Section 1163. Financing agreements

The corporation and any recipient having
  the  power  to  contract  with  respect  to the financing of an eligible
  project may enter into a loan or other financing agreement providing for
  the construction and financing of  eligible  projects.  The  corporation
  shall  prepare  each financing agreement, which shall include but is not
  limited to the following provisions:
    1. A description of the eligible project;
    2. An estimate of the eligible project cost;
    3. A right of the corporation to approve any  contracts  for  services
  and  construction  funded  pursuant  to  a  financing  agreement, and to
  inspect and review the construction of eligible projects;
    4. Notwithstanding the provisions of any other law,  general,  special
  or  local, inconsistent with this section, a right of the corporation to
  invest proceeds of the corporation's bonds or notes, including  proceeds
  of  bonds  or notes of the recipient, as provided in subdivision four of
  section twelve hundred eighty-four of the public authorities law and  as
  provided  in  subdivision six of section twelve hundred eighty-five-m of
  the public authorities law.
    Such right shall include the right to invest such monies together with
  any other monies held by the corporation pursuant to the  provisions  of
  section twelve hundred eighty-five-m of the public authorities law;
    5.  Remedies  in the event of a recipient's failure to comply with the
  terms of a financing agreement;
    6. An agreement by the corporation to:
    (a) lend to the recipient for the construction of an eligible  project
  a  specified  amount  from  the  proceeds  of the corporation's bonds or
  notes, not to exceed the estimated reasonable cost  of  construction  of
  the  eligible project established in the financing agreement, subject to
  the ability of the corporation to provide such financing, including  any
  other  approvals  required  by  state  or  federal  law  and  such other
  conditions as the corporation shall determine necessary or desirable;
    (b) use reasonable efforts to issue its bonds or notes  in  an  amount
  sufficient  to  finance  the  estimated  reasonable cost of the eligible
  project, including but not limited to costs of issuance, credit  support
  fees,  if  any,  trustees'  fees, interest during construction, and such
  reserve funds, if any, as may be  necessary  to  secure  such  bonds  or
  notes;
    (c)  for  any  financial  assistance  made  from  the  proceeds of the
  corporation's bonds or notes, establish an allocation and provide to the
  recipient an interest rate subsidy allocation for the  eligible  project
  in  accordance  with this title and section twelve hundred eighty-five-m
  of the public authorities law;
    (d) in the alternative, provide financial assistance to the  recipient
  for  the  construction of an eligible project in a specified amount from
  any moneys in or available for deposit in the fund, not  to  exceed  the
  estimated  reasonable  cost  of  construction  of  the  eligible project
  established in the loan or other financing agreement, as  determined  by
  the corporation;
    (e)  administer  the  investment of funds held in accordance with such
  agreement, including funds of the recipient;
    7. An agreement by the recipient to:
    (a) proceed expeditiously with and complete the  eligible  project  in
  accordance with plans approved;
    (b)  commence  operation  of the eligible project on completion of the
  project, and not abandon, discontinue operation of,  sell,  transfer  or
  otherwise  dispose  of  the  eligible project as long as a loan or other
  financial  assistance  to  the  recipient  for  such   project   remains
  outstanding,  without  approval  of the commissioner; provided, however,

  that the commissioner shall not  approve  disposition  of  the  eligible
  project  without the concurrent approval of the corporation. None of the
  foregoing shall limit  the  commissioner's  authority  to  terminate  or
  impose  conditions upon the operation of an eligible project pursuant to
  the provisions of this chapter and any implementing regulations thereto;
    (c) operate and maintain  the  eligible  project  in  accordance  with
  applicable requirements of federal and state law;
    (d)  establish  and  maintain  project accounts in accordance with the
  financing agreement and generally accepted accounting standards;
    (e) establish a dedicated source  of  revenue  (which  may  include  a
  general obligation of the recipient) providing for:
    (i)  operation  and  maintenance  costs  of  the  eligible project and
  equipment renewal and replacement; and
    (ii) loan repayment regardless of whether the eligible project  is  in
  operation;
    (f)  notwithstanding the provisions of any other law, general, special
  or local, inconsistent with this section, delegate  to  the  corporation
  the  authority  to  invest  proceeds  of  bonds  or  notes issued by the
  corporation or the recipient on behalf of the recipient; and
    (g) permit any reviews or audits and provide assistance determined  to
  be reasonable and necessary by the department or the corporation;
    8.  Such  other  agreements or covenants as may be deemed necessary or
  desirable in connection with the issuance  by  the  corporation  of  its
  bonds or notes.