N.Y. Comp. Codes R. & Regs. tit. 21 § 4215.9

Current through Register Vol. 46, No. 45, November 2, 2024

Section 4215.9 - Approval of eligible projects

(a) Each application for a loan from a minority and women revolving loan trust fund account shall be reviewed by the loan committee (referred to in section 4215.5[a][4] of this Part) of the administering corporation in whose service delivery region the project lies. Such loan committee shall determine the feasibility of the project proposed in the application and the likelihood of repayment of the loan requested and shall recommend to the board of directors or other governing body of the administering corporation such action as the committee deems appropriate.

(b) The decision to approve or reject an application for a loan pursuant to the provisions of this Part shall be made by a majority of the directors of the administering corporation, and such decision shall be final.

(1) No member of the board or other governing body of an administering corporation shall participate in a decision on a project application when such member is a party to or has a financial interest in such project. Any member who cannot participate in a decision on a project application for such reason shall not be counted as a member of the board or other governing body for purposes of determining the number of members required for a majority vote on such application.

(2) No employee or officer of any administering corporation shall be a party to or have any financial interest in any project that receives a loan pursuant to this Part.

(c) Upon approval of a loan to an eligible project, and the satisfaction by the loan recipient of the conditions precedent to the closing of the loan, the administering corporation shall certify to the corporation:

(1) the amount of the loan, the loan term, the annual interest rate established for the loan, the collateral, if any, therefor, and the date anticipated for the closing of the loan;

(2) the name of the loan recipient;

(3) that the loan recipient is an eligible business, and the methods used by the administering corporation to ascertain same;

(4) a description of the project to be funded;

(5) that the project is an eligible project;

(6) the total project cost. If the total project cost exceeds the loan, the administering corporation shall certify the names of all other sources of financing for the project, and the amount of financing to be provided by each, and that written commitments for such assistance have been obtained from each such source;

(7) that the project to be funded is feasible;

(8) that there is a reasonable likelihood that the loan will be repaid;

(9) that the administering corporation has advanced no previous loans to the loan recipient;

(10) that the loan recipient has agreed to first consider persons eligible to participate in Job Training Partnership Act ( 29 U.S.C. 1501, et seq.) programs;

(11) that the project to be funded will comply with applicable environmental rules or regulations;

(12) that the project to be funded otherwise complies with this Part; and

(13) such other information as the corporation may require.

(e) Upon acceptance of the administering corporation's certification by the corporation, the administering corporation may draw down trust fund proceeds from their minority and women revolving loan trust fund account in the amount of any loan so accepted.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 4215.9