* § 97-v. New York state musical instrument revolving fund. 1. There
is hereby established in the custody of the state comptroller, a special
fund to be known as the "New York state musical instrument revolving
fund".

2. The fund shall consist of all monies appropriated for its purpose,
all monies transferred to such fund pursuant to law and all monies
required by the provisions of this section or any other law to be paid
into or credited to this fund, including all monies received by the fund
or donated to it. The total of monies deposited as a result of
appropriations from state funds into this fund shall not exceed the sum
of five hundred thousand dollars. Monies in the fund shall be kept
separate and shall not be commingled with any other monies otherwise
appropriated or received except as hereby provided.

3. Monies of the fund, when allocated, shall be available to the New
York state council on the arts for the purpose of providing assistance,
excluding administrative costs, for the loan, lease and purchase of
musical instruments and other related property and equipment, as herein
provided, by not-for-profit symphony orchestras and/or other
not-for-profit musical entities incorporated in the state and organized
for the purpose of the presentation of performing arts for the benefit
of the public and which have been approved pursuant to guidelines
established by the council. Such monies shall also be available for
administrative costs of the council pursuant to approval by the director
of the budget. Notwithstanding any other inconsistent provisions of this
chapter, should the council determine that there is a compelling need
for the loan, lease or purchase of property or equipment other than
musical instruments by not-for-profit symphony orchestras and/or other
not-for-profit musical entities incorporated in the state and organized
for the purpose of the presentation of performing arts for the benefit
of the public, and upon approval of the director of the budget, the
council may assist such organization in acquiring such equipment in
accordance with guidelines established by the council. The council shall
contract with one or more not-for-profit entities which shall distribute
such monies, however, in no case shall monies of the fund be distributed
nor shall a contract to distribute such monies be approved unless the
fund shall have sufficient monies to effectuate all such approved
distributions and contracts.

Purchases, leases and loans of musical instruments and other equipment
shall not be approved or effected if such purchases, leases or loans are
eligible for financing from any other state assistance program.

4. The state council on the arts shall establish guidelines necessary
to administer the fund. Guidelines shall include, but not be limited to:
qualifications and conditions for assistance, which may require public
service performances, terms of lease or installment sale payments and
finance charges on installment sales at rates of interest which,
notwithstanding any other provision of law, shall not be less than three
per cent per annum nor more than ten per cent per annum, provisions for
insurance of the instrument or other equipment, provisions for necessary
security agreement arrangements, and any other terms and conditions the
council may require as necessary to properly effectuate the provisions
of this section.

5. The not-for-profit entity of entities with whom the state council
on the arts has contracted pursuant to subdivision three of this section
shall enter into contractual arrangements with applicants approved by
the council. All contracts must be approved by the state council on the
arts and the comptroller prior to the distribution of any monies
thereunder. Such contracts shall assure that the not-for-profit entity
or entities retain title to the instrument or equipment until the
provisions and intent of this section are satisfied.

6. Notwithstanding any other provisions of law, should a default in
payment of monies for the purchase or lease of an instrument or other
equipment occur, the council shall so notify the comptroller and the
attorney general who shall take such steps as may be necessary. The
not-for-profit entity or entities, after such notification is made,
shall take steps to effect repossession regardless of whether any note,
memorandum, instrument or other writing has been recorded or regardless
of whether any other person has notice of such possessory rights to the
instrument or equipment. Any contract between the not-for-profit agency
or agencies and a not-for-profit symphony orchestra or other musical
entity authorized by this article, shall assure the right and provide
guarantees for such repossession. Subsequent to the taking of possession
of the instrument or equipment, the comptroller or not-for-profit agency
or agencies may offer the same for sale at public auction to the highest
bidder pursuant to guidelines established by the comptroller.

7. The comptroller is authorized to deduct the difference between the
purchaser's or lessee's outstanding obligation at the time of the
auction provided for in subdivision five of this section, and the amount
realized from that auction, after deductions for all necessary and
proper costs of the auction are made, from any other grant or other
assistance approved by the council on the arts for that purchaser. The
difference deducted by the comptroller and the net amount realized from
the auction shall be deposited in the New York state musical instrument
revolving fund.

8. Nothing contained herein shall prevent the council from receiving
grants, gifts or bequests for the purposes of the fund as defined in
this section and depositing them into the fund according to law.

9. The state council on the arts shall provide by September first of
each year, to the governor, the temporary president of the senate, the
speaker of the assembly, the chairman of the senate finance committee
and the chairman of the assembly ways and means committee, a report
containing guidelines and amendments established by the state council on
the arts and a complete financial statement including, but not limited
to, monies allocated, collected, transferred or otherwise paid or
credited to the fund. A projected schedule of disbursements, receipts
and needs of the fund for the next fiscal year shall be included in each
report. In addition, any amendments to the guidelines shall be provided
to the above listed individuals within thirty days of their
establishment by the state council on the arts.

10. No monies shall be payable from this fund, except on the audit and
warrant of the comptroller on vouchers certified and submitted by the
chairman of the state council on the arts.

* NB There are 2 § 97-v's