US Laws, Codes, Statutes & Cases

 
    §  255.  Provision  of  financing  for  capital improvements at racing
  facilities. 1. The fund is hereby authorized to provide,  in  accordance
  with  the procedures established by subdivision two of this section, for
  the financing of  capital  improvements  at  racing  facilities,  or  to
  authorize non-profit racing associations to enter into credit agreements
  with  private  lenders  to  finance such improvements provided that such
  capital improvements are  part  of  a  capital  plan  requested  by  the
  non-profit  racing  association  and  approved by the fund in accordance
  with section two hundred fifty-eight of this article.
    2. The fund is hereby authorized to make secured loans  to  non-profit
  racing  associations,  from  the amounts available to it pursuant to the
  provisions of paragraph a of subdivision  one  of  section  two  hundred
  eight  and  paragraphs  (b)  and  (c)  of subdivision one of section two
  hundred twenty-nine of this chapter, provided that proceeds of all  such
  loans  be  applied by such non-profit racing association to the costs of
  capital improvements included in a capital plan authorized in accordance
  with section two hundred sixty of this article. As a condition to and as
  consideration for  the  provision  of  such  loans  by  the  fund,  such
  non-profit  racing  association  shall  enter into a financing agreement
  with the fund which shall provide (i)  that  all  moneys  so  loaned  be
  applied  by  such  non-profit  racing  association  as  required by this
  subdivision; (ii) that such loans shall be  repaid  by  such  non-profit
  racing  association  with  such interest as such financing agreement may
  provide and in accordance  with  a  schedule  which  provides  that  the
  repayment  of  the  principal  on  such  loans  shall  coincide with the
  depreciation of the capital assets acquired from the application of  the
  proceeds  of  such  loans  and  that  any unpaid principal balance, plus
  accrued interest, shall be due and payable by  the  association  to  the
  fund  upon  the  expiration  of  the  franchise.  The  fund  shall apply
  provisions of clause (ii) so as to extend the due date of final  payment
  to  any  loans  outstanding  from  the  fund  to  the  non-profit racing
  association at a time  when  its  franchises  are  extended  beyond  the
  thirty-first  day  of  December of the year two thousand; and (iii) such
  other provisions as the fund  may  deem  appropriate.  Such  association
  shall  also  covenant  in  any  such  financing agreements with the fund
  substantially as follows: "The ... (insert  legal  title  of  non-profit
  racing  association) hereby covenants and agrees to operate and maintain
  and at all times to cooperate in the operation and  maintenance  of  the
  racing  facilities  in a sound and economical manner consistent with the
  traditions of thoroughbred horse racing  in  this  state  and  with  due
  recognition  to deriving for the state from pari-mutuel betting on horse
  racing, a reasonable revenue for the support of  government  during  the
  entire term of its franchises."
    3.  The  aggregate  amount of loans made by the fund to the non-profit
  racing association in any calendar year  shall  not  be  more  than  the
  amount  necessary  to  fund  fully the costs of the capital improvements
  included in the capital plan authorized with reference to such nonprofit
  racing association and applicable to such year.