Title UDG, Urban development guarantee fund of New York 175/68

Chapter 175 of the laws of 1968 Urban development guarantee fund of N.Y. Section 1. Short title. This act shall be known and may be cited as the "Urban development guarantee fund of New York act".

§ 10. Loan guarantee premium. The fund is authorized but not required to fix premiums for the guarantee of loan repayments under the provisions of this act, such premiums to be computed as a percentage, which shall not exceed one percentum per annum on that portion of the princi…

§ 11. Expenses of the fund. The fund may in its discretion expend such monies as may be necessary for any of its expenses, including administrative, legal, actuarial and other services.

§ 12. Obligations eligible for investment. Obligations guaranteed by the fund under this act and participations therein are hereby made legal investments for all insurance companies, trust companies, banks, investment companies, savings banks, building and loan associations, cre…

§ 13. Contracts of guarantee; waivers. (a) The fund shall arrange by contract with the lending institution or the borrower or both to safeguard the interest of the fund in the event of default by the borrower, including, at the discretion of the fund, provision for notice to the…

§ 14. Interest of directors of the fund. No director of the fund shall participate in any decision on any contract of guarantee in which he has any interest, direct or indirect, in the lending institution or borrower as set forth herein.

§ 15. Limitation of liability. Neither the directors nor any officer or employee of the fund, while acting within the scope of his authority, shall be subject to any personal liability resulting from the activities of the fund.

§ 16. Designation and service of process on secretary of state and registered agent. The directors of the fund shall file with the secretary of state a certificate setting forth the street address and the city and county in which the principal office of the fund is located withi…

§ 17. Inconsistent provisions of other laws superseded. Insofar as the provisions of this act are inconsistent with the provisions of any other law, general, special or local, the provisions of this act shall be controlling.

§ 18. Construction. This act, being necessary for the welfare of the State and its inhabitants, shall be liberally construed so as to effectuate its purposes.

§ 19. Separability. If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the …

§ 2. Statement of legislative findings and purposes. The legislature hereby finds that in certain urban areas of our state the growth of small business is impeded by the unavailability of reasonable credit for buildings, equipment, credit for inventory and working capital. This …

§ 20. Operative date of the fund. No loan guarantee shall be made by the fund until there has been credited to the loan guarantee fund the sum of two hundred thousand dollars.

§ 3. Definitions. 1. "Small business" shall mean a business located in an area having one or more of the characteristics described in section two which is unable to obtain adequate financing to maintain a stabilized work force or increase job opportunities by virtue of (a) its l…

§ 4. Urban development guarantee fund of New York. 1. There is hereby created a non-profit corporation which shall be known as the "Urban Development Guarantee Fund of New York." Except as otherwise provided in this act, the fund shall have all the powers, privileges and immunit…

§ 5. Powers and limitations. 1. In addition to the powers granted by the business corporation law and except as otherwise provided by this act, the fund shall have power to: (a) Guarantee loan repayments to a lending institution that has provided the funding for a small business…

§ 6. Loan guarantee fund. The fund shall establish a loan guarantee fund. The loan guarantee fund shall be a non-lapsing, revolving fund to be used for the purpose of carrying out the provisions of this act. To such loan guarantee fund shall be charged payments required by loan …

§ 7. Operation and maintenance fund. The fund shall establish an operation and maintenance fund, to which shall be charged any and all operating expenses of the fund, including but not limited to, salaries, wages, rents, utility charges, office supplies and equipment, and to whi…

§ 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 te…

§ 9. Conditions for guarantee. In order for a loan to be guaranteed under the provisions of this act, the loan to be guaranteed must be executed by a borrower to whom credit is not reasonably available, and in the case of a borrower undertaking a housing project, provide financi…