§ 1822. Loans to local development corporations. a. No mortgage loan
shall be made by the authority under the provisions of subtitle II with
respect to a project unless: (1) the local development corporation has
obtained firm commitments satisfactory to the authority from responsible
financial sources, which may but need not include a federal agency or
the project occupant, for the total project cost exclusive of any loan
requested from the authority, (2) the local development corporation has
obtained a firm commitment satisfactory to the authority from the
project occupant or from a business enterprise described in section
eighteen hundred twenty-seven to lease or use the project after
construction, acquisition, rehabilitation or improvement is completed,
(3) the authority approves the terms of such lease or use and is
satisfied that the project occupant or a business enterprise described
in section eighteen hundred twenty-seven may reasonably be expected to
comply with the terms thereof, (4) the principal amount of such loan is
forty percent or less of the project cost, except as set forth in
paragraphs (a) and (b) of subdivision two of section eighteen hundred
three and paragraph (a) of subdivision seven of section eighteen hundred
twenty-three of this chapter, (5) such loan is secured by a mortgage on
the project, and (6) such mortgage is not a junior encumbrance on the
project by more than fifty percent of the project cost.

b. No loan shall be made by the authority under the provisions of
subtitle III with respect to a project unless: (1) the local development
corporation has obtained firm commitments satisfactory to the authority
from responsible financial sources, which may but need not include a
federal agency or the project occupant, for the total project cost
exclusive of any loan requested from the authority, (2) the local
development corporation has obtained a firm commitment satisfactory to
the authority from the project occupant to lease or use the project
after construction, acquisition, rehabilitation or improvement is
completed, (3) the authority approves the terms of such lease or use and
is satisfied that the project occupant may reasonably be expected to
comply with the terms thereof, (4) the amount of such loan is ninety per
cent or less of the project cost and the term of such loan is twenty
years or less, (5) the authority finds that the facilities to be
financed through the loan are intended to meet or exceed applicable
state or federal requirements to abate, prevent or control a pollution,
and the commissioner of environmental conservation approves the
construction plans for any such facilities.

c. No loan shall be guaranteed by the authority with respect to a
project unless: (1) the project occupant has obtained firm commitments
satisfactory to the authority from banking organizations for the
financing of the project cost exclusive of the amount to be provided by
the project occupant, (2) the authority is satisfied that the project
occupant may be reasonably expected to comply with the terms of any loan
for which a guarantee is sought, (3) the amount of the guarantee is
eighty percent or less of the project cost, (4) the loan is secured by a
mortgage or security instrument which is not a junior encumbrance on the
project.