NY Banking L § 212 (2021)
2021 New York Laws BNK - Banking Article 5-A - New York Business Development Corporation 212 - Purposes, Powers and Operation.

§ 212.  Purposes,  powers  and  operation. 1. (a) The purposes of such corporation shall be to assist,  promote,  encourage  and,  through  the cooperative  efforts  of  the institutions and corporations which shall, from time to time, become  members  thereof,  develop  and  advance  the business  prosperity and economic welfare of the state; to encourage and assist in the location of new business and industry in the state and  to rehabilitate and retain existing business and industry; to stimulate and assist  in  the  expansion  of all kinds of business activity which will tend to promote the  business  development  and  maintain  the  economic stability  of  the state, provided maximum opportunities for employment, encourage thrift and improve the standard of living of the  citizens  of the state; to cooperate and act in conjunction with other organizations, public   or  private,  the  objects  of  which  are  the  promotion  and advancement of industrial,  commercial,  agricultural  and  recreational developments  in  the state; to furnish money and credit to approved and deserving applicants, for the promotion, development and conduct of  all kinds  of  business activity in the state, thereby establishing a source of credit not otherwise readily  available;  and  to  provide  financial assistance  in  the  form  of loans to small businesses unable to obtain financing from other private sources, including,  but  not  limited  to, assistance  to  women  and minority-owned business enterprises and small businesses located in economically distressed areas. For the purposes of this  article,  "economically  distressed  areas"   shall   mean   areas determined by the commissioner of the department of economic development on  the  basis  of  criteria  indicative of economic distress, including poverty  rates,  numbers  of  persons   receiving   public   assistance, unemployment rates, rate of employment decline, population loss, rate of per  capita  income  change,  decline  in  economic activity and private investment,  and  such  other  indicators  as  the  commissioner   deems appropriate.   Economically   distressed   areas   may  include  cities, municipalities, block numbering areas, and census tracts.  (b)  The  corporation  shall  undertake  the  following  programs   in furtherance  of  the above objectives: (i) establish regional offices at locations throughout New  York,  with  sufficient  staffing  to  advise, develop  and  package  financial  assistance  for small and medium sized businesses; (ii) develop a comprehensive outreach  program  to  increase the  visibility  and  awareness of the corporation's programs, including allocating budget and staff to establish and maintain an aggressive  and extensive  marketing  program of the corporation's program of assistance to small and medium sized businesses, providing for specific outreach to minority and women owned  enterprises,  and  entering  into  cooperative relationships   with  local  chambers  of  commerce,  local  development agencies, local  development  corporations  and  other  community  based financial  intermediaries  as  set  forth  in  subdivision three of this section; (iii) establish and operate, or affiliate with a small business investment company and a specialized small business investment  company; and  (iv)  establish  a  pilot export financing program, using personnel from the private sector, to evaluate whether the corporation can play  a significant  role in the growth of the export industry in the state. The corporation shall undertake the programs enumerated herein at such times as its board of directors determines that the corporation's capital base and available funds are  adequate  to  support  the  operation  of  such program.   The  programs  enumerated  herein  may  be  modified  by  the corporation as may be necessary  to  meet  the  changing  needs  of  the state's economy, as determined by the board of directors.   2. In furtherance of the purposes set forth in subdivision one of this section,  and  in addition to the powers conferred on stock corporations  by general laws, such corporation shall, subject to the restrictions and limitations contained in this article, have the following powers:  (a)  To  borrow  money and otherwise incur indebtedness for any of its purposes; to issue its bonds, debentures, notes or  other  evidences  of indebtedness,  whether secured or unsecured, therefor; and to secure the same by mortgage, pledge, deed of trust or other lien on  its  property, franchises,  rights  and privileges of every kind and nature or any part thereof.  (b) To assist, promote, encourage and through the cooperative  efforts of  the  institutions  and  corporations which shall, from time to time, become members thereof, develop and advance the business prosperity  and economic  welfare  of the state; to encourage and assist in the location of new business and industry in the state and to  rehabilitate  existing business  and industry; to evaluate, assess and determine the value of a patent right and to take, sell or transfer an agreement or note pursuant to section five hundred fifty of the general business law, to lend money to, and to guarantee, endorse, or act as surety  on  the  bonds,  notes, contracts, or other obligations of, or otherwise assist financially, any person,  firm, corporation or association, and to establish and regulate the terms and conditions with respect to any  such  loans  or  financial assistance and the charges for interest and service connected therewith; provided,  however,  that  it  shall not be the intention hereof to take from banking organizations any such  loans  or  commitments  as  may  be desired  by such organizations generally in the ordinary course of their business.  (c) To purchase, receive, hold, lease, or otherwise  acquire,  and  to sell,  convey,  mortgage,  lease,  pledge, or otherwise dispose of, upon such terms and conditions as its board of directors may deem  advisable, real  and personal property, together with such rights and privileges as may  be  incidental  and  appurtenant  thereto  and  the  use   thereof, including, but not restricted to, any real or personal property acquired by  such  corporation  from time to time in the satisfaction of debts or enforcement of obligations.  (d) To acquire the good will,  business,  rights,  real  and  personal property  and other assets, or any part thereof, of such persons, firms, corporations, joint stock companies, associations or trusts as may be in furtherance of the corporate purposes provided herein,  and  to  assume, undertake,  guarantee  or  pay the obligations, debts and liabilities of any such person, firm, corporation, joint stock company, association  or trust;  to acquire improved or unimproved real estate for the purpose of constructing industrial plants or other business establishments  thereon or  for  the  purpose of disposing of such real estate to others for the construction of industrial plants or other business establishments, and, in furtherance of the corporate purposes provided  herein,  to  acquire, construct,  or  reconstruct,  alter,  repair,  maintain,  operate, sell, lease,  or  otherwise  dispose  of   industrial   plants   or   business establishments.  (e)  To  acquire,  subscribe  for,  own, hold, sell, assign, transfer, mortgage, pledge or otherwise  dispose  of  the  stock,  shares,  bonds, debentures,  notes  or other securities and evidences of interest in, or indebtedness of, any person, firm,  corporation,  joint  stock  company, association or trust, and while the owner or holder thereof, to exercise all  the rights, powers and privileges of ownership, including the right to vote thereon.  (f) To cooperate with and avail itself of the facilities of the  state department  of  commerce  and  any  other  government  agencies;  and to cooperate with and assist, and otherwise encourage, local  organizations in the various communities in the state in the promotion, assistance and  development  of  the  business  prosperity  and economic welfare of such communities and of the state.  (g)  (1)  To  acquire  a  patent  right or any part thereof, from such persons, firms, corporations, joint  stock  companies,  associations  or trusts  as  may  be  in  furtherance  of the corporate purposes provided herein; (2) to assume, undertake,  guarantee  or  pay  the  obligations, debts and liabilities of any such person, firm, corporation, joint stock company,  association  or  trust; (3) to set forth specific criteria and standards by which the corporation shall evaluate  the  patent  and  the value  of  patent  rights  evolving  from  that patent; and (4) to allow ownership of the patent to remain with the  borrower  and  to  accept  a percentage  of  the  patent  rights  as collateral on a loan for capital formation of a business.  (h) With respect to funds administered by the corporation,  to  obtain loan  guarantees  from  any  state or federal program to guarantee loans made to small businesses by the corporation with such funds.   3. The corporation may contract  or  otherwise  affiliate  with  local development  corporations  and  other  local  development  organizations certified for this purpose by the  commissioner  of  the  department  of economic  development  throughout  the state, including, but not limited to, not-for-profit corporations established pursuant to article nine  of the  economic development law, to market the programs of the corporation to small and medium sized businesses, to  provide  technical,  financial packaging  and  loan  application  assistance to business owners seeking financial assistance from the corporation, including but not limited  to minority   owned   business  enterprises  and  small  and  medium  sized businesses located in economically distressed areas.