[ ] is old law to be omitted.
LBD15293-02-0
A. 9485 2
seven] shall be reserved for a city school district of a city having a
population of one million or more. The failure of any body to issue the
regulations authorized pursuant to this article shall not [effect]
AFFECT the authority of a charter entity to propose a charter to the
board of regents or the board of regents' authority to grant such char-
ter. A conversion of an existing public school to a charter school or
the renewal or extension of a charter shall not be counted toward the
numerical limits established by this subdivision.
S 3. Paragraph (b-1) of subdivision 1 of section 2853 of the education
law, as added by chapter 4 of the laws of 1998, is amended to read as
follows:
(b-1) An education corporation operating a charter school shall not be
authorized to operate more than one school [or] BUT MAY BE AUTHORIZED TO
house any grade at more than one site[, provided that:
(A) a]. A CHARTER SCHOOL HOUSING TWO OR MORE GRADES AT MORE THAN ONE
SITE SHALL HAVE EACH SUCH ADDITIONAL SITE DEEMED AS A CHARTER ISSUED FOR
THE PURPOSES OF SUBDIVISION NINE OF SECTION TWENTY-EIGHT HUNDRED FIFTY-
TWO OF THIS ARTICLE. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAP-
TER, APPROVAL OF REVISIONS TO A CHARTER OR CHARTERS TO AUTHORIZE AN
EDUCATION CORPORATION TO HOUSE ANY GRADE OR GRADES AT MORE THAN ONE
SITE, INCLUDING THE MERGER OR CONSOLIDATION OF EXISTING EDUCATION CORPO-
RATIONS OPERATING CHARTER SCHOOLS TO A SINGLE EDUCATION CORPORATION,
SHALL BE MADE IN ACCORDANCE WITH PARAGRAPH (A) OF SUBDIVISION SEVEN OF
SECTION TWENTY-EIGHT HUNDRED FIFTY-TWO OF THIS ARTICLE. UPON SUCH MERGER
OR CONSOLIDATION, THE SURVIVING OR CONSOLIDATED EDUCATION CORPORATION,
PLUS ANY SUCH ADDITIONAL SITES, SHALL CONTINUE TO EACH BE COUNTED AS A
CHARTER ISSUED FOR THE PURPOSES OF SUBDIVISION NINE OF SECTION
TWENTY-EIGHT HUNDRED FIFTY-TWO OF THIS ARTICLE. IF A CHARTER SCHOOL HAS
EMPLOYEES WHO ARE MEMBERS OF A COLLECTIVE BARGAINING ORGANIZATION PURSU-
ANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW THAT MERGES OR CONSOL-
IDATES WITH A CHARTER SCHOOL WHOSE EMPLOYEES ARE NOT MEMBERS OF A
COLLECTIVE BARGAINING ORGANIZATION, EMPLOYEES OF THE MERGED OR CONSOL-
IDATED CHARTER SCHOOL SHALL BE MEMBERS OF THE COLLECTIVE BARGAINING
ORGANIZATION THAT REPRESENTED LIKE POSITIONS, IF ANY, PRIOR TO THE MERG-
ER OR CONSOLIDATION. A charter school may operate in more than one
building at a single site; and
[(B)] a charter school which provides instruction to its students at
different locations for a portion of their school day shall be deemed to
be operating at a single site; AND A CHARTER SCHOOL OPERATING AT MORE
THAN ONE SITE BUT WHICH HOUSES EACH GRADE AT A SINGLE SITE SHALL BE
DEEMED TO BE OPERATING AT A SINGLE SITE.
S 3-a. Paragraph (p) of subdivision 2 of section 2851 of the education
law, as added by chapter 4 of the laws of 1998, is amended to read as
follows:
(p) The term of the proposed charter, which shall not exceed five
SCHOOL years IN WHICH INSTRUCTION IS PROVIDED TO PUPILS, PLUS THE PERIOD
COMMENCING WITH THE EFFECTIVE DATE OF THE CHARTER AND ENDING WITH THE
OPENING OF THE SCHOOL FOR INSTRUCTION.
S 4. Paragraph (a) of subdivision 1 of section 2853 of the education
law, as added by chapter 4 of the laws of 1998, is amended to read as
follows:
(a) Upon the approval of a charter by the board of regents, the board
of regents shall incorporate the charter school as an education corpo-
ration for a term not to exceed five SCHOOL years IN WHICH INSTRUCTION
IS PROVIDED TO PUPILS, PLUS THE PERIOD COMMENCING WITH THE EFFECTIVE
DATE OF THE CHARTER AND ENDING WITH THE OPENING OF THE SCHOOL FOR
A. 9485 3
INSTRUCTION. Such certificate of incorporation shall not modify or
limit any terms of the charter approved by the board of regents. Upon
approval of an application to renew a charter, the board of regents
shall extend the certificate of incorporation for a term not to exceed
five SCHOOL years, PLUS THE PERIOD, IF ANY, COMMENCING WITH THE EFFEC-
TIVE DATE OF THE RENEWAL CHARTER AND ENDING WITH THE FIRST DAY OF THE
FIRST FULL SCHOOL YEAR IN WHICH INSTRUCTION IS PROVIDED UNDER THE
RENEWAL CHARTER. Upon termination or nonrenewal of the charter of a
charter school pursuant to section twenty-eight hundred fifty-five of
this article, the certificate of incorporation of the charter school
shall be revoked by the board of regents pursuant to section two hundred
nineteen of this chapter, provided that compliance with the notice and
hearing requirements of such section twenty-eight hundred fifty-five of
this article shall be deemed to satisfy the notice and hearing require-
ments of such section two hundred nineteen. It shall be the duty of the
trustees of the charter school to obtain federal tax-exempt status no
later than one year following approval of a charter school by the board
of regents. For purposes of this article, "certificate of incorporation"
shall mean the provisional charter issued by the board of regents to
form the charter school as an educational corporation pursuant to
sections two hundred sixteen and two hundred seventeen of this chapter.
S 5. Paragraph (a) of subdivision 2 of section 2854 of the education
law, as amended by section 5 of part D-2 of chapter 57 of the laws of
2007, is amended to read as follows:
(a) A charter school shall be nonsectarian in its programs, admission
policies, employment practices, and all other operations and shall not
charge tuition or fees; provided that a charter school may require the
payment of fees on the same basis and to the same extent as other public
schools. A charter school shall not discriminate against any student,
employee or any other person on the basis of ethnicity, national origin,
gender, or disability or any other ground that would be unlawful if done
by a school. Admission of students shall not be limited on the basis of
intellectual ability, measures of achievement or aptitude, athletic
ability, disability, race, creed, gender, national origin, religion, or
ancestry; provided, however, that nothing in this article shall be
construed to prevent the establishment of a single-sex charter school or
a charter school designed to provide expanded learning opportunities for
students at-risk of academic failure WHICH MAY INCLUDE, BUT NOT BE
LIMITED TO, STUDENTS WITH DISABILITIES AND LIMITED ENGLISH PROFICIENT
STUDENTS; and provided, further, that the charter school shall demon-
strate good faith efforts to attract and retain a comparable or greater
enrollment of students with disabilities and limited English proficient
students when compared to the enrollment figures for such students in
the school district in which the charter school is located. A charter
shall not be issued to any school that would be wholly or in part under
the control or direction of any religious denomination, or in which any
denominational tenet or doctrine would be taught.
S 6. Paragraph (c) of subdivision 2 of section 2854 of the education
law, as added by chapter 4 of the laws of 1998, is amended to read as
follows:
(c) A charter school shall serve one or more of the grades [one]
KINDERGARTEN through twelve, and shall limit admission to pupils within
the grade levels served. Nothing herein shall prohibit a charter school
from establishing a [kindergarten] PRE-KINDERGARTEN program, PROVIDED
HOWEVER, THAT THE STUDENTS ENROLLED IN SUCH PRE-KINDERGARTEN PROGRAM
SHALL NOT BE INCLUDED IN THE ENROLLMENT FOR PURPOSES OF PARAGRAPHS (A)
A. 9485 4
AND (B) OF SUBDIVISION ONE OF SECTION TWENTY-EIGHT HUNDRED FIFTY-SIX OF
THIS ARTICLE; AND PROVIDED FURTHER, HOWEVER, THAT SUCH PRE-KINDERGARTEN
PROGRAM SHALL BE ELIGIBLE FOR FUNDING IN ACCORDANCE WITH PARAGRAPH (D)
OF SUBDIVISION ONE OF SECTION TWENTY-EIGHT HUNDRED FIFTY-SIX OF THIS
ARTICLE.
S 7. Subdivision 1 of section 2856 of the education law is amended by
adding two new paragraphs (d) and (e) to read as follows:
(D) THE COMMISSIONER SHALL PAY EACH CHARTER SCHOOL OPERATING A
PRE-KINDERGARTEN PROGRAM A GRANT AMOUNT IN PROPORTION TO THE AMOUNT
COMPUTED FOR THE SCHOOL DISTRICT IN WHICH THE CHARTER SCHOOL IS LOCATED
PURSUANT TO SUBDIVISION TEN OF SECTION THIRTY-SIX HUNDRED TWO-E OF THIS
CHAPTER BASED ON THE PROJECTED NUMBER OF PRE-KINDERGARTEN PUPILS TO BE
SERVED BY THE CHARTER SCHOOL. PAYMENTS PURSUANT TO THIS PARAGRAPH SHALL
BE MADE BY THE COMMISSIONER IN SIX SUBSTANTIALLY EQUAL INSTALLMENTS EACH
YEAR BEGINNING ON THE FIRST BUSINESS DAY OF JULY AND EVERY TWO MONTHS
THEREAFTER. PAYMENTS MADE PURSUANT TO THIS PARAGRAPH SHALL BE MADE BY
THE COMMISSIONER FROM MONEYS APPROPRIATED BY THE STATE LEGISLATURE FOR
THE SUPPORT OF PUBLIC SCHOOLS. AMOUNTS PAYABLE TO A CHARTER SCHOOL IN
ITS FIRST YEAR OF OPERATION OF A PRE-KINDERGARTEN PROGRAM SHALL BE BASED
ON THE PROJECTIONS OF INITIAL-YEAR ENROLLMENT SET FORTH IN THE CHARTER
UNTIL ACTUAL ENROLLMENT DATA IS REPORTED TO THE COMMISSIONER BY THE
CHARTER SCHOOL. SUCH PROJECTIONS SHALL BE RECONCILED WITH THE ACTUAL
ENROLLMENT AS ACTUAL ENROLLMENT DATA IS SO REPORTED AND AT THE END OF
THE SCHOOL'S FIRST YEAR OF OPERATION AND EACH SUBSEQUENT YEAR BASED ON A
FINAL REPORT OF ACTUAL ENROLLMENT BY THE CHARTER SCHOOL, AND ANY NECES-
SARY ADJUSTMENTS RESULTING FROM SUCH FINAL REPORT SHALL BE MADE TO
PAYMENTS DURING THE SCHOOL'S FOLLOWING YEAR OF OPERATION.
(E) SUBJECT TO APPROPRIATION BY THE STATE LEGISLATURE, FOR EACH
STUDENT ENROLLED IN A CHARTER SCHOOL, AN AMOUNT UP TO FIFTEEN PER CENTUM
OF THE AMOUNT CALCULATED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION
SHALL BE PAID BY THE COMMISSIONER DIRECTLY TO EACH CHARTER SCHOOL
RECEIVING PAYMENTS IN ACCORDANCE WITH SUCH PARAGRAPH. PAYMENTS PURSUANT
TO THIS PARAGRAPH SHALL BE MADE BY THE COMMISSIONER FOR THE PURPOSES OF
SECURING FACILITIES INCLUDING, BUT NOT LIMITED TO, CONSTRUCTION OF ANY
NEW BUILDING, PURCHASE OF AN EXISTING BUILDING, OR REFINANCING OF AN
EXISTING BUILDING IN ORDER TO FACILITATE IMPROVEMENTS THERETO; THE
FINANCING OF REAL PROPERTY DEEMED ESSENTIAL FOR THE CONDUCT OF A CHARTER
SCHOOL, THE EXTENSION OR PROVISION OF UTILITIES AND ANY OTHER APPURTEN-
ANT FACILITIES TO BE USED BY ANY CHARTER SCHOOL; AND PERIODIC PAYMENTS
CALLED FOR UNDER THE TERMS OF A LOAN WHICH MAY INCLUDE BUT IS NOT LIMIT-
ED TO, INTEREST, INSTALLMENTS OF PRINCIPAL, TAXES AND ASSESSMENTS, LOAN
INSURANCE PREMIUMS AND HAZARD INSURANCE PREMIUMS. PAYMENTS PURSUANT TO
THIS PARAGRAPH SHALL BE MADE IN SIX SUBSTANTIALLY EQUAL INSTALLMENTS
EACH YEAR BEGINNING ON THE FIRST BUSINESS DAY OF JULY AND EVERY TWO
MONTHS THEREAFTER.
S 8. Subdivision 1 of section 3602-e of the education law is amended
by adding a new paragraph a-1 to read as follows:
A-1. "CHARTER SCHOOL" SHALL MEAN A SCHOOL AUTHORIZED BY ARTICLE
FIFTY-SIX OF THIS CHAPTER. NOTWITHSTANDING ANY PROVISION OF THIS SECTION
TO THE CONTRARY, APPROVAL OF PRE-KINDERGARTEN PROGRAMS OPERATED BY A
CHARTER SCHOOL SHALL BE MADE IN ACCORDANCE WITH SECTION TWENTY-EIGHT
HUNDRED FIFTY-TWO OF THIS CHAPTER.
S 9. Paragraph a of subdivision 9 of section 3602-e of the education
law, as amended by section 21 of part B of chapter 57 of the laws of
2008, is amended to read as follows:
A. 9485 5
a. Each year, the commissioner shall determine the maximum allocation
that each district AND CHARTER SCHOOL would be eligible to receive
pursuant to this section in the following school year based on pupil
data on file with the commissioner on a date prescribed by the commis-
sioner, and applying the formula specified in subdivision ten of this
section. No later than April thirtieth of the base year, the commission-
er shall notify districts AND CHARTER SCHOOLS of the maximum allocations
they may be eligible for pursuant to this section in the following
school year, and such maximum allocations shall be deemed final and not
subject to change thereafter, EXCEPT AS PROVIDED IN PARAGRAPH (D) OF
SUBDIVISION ONE OF SECTION TWENTY-EIGHT HUNDRED FIFTY-SIX OF THIS CHAP-
TER.
S 10. The public authorities law is amended by adding a new section
1689-j to read as follows:
S 1689-J. CHARTER SCHOOL LOAN AND LEASE GUARANTEE PROGRAM. 1. DEFI-
NITIONS. (A) "AUTHORITY" SHALL MEAN THE DORMITORY AUTHORITY CREATED BY
SECTION SIXTEEN HUNDRED SEVENTY-SEVEN OF THIS CHAPTER.
(B) "CHARTER SCHOOL" SHALL MEAN A SCHOOL AUTHORIZED BY ARTICLE FIFTY-
SIX OF THE EDUCATION LAW.
(C) "CHARTER SCHOOL PROJECT" SHALL MEAN CONSTRUCTION OF ANY NEW BUILD-
ING, PURCHASE OF AN EXISTING BUILDING, OR REFINANCING OF AN EXISTING
BUILDING IN ORDER TO FACILITATE SUBSTANTIAL IMPROVEMENT THERETO, THE
FINANCING OF REAL PROPERTY DEEMED ESSENTIAL FOR THE CONDUCT OF A CHARTER
SCHOOL, THE EXTENSION OR PROVISION OF UTILITIES AND ANY OTHER APPURTEN-
ANT FACILITIES TO BE USED BY ANY CHARTER SCHOOL APPROVED PURSUANT TO
SECTION TWENTY-EIGHT HUNDRED FIFTY-TWO OF THE EDUCATION LAW.
(D) "LENDING INSTITUTION" SHALL MEAN THE ORIGINAL LENDER UNDER THE
LOAN AGREEMENT OF PARTICIPANTS THEREIN AND ITS SUCCESSORS AND ASSIGNS,
AND MAY INCLUDE BUT IS NOT LIMITED TO, AN INDIVIDUAL LENDER, CORPO-
RATION, INSURANCE COMPANY, BANK, INVESTMENT COMPANY, EXECUTOR, TRUSTEE
OR OTHER FIDUCIARY, PENSION, PROFIT SHARING, AND RETIREMENT FUND.
(E) "PAYMENTS" SHALL MEAN PERIODIC PAYMENTS CALLED FOR UNDER THE TERMS
OF A LOAN, AND MAY INCLUDE, BUT IS NOT LIMITED TO, INTEREST, INSTALL-
MENTS OF PRINCIPAL, TAXES AND ASSESSMENTS, LOAN INSURANCE PREMIUMS AND
HAZARD INSURANCE PREMIUMS.
2. POWERS AND LIMITATIONS. THE AUTHORITY SHALL HAVE POWER TO:
(A) GUARANTEE LOAN AND LEASE REPAYMENTS TO A LENDING INSTITUTION THAT
HAS PROVIDED THE FUNDING FOR A CHARTER SCHOOL, AS DEFINED HEREIN, NOT TO
EXCEED EIGHTY PER CENTUM OF THE AMOUNT OF SUCH LOAN, UPON SUCH TERMS AND
CONDITIONS AS THE FUND MAY PRESCRIBE, AND FOR SUCH PURPOSES, THE FUND
MAY ENTER INTO SUCH AGREEMENT OR AGREEMENTS WITH LENDING INSTITUTIONS OR
OTHER PERSONS AS REQUIRED.
(B) ACCEPT GIFTS, GRANTS OR LOANS FROM, AND ENTER INTO CONTRACT OR
OTHER TRANSACTION WITH, ANY FEDERAL OR STATE AGENCY, ANY MUNICIPALITY,
ANY PRIVATE ORGANIZATION OR ANY OTHER SOURCE.
(C) ENTER INTO AGREEMENTS WITH PROSPECTIVE LENDING INSTITUTIONS AND
BORROWERS FOR THE PURPOSE OF PLANNING, DESIGNING, CONSTRUCTING, ACQUIR-
ING, ALTERING AND FINANCING PROJECTS.
(D) WHEN IT BECOMES DESIRABLE FOR THE FUND TO SAFEGUARD ITSELF FROM
LOSSES, IT MAY ACQUIRE, PURCHASE, MANAGE AND OPERATE, HOLD AND DISPOSE
OF REAL AND PERSONAL PROPERTY, TAKE ASSIGNMENTS OF RENTALS AND LEASES
AND MAKE AND ENTER INTO ALL CONTRACTS, LEASES, AGREEMENTS AND ARRANGE-
MENTS NECESSARY OR INCIDENTAL TO THE PERFORMANCE OF ITS DUTIES.
(E) IN ORDER TO FURTHER THE PURPOSES OF THIS ACT, OR TO SAFEGUARD THE
LOAN GUARANTEE FUND, PURCHASE, ACQUIRE AND TAKE ASSIGNMENTS OF NOTES,
MORTGAGES, AND OTHER FORMS OF SECURITY AND EVIDENCES OF INDEBTEDNESS,
A. 9485 6
PURCHASE, ACQUIRE, ATTACH, SEIZE, ACCEPT OR TAKE TITLE TO ANY PROJECT BY
CONVEYANCE, OR WHEN AN INSURED LOAN THEREON IS IN DEFAULT, FORECLOSE,
SELL, LEASE OR RENT THE SUBJECT MATTER PROVIDED FOR BY THE LOAN.
(F) PRESCRIBE STANDARDS AND CRITERIA BY WHICH APPLICATIONS FOR LOAN
GUARANTEES FOR CHARTER SCHOOLS WILL BE JUDGED, INSOFAR AS SUCH STANDARDS
AND CRITERIA ARE NOT INCONSISTENT WITH THE PURPOSES OF THIS ARTICLE.
(G) GUARANTEE TO ANY BONDING AGENCY AUTHORIZED TO DO BUSINESS IN THIS
STATE ANY BOND NECESSARY TO THE ACTIVITY OF THE CHARTER SCHOOL OR FOR
THE UNDERTAKING OF A CHARTER SCHOOL PROJECT. SUCH GUARANTEE SHALL NOT
EXCEED EIGHTY PER CENTUM OF THE FACE AMOUNT OF ANY LOSS INCURRED BY THE
BONDING AGENCY.
(H) ISSUE AND SELL ITS DEBENTURES, BEARING SUCH INTEREST RATES AND
HAVING SUCH MATURITIES AND OTHER TERMS AND PROVISIONS AS MAY BE DETER-
MINED BY THE AUTHORITY.
(I) TO DO ANY AND ALL THINGS NECESSARY OR CONVENIENT TO CARRY OUT ITS
PURPOSES AND EXERCISE THE POWERS GIVEN AND GRANTED UNDER THIS SECTION,
OR UNDER ANY OTHER LAW, SPECIAL, GENERAL OR LOCAL.
3. LOAN AND LEASE GUARANTEE FUND. THE AUTHORITY SHALL ESTABLISH A LOAN
GUARANTEE FUND. THE LOAN GUARANTEE FUND SHALL BE A NON-LAPSING, REVOLV-
ING FUND TO BE USED FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF
THIS SECTION. TO SUCH LOAN GUARANTEE FUND SHALL BE CHARGED PAYMENTS
REQUIRED BY LOAN DEFAULTS. TO SUCH LOAN GUARANTEE FUND SHALL BE CREDITED
ALL RECEIPTS OF THE FUND, OTHER THAN RECEIPTS ALLOCATED FOR THE PAYMENT
OF CURRENT OPERATING EXPENSES, INCLUDING LOAN GUARANTEE PREMIUMS, GIFTS,
GRANTS OR LOANS, PROCEEDS OF THE SALE OF DEBENTURES BY THE FUND, TRANS-
FERS FROM THE CHARTER SCHOOLS STIMULUS FUND CREATED BY SECTION
NINETY-SEVEN-SSS OF THE STATE FINANCE LAW, AND PROCEEDS FROM THE SALE,
DISPOSAL, LEASE OR RENTAL OF REAL OR PERSONAL PROPERTY WHICH THE FUND
MAY RECEIVE UNDER THE PROVISIONS OF THIS SECTION. MONIES OF THE LOAN
GUARANTEE FUND, NOT NEEDED TO MEET CURRENT OBLIGATIONS OF THE FUND,
SHALL BE DEPOSITED TO THE CREDIT OF SUCH LOAN GUARANTEE FUND AND MAY BE
INVESTED AS THE DIRECTORS OF THE FUND SHALL DETERMINE.
4. GUARANTEE OF LOANS AND LEASES. THE AUTHORITY IS AUTHORIZED TO GUAR-
ANTEE REPAYMENTS OF A LOAN MADE BY A LENDING INSTITUTION TO PROVIDE
FUNDING FOR CHARTER SCHOOL PROJECTS AS DEFINED HEREIN, NOT TO EXCEED
EIGHTY PER CENTUM OF THE PRINCIPAL AMOUNT OF THE OBLIGATION, UPON SUCH
TERMS AND CONDITIONS AS THE AUTHORITY MAY PRESCRIBE, PROVIDED THAT THE
AGGREGATE AMOUNT OF THE UNPAID BALANCE OF ALL OBLIGATIONS SO GUARANTEED
AND OUTSTANDING AT ANY ONE TIME SHALL NOT EXCEED TEN MILLION DOLLARS
DURING THE FIRST FISCAL YEAR OF OPERATIONS OF THE FUND, AND IN ANY
SUCCEEDING FISCAL YEAR, FIVE TIMES THE AVERAGE ANNUAL BALANCE IN THE
LOAN GUARANTEE FUND FOR THE PRECEDING FISCAL YEAR, AND PROVIDED FURTHER,
HOWEVER, THAT THE TOTAL POTENTIAL LIABILITY OF THE FUND TO A LENDING
INSTITUTION ON BEHALF OF ANY ONE BORROWER SHALL NOT EXCEED FIVE MILLION
DOLLARS.
5. CONDITIONS FOR GUARANTEE. IN ORDER FOR A LOAN TO BE GUARANTEED
UNDER THE PROVISIONS OF THIS SECTION, THE LOAN TO BE GUARANTEED MUST BE
EXECUTED BY A BORROWER TO WHOM CREDIT IS NOT REASONABLY AVAILABLE AND
PROVIDE FINANCING FOR THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR
REHABILITATION OF A FACILITY FOR A CHARTER SCHOOL.
6. LOAN GUARANTEE PREMIUM. THE AUTHORITY IS AUTHORIZED BUT NOT
REQUIRED TO FIX PREMIUMS FOR THE GUARANTEE OF LOAN REPAYMENTS UNDER THE
PROVISIONS OF THIS ACT, SUCH PREMIUMS TO BE COMPUTED AS A PERCENTAGE,
WHICH SHALL NOT EXCEED ONE PER CENTUM PER ANNUM ON THAT PORTION OF THE
PRINCIPAL OBLIGATION GUARANTEED HEREUNDER AS THE FUND SHALL DETERMINE ON
THE BASIS OF ALL PERTINENT AVAILABLE DATA. SUCH PREMIUMS SHALL BE PAYA-
A. 9485 7
BLE BY THE BORROWER IN SUCH MANNER AS SHALL BE PRESCRIBED BY THE AUTHOR-
ITY. THE AMOUNT OF PREMIUM IS NOT REQUIRED TO BE UNIFORM AMONG THE VARI-
OUS LOANS INSURED.
7. EXPENSES. THE AUTHORITY MAY IN ITS DISCRETION EXPEND SUCH MONIES AS
MAY BE NECESSARY FOR ANY OF ITS EXPENSES, INCLUDING ADMINISTRATIVE,
LEGAL, ACTUARIAL AND OTHER SERVICES.
8. OBLIGATIONS ELIGIBLE FOR INVESTMENT. OBLIGATIONS GUARANTEED BY THE
AUTHORITY UNDER THIS SECTION AND PARTICIPATIONS THEREIN ARE HEREBY MADE
LEGAL INVESTMENTS FOR ALL INSURANCE COMPANIES, TRUST COMPANIES, BANKS,
INVESTMENT COMPANIES, SAVINGS BANKS, BUILDING AND LOAN ASSOCIATIONS,
CREDIT UNIONS, SAVINGS AND LOAN ASSOCIATIONS, EXECUTORS, ADMINISTRATORS,
GUARDIANS, CONSERVATORS, TRUSTEES AND OTHER FIDUCIARIES, PENSION,
PROFIT-SHARING AND RETIREMENT FUNDS.
9. CONTRACTS OF GUARANTEE; WAIVERS. (A) THE AUTHORITY SHALL ARRANGE BY
CONTRACT WITH THE LENDING INSTITUTION OR THE BORROWER OR BOTH TO SAFE-
GUARD THE INTEREST OF THE FUND IN THE EVENT OF DEFAULT BY THE BORROWER,
INCLUDING, AT THE DISCRETION OF THE FUND, PROVISION FOR NOTICE TO THE
FUND OF DEFAULT BY THE BORROWER, FOR FORECLOSURE OR OTHER REALIZATION
UPON ANY SECURITY FOR THE LOAN, FOR THE TIME AND CONDITIONS FOR PAYMENT
TO THE LENDING INSTITUTION BY THE FUND OF THE AMOUNT OF ANY LOSS TO THE
LENDING INSTITUTION GUARANTEED BY THE FUND, AND FOR THE DISPOSITION OF
THE PROCEEDS REALIZED FROM ANY SECURITY FOR THE LOAN GUARANTEED. WHEN IT
APPEARS DESIRABLE FOR A TEMPORARY PERIOD UPON DEFAULT OR THREATENED
DEFAULT BY THE BORROWER, THE FUND MAY ITSELF MAKE PAYMENTS OF INSTALL-
MENTS OF PRINCIPAL OR INTEREST OR BOTH, TO THE LENDING INSTITUTION, AND
OF TAXES AND INSURANCE, WHICH PAYMENTS SHALL BE REPAID, UNDER SUCH
CONDITIONS AS THE FUND MAY PRESCRIBE, AND THE FUND MAY ALSO AGREE TO
REVISED TERMS OF FINANCING WHEN SUCH APPEAR PRUDENT.
(B) UPON REQUEST OF THE LENDING INSTITUTION, THE FUND MAY AT ANY TIME,
UNDER SUCH EQUITABLE TERMS AND CONDITIONS AS IT MAY PRESCRIBE, CONSENT
TO THE RELEASE OF THE BORROWER FROM HIS LIABILITY UNDER THE LOAN OR
CONSENT TO THE RELEASE OF PARTS OF ANY SECURED PROPERTY FROM THE LIEN OF
THE LENDING INSTITUTION.
S 11. Section 97-sss of the state finance law, as added by chapter 4
of the laws of 1998, is amended to read as follows:
S 97-sss. Charter schools stimulus fund. There is hereby established
in the joint custody of the comptroller and the commissioner of taxation
and finance a fund to be known as the charter schools stimulus fund.
Such fund shall consist of all monies made available pursuant to appro-
priation for this purpose, all monies transferred to such fund pursuant
to law, and grants, gifts and devises and donations from any public or
private source. The purpose of such fund is to provide discretionary
financial support, including grants [and], loans, LOAN AND LEASE GUARAN-
TEES, AND FOR CREDIT ENHANCEMENT PURPOSES to charter school applicants
and to charter schools for start-up costs and for costs associated with
the acquisition, renovation, or construction of school facilities AND
COSTS ASSOCIATED WITH OPERATING PRE-KINDERGARTEN PROGRAMS.
S 12. This act shall take effect the first of July next succeeding the
date on which it shall have become a law, provided however, that the
amendments to subdivision 1 of section 2856 of the education law made by
section seven of this act shall not affect the expiration of such subdi-
vision and shall be deemed to expire therewith.