New York Laws
Sub Title 5-A - Subtitle V-a Loans to Lenders Program
1835-C - Loans to Lenders.

§ 1835-c. Loans to lenders. 1. The authority shall have the power and
is hereby authorized to make and contract to make loans to lenders on
such terms and conditions as it shall determine, and all lenders are
authorized to borrow from the authority in accordance with the
provisions of this section and upon such terms and conditions as the
authority may impose, provided that the business development corporation
established under article five-A of the banking law shall receive no
more than five million dollars and any other lender shall receive no
more than two million dollars in loans to lenders from the authority in
any twelve month period.

2. The authority shall require as a condition of each loan to a lender
that such lender enter into written commitments to make within such
period of time as the authority may require loans for agricultural
business projects in accordance with the standards and criteria
prescribed by the authority. Such loans for agricultural business
projects shall be in an aggregate principal amount equal to the amount
of such loan to the lender and shall require the disbursement of such
loan proceeds by the lender to borrowers to pay the costs of such
projects; provided that no borrower shall receive more than two hundred
thousand dollars in loans for agricultural business projects that are
financed by loans to lenders from the authority in any twelve month
period.

3. The authority shall require the submission to it by each lender to
which the authority has made a loan to lender such documentation and
other evidence satisfactory to the authority that the lender has made
loans for agricultural business projects in accordance with the
standards and criteria prescribed by the authority, and in this
connection the authority through its members, agents and employees may
inspect the books and records of such lender.

4. The authority shall require that each lender receiving a loan to
lender pursuant to this section shall issue and deliver to the authority
an evidence of its indebtedness to the authority which shall constitute
an unconditional obligation of such lender and shall bear such date or
dates, shall mature at such times or times, shall be subject to
prepayment and shall contain such other provisions consistent with this
subtitle as the authority shall require.

5. Notwithstanding any other provision of this subtitle, the interest
rate and other terms of loans to lenders made from the proceeds of any
issue of loans to lenders bonds or notes of the authority shall be at
least sufficient to assure the payment of principal, redemption premium,
if any, and interest on such bonds and notes as the same become due and
payable.

6. The authority may require that loans to lenders made pursuant to
this subtitle shall be secured as to the payment of both principal and
interest by a pledge of collateral security in such amounts as the
authority may determine to be necessary to assure the payment of such
loans and the interest thereon as the same become due and payable. Such
collateral security may consist of (a) obligations of or guaranteed by
the United States of America, (b) obligations of the state or
obligations the principal and interest of which are guaranteed by the
state, excluding any obligations of the authority, (c) obligations of
any corporation wholly owned by the United States of America, (d)
obligations of any corporation sponsored by the United States of America
which are or may become eligible as collateral for advances to member
banks as determined by the board of governors of the federal reserve
system, or (e) certificates of deposit or time deposits secured in such
manner, if any, as the authority shall determine.

7. The authority may require that any collateral security for loans to
lenders be deposited with a bank, trust company or other financial
institution (other than the lender pledging such collateral security)
which shall be located in the state and designated by the authority as
custodian therefor or may require each lender to enter into an agreement
with the authority containing such provisions as the authority shall
require to (a) adequately identify and maintain such collateral
security, (b) service such collateral security, and (c) require the
lender to hold such collateral security in trust for the authority and
be accountable to the authority as the trustee of an express trust. The
authority may also establish such additional requirements as it shall
deem necessary with respect to the pledging, assigning, setting aside or
holding of such collateral security and the making of substitutions of
or additions thereto and the disposition of income and receipts
therefrom.

8. The authority may require as a condition of any loans to lenders
such representations and warranties as it shall determine to be
necessary to secure such loans and carry out the purposes of this
subtitle, and may make and execute contracts for the administration,
servicing or collection of any loans to lenders or other financing with
a lender and may pay the reasonable value of services rendered to the
authority pursuant to such contracts.