N.Y. PBA Law § 1837-B

§ 1837-b. Loans to local development corporations. 1. No loan shall be\nmade by the authority under the provisions of this subtitle with respect\nto an eligible project unless: (a) the local development corporation has\nobtained firm commitments satisfactory to the authority from responsible\nfinancial sources, which may include a federal agency or the project\noccupant, for the total project cost exclusive of any loan requested\nfrom the authority; (b) the local development corporation has obtained a\nfirm commitment satisfactory to the authority from the project occupant\nto lease or use the project after it has been completed; (c) the\nprincipal amount of such loan is forty percent or less of the project\ncost, except as provided in paragraphs (a) and (b) of subdivision two of\nsection eighteen hundred three and paragraph (a) of subdivision seven of\nsection eighteen hundred twenty-three of this chapter; and (d) if such\nloan is secured by a mortgage on the project, such mortgage is not a\njunior encumbrance on the project by more than fifty percent of the\nproject cost.\n 2. No loan shall be guaranteed by the authority with respect to a\nproject unless: (a) the project occupant has obtained firm commitments\nsatisfactory to the authority from banking organizations for the\nfinancing of the project cost exclusive of the amount to be provided by\nthe project occupant; (b) the authority is satisfied that the project\noccupant may be reasonably expected to comply with the terms of any loan\nfor which a guarantee is sought; (c) the amount of the guarantee is\neighty percent or less of the project cost; and (d) the loan is secured\nby a mortgage or security instrument which is not a junior encumbrance\nor other collateral deemed satisfactory to protect the authority's\ninterest.\n