§ 72. Terms and security for state loans. 1. Loans shall be made at
the rate of interest paid or to be paid by the state for the funds
loaned to the authority or municipality, plus a proportionate share of
the actual direct cost of the borrowing as certified by the state
comptroller. Such loan shall be repaid in equal annual installments over
or within a period of fifty years, but in no case to exceed the probable
life of the buildings and improvements of the project or part thereof to
which the proceeds thereof are to be applied. The probable life of the
buildings and improvements of such projects is hereby determined to be
fifty years. Each installment shall equal the amount payable by the
state for moneys borrowed for the loan and shall be paid not later than
five days before each such payment by the state is required.

2. The loan contract shall provide that upon any date when an
installment of principal shall become due and payable the authority may
anticipate any installment which would otherwise thereafter become due
and payable. In the case of loans to municipalities, the loan contract
may contain such a provision.

3. Should the authority or municipality fail to make payment of
interest or principal upon any due date, the state comptroller may
deduct and retain from any moneys otherwise payable by the state to such
authority or municipality, the amount of such interest and principal and
credit such authority or municipality with the amount of such deduction.