§ 256. Mortgage loans. The New York state housing finance agency may
enter into contracts for loans to community development corporations for
one or more projects. No loan shall be made in an amount greater than
ninety-five per centum of the project cost, plus working capital in an
amount not to exceed two per centum of the project cost. Any such loan
shall be secured by a first mortgage lien upon all of the real property
of which the project consists and upon all fixtures and articles of
personal property attached to or used in conjunction with the operation
of such project. The agency may make temporary loans or advances to a
community development corporation 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 bonds sold by the agency pursuant to the
provisions of section forty-six of this chapter.