NY Pub Auth L § 1835-C (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 8 - New York Job Development Authority Subtitle I General Provisions Sub Title 5-A - Subtitle V-a Loans to Lenders Program 1835-C - Loans to Lenders.

§  1835-c. Loans to lenders. 1. The authority shall have the power and   is hereby authorized to make and contract to make loans  to  lenders  on   such  terms  and  conditions  as it shall determine, and all lenders are   authorized  to  borrow  from  the  authority  in  accordance  with   the   provisions  of  this  section  and upon such terms and conditions as the   authority may impose, provided that the business development corporation   established under article five-A of the banking  law  shall  receive  no   more  than  five  million  dollars and any other lender shall receive no   more than two million dollars in loans to lenders from the authority  in   any twelve month period.2. The authority shall require as a condition of each loan to a lender   that  such  lender  enter  into  written commitments to make within such   period of time as the  authority  may  require  loans  for  agricultural   business   projects  in  accordance  with  the  standards  and  criteria   prescribed by  the  authority.  Such  loans  for  agricultural  business   projects  shall  be in an aggregate principal amount equal to the amount   of such loan to the lender and shall require the  disbursement  of  such   loan  proceeds  by  the  lender  to  borrowers  to pay the costs of such   projects; provided that no borrower shall receive more than two  hundred   thousand  dollars  in  loans for agricultural business projects that are   financed by loans to lenders from the  authority  in  any  twelve  month   period.3.  The authority shall require the submission to it by each lender to   which the authority has made a loan to  lender  such  documentation  and   other  evidence  satisfactory  to the authority that the lender has made   loans  for  agricultural  business  projects  in  accordance  with   the   standards  and  criteria  prescribed  by  the  authority,  and  in  this   connection the authority through its members, agents and  employees  may   inspect the books and records of such lender.4.  The  authority  shall require that each lender receiving a loan to   lender pursuant to this section shall issue and deliver to the authority   an evidence of its indebtedness to the authority which shall  constitute   an  unconditional  obligation of such lender and shall bear such date or   dates, shall mature  at  such  times  or  times,  shall  be  subject  to   prepayment  and shall contain such other provisions consistent with this   subtitle as the authority shall require.5. Notwithstanding any other provision of this subtitle, the  interest   rate  and  other terms of loans to lenders made from the proceeds of any   issue of loans to lenders bonds or notes of the authority  shall  be  at   least sufficient to assure the payment of principal, redemption premium,   if  any, and interest on such bonds and notes as the same become due and   payable.6. The authority may require that loans to lenders  made  pursuant  to   this  subtitle  shall be secured as to the payment of both principal and   interest by a pledge of collateral  security  in  such  amounts  as  the   authority  may  determine  to be necessary to assure the payment of such   loans and the interest thereon as the same become due and payable.  Such   collateral  security  may consist of (a) obligations of or guaranteed by   the  United  States  of  America,  (b)  obligations  of  the  state   or   obligations  the  principal  and interest of which are guaranteed by the   state, excluding any obligations of the authority,  (c)  obligations  of   any  corporation  wholly  owned  by  the  United  States of America, (d)   obligations of any corporation sponsored by the United States of America   which are or may become eligible as collateral for  advances  to  member   banks  as  determined  by  the board of governors of the federal reserve   system, or (e) certificates of deposit or time deposits secured in  such   manner, if any, as the authority shall determine. 7. The authority may require that any collateral security for loans to   lenders  be  deposited  with  a  bank,  trust company or other financial   institution (other than the lender pledging  such  collateral  security)   which  shall  be located in the state and designated by the authority as   custodian therefor or may require each lender to enter into an agreement   with  the  authority  containing  such provisions as the authority shall   require  to  (a)  adequately  identify  and  maintain  such   collateral   security,  (b)  service  such  collateral  security, and (c) require the   lender to hold such collateral security in trust for the  authority  and   be  accountable to the authority as the trustee of an express trust. The   authority may also establish such additional requirements  as  it  shall   deem necessary with respect to the pledging, assigning, setting aside or   holding  of  such collateral security and the making of substitutions of   or  additions  thereto  and  the  disposition  of  income  and  receipts   therefrom.8.  The  authority  may require as a condition of any loans to lenders   such  representations  and  warranties  as  it  shall  determine  to  be   necessary  to  secure  such  loans  and  carry  out the purposes of this   subtitle, and may make and execute  contracts  for  the  administration,   servicing  or collection of any loans to lenders or other financing with   a lender and may pay the reasonable value of services  rendered  to  the   authority pursuant to such contracts.