§ 256. Mortgage loans. The New York state housing finance agency may enter into contracts for loans to community development corporations for one or more projects. No loan shall be made in an amount greater than ninety-five per centum of the project cost, plus working capital in an amount not to exceed two per centum of the project cost. Any such loan shall be secured by a first mortgage lien upon all of the real property of which the project consists and upon all fixtures and articles of personal property attached to or used in conjunction with the operation of such project. The agency may make temporary loans or advances to a community development corporation in anticipation of such loan and no such temporary loan or advance shall be deemed to constitute part of such loan unless such temporary loan or advance has been made out of the proceeds of definitive bonds sold by the agency pursuant to the provisions of section forty-six of this chapter.

Terms Used In N.Y. Private Housing Finance Law 256

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Personal property: All property that is not real property.
  • Project: shall mean a non-profit capital development project invested with a public interest, including facilities incidental or appurtenant thereto and all lands, buildings and improvements acquired, owned, constructed, maintained or operated pursuant to this article, or any combination thereof. See N.Y. Private Housing Finance Law 252
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
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