2006 New York Code - Terms And Security For State Loans.

 
    §  72.  Terms and security for state loans.  1. Loans shall be made at
  the rate of interest paid or to be paid  by  the  state  for  the  funds
  loaned  to  the authority or municipality, plus a proportionate share of
  the actual direct cost of  the  borrowing  as  certified  by  the  state
  comptroller. Such loan shall be repaid in equal annual installments over
  or within a period of fifty years, but in no case to exceed the probable
  life of the buildings and improvements of the project or part thereof to
  which  the  proceeds thereof are to be applied. The probable life of the
  buildings and improvements of such projects is hereby determined  to  be
  fifty  years.  Each  installment  shall  equal the amount payable by the
  state for moneys borrowed for the loan and shall be paid not later  than
  five days before each such payment by the state is required.
    2.  The  loan  contract  shall  provide  that  upon  any  date when an
  installment of principal shall become due and payable the authority  may
  anticipate  any  installment which would otherwise thereafter become due
  and payable. In the case of loans to municipalities, the  loan  contract
  may contain such a provision.
    3.  Should  the  authority  or  municipality  fail  to make payment of
  interest or principal upon any  due  date,  the  state  comptroller  may
  deduct and retain from any moneys otherwise payable by the state to such
  authority or municipality, the amount of such interest and principal and
  credit such authority or municipality with the amount of such deduction.