§ 99-o. Arts institutions revolving loan fund. 1. There is hereby
established within the custody of the state comptroller a new fund to be
known as the "arts institutions revolving loan fund".

2. The fund shall consist of all moneys appropriated for its purpose,
all moneys transferred to such fund pursuant to law, and all moneys
required by this section or any other law to be paid into or credited to
this fund, including all moneys received by the fund or donated to it,
and payments of principal on loans made from the fund.

3. Moneys of the fund, when allocated, shall be available to the
chairperson of the council on the arts to make loans as provided in this
section. Up to five percent of the moneys of the fund or fifty thousand
dollars, whichever is less, may be used to pay the expenses, including
personal service and maintenance and operation, in connection with the
administration of such loans.

4. (a) The chairperson of the council on the arts, on recommendation
of the members of the council may make, upon application duly made, up
to the amounts available by appropriation, loans for project support at
arts institutions.

(b) No loan authorized by this section shall have an interest rate
greater than two and one-half percent. The minimum amount of any loan
shall be five thousand dollars. The period of any loan shall not exceed
the period of one year. The chairperson of the council on the arts may
make loans under this section subject to such other terms and conditions
the council board deems proper.

(c) The council board shall have the power to make such rules and
regulations as may be necessary and proper to effectuate the purposes of
this section.

(d) The council board shall annually report by March fifteenth to the
governor and the legislature describing the activities and operation of
the loan program authorized by this section. Such report shall set forth
the number of loan applications received and approved; the names of the
arts institutions receiving loans together with the amount and purpose
of the loan, and the outstanding balance; and the balance remaining in
the arts institutions revolving loan fund.

5. (a) Application for loans may be made by an arts institution,
including but not limited to museums, orchestras, dance companies and
theatre groups.

(b) Every application shall be in the form acceptable to the chairman
of the council on the arts. Every application shall accurately reflect
the conditions which give rise to the proposed expenditure and
accurately reflect the ability of the applicant to make such an
expenditure without the proceeds of a loan under this section.

(c)(i) The council board shall give preference to those applications
which demonstrate the greatest need and benefit to the arts community
and public at large.

(ii) In making determinations on loan applications, the council board
shall assure that loan fund moneys are equitably distributed among all
sectors of the arts community and all geographical areas of the state.

(d) An application shall be referred by the chairperson of the council
on the arts to the council board as defined by article three of the arts
and cultural affairs law.

(e) An application shall not be approved:

(i) if the applicant is in arrears on any prior loan under this
section,

(ii) if it shall be shown that at any time in the prior ten years, the
applicant used state funds to repay all or part of any loan made under
this section.

(f) The council board shall, to the maximum extent feasible, and
consistent with the other provisions of this section, seek to provide
that loans authorized by this section reflect an appropriate geographic
distribution and are distributed equitably.