§ 1814. Loans and loan guarantees for machinery and equipment. 1.
Notwithstanding any other provisions of this title, the authority may
make loans to local development corporations to assist in financing the
cost of machinery and equipment, provided, however,

(a) that the amount of such loan shall not exceed forty percent of the
cost of such machinery and equipment, except as provided in paragraph
(b) of subdivision two of section eighteen hundred three and paragraph
(a) of subdivision seven of section eighteen hundred twenty-three of
this chapter;

(b) that the loan shall be evidenced by a bond, note or other
obligation of a local development corporation, a project occupant, or
other person, firm or corporation and secured by a security agreement,
chattel paper, loan agreement, or such other instruments or documents
deemed necessary or convenient to perfect a security interest in the
machinery and equipment financed and to protect the interests of the
authority; and

(c) that such security interest taken by the authority shall not be
subordinate, but may be a participating interest which, when added to
the security interests of other lenders, does not exceed ninety percent
of the cost of such machinery and equipment.

2. Notwithstanding any other provisions of this title, the authority
may issue a loan guarantee to a banking organization to assist in
financing the cost of machinery and equipment, provided, however,

(a) that the amount of the loan guarantee shall not exceed eighty
percent of the amount of the cost of the machinery and equipment; and

(b) that the loan of the banking organization shall be evidenced by a
bond, note or other obligation of a project occupant, or other person,
firm or corporation and secured by a security agreement, chattel paper,
loan agreement, or such other instruments or documents deemed necessary
or convenient by the authority to perfect a security interest in the
machinery and equipment financed and to protect the interests of the
authority.