S T A T E   O F   N E W   Y O R K
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                                  5218

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 11, 2009
                               ___________

Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
  Committee on Economic Development, Job Creation, Commerce and Industry

AN ACT to amend the New York state urban development corporation act, in
  relation to establishing the empire revolving bridge  loan  fund,  and
  authorizing  the New York state urban development corporation to issue
  bonds or notes to provide monies for such fund; and to  amend  chapter
  393 of the laws of 1994, amending the New York state urban development
  corporation  act  relating  to  the powers of the New York state urban
  development corporation to make loans, in relation to  the  effective-
  ness thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 1 of chapter 174 of the laws of 1968,  constituting
the  New  York  state  urban  development corporation act, is amended by
adding a new section 16-t to read as follows:
  S 16-T.  EMPIRE REVOLVING BRIDGE LOAN FUND. 1. IT IS  HEREBY  DECLARED
THAT  IT  IS  A  VITAL  POLICY  AND  PUBLIC PURPOSE OF NEW YORK STATE TO
PROMOTE SIGNIFICANT ECONOMIC DEVELOPMENT IN NEW YORK. THE HISTORY OF NEW
YORK IS MARKED BY LARGE-SCALE ECONOMIC  ENDEAVORS  WHICH  HARNESSED  THE
CREATIVITY,  SKILL  AND  VISION OF THE RESIDENTS OF NEW YORK. THE TRANS-
FORMING POWER OF THESE ACCOMPLISHMENTS IS  BEST  EMBODIED  IN  THE  ERIE
CANAL,  WHICH  CREATED  IN  ITS  WAKE A SURGE OF ECONOMIC AND POPULATION
GROWTH IN NEW YORK. IN CONTRAST, THE LEGISLATURE HEREBY FINDS  THAT  THE
CURRENT  ECONOMIC CLIMATE OF NEW YORK AS A WHOLE IS MARKED BY PERSISTENT
DISINVESTMENT, BLIGHT AND AGING INFRASTRUCTURE, LOSS OF OPEN SPACE,  AND
EMIGRATION  OF EMPLOYMENT OPPORTUNITIES AND INVESTMENT DOLLARS, AND THAT
RECREATING THE ENVIRONMENT OF ENERGY AND RISK-TAKING THAT DROVE THE ERIE
CANAL IS ESSENTIAL TO NEW  YORK'S  FUTURE  WELL-BEING.  THE  LEGISLATURE
FINDS  THAT  IN  ORDER TO REVERSE THE TRENDS OF DECLINE, IT IS NECESSARY
AND APPROPRIATE TO ESTABLISH A PUBLIC/PRIVATE FINANCING MODEL TO PROMOTE
ECONOMIC DEVELOPMENT IN NEW YORK WHILE  MAXIMIZING  LEVERAGE  NEEDED  TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07175-01-9
              

A. 5218                             2

ASSIST  IN FINANCING SUCH PROJECTS AND DO SO IN AN EXPEDITED MANNER. THE
LEGISLATURE HEREBY FINDS THAT CURRENT CONDITIONS IN CREDIT MARKETS  HAVE
HAD  A  NEGATIVE  EFFECT ON SIGNIFICANT ECONOMIC DEVELOPMENT PROJECTS IN
NEW  YORK.  IT IS THE OVERRIDING PUBLIC POLICY OF THIS STATE TO CREATE A
VEHICLE TO PROVIDE SHORT-TERM FINANCING FOR IMPORTANT  PROJECTS  IN  NEW
YORK TO ENSURE THE HEALTH, WELFARE AND PROSPERITY OF ALL CITIZENS OF THE
STATE.
  2.  THERE  IS  HEREBY  ESTABLISHED IN THE CUSTODY OF THE CORPORATION A
SPECIAL FUND TO BE KNOWN AS THE "EMPIRE REVOLVING BRIDGE LOAN FUND".
  3. THE FUND SHALL CONSIST OF THE NET PROCEEDS OF ONE OR MORE SERIES OF
BONDS OR NOTES ISSUED, AT ANY TIME AND FROM TIME TO TIME, BY THE  CORPO-
RATION  PURSUANT TO ARTICLE 5-C OF THE STATE FINANCE LAW AND SUBDIVISION
NINE OF THIS SECTION FOR THE PURPOSES OF THIS SECTION, ALL MONIES TRANS-
FERRED TO SUCH FUND PURSUANT TO LAW, ALL MONEYS DONATED TO IT,  PAYMENTS
OF  PRINCIPAL  ON  LOANS  MADE  FROM THE FUND, AND ANY INTEREST EARNINGS
WHICH MAY ACCRUE FROM THE INVESTMENT OR REINVESTMENT OF MONEYS FROM  THE
FUND. THE MONIES HELD IN OR CREDITED TO THE FUND SHALL BE EXPENDED SOLE-
LY FOR THE PURPOSES SET FORTH IN THIS SECTION. THE CORPORATION SHALL NOT
COMMINGLE  THE  MONIES  OF SUCH FUND WITH ANY OTHER MONIES OF THE CORPO-
RATION OR ANY MONIES HELD IN TRUST BY THE CORPORATION.
  4. MONIES OF THE FUND, WHEN  ALLOCATED,  SHALL  BE  AVAILABLE  TO  THE
CORPORATION  TO  MAKE  LOANS  TO  ELIGIBLE  PROJECTS AS PROVIDED IN THIS
SECTION. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW,  FOR  PURPOSES  OF
THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE ACCOMPANYING MEANINGS:
  (A) "APPLICANT" SHALL MEAN THAT INDIVIDUAL OR ENTITY, OR SUCH INDIVID-
UAL  OR  ENTITY'S  AGENT,  SUCCESSOR  IN INTEREST, ASSIGNEE OR DESIGNEE,
WHICH FILES AN APPLICATION WITH THE CORPORATION FOR CONSIDERATION OF  AN
ELIGIBLE PROJECT.
  (B)  "BROWNFIELD  SITE"  SHALL  HAVE  THE MEANING SET FORTH IN SECTION
27-1405 OF THE ENVIRONMENTAL CONSERVATION LAW.
  (C) "ELIGIBLE PROJECT" SHALL MEAN ANY NEW  EQUIPMENT,  IMPROVEMENT  OR
STRUCTURE,  INCLUDING  NEW  CONSTRUCTION,  ALTERATION  OR IMPROVEMENT TO
EXISTING STRUCTURES, AND ALL REAL AND PERSONAL PROPERTY DEEMED NECESSARY
THEREWITH, WHICH IS PROJECTED TO (I) COST A MINIMUM  OF  TWENTY  MILLION
DOLLARS, (II) RESULT IN THE CREATION, IN ONE OR MORE PHASES, OF AT LEAST
THREE  HUNDRED  NEW  FULL  TIME EQUIVALENT JOBS AT THE PROJECT SITE, AND
(III) ONE OR MORE OF THE FOLLOWING: (A) WILL BE DESIGNED AND CONSTRUCTED
TO ACHIEVE "GOLD" STATUS OR HIGHER PURSUANT TO THE LEADERSHIP IN  ENERGY
AND  ENVIRONMENTAL DESIGN ("LEED") GREEN BUILDING RATING SYSTEM CRITERIA
DEVELOPED BY THE UNITED STATES GREEN BUILDING COUNCIL  OR  (B)  WILL  BE
DESIGNED AND CONSTRUCTED TO ACHIEVE "3 GLOBES" OR HIGHER PURSUANT TO THE
GREEN  GLOBES  RATING SYSTEM DEVELOPED BY THE GREEN BUILDING INITIATIVE;
OR (C) WILL UTILIZE TECHNOLOGY-ENABLED DESIGN, CONSTRUCTION AND  COOPER-
ATION INCLUDING, BUT NOT LIMITED TO, GENERALLY ACCEPTED UNIVERSAL DESIGN
PRINCIPLES  THAT  ENHANCE THE FULL CYCLE USE OF BUILDINGS WITHOUT REGARD
TO THE PHYSICAL ABILITIES OR DISABILITIES  OF  OCCUPANTS  OR  GUESTS  IN
ORDER  TO  ACCOMMODATE  A WIDE RANGE OF INDIVIDUAL PREFERENCES AND FUNC-
TIONAL  ABILITIES.  IF  A  PHASE  OF  THE  ELIGIBLE  PROJECT  IS   UNDER
CONSTRUCTION AS OF THE DATE OF THE APPLICATION, THEN ANY JOBS CREATED AS
OF SUCH DATE SHALL BE CONSIDERED JOBS CREATED FOR PURPOSES OF THIS DEFI-
NITION.
  THE CORPORATION SHALL GIVE PREFERENCE TO THOSE ELIGIBLE PROJECTS WHICH
MEET  EITHER  OR BOTH OF THE FOLLOWING CRITERIA: (I) THE SITE IS LOCATED
IN AN AREA OF A MUNICIPALITY OR REGION CHARACTERIZED BY  HIGH  UNEMPLOY-
MENT, A HIGH POVERTY RATE AND/OR A HIGH COMMERCIAL VACANCY RATE; OR (II)

A. 5218                             3

THE  APPLICANT'S  PROPOSED ELIGIBLE PROJECT WILL BE LOCATED, IN WHOLE OR
IN PART, ON A BROWNFIELD SITE AS DEFINED IN THIS SECTION.
  (D) "ELIGIBLE PURPOSES" SHALL MEAN, NOTWITHSTANDING ARTICLE 5-B OF THE
STATE  FINANCE  LAW,  ALL  COSTS PAID OR INCURRED IN CONNECTION WITH THE
DESIGN AND CONSTRUCTION OF AN ELIGIBLE PROJECT, INCLUDING, WITHOUT LIMI-
TATION, THE COSTS OF LAND  AND  OTHER  INTERESTS,  BUILDINGS,  FIXTURES,
FURNITURE, EQUIPMENT OR MACHINERY, RESEARCH AND DEVELOPMENT, PERMITTING,
PLANNING,  ENGINEERING, FINANCING, REFINANCING, THE PROVISION OF WORKING
CAPITAL, INVENTORY, MARKETING, EXPENDITURES ASSOCIATED WITH THE  OPENING
OF  AN  ELIGIBLE  PROJECT,  AND/OR OTHER AMOUNTS, INCLUDING RESERVES AND
INTEREST, REQUIRED TO BE PAID IN CONNECTION WITH FINANCING OR  REFINANC-
ING OF THE ELIGIBLE PROJECT.
  (E)  "FUND" MEANS THE EMPIRE REVOLVING BRIDGE LOAN FUND ESTABLISHED BY
THIS SECTION.
  (F) "SPONSOR" SHALL MEAN THE INDIVIDUAL OR ENTITY OR  SUCH  INDIVIDUAL
OR  ENTITY'S  AGENT,  ASSIGNEE,  DESIGNEE OR SUCCESSOR IN INTEREST WHOSE
APPLICATION FOR TREATMENT AS AN ELIGIBLE PROJECT HAS  BEEN  APPROVED  BY
THE CORPORATION.
  5. EVERY APPLICATION SHALL BE IN A FORM ACCEPTABLE TO THE CORPORATION.
THE  APPLICANT  SHALL  PAY, UPON SUBMISSION OF THE APPLICATION, A FEE OF
ONE THOUSAND DOLLARS. THE CORPORATION SHALL APPROVE  OR  DISAPPROVE,  IN
WHOLE  OR  IN PART, THE REQUESTED LOAN FOR THE ELIGIBLE PROJECT NO LATER
THAN THIRTY DAYS FROM THE DATE OF THE RECEIPT OF THE APPLICATION  OR  AT
THE  NEXT  BOARD  MEETING OCCURRING WITHIN SIXTY DAYS OF THE DATE OF THE
RECEIPT OF THE APPLICATION IF SUCH MEETING IS SCHEDULED FOR A DATE LATER
THAN THIRTY DAYS FROM THE DATE OF  RECEIPT  OF  SUCH  APPLICATION.    IN
CONSIDERING  THE  APPLICATION,  THE  CORPORATION  SHALL CONSIDER FACTORS
AFFECTING THE CREDITWORTHINESS  OF  THE  APPLICANT  INCLUDING,  BUT  NOT
LIMITED  TO,  THE  APPLICANT'S  BUSINESS  PLAN,  BUSINESS EXPERIENCE AND
MANAGEMENT INFORMATION, CREDIT HISTORY AND FINANCIAL STATEMENTS,  SUFFI-
CIENCY OF COLLATERAL TO SECURE REPAYMENT OF THE LOAN, OTHER PERSONAL AND
CORPORATE  GUARANTEES  ON  THE  PROJECT,  CASH FLOW PROJECTIONS, AND THE
STRUCTURE AND TIMING OF ANY PROPOSED LONG-TERM FINANCING BY  THE  APPLI-
CANT,  INCLUDING  ANY FINANCING PURSUANT TO THE SELF-SUFFICIENCY PROGRAM
IN SECTION 16-U OF THIS CHAPTER. TO THE EXTENT  PERMITTED  BY  LAW,  ALL
INFORMATION REGARDING THE FINANCIAL CONDITION, MARKETING PLANS, MANUFAC-
TURING  PROCESSES,  PRODUCTION  COSTS,  CUSTOMER  LISTS,  OR OTHER TRADE
SECRETS OR PROPRIETARY INFORMATION DEEMED AS SUCH BY  THE  APPLICANT  IN
CONNECTION  WITH  THE  APPLICATION  SUBMITTED  PURSUANT TO THIS SECTION,
SHALL BE CONFIDENTIAL AND EXEMPT FROM PUBLIC DISCLOSURE.
  6. (A) THE FUNDS OF THE CORPORATION DERIVED PURSUANT TO  THIS  SECTION
MAY BE USED TO PROVIDE LOANS TO ELIGIBLE PROJECTS FOR ELIGIBLE PURPOSES.
THE  INTEREST  RATE  ON ANY SUCH LOAN FOR THE TERM OF SUCH LOAN SHALL BE
NOT MORE THAN THE ALL-IN TRUE  INTEREST  COST  TO  THE  CORPORATION,  AS
DETERMINED BY THE CORPORATION, FOR THE BONDS ISSUED PURSUANT TO SUBDIVI-
SION  NINE  OF  THIS SECTION. THE TERM OF ANY LOAN MADE PURSUANT TO THIS
SECTION SHALL NOT EXCEED THREE YEARS. ALL LOANS SHALL BE  SECURED  BY  A
LIEN  POSITION  ON  COLLATERAL AT THE HIGHEST LEVEL OF PRIORITY THAT CAN
ACCOMMODATE THE BORROWER'S ABILITY TO RAISE SUFFICIENT DEBT  AND  EQUITY
CAPITAL FOR THE PROJECT.
  (B)  THE SPONSOR, UPON NOTICE TO THE CORPORATION WITHIN THIRTY DAYS OF
THE EXPIRATION OF THE TERM OF THE LOAN, MAY EXTEND  AT  ITS  OPTION  THE
LOAN  FOR  A  ONE-YEAR  PERIOD  IF THE SPONSOR IS IN COMPLIANCE WITH THE
TERMS OF THE LOAN. THE SPONSOR SHALL BE LIMITED TO THREE ONE-YEAR EXTEN-
SIONS. ANY SUCH EXTENSION SHALL CONTINUE TO  BE  SECURED  IN  ACCORDANCE
WITH THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION, AND THE INTER-

A. 5218                             4

EST  RATE  ON  SUCH EXTENSION SHALL BE CALCULATED IN THE SAME WAY AS THE
ORIGINAL LOAN.
  (C)  THE CORPORATION SHALL, UPON THE REQUEST OF THE SPONSOR, ESTABLISH
A SPECIAL ACCOUNT FOR SUCH SPONSOR WITHIN THE FUND. SUCH  ACCOUNT  SHALL
CONSIST OF THAT PORTION, AS REQUESTED BY THE SPONSOR, OF ANY PROCEEDS OF
BONDS ISSUED PURSUANT TO SUBDIVISION THREE OF THIS SECTION, ALL PAYMENTS
OF  PRINCIPAL  ON  LOANS  MADE  FROM  THE FUND OR SPECIAL ACCOUNT BY THE
APPLICABLE SPONSOR, AND ANY INTEREST EARNINGS THAT MAY ACCRUE  FROM  THE
INVESTMENT OR REINVESTMENT OF MONEYS FROM THE SPECIAL ACCOUNT.  NOTWITH-
STANDING  PARAGRAPHS  (A)  AND  (B) OF THIS SUBDIVISION, THE CORPORATION
SHALL PROVIDE ONE-YEAR EXTENSIONS ON THE ORIGINAL LOAN TO THE APPLICABLE
SPONSOR, PROVIDED THAT THE SPONSOR IS IN COMPLIANCE WITH  THE  TERMS  OF
THE  LOAN,  FROM  THE  SPECIAL  ACCOUNT UNTIL TEN YEARS FROM THE DATE OF
COMMENCEMENT OF THE INITIAL LOAN, AT THE INTEREST RATE OF  SUCH  INITIAL
LOAN,  PROVIDED  THAT  SUFFICIENT  MONEYS ARE ON DEPOSIT IN SUCH SPECIAL
ACCOUNT. ALL LOANS SHALL BE SECURED BY A LIEN POSITION ON COLLATERAL  AT
THE HIGHEST LEVEL OF PRIORITY THAT CAN ACCOMMODATE THE BORROWER'S ABILI-
TY  TO  RAISE  SUFFICIENT  DEBT  AND EQUITY CAPITAL FOR THE PROJECT. THE
AMOUNTS DEPOSITED IN SUCH SPECIAL ACCOUNT MAY  NOT  BE  INTERCHANGED  OR
COMMINGLED WITH ANY OTHER ACCOUNT IN THE FUND. ANY REMAINING MONIES IN A
SPECIAL  ACCOUNT AT THE END OF THE TERM OF THE FINAL LOAN MADE HEREUNDER
SHALL BE TRANSFERRED TO THE GENERAL ACCOUNTS OF THE CORPORATION CONSIST-
ENT WITH APPLICABLE LAW.
  7. IN CONNECTION WITH THE UNDERTAKING OF AN ELIGIBLE  PROJECT  BY  THE
CORPORATION, THE SPONSOR SHALL PAY TO THE CORPORATION, AT THE CLOSING OF
EACH LOAN FINANCING BY THE CORPORATION, A CLOSING FEE EQUAL TO THE SPON-
SOR'S  ALLOCABLE  SHARE  OF  THE  COSTS  OF ISSUANCE OF THE BONDS ISSUED
PURSUANT TO SUBDIVISION NINE OF THIS SECTION, PROVIDED HOWEVER THAT SUCH
FEE SHALL NOT EXCEED ONE PERCENT OF THE LOAN AMOUNT. THE ALLOCABLE SHARE
SHALL BE A RATIO, THE NUMERATOR OF WHICH SHALL BE THE  PRINCIPAL  AMOUNT
OF  THE  SPONSOR'S  LOAN,  AND THE DENOMINATOR OF WHICH SHALL BE THE NET
PROCEEDS OF BONDS ISSUED PURSUANT TO SUBDIVISION NINE OF  THIS  SECTION.
THE  APPLICATION  FEE  PAID PURSUANT TO SUBDIVISION FIVE OF THIS SECTION
SHALL BE CREDITED AGAINST SUCH CLOSING FEE.
  8. THE CORPORATION SHALL ANNUALLY REPORT, BEGINNING ON OR BEFORE MARCH
15, 2010 AND ON OR BEFORE EACH SUBSEQUENT MARCH 15, TO THE GOVERNOR, THE
CHAIR OF THE SENATE FINANCE COMMITTEE AND THE CHAIR OF THE ASSEMBLY WAYS
AND MEANS COMMITTEE, DESCRIBING THE ACTIVITIES AND OPERATION OF THE LOAN
PROGRAM AUTHORIZED BY THIS SECTION. SUCH REPORTS  SHALL  SET  FORTH  THE
NUMBER OF LOAN APPLICATIONS RECEIVED AND APPROVED; THE NAMES OF SPONSORS
RECEIVING LOANS TOGETHER WITH THE AMOUNT AND PURPOSE OF THE LOAN AND THE
OUTSTANDING BALANCE; THE NUMBER OF JOBS CREATED AND/OR RETAINED; AND THE
BALANCE  REMAINING  IN THE EMPIRE REVOLVING BRIDGE LOAN FUND, ALONG WITH
FUND REVENUES  AND  EXPENDITURES  FOR  THE  PREVIOUS  FISCAL  YEAR,  AND
PROJECTED REVENUES AND EXPENDITURES FOR THE CURRENT AND FOLLOWING FISCAL
YEARS.
  9. PURSUANT TO ARTICLE 5-C OF THE STATE FINANCE LAW, BUT NOTWITHSTAND-
ING  ANY  PROVISIONS  OF  LAW  TO THE CONTRARY, THE NEW YORK STATE URBAN
DEVELOPMENT CORPORATION IS HEREBY AUTHORIZED TO ISSUE BONDS,  NOTES  AND
OTHER  OBLIGATIONS  IN  ONE OR MORE SERIES, AT ANY TIME AND FROM TIME TO
TIME, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED THE  AMOUNT  NECES-
SARY  TO  PROVIDE  NET  PROCEEDS OF NO GREATER THAN FIVE HUNDRED MILLION
DOLLARS FOR THE PURPOSE OF ESTABLISHING THE  FUND  CREATED  PURSUANT  TO
THIS  SECTION. THE AGGREGATE AMOUNT OF BONDS, NOTES OR OTHER OBLIGATIONS
AUTHORIZED TO BE ISSUED PURSUANT TO THIS SECTION  SHALL  EXCLUDE  BONDS,
NOTES  OR  OTHER  OBLIGATIONS ISSUED TO REFUND OR OTHERWISE REPAY BONDS,

A. 5218                             5

NOTES OR OTHER OBLIGATIONS THERETOFORE ISSUED; PROVIDED,  HOWEVER,  THAT
UPON  ANY  SUCH  REFUNDING  OR  REPAYMENT  THE TOTAL AGGREGATE PRINCIPAL
AMOUNT OF OUTSTANDING BONDS, NOTES OR OTHER OBLIGATIONS MAY  BE  GREATER
THAN  FIVE  HUNDRED  MILLION  DOLLARS,  ONLY IF THE PRESENT VALUE OF THE
AGGREGATE DEBT SERVICE OF THE REFUNDING OR  REPAYMENT  BONDS,  NOTES  OR
OTHER  OBLIGATIONS  SHALL  NOT EXCEED THE PRESENT VALUE OF THE AGGREGATE
DEBT SERVICE OF THE BONDS, NOTES OR OTHER  OBLIGATIONS  SO  REFUNDED  OR
REPAID. FOR THE PURPOSES HEREOF, THE PRESENT VALUE OF THE AGGREGATE DEBT
SERVICE  OF THE REFUNDING OR REPAYMENT BONDS, NOTES OR OTHER OBLIGATIONS
SO REFUNDED OR REPAID, SHALL BE CALCULATED BY  UTILIZING  THE  EFFECTIVE
INTEREST  RATE OF THE REFUNDING OR REPAYMENT BONDS, NOTES OR OTHER OBLI-
GATIONS, WHICH SHALL BE THAT RATE ARRIVED AT BY DOUBLING THE SEMI-ANNUAL
INTEREST RATE (COMPOUNDED SEMI-ANNUALLY) NECESSARY TO DISCOUNT THE  DEBT
SERVICE  PAYMENTS  ON  THE  REFUNDING OR REPAYMENT BONDS, NOTES OR OTHER
OBLIGATIONS FROM THE PAYMENT DATES THEREOF TO THE DATE OF ISSUE  OF  THE
REFUNDING  OR  REPAYMENT  BONDS,  NOTES  OR OTHER OBLIGATIONS AND TO THE
PRICE BID INCLUDING ESTIMATED ACCRUED INTEREST OR PROCEEDS  RECEIVED  BY
THE CORPORATION INCLUDING ESTIMATED ACCRUED INTEREST FROM THE SALE THER-
EOF.
  S  2.  Section  2 of chapter 393 of the laws of 1994, amending the New
York state urban development corporation act relating to the  powers  of
the  New  York  state  urban  development  corporation to make loans, as
amended by section 1 of part W of chapter 59 of the  laws  of  2008,  is
amended to read as follows:
  S  2.  This  act shall take effect immediately provided, however, that
section one of this act shall expire on July 1, [2009]  2010,  at  which
time the provisions of subdivision 26 of section 5 of the New York state
urban  development  corporation  act shall be deemed repealed; provided,
however, that neither the expiration nor the repeal of such  subdivision
as provided for herein shall be deemed to affect or impair in any manner
any  loan  made  pursuant  to the authority of such subdivision prior to
such expiration and repeal.
  S 3. This act shall take effect immediately.