2006 New York Code - Periodic Subsidies.

 
    § 509. Periodic subsidies. 1. The commissioner may, in the name of the
  state,  make or contract to make periodic subsidies to a municipality to
  assist such municipality in carrying out one or more programs  of  urban
  renewal,  subject to the limitations contained in the first paragraph of
  section seventy-three of the public housing law, in this section and  in
  any other law applicable thereto. Such subsidies shall be applied by the
  municipality  only  for the purpose of paying the principal and interest
  on the state loan for the urban renewal program or on loans  from  other
  sources pursuant to subdivision three of this section.
    2.  The  periodic  subsidy  for each program of urban renewal shall be
  payable to the municipality on an annual basis over the  period  of  the
  state  loan  for  the  urban  renewal  program,  commencing  on the date
  provided for in the loan contract made with the commissioner, in a total
  amount determined by the commissioner but no greater than the sum due to
  the state for principal and interest on the state loan for such program.
  The amount of such payments need not be  uniform  and  portions  of  the
  periodic  subsidy payable for any one year may be paid from time to time
  as required.
    3. Where all or any  part  of  the  sum  which  the  commissioner  has
  contracted  to  lend to the municipality is borrowed by the municipality
  from sources other than the state, the periodic subsidy  contracted  for
  pursuant  to  subdivision  one  of  this  section  may  be  used  by the
  municipality for the payment of such loans obtained  from  such  sources
  for  the  program  to which such periodic subsidies relate, provided the
  terms  and  conditions  of  such  loans  have  been  approved   by   the
  commissioner.    Such  periodic  subsidies  shall also be payable to the
  municipality on an annual  basis  over  a  fixed  period  of  years  not
  exceeding  the  probable  life  of  such  program,  in  a  total  amount
  determined by the commissioner but no greater than the sum due  to  such
  lenders  for principal and interest on such loan, commencing on the date
  provided  for  in  the  loan  contract  made  with   the   commissioner.
  Notwithstanding  any  other provision of any general or special law, the
  contract for such loan from sources other than the state  shall  provide
  that upon any date when an installment of principal shall become due and
  payable  the  municipality  may  anticipate  any installment which would
  otherwise become due and payable thereafter.
    4. The faith of the state is pledged to the payment  of  all  periodic
  subsidies  contracted  for  by the commissioner. Such periodic subsidies
  shall be paid upon the audit and warrant of the state  comptroller  upon
  vouchers approved by the commissioner.