§ 5 — Powers and limitations

§ 5. Powers and limitations. 1. In addition to the powers granted by\nthe business corporation law and except as otherwise provided by this\nact, the fund shall have power to:\n (a) Guarantee loan repayments to a lending institution that has\nprovided the funding for a small business project or housing project, as\ndefined herein, not to exceed eighty percentum of the amount of such\nloan, upon such terms and conditions as the fund may prescribe, and for\nsuch purposes, the fund may enter into such agreement or agreements with\nlending institutions or other persons as required.\n (b) Accept gifts, grants or loans from, and enter into contract or\nother transaction with, any federal or state agency, any municipality,\nany private organization or any other source.\n (c) Enter into agreements with prospective lending institutions and\nborrowers for the purpose of planning, designing, constructing,\nacquiring, altering and financing projects.\n (d) When it becomes desirable for the fund to safeguard itself from\nlosses, it may acquire, purchase, manage and operate, hold and dispose\nof real and personal property, take assignments of rentals and leases\nand make and enter into all contracts, leases, agreements and\narrangements necessary or incidental to the performance of its duties.\n (e) In order to further the purposes of this act, or to safeguard the\nloan guarantee fund, purchase, acquire and take assignments of notes,\nmortgages, and other forms of security and evidences of indebtedness,\npurchase, acquire, attach, seize, accept or take title to any project by\nconveyance, or when an insured loan thereon is in default, foreclose,\nsell, lease or rent the subject matter provided for by the loan.\n (f) Prescribe standards and criteria by which applications for loan\nguarantees for small business projects and housing projects will be\njudged, insofar as such standards and criteria are not inconsistent with\nthe purposes of this act.\n (g) Guarantee to any bonding agency authorized to do business in this\nstate any bond necessary to the activity of the small business or for\nthe undertaking of a small business project or housing project. Such\nguarantee shall not exceed eighty percentum of the face amount of any\nloss incurred by the bonding agency.\n (h) Issue and sell its debentures, bearing such interest rates and\nhaving such maturities and other terms and provisions as may be\ndetermined by the fund.\n (i) To do any and all things necessary or convenient to carry out its\npurposes and exercise the powers given and granted under this act, or\nunder any other law, special, general or local.\n 2. No part of the net earnings of the fund shall inure to the benefit\nof any individual and no employee, director or officer of the fund shall\nreceive any pecuniary benefit from the fund except reasonable\ncompensation for services actually rendered to the fund. The fund shall\nnot carry on propaganda or otherwise attempt to influence legislation.\n 3. The fund shall not issue shares nor shall any debentures of the\nfund be convertible to shares.\n