make a\nlinked loan to an eligible business and such deposit earns a yield lower\nthan posted rates in order to accomplish the goals of this article.\n 16. "Linked deposit interest rate" means:\n (a) for a linked deposit made in connection with a linked loan to a\ncertified business in an empire zone or to an eligible business located\nin a highly distressed area or to an eligible business that is defined\nin paragraph (b-1) of subdivision eleven of this section that is located\nin a renewal community or defined in paragraph (b-2) of such subdivision\nthat is located in an empowerment zone or defined in paragraph (b-3) of\nsuch subdivision that is located in an enterprise community, or a\nqualifying technology or innovation business as defined in paragraph (g)\nof subdivision eleven of this section, respectively for eligible\nprojects defined in paragraph (c) of subdivision twelve of this section\nor a certified minority- or women-owned business enterprise for an\neligible project defined in paragraph (e) of subdivision twelve of this\nsection or to a defense industry manufacturer for a project defined in\nparagraph (d) of subdivision twelve of this section, a fixed rate of\ninterest which is three hundred basis points below the lender's posted\nfour year certificate of deposit rate or, if the lender does not offer a\nfour year certificate of deposit, is three hundred basis points below\nthe average statewide rate for four year certificates of deposit as\ndetermined by the commissioner of economic development;\n (b) for a linked deposit made in connection with any linked loan other\nthan those specified in paragraph (a) of this subdivision, a fixed rate\nof interest which is two hundred basis points below the lender's posted\nfour year certificate of deposit rate, or if the lender does not offer a\nfour year certificate of deposit, is two hundred basis points below the\naverage statewide rate for four year certificates of deposit as\ndetermined by the commissioner of economic development.\n 17. "Linked loan" means a loan for purposes of an eligible project, in\nan amount equal to a linked deposit and bearing interest for the first\nfour years at the interest rate provided in section two hundred eighteen\nof this article.\n 18. "Manufacturing firm" means a firm involved with extracting,\nsmelting, recovering, developing, preparing, compounding, converting,\nassembling or producing in any manner, minerals, raw materials, products\nor substances of any kind or nature, and shall include facilities\nrelated thereto for storage, warehousing or distribution, for research\nand development or for the discovery of new, and the refinement of\nknown, substances, processes, and products.\n 19. "Program" means the excelsior linked deposit program.\n 20. "Thrift" means any savings bank or savings and loan association,\nfederal savings bank or federal savings and loan association.\n 21. "Economic development region" shall refer to those regions\nestablished by the department of economic development pursuant to\nsection two hundred thirty of the economic development law.\n 22. "Renewal community" means an area within the state that has been\ndesignated by such term in accordance with section 1400E of the federal\nInternal Revenue Code (26 United States Code § 1400E) under the federal\nCommunity Renewal Tax Relief Act of 2000.\n 23. "Renewal community business" means a business that is designated\nby such term pursuant to section 1400G of the federal Internal Revenue\nCode (26 United States Code § 1400G) under the federal Community Renewal\nTax Relief Act of 2000.\n 24. "Credit union" means any credit union chartered under article\neleven of the banking law or any federal credit union.\n 25. "Community development financial institution" means an\norganization as defined in 12 U.S.C. 4702(5)(a).\n 26. "Certified service-disabled veteran-owned business enterprise"\nmeans any service-disabled veteran-owned business enterprise as provided\nfor in article three of the veterans' services law.\n