§ 1814. Loans and loan guarantees for machinery and equipment. 1. Notwithstanding any other provisions of this title, the authority may make loans to local development corporations to assist in financing the cost of machinery and equipment, provided, however,

Terms Used In N.Y. Public Authorities Law 1814

  • Authority: shall mean the New York job development authority created by subdivision one of section eighteen hundred two of this title. See N.Y. Public Authorities Law 1801
  • Banking organization: when used in this title shall mean (a) any organization defined by subdivision eleven of § 2 of the banking law, (b) any agency or branch of a foreign banking corporation licensed by the department of financial services under Article 5 of the banking law, (c) any national bank, federal savings and loan association and federal credit union, (d) any authorized insurer defined by paragraph ten of subsection (a) of § 107 of the insurance law and (e) any public or private pension or investment fund required to file a report with any state or federal regulatory or supervisory body. See N.Y. Public Authorities Law 1801
  • 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.
  • Loan: shall mean (i) a mortgage loan evidenced by a bond, note or other obligation of a local development corporation secured by a mortgage on a project, defined in subdivision fourteen (i) and (ii) of this section, made by a local development corporation, a project occupant or other person, firm or corporation; (ii) a loan evidenced by a bond, note or other obligation of a local development corporation, a project occupant, or other person, firm or corporation secured by a loan agreement, contract or such other instrument deemed necessary or convenient on a project defined in subdivision fourteen (iii) of this section; (iii) a loan evidenced by a bond, note or other obligation of a local development corporation, a project occupant, or other person, firm or corporation secured by a security interest in machinery and equipment as provided in section eighteen hundred fourteen; and (iv) an employee ownership assistance loan made pursuant to paragraph (v) of subdivision fourteen of this section. See N.Y. Public Authorities Law 1801
  • Loan guarantee: shall mean the guaranteeing by the authority of a loan made by a banking organization on a project as defined in subdivision fourteen of this section. See N.Y. Public Authorities Law 1801
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Project: shall mean (i) the construction of a new industrial or manufacturing plant, a new research and development building or other new eligible business facility, (ii) the acquisition, rehabilitation or improvement of a former or existing industrial or manufacturing plant, of a former or existing building to be used for research and development, of a former or existing other eligible business facility, (iii) the construction, acquisition, rehabilitation or improvement of pollution control facilities, (iv) the purchase of machinery and equipment, for which financial assistance from the authority is sought, or (v) assistance to employees under an employee ownership assistance loan agreement made pursuant to subtitle six of this title; provided, however, that any such plant, building, facility or machinery and equipment therefore shall not be primarily used in making retail sales of goods or services to customers who personally visit such facilities to obtain such goods or services, or used primarily as a hotel, apartment house or other place of business which furnishes dwelling space or accommodations to either residents or transients. See N.Y. Public Authorities Law 1801
  • Project occupant: shall mean the business enterprise which proposes to use a project after construction, acquisition, rehabilitation or improvement. See N.Y. Public Authorities Law 1801

(a) that the amount of such loan shall not exceed forty percent of the cost of such machinery and equipment, except as provided in paragraph (b) of subdivision two of section eighteen hundred three and paragraph (a) of subdivision seven of section eighteen hundred twenty-three of this chapter;

(b) that the loan shall be evidenced by a bond, note or other obligation of a local development corporation, a project occupant, or other person, firm or corporation and secured by a security agreement, chattel paper, loan agreement, or such other instruments or documents deemed necessary or convenient to perfect a security interest in the machinery and equipment financed and to protect the interests of the authority; and

(c) that such security interest taken by the authority shall not be subordinate, but may be a participating interest which, when added to the security interests of other lenders, does not exceed ninety percent of the cost of such machinery and equipment.

2. Notwithstanding any other provisions of this title, the authority may issue a loan guarantee to a banking organization to assist in financing the cost of machinery and equipment, provided, however,

(a) that the amount of the loan guarantee shall not exceed eighty percent of the amount of the cost of the machinery and equipment; and

(b) that the loan of the banking organization shall be evidenced by a bond, note or other obligation of a project occupant, or other person, firm or corporation and secured by a security agreement, chattel paper, loan agreement, or such other instruments or documents deemed necessary or convenient by the authority to perfect a security interest in the machinery and equipment financed and to protect the interests of the authority.

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