§ 1823. Further restrictions on loans and loan guarantees. In addition
to other provisions of this title limiting the power of the authority to
make loans to local development corporations in respect of a particular
project, and to guarantee loans made by banking organizations, the
following restrictions shall also apply:

1. No funds of the authority shall be used in respect of any project
if the completion thereof would result in the removal of an industrial
or manufacturing plant or research and development facility or other
eligible business facility of the project occupant from one area of the
state to another area of the state or in the abandonment of one or more
plants or facilities of the project occupant located within the state,
provided, however, that neither restriction shall apply if the authority
shall determine on the basis of the application before it that the
project is reasonably necessary to discourage the project occupant from
removing such other plant or facility to a location outside the state or
is reasonably necessary to preserve the competitive position of the
project occupant in its respective industry.

2. No funds of the authority shall be used in respect of any project
if the authority would be required to operate, service or maintain the
project pursuant to any lease or other agreement except upon foreclosure
or except upon the occurrence of a default in the payment or terms of
any loan guaranteed by the authority, provided, however, notwithstanding
any other provision of this subtitle, the authority may take title to a
project under a financing lease which does not require the authority to
operate, service or maintain the project itself, and which provides for
payments in lieu of property taxes as approved by the local taxing
jurisdiction which are equal to or less than any property taxes which
would have been due had the authority not taken title to the property.
Nothing shall prevent the authority from transferring such property to
the project occupant or its designee at the end of the term of such
financing.

3. No funds of the authority shall be used for a project unless the
applicant shows to the satisfaction of the authority that funds equal to
the amount of the proposed loan from the authority are not reasonably
available from other sources at a comparable cost of borrowing.

4. No funds of the authority shall be used in violation of any further
restrictions imposed by general rule or regulation of the authority in
relation to assisted projects and the authority is hereby authorized to
adopt rules and regulations containing such restrictions as it may deem
necessary or appropriate to effectuate its corporate purposes.

5. No provision of this title shall prevent the inclusion in a
mortgage, lease or other agreement relating to an assisted project of a
provision granting the project occupant the right to purchase such
project upon such terms and conditions as the authority may approve.

6. No funds of the authority shall be loaned or used for any project
unless the applicant demonstrates to the authority that such project has
a valid permit or permits for the following, when such permits are
required pursuant to applicable federal, state or local law: the
generation, treatment, storage and disposal of hazardous wastes; the
discharge of pollutants into the waters of the state, or, if such a
plant or facility is in violation thereof, that the project contemplated
includes the elimination of any such violation or violations.

7. Loans in economically distressed areas and to companies in need of
special assistance. (a) Loans by the authority pursuant to paragraphs
(a) and (b) of subdivision two of section eighteen hundred three of this
chapter may exceed forty percent but shall not exceed sixty percent of
the cost of the project for:

(i) projects which are or will be located in empire zones designated
pursuant to article eighteen-b of the general municipal law or in areas
that meet, in accordance with the most recent census data available, the
following criteria:

(A) the area must have a poverty rate of at least twenty percent for
the year to which the data relate; and

(B) the area must have an unemployment rate of at least one hundred
twenty-five percent of the statewide unemployment rate for the year to
which the data relate;

(ii) projects involving companies in need of special assistance as
determined by the findings of the members of the authority that such
companies are unable to obtain a sufficient amount of financing at
prevailing market rates of interest for businesses of similar size in
the same industry in New York state.

(b) In determining eligibility for loans involving companies in need
of special assistance pursuant to subparagraph (ii) of paragraph (a) of
this subdivision, the members of the authority shall consider:

(i) the applicant's potential for creating jobs in New York state;

(ii) the benefits derived from the project in the community in which
the project is or will be located;

(iii) the interaction of a project with economic development programs
administered by the department of economic development, the New York
state urban development corporation and the New York state science and
technology foundation;

(iv) the meaningful participation of minority and women-owned business
enterprises and minority group members and women in a project;

(v) the degree to which the project will support apprenticeship
training;

(vi) compliance with the provisions of section eighteen hundred
twenty-six of this chapter with regard to the project occupant; and

(vii) in consultation with the department of economic development, the
eligibility of the applicant for assistance under the industrial
effectiveness program pursuant to article seven of the economic
development law.

(c) In addition to the rules and regulations promulgated with regard
to loans made by the authority under other provisions of this title, the
members of the authority shall also promulgate rules and regulations
pertaining to the loans made under subparagraphs (i) and (ii) of
paragraph (a) of this subdivision by December first, nineteen hundred
ninety-two.

(d) On an annual basis, the authority shall compile and publish:

(i) in consultation with the department of economic development, a
listing of economically distressed areas as defined in subparagraph (i)
of paragraph (a) of this subdivision.

(ii) the criteria for determining the eligibility of a project that is
in need of special assistance under subparagraph (ii) of paragraph (a)
of this subdivision.

(e) All otherwise applicable requirements and restrictions of this
title shall apply to projects that are described in paragraph (a) of
this subdivision, provided, however, that in the case of projects which
involve the relocation of economic activity from another municipality
within New York state, the authority shall also find that the project
occupant has made reasonable efforts to carry out the project within the
municipality from which the project occupant intends to move an
industrial, or manufacturing plant, or research and development
facility, or other eligible business facility.