2023 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.