Section 1822. Loans to local development corporations

a. No mortgage loan
  shall be made by the authority under the provisions of subtitle II  with
  respect  to  a project unless: (1) the local development corporation has
  obtained firm commitments satisfactory to the authority from responsible
  financial sources, which may but need not include a  federal  agency  or
  the  project  occupant, for the total project cost exclusive of any loan
  requested from the authority, (2) the local development corporation  has
  obtained  a  firm  commitment  satisfactory  to  the  authority from the
  project occupant or from a  business  enterprise  described  in  section
  eighteen  hundred  twenty-seven  to  lease  or  use  the  project  after
  construction, acquisition, rehabilitation or improvement  is  completed,
  (3)  the  authority  approves  the  terms  of  such  lease or use and is
  satisfied that the project occupant or a business  enterprise  described
  in  section  eighteen hundred twenty-seven may reasonably be expected to
  comply with the terms thereof, (4) the principal amount of such loan  is
  forty  percent  or  less  of  the  project  cost, except as set forth in
  paragraphs (a) and (b) of subdivision two of  section  eighteen  hundred
  three and paragraph (a) of subdivision seven of section eighteen hundred
  twenty-three  of this chapter, (5) such loan is secured by a mortgage on
  the project, and (6) such mortgage is not a junior  encumbrance  on  the
  project by more than fifty percent of the project cost.
    b.  No  loan  shall  be  made by the authority under the provisions of
  subtitle III with respect to a project unless: (1) the local development
  corporation has obtained firm commitments satisfactory to the  authority
  from  responsible  financial  sources,  which may but need not include a
  federal agency or the project  occupant,  for  the  total  project  cost
  exclusive  of  any  loan  requested  from  the  authority, (2) the local
  development corporation has obtained a firm commitment  satisfactory  to
  the  authority  from  the  project  occupant to lease or use the project
  after  construction,  acquisition,  rehabilitation  or  improvement   is
  completed, (3) the authority approves the terms of such lease or use and
  is  satisfied  that  the  project occupant may reasonably be expected to
  comply with the terms thereof, (4) the amount of such loan is ninety per
  cent or less of the project cost and the term of  such  loan  is  twenty
  years  or  less,  (5)  the  authority  finds  that  the facilities to be
  financed through the loan are intended  to  meet  or  exceed  applicable
  state  or federal requirements to abate, prevent or control a pollution,
  and  the  commissioner  of  environmental  conservation   approves   the
  construction plans for any such facilities.
    c.  No  loan  shall  be  guaranteed by the authority with respect to a
  project unless: (1) the project occupant has obtained  firm  commitments
  satisfactory  to  the  authority  from  banking  organizations  for  the
  financing of the project cost exclusive of the amount to be provided  by
  the  project  occupant,  (2) the authority is satisfied that the project
  occupant may be reasonably expected to comply with the terms of any loan
  for which a guarantee is sought, (3) the  amount  of  the  guarantee  is
  eighty percent or less of the project cost, (4) the loan is secured by a
  mortgage or security instrument which is not a junior encumbrance on the
  project.