§ 99-O — Arts institutions revolving loan fund

§ 99-o. Arts institutions revolving loan fund. 1. There is hereby\nestablished within the custody of the state comptroller a new fund to be\nknown as the "arts institutions revolving loan fund".\n 2. The fund shall consist of all moneys appropriated for its purpose,\nall moneys transferred to such fund pursuant to law, and all moneys\nrequired by this section or any other law to be paid into or credited to\nthis fund, including all moneys received by the fund or donated to it,\nand payments of principal on loans made from the fund.\n 3. Moneys of the fund, when allocated, shall be available to the\nchairperson of the council on the arts to make loans as provided in this\nsection. Up to five percent of the moneys of the fund or fifty thousand\ndollars, whichever is less, may be used to pay the expenses, including\npersonal service and maintenance and operation, in connection with the\nadministration of such loans.\n 4. (a) The chairperson of the council on the arts, on recommendation\nof the members of the council may make, upon application duly made, up\nto the amounts available by appropriation, loans for project support at\narts institutions.\n (b) No loan authorized by this section shall have an interest rate\ngreater than two and one-half percent. The minimum amount of any loan\nshall be five thousand dollars. The period of any loan shall not exceed\nthe period of one year. The chairperson of the council on the arts may\nmake loans under this section subject to such other terms and conditions\nthe council board deems proper.\n (c) The council board shall have the power to make such rules and\nregulations as may be necessary and proper to effectuate the purposes of\nthis section.\n (d) The council board shall annually report by March fifteenth to the\ngovernor and the legislature describing the activities and operation of\nthe loan program authorized by this section. Such report shall set forth\nthe number of loan applications received and approved; the names of the\narts institutions receiving loans together with the amount and purpose\nof the loan, and the outstanding balance; and the balance remaining in\nthe arts institutions revolving loan fund.\n 5. (a) Application for loans may be made by an arts institution,\nincluding but not limited to museums, orchestras, dance companies and\ntheatre groups.\n (b) Every application shall be in the form acceptable to the chairman\nof the council on the arts. Every application shall accurately reflect\nthe conditions which give rise to the proposed expenditure and\naccurately reflect the ability of the applicant to make such an\nexpenditure without the proceeds of a loan under this section.\n (c)(i) The council board shall give preference to those applications\nwhich demonstrate the greatest need and benefit to the arts community\nand public at large.\n (ii) In making determinations on loan applications, the council board\nshall assure that loan fund moneys are equitably distributed among all\nsectors of the arts community and all geographical areas of the state.\n (d) An application shall be referred by the chairperson of the council\non the arts to the council board as defined by article three of the arts\nand cultural affairs law.\n (e) An application shall not be approved:\n (i) if the applicant is in arrears on any prior loan under this\nsection,\n (ii) if it shall be shown that at any time in the prior ten years, the\napplicant used state funds to repay all or part of any loan made under\nthis section.\n (f) The council board shall, to the maximum extent feasible, and\nconsistent with the other provisions of this section, seek to provide\nthat loans authorized by this section reflect an appropriate geographic\ndistribution and are distributed equitably.\n