Section 8 - Guarantee of loans(a) The fund is authorized to guarantee repayments of a loan made by a lending institution to provide funding for small business or housing project as defined herein, not to exceed eighty per centum of the principal amount of the obligation, upon such terms and conditions as the fund may prescribe, provided that the aggregate amount of the unpaid balance of all obligations so guaranteed and outstanding at any one time shall not exceed one million dollars during the first fiscal year of operations of the fund, and in any succeeding fiscal year, five times the average annual balance in the loan guarantee fund for the preceding fiscal year, and provided further, however, that the total potential liability of the fund to a lending institution on behalf of any one borrower shall not exceed one hundred fifty thousand dollars.(b) The fund is also authorized to guarantee repayments of loans made by a lending institution to a purchaser of either a condominium unit in a multiple dwelling organized under the condominium act, or shares of stock in a cooperative corporation which owns a multiple dwelling, where such purchaser intends to reside in such condominium unit or such cooperatively-owned multiple dwelling. The amount of such guarantee shall not exceed the lesser of eighty per centum of the purchase price of the unit or of the shares of stock allocable to the unit, as the case may be, or $25,000; and the term of the guarantee shall not exceed twenty-five years. No loan shall be guaranteed if interest thereon exceeds the legal rate. The aggregate amount of the unpaid balance of all obligations guaranteed under this subdivision and subdivision (a) hereof shall not exceed one million dollars during the first fiscal year of operation hereunder and in any succeeding fiscal year, five times the average annual balance in the loan guarantee fund for the preceding fiscal year hereunder.N.Y. Urban Development Guarantee Fund of New York § 8