2023 New York Laws › GMU - General Municipal › Article 15 - Urban Renewal › 508 - State Loans.

§ 508. State loans. 1. The commissioner may, in the name of the state,
  make  or  contract  to  make  loans  to  a  municipality  to assist such
  municipality to establish and carry out one or more  programs  of  urban
  renewal.  No  such  loan  shall  be  made  where  the  municipality  has
  contracted with the federal government for a capital grant prior to  the
  thirtieth of April, nineteen hundred fifty-nine; provided, however, that
  such  a  loan may be made with respect to that part of any program which
  has been added, or with respect to which the federal capital  grant  has
  been  increased,  pursuant  to  a contract or contract amendment entered
  into with  the  federal  government  after  such  date.  All  such  loan
  contracts  shall be subject to approval by the state comptroller, and by
  the attorney general as to form. Any such loan shall be in such  amount,
  not exceeding one-half of the local grants-in-aid which the municipality
  has agreed to make under the provisions of the contract for federal aid,
  as the commissioner, in his discretion, may deem necessary to assist the
  municipality in discharging its obligations in connection with the urban
  renewal  program for which the loan shall be made. No municipality shall
  receive any such loan until (a) the urban renewal plan has been approved
  by the governing body, (b) the program set forth in such plan  has  been
  certified  as  eligible  for  federal assistance by the housing and home
  finance agency of the federal government, and (c) the governing body and
  the comptroller of the municipality, or  in  a  municipality  having  no
  comptroller,  the  chief  financial  officer  of such municipality, have
  attached their separate approvals to the loan contract. The commissioner
  may make temporary advances to such municipality in anticipation of  any
  such  loan,  and no such temporary advance shall be deemed to constitute
  part of such loan unless such temporary advance has been made out of the
  proceeds of definitive urban renewal bonds sold by the state pursuant to
  section sixty of the state finance law.
2. Loans shall be made at the rate of interest paid or to be  paid  by
  the state for the funds loaned to the municipality, plus a proportionate
  share  of  the  actual  direct cost of the borrowing as certified by the
  state comptroller. Each such  loan  shall  be  repaid  in  equal  annual
  installments  over  or  within a period not to exceed twenty-five years.
  Each installment shall equal the amount payable by the state for  moneys
  borrowed  for  the  loan and shall be paid by the municipality not later
  than five days before each such payment by the state is required.
3. Should the  municipality  fail  to  make  payment  of  interest  or
  principal upon any due date, the state comptroller may deduct and retain
  from any moneys otherwise payable by the state to such municipality, the
  amount  of such interest and principal and credit such municipality with
  the amount of such deduction.
4. All or any part of the sum which the commissioner has contracted to
  lend to the municipality may, with the consent of the  commissioner,  be
  borrowed  by  the  municipality  from sources other than the state under
  such terms and conditions as the commissioner shall  approve,  but  such
  borrowing  shall  not  constitute a waiver or surrender of the rights of
  the municipality under its loan contract made with the commissioner.