N.Y. Public Authorities Law 1679-B – Equipment loans
§ 1679-b. Equipment loans. 1. The dormitory authority may make an equipment loan to any private entity for the benefit of which the dormitory authority is authorized to issue bonds or other obligations of the dormitory authority. The proceeds of such a loan are to be used substantially to finance the acquisition through purchase or lease of equipment including construction and rehabilitation related to the installation of such equipment or the acquisition of intellectual property or other intangible property, including information technology and software, that is eligible for tax-exempt financing under the United States internal revenue code. The dormitory authority may make an equipment loan by the purchase, lease or sublease of equipment by the dormitory authority and the lease or sublease of such equipment to any such private entity for the purpose of providing for the acquisition of such equipment and the construction and rehabilitation related to the installation thereof or pursuant to an installment purchase agreement.
Terms Used In N.Y. Public Authorities Law 1679-B
- Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Trustee: A person or institution holding and administering property in trust.
2. Except to the extent otherwise expressly prohibited by law, each private entity described in subdivision one of this section shall have full power and authority to assign and pledge to the dormitory authority any and all public funds to be appropriated, apportioned or otherwise made payable to such private entity by the federal government, any agency thereof, the state of New York, a political subdivision, as defined in § 100 of the general municipal law, or any social services district in the state of New York in an amount sufficient to make all payments required to be made by such private entity pursuant to any necessary or useful agreement entered into between such private entity and the dormitory authority for an equipment loan. All state and local officers are hereby authorized and required to pay all such funds so assigned and pledged to the dormitory authority or, upon the direction of the dormitory authority, to any trustee of any dormitory authority bond or note issued pursuant to a certificate filed with any such state or local officer by the dormitory authority pursuant to the provisions of this subdivision.
3. The making of equipment loans by the authority shall be a corporate purpose of the authority.