N.Y. Public Authorities Law 1825 – Local development corporations
§ 1825. Local development corporations. To be eligible for loans from the authority, a local development corporation shall meet the following requirements in addition to any others imposed by the provisions of this title:
Terms Used In N.Y. Public Authorities Law 1825
- Assisted project: shall mean any project in respect of which the authority has granted a loan or guaranteed a loan. See N.Y. Public Authorities Law 1801
- 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
- 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
- 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
- State: shall mean the state of New York. See N.Y. Public Authorities Law 1801
1. The corporation shall (a) be incorporated or reincorporated under section fourteen hundred eleven of the not-for-profit corporation law, or (b) be incorporated under article four of the not-for-profit corporation law, in addition to other purposes, to construct new industrial or manufacturing plants or new research and development buildings and acquire machinery and equipment deemed related thereto or acquire, rehabilitate, and improve for use by others, industrial or manufacturing plants in the area of the state in which an assisted project is to be located, to assist financially in such construction, acquisition, rehabilitation and improvement and to maintain such plants, buildings and equipment for others, and may also be authorized to study and promote, alone or in concert with local officials and interested local groups, the economic growth and business prosperity of the area and the solution of other civic problems of the region which includes such areas.
2. The corporation shall have no member or employee thereof who owns beneficially more than five per cent of the capital stock of the project occupant, or of the business enterprise described in section eighteen hundred twenty-seven and if any member or employee of the corporation has any material financial interest in, is employed by, or is a consultant to any such project occupant or business enterprise or any other business enterprise including a bank or other lending institution having a material financial relationship with such project occupant or business enterprise, such member or employee shall fully disclose any such interest or involvement to the corporation and to the authority in such form and manner as the authority board shall prescribe and such member or employee shall not participate in any evaluation of, or decision concerning, an application pursuant to section eighteen hundred twenty-four of this title regarding such project applicant or business enterprise.
3. The corporation shall agree to be bound by the rules and regulations of the authority relating to assisted projects and the operations of local development corporations, including the use of the loan evaluation criteria and methods established by the authority pursuant to subdivision thirteen-b of section eighteen hundred four of this title and the criteria established by the authority pursuant to subdivision thirteen-c of section eighteen hundred four of this title, and shall submit to examination of its books of account and corporate records by the authority at such times as the authority may require during the term of any loan made to it by the authority.
4. The corporation shall develop, promote and ensure that, where possible, minority groups which traditionally have been disadvantaged, and women, are afforded equal opportunity for loans from the authority through the corporation and for contracts in connection with the construction of the projects financed by loans from the authority through the corporation; provided, however, that the corporation may request that the authority implement the provisions of this subdivision.