2023 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;
(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 and
(v) establish a program in cooperation with the empire state development
corporation that shall focus  on  small  businesses  located  in  highly
distressed  areas  and  minority  and  women-owned  business enterprises
(MWBEs) as such designations are defined by the  New  York  state  urban
development  corporation  act,  through  which  the corporation shall be
authorized to: (A) act as  third-party  agent  for  the  capital  access
program  established  by section sixteen-k of section one of chapter one
hundred seventy-four  of  the  laws  of  nineteen  hundred  sixty-eight,
constituting  the  urban  development corporation act; (B) process, fund

and approve qualifying program  loans  made  by  the  corporation  or  a
participating  financial  institution  pursuant  to section sixteen-k of
section one of chapter one hundred seventy-four of the laws of  nineteen
hundred sixty-eight, constituting the urban development corporation act;
(C)  maintain  and service a portfolio of qualifying loans made pursuant
to the capital access program; and (D) engage in outreach and  marketing
to   financial   institutions  to  increase  awareness  of  the  program
established under this subparagraph. 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.