Section 1814. Loans and loan guarantees for machinery and equipment

1.
  Notwithstanding any other provisions of this title,  the  authority  may
  make  loans to local development corporations to assist in financing the
  cost of machinery and equipment, provided, however,
    (a) that the amount of such loan shall not exceed forty percent of the
  cost of such machinery and equipment, except as  provided  in  paragraph
  (b)  of  subdivision two of section eighteen hundred three and paragraph
  (a) of subdivision seven of section  eighteen  hundred  twenty-three  of
  this chapter;
    (b)  that  the  loan  shall  be  evidenced  by  a  bond, note or other
  obligation of a local development corporation, a  project  occupant,  or
  other  person,  firm or corporation and secured by a security agreement,
  chattel paper, loan agreement, or such other  instruments  or  documents
  deemed  necessary  or  convenient  to perfect a security interest in the
  machinery and equipment financed and to protect  the  interests  of  the
  authority; and
    (c)  that  such  security interest taken by the authority shall not be
  subordinate, but may be a participating interest which,  when  added  to
  the  security interests of other lenders, does not exceed ninety percent
  of the cost of such machinery and equipment.
    2. Notwithstanding any other provisions of this title,  the  authority
  may  issue  a  loan  guarantee  to  a  banking organization to assist in
  financing the cost of machinery and equipment, provided, however,
    (a) that the amount of the loan  guarantee  shall  not  exceed  eighty
  percent of the amount of the cost of the machinery and equipment; and
    (b)  that the loan of the banking organization shall be evidenced by a
  bond, note or other obligation of a project occupant, or  other  person,
  firm  or corporation and secured by a security agreement, chattel paper,
  loan agreement, or such other instruments or documents deemed  necessary
  or  convenient  by  the  authority to perfect a security interest in the
  machinery and equipment financed and to protect  the  interests  of  the
  authority.