2023 New York Laws › STF - State Finance › Article 6 - Funds of the State › 97-V*2 - New York State Musical Instrument Revolving Fund.

* §  97-v.  New York state musical instrument revolving fund. 1. There
  is hereby established in the custody of the state comptroller, a special
  fund to be known as the "New York  state  musical  instrument  revolving
  fund".
2.  The fund shall consist of all monies appropriated for its purpose,
  all monies transferred to such fund  pursuant  to  law  and  all  monies
  required  by  the provisions of this section or any other law to be paid
  into or credited to this fund, including all monies received by the fund
  or donated to  it.  The  total  of  monies  deposited  as  a  result  of
  appropriations  from state funds into this fund shall not exceed the sum
  of five hundred thousand dollars. Monies  in  the  fund  shall  be  kept
  separate  and  shall  not  be commingled with any other monies otherwise
  appropriated or received except as hereby provided.
3. Monies of the fund, when allocated, shall be available to  the  New
  York  state council on the arts for the purpose of providing assistance,
  excluding administrative costs, for the  loan,  lease  and  purchase  of
  musical  instruments and other related property and equipment, as herein
  provided,   by   not-for-profit   symphony   orchestras   and/or   other
  not-for-profit  musical entities incorporated in the state and organized
  for the purpose of the presentation of performing arts for  the  benefit
  of  the  public  and  which  have  been  approved pursuant to guidelines
  established by the council. Such monies  shall  also  be  available  for
  administrative costs of the council pursuant to approval by the director
  of the budget. Notwithstanding any other inconsistent provisions of this
  chapter,  should  the  council determine that there is a compelling need
  for the loan, lease or purchase of  property  or  equipment  other  than
  musical  instruments  by not-for-profit symphony orchestras and/or other
  not-for-profit musical entities incorporated in the state and  organized
  for  the  purpose of the presentation of performing arts for the benefit
  of the public, and upon approval of the  director  of  the  budget,  the
  council  may  assist  such  organization  in acquiring such equipment in
  accordance with guidelines established by the council. The council shall
  contract with one or more not-for-profit entities which shall distribute
  such monies, however, in no case shall monies of the fund be distributed
  nor shall a contract to distribute such monies be  approved  unless  the
  fund  shall  have  sufficient  monies  to  effectuate  all such approved
  distributions and contracts.
Purchases, leases and loans of musical instruments and other equipment
  shall not be approved or effected if such purchases, leases or loans are
  eligible for financing from any other state assistance program.
4. The state council on the arts shall establish guidelines  necessary
  to administer the fund. Guidelines shall include, but not be limited to:
  qualifications  and  conditions for assistance, which may require public
  service performances, terms of lease or installment  sale  payments  and
  finance  charges  on  installment  sales  at  rates  of  interest which,
  notwithstanding any other provision of law, shall not be less than three
  per cent per annum nor more than ten per cent per annum, provisions  for
  insurance of the instrument or other equipment, provisions for necessary
  security  agreement arrangements, and any other terms and conditions the
  council may require as necessary to properly effectuate  the  provisions
  of this section.
5.  The  not-for-profit entity of entities with whom the state council
  on the arts has contracted pursuant to subdivision three of this section
  shall enter into contractual arrangements with  applicants  approved  by
  the  council. All contracts must be approved by the state council on the
  arts and the  comptroller  prior  to  the  distribution  of  any  monies
  thereunder.  Such  contracts shall assure that the not-for-profit entity

  or entities retain title  to  the  instrument  or  equipment  until  the
  provisions and intent of this section are satisfied.
6.  Notwithstanding  any  other provisions of law, should a default in
  payment of monies for the purchase or lease of an  instrument  or  other
  equipment  occur,  the  council  shall so notify the comptroller and the
  attorney general who shall take such steps  as  may  be  necessary.  The
  not-for-profit  entity  or  entities,  after  such notification is made,
  shall take steps to effect repossession regardless of whether any  note,
  memorandum,  instrument or other writing has been recorded or regardless
  of whether any other person has notice of such possessory rights to  the
  instrument  or equipment. Any contract between the not-for-profit agency
  or agencies and a not-for-profit symphony  orchestra  or  other  musical
  entity  authorized  by  this article, shall assure the right and provide
  guarantees for such repossession. Subsequent to the taking of possession
  of the instrument or equipment, the comptroller or not-for-profit agency
  or agencies may offer the same for sale at public auction to the highest
  bidder pursuant to guidelines established by the comptroller.
7. The comptroller is authorized to deduct the difference between  the
  purchaser's  or  lessee's  outstanding  obligation  at  the  time of the
  auction provided for in subdivision five of this section, and the amount
  realized from that auction,  after  deductions  for  all  necessary  and
  proper  costs  of  the  auction  are made, from any other grant or other
  assistance approved by the council on the arts for that  purchaser.  The
  difference  deducted by the comptroller and the net amount realized from
  the auction shall be deposited in the New York state musical  instrument
  revolving fund.
8.  Nothing  contained herein shall prevent the council from receiving
  grants, gifts or bequests for the purposes of the  fund  as  defined  in
  this section and depositing them into the fund according to law.
9.  The  state council on the arts shall provide by September first of
  each year, to the governor, the temporary president of the  senate,  the
  speaker  of  the  assembly, the chairman of the senate finance committee
  and the chairman of the assembly ways  and  means  committee,  a  report
  containing guidelines and amendments established by the state council on
  the  arts  and a complete financial statement including, but not limited
  to, monies  allocated,  collected,  transferred  or  otherwise  paid  or
  credited  to  the  fund. A projected schedule of disbursements, receipts
  and needs of the fund for the next fiscal year shall be included in each
  report. In addition, any amendments to the guidelines shall be  provided
  to   the   above   listed   individuals  within  thirty  days  of  their
  establishment by the state council on the arts.
10. No monies shall be payable from this fund, except on the audit and
  warrant of the comptroller on vouchers certified and  submitted  by  the
  chairman of the state council on the arts.
* NB There are 2 § 97-v's