N.Y. Pub. Auth. Law § 1840-O

Current through 2024 NY Law Chapter 678

Section 1840-O - Determination of qualified applicant

1.The authority shall in its sole discretion determine those applicants who are financially responsible and presumptively able to comply with the terms and conditions of any loan, lease, sale or other agreement to be entered into with the authority or a local development corporation in respect to a project. In making its determination, the authority shall consider all information reasonably available to it, including information as to the business reputation of the applicant, the character and ability of its management, the adequacy of its financial resources, the market demand for its products, the adequacy of its distribution methods, its past earnings and the likelihood that it can successfully meet any required payment under such loan, lease, sale or other agreement out of projected current income.

2.No loan, lease, sale or other agreement shall be made by the authority under the provisions of this title with respect to any project unless:

(a)the qualified applicant or the local development corporation has obtained firm commitments satisfactory to the authority from responsible financial sources, for the total project cost, pursuant to subdivision nineteen of section eighteen hundred forty-a of this title; and

(b)the qualified applicant or the local development corporation has obtained a firm commitment satisfactory to the authority to use, lease or purchase the project after construction, acquisition, rehabilitation or improvement is completed; and

(c)the qualified applicant or the local development corporation has made adequate provisions satisfactory to the authority for the payment of the cost of construction, acquisition, rehabilitation or improvement, and the maintenance and upkeep of such project; and

(d)the authority approves the terms of the use, lease or sale and is satisfied that the applicant may reasonably be expected to comply with the terms thereof; and

(e)such project is secured by a mortgage, loan agreement, contract or such other instrument deemed necessary or convenient.

Provided further, that the authority in any loan, lease, sale or other agreement with respect to a project shall be in compliance with the purposes of the authority, pursuant to all applicable provisions of this title.

3.No funds of the authority shall be used in respect to any project if the completion thereof would result in the removal of an eligible business facility of the project occupant from one area of the state to another area of the state or in the abandonment of one or more plants or facilities of the project occupant located within the state provided, however, that neither restriction shall apply if the authority shall determine on the basis of the application before it that the project is reasonably necessary to discourage the project occupant from removing such other plant or facility to a location outside the state or is reasonably necessary to preserve the competitive position of the project occupant in its respective industry.

4.No funds of the authority shall be used in respect to any project if the authority would be required to operate, service or maintain the project pursuant to any loan, lease, sale or other agreement except upon foreclosure.

5.No funds of the authority shall be used for a project unless the applicant shows to the satisfaction of the authority that funds equal to the amount of the proposed assistance on the construction, acquisition, rehabilitation or improvement from the authority are not reasonably available from other sources at a comparable rate of interest.

6.No funds of the authority shall be used in violation of any further restrictions imposed by general rule or regulation of the authority in relation to assisted projects and the authority is hereby authorized to adopt rules and regulations containing such restrictions as it may deem necessary or appropriate to effectuate its corporate purposes.

7.No funds of the authority shall be used in violations of any further restrictions imposed by the state or counties pursuant to section eighteen hundred forty-h of this title.

8.No provision of this title shall prevent the inclusion in a loan, lease or other agreement relating to an assisted project of a provision granting the project occupant the right to purchase such project upon such terms and conditions as the authority may approve.

N.Y. Pub. Auth. Law § 1840-O