§ 70. State loans. The commissioner may, in the name of the state,
enter into contracts for loans to an authority or a municipality for one
or more projects, though a project has received or will receive aid from
any other source, except the federal government. All such contracts
shall be subject to approval by the state comptroller, and by the
attorney-general as to form. Any such loan shall be in such amount as
the commissioner, in his discretion, may deem necessary to insure the
completion, availability for lawful occupancy and use of the project. No
loan shall be made in an amount greater than the project cost, plus
working capital in an amount not to exceed two per centum of the project
cost or one hundred thousand dollars, whichever is less, nor until the
municipal comptroller and local legislative body have attached their
separate approvals to the loan contract. The commissioner may make
temporary loans or advances to a housing authority in anticipation of
such loan and no such temporary loan or advance shall be deemed to
constitute part of such loan unless such temporary loan or advance has
been made out of the proceeds of definitive housing bonds sold by the
state pursuant to section sixty of the state finance law.