N.Y. GMU Law § 508

§ 508. State loans. 1. The commissioner may, in the name of the state,\nmake or contract to make loans to a municipality to assist such\nmunicipality to establish and carry out one or more programs of urban\nrenewal. No such loan shall be made where the municipality has\ncontracted with the federal government for a capital grant prior to the\nthirtieth of April, nineteen hundred fifty-nine; provided, however, that\nsuch a loan may be made with respect to that part of any program which\nhas been added, or with respect to which the federal capital grant has\nbeen increased, pursuant to a contract or contract amendment entered\ninto with the federal government after such date. All such loan\ncontracts shall be subject to approval by the state comptroller, and by\nthe attorney general as to form. Any such loan shall be in such amount,\nnot exceeding one-half of the local grants-in-aid which the municipality\nhas agreed to make under the provisions of the contract for federal aid,\nas the commissioner, in his discretion, may deem necessary to assist the\nmunicipality in discharging its obligations in connection with the urban\nrenewal program for which the loan shall be made. No municipality shall\nreceive any such loan until (a) the urban renewal plan has been approved\nby the governing body, (b) the program set forth in such plan has been\ncertified as eligible for federal assistance by the housing and home\nfinance agency of the federal government, and (c) the governing body and\nthe comptroller of the municipality, or in a municipality having no\ncomptroller, the chief financial officer of such municipality, have\nattached their separate approvals to the loan contract. The commissioner\nmay make temporary advances to such municipality in anticipation of any\nsuch loan, and no such temporary advance shall be deemed to constitute\npart of such loan unless such temporary advance has been made out of the\nproceeds of definitive urban renewal bonds sold by the state pursuant to\nsection sixty of the state finance law.\n 2. Loans shall be made at the rate of interest paid or to be paid by\nthe state for the funds loaned to the municipality, plus a proportionate\nshare of the actual direct cost of the borrowing as certified by the\nstate comptroller. Each such loan shall be repaid in equal annual\ninstallments over or within a period not to exceed twenty-five years.\nEach installment shall equal the amount payable by the state for moneys\nborrowed for the loan and shall be paid by the municipality not later\nthan five days before each such payment by the state is required.\n 3. Should the municipality fail to make payment of interest or\nprincipal upon any due date, the state comptroller may deduct and retain\nfrom any moneys otherwise payable by the state to such municipality, the\namount of such interest and principal and credit such municipality with\nthe amount of such deduction.\n 4. All or any part of the sum which the commissioner has contracted to\nlend to the municipality may, with the consent of the commissioner, be\nborrowed by the municipality from sources other than the state under\nsuch terms and conditions as the commissioner shall approve, but such\nborrowing shall not constitute a waiver or surrender of the rights of\nthe municipality under its loan contract made with the commissioner.\n