Section 179-Z. Not-for-profit short-term revolving loans

1. The state
  comptroller is authorized  to  provide  loans  from  the  not-for-profit
  short-term revolving loan fund established by section ninety-seven-jj of
  this  chapter to any not-for-profit organization in receipt of a written
  directive from a state agency. The state comptroller may provide such  a
  loan  to  a  not-for-profit  organization  upon  receipt  of  a  written
  agreement  providing  reasonable  assurances  of   repayment   that   is
  satisfactory  to  the comptroller. Such loan shall not bear interest and
  repayment of such loan may be prorated over the term of the expected  or
  renewal  contract,  provided  the  term  of the loan does not exceed one
  year. The amount of each such loan shall  not  exceed  one-half  of  the
  first quarter payment of the subject contract.
    2.  The state comptroller shall only make loans after finding that the
  not-for-profit organization has a written directive from a state  agency
  and  cannot  provide or continue to provide services without a loan from
  the not-for-profit short-term revolving loan fund.
    3. The state comptroller shall promulgate rules and regulations within
  ninety days of the enactment date of this act for the operation  of  the
  not-for-profit  short-term  revolving loan fund which shall include, but
  not be limited to, the criteria to be used in determining not-for-profit
  organizations eligible for assistance; a  procedure  and  any  necessary
  information   that   not-for-profit   organizations   need   to   submit
  applications for a loan from  the  not-for-profit  short-term  revolving
  loan  fund;  a  schedule  for reviewing such applications, not to exceed
  thirty days, and notification to an applicant of approval or disapproval
  of such application for interim  funding,  and  any  other  requirements
  deemed necessary by the state comptroller.
    4.   Any   not-for-profit  organization  receiving  a  loan  from  the
  not-for-profit short-term revolving loan fund  shall  be  ineligible  to
  receive  interest from a state agency, notwithstanding the provisions of
  section  one  hundred  seventy-nine-v  of  this  article  and  shall  be
  ineligible  to  receive  advance  payments,  notwithstanding section one
  hundred seventy-nine-u of this article.