§ 179-z. Not-for-profit short-term revolving loans. 1. The state
comptroller is authorized to provide loans from the not-for-profit
short-term revolving loan fund established by section ninety-seven-jj of
this chapter to any not-for-profit organization in receipt of a written
directive from a state agency. The state comptroller may provide such a
loan to a not-for-profit organization upon receipt of a written
agreement providing reasonable assurances of repayment that is
satisfactory to the comptroller. Such loan shall not bear interest and
repayment of such loan may be prorated over the term of the expected or
renewal contract, provided the term of the loan does not exceed one
year. The amount of each such loan shall not exceed one-half of the
first quarter payment of the subject contract.

2. The state comptroller shall only make loans after finding that the
not-for-profit organization has a written directive from a state agency
and cannot provide or continue to provide services without a loan from
the not-for-profit short-term revolving loan fund.

3. The state comptroller shall promulgate rules and regulations within
ninety days of the enactment date of this act for the operation of the
not-for-profit short-term revolving loan fund which shall include, but
not be limited to, the criteria to be used in determining not-for-profit
organizations eligible for assistance; a procedure and any necessary
information that not-for-profit organizations need to submit
applications for a loan from the not-for-profit short-term revolving
loan fund; a schedule for reviewing such applications, not to exceed
thirty days, and notification to an applicant of approval or disapproval
of such application for interim funding, and any other requirements
deemed necessary by the state comptroller.

4. Any not-for-profit organization receiving a loan from the
not-for-profit short-term revolving loan fund shall be ineligible to
receive interest from a state agency, notwithstanding the provisions of
section one hundred seventy-nine-v of this article and shall be
ineligible to receive advance payments, notwithstanding section one
hundred seventy-nine-u of this article.