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SECTION 213
Definitions
State Finance (STF) CHAPTER 56, ARTICLE 15
§ 213. Definitions. When used in this article, unless a different
meaning clearly appears from the context, the following terms shall have
the following meanings:

1. "Authorized depositor" means the comptroller with respect to linked
deposits made by the comptroller and the commissioner of taxation and
finance with respect to linked deposits made by the commissioner of
taxation and finance.

2. "Census" means the decennial census performed by the bureau of the
census of the United States department of commerce.

3. "Census bureau" means the bureau of the census of the United States
department of commerce.

4. "Certified business" means a business located in an empire zone
created pursuant to article eighteen-B of the general municipal law and
certified pursuant to such article as eligible for the benefits referred
to in section nine hundred sixty-six of such article.

5. "Certified minority-or women-owned business" means any minority-or
women-owned business enterprise as defined in section three hundred ten
of the executive law and certified pursuant to section three hundred
fourteen of the executive law.

6. "Comptroller" means the comptroller of the state of New York.

7. "Defense industry manufacturer" means a manufacturing firm as
defined in subdivision eighteen of this section, twenty-five percent or
more of the gross revenues of which derive, either directly as a prime
contractor or indirectly as a subcontractor of a prime contractor, from
department of defense or other military contracts.

8. "Department" means the department of economic development.

9. "Department of defense" means the United States department of
defense.

10. "Empire zone" means an empire zone created pursuant to article
eighteen-B of the general municipal law.

11. "Eligible business" means:

(a) a manufacturing firm or agricultural business which employs five
hundred or fewer employees within the state on a full-time basis; or

(b) any certified business in an empire zone which business employs
one hundred or fewer employees within the state on a full-time basis; or

(b-1) during the whole or any portion of a period in which an area
continues to be designated as a renewal community, any renewal community
business located in such area that employs one hundred or fewer
employees within the state on a full-time basis; or

(b-2) during the whole or any portion of a period in which an area
continues to be designated as an empowerment zone, any business located
in such area that employs one hundred or fewer employees within the
state on a full-time basis; or

(b-3) during the whole or any portion of a period in which an area
continues to be designated as an enterprise community, any business
located in such area that employs one hundred or fewer employees within
the state on a full-time basis; or

(c) any firm seeking financing through the program for an export
project, which firm employs one hundred or fewer employees within the
state on a full-time basis; or

(d) any business located in a highly distressed area, which business:

(i) is not a retail business, unless financing provided through the
program would promote the preservation of existing jobs or an increase
in the overall number of retail jobs in the area; and

(ii) employs one hundred or fewer employees within the state on a
full-time basis; or

(e) any certified minority-or women-owned business seeking financing
necessary to carry out a procurement contract with an agency or
authority or other entity of the state or federal government; or

(f) any service business that is independently owned and operated, is
not dominant in its field, employs one hundred or fewer persons on a
full-time basis within the state, and is seeking financing through the
program for a project that will result in the retention or creation of
permanent private sector jobs within the state, other than a business
that sells a service rendered at a facility personally by an individual
for another individual, directly, without the intervention of a third
party, or a professional service business such as health, legal,
accounting, engineering, or architectural services.

(g) a qualifying technology or innovation business which business
employs one hundred or fewer employees within the state on a full-time
basis and engages in:

(1) biotechnologies, which shall be defined as technologies involving
the scientific manipulation of living organisms, especially at the
molecular and/or the sub-molecular genetic level, to produce products
conducive to improving the lives and health of plants, animals, and
humans; and the associated scientific research, pharmacological,
mechanical, and computational applications and services connected with
these improvements;

(2) information and communication technologies, equipment and systems
that involve advanced computer software and hardware, visualization
technologies, and human interface technologies;

(3) advanced materials and processing technologies that involve the
development, modification, or improvement of one or more materials or
methods to produce devices and structures with improved performance
characteristics or special functional attributes, or to activate, speed
up, or otherwise alter chemical, biochemical, or medical processes;

(4) electronic and photonic devices and components for use in
producing electronic, optoelectronic, mechanical equipment and products
of electronic distribution with interactive media content;

(5) energy efficiency, renewable energy and environmental
technologies, products, devices and services; or

(6) small scale systems integration and packaging; or

(h) a community development financial institution.

12. "Eligible projects" means:

(a) export projects designed to increase a firm's export activities;
or

(b) for manufacturing, agricultural and service firms, projects which
involve the preparation of strategic plans for improving productivity
and competitiveness; the introduction of modern equipment and/or an
expansion of facilities as part of a modernization plan; the
introduction of advanced technologies to improve productivity and
quality; improvements in production processes and operations, including
agricultural operations; introduction of computerized information,
reporting and control systems; reorganization or improvement of work
place systems and the introduction of total quality and employee
participation programs; development and introduction of new products;
identification and development of new markets, including entry into
foreign markets; financial restructuring for purposes of enabling
modernization activities; buyouts of viable companies by employees or
local owners residing in the state; and the provision of working capital
for other modernization activities that will improve the competitiveness
and productivity of a firm and result in the creation or retention of
jobs; or

(c) for certified businesses located in empire zones, for retail
businesses located in highly distressed areas, for eligible businesses
that are defined in paragraph (b-1) of subdivision eleven of this
section that are located in a renewal community, for eligible businesses
that are defined in paragraph (b-2) of subdivision eleven of this
section that are located in an empowerment zone, and for eligible
businesses that are defined in paragraph (b-3) of subdivision eleven of
this section that are located in an enterprise community, projects that
will create or retain full-time, permanent jobs within the empire zone
or empowerment zone or enterprise community or highly distressed area or
renewal community, as the case may be; or

(d) for defense industry manufacturers, projects designed to reduce
dependence on department of defense and other military contracts and to
change or diversify production in order to take advantage of any market
other than that serving the department of defense or other military
procurers; or

(e) for certified minority-and women-owned businesses, projects to
provide financing necessary to carry out a procurement contract with an
agency or authority or other entity of the state or federal government;
or

(f) projects in which community development financial institutions
make loans.

12-a. "Empowerment zone" means an area within the state that has been
designated by such term pursuant to section 1391 of the federal Internal
Revenue Code (26 United States Code § 1391) under the federal Community
Renewal Tax Relief Act of 2000.

12-b. "Enterprise community" means an area within the state that has
been designated by such term pursuant to section 1391 of the federal
Internal Revenue Code (26 United States Code § 1391) under the federal
Community Renewal Tax Relief Act of 2000.

13. "Highly distressed area" means: (a) a census tract or tracts or
block numbering area or areas or such census tract or block numbering
area contiguous thereto which, according to the most recent census data
available, has:

(i) a poverty rate of at least twenty percent for the year to which
the data relates or at least twenty percent of the households receiving
public assistance; and

(ii) an unemployment rate of at least one and twenty-five one
hundredths times the statewide unemployment rate for the year to which
the data relates; or

(b) a city, town, village or county within a city with a population of
one million or more for which: (i) the ratio of the full value property
wealth, as determined by the comptroller for the most recent year
determined, per resident to the statewide average full value property
wealth per resident; and (ii) the ratio of the income per resident, as
shown in the most recent census to the statewide average income per
resident; are each fifty-five percent or less of the statewide average;
provided, however, that an empire zone shall not be considered a highly
distressed area for purposes of this article.

14. "Lender" means:

(a) any commercial bank which is or shall become an approved
depository of state funds under the provisions of section one hundred
five of this chapter and which agrees to participate in the program; or

(b) any thrift or credit union which an authorized depositor
determines is eligible to accept linked deposits based upon criteria
applied by the authorized depositor in making determinations under
section one hundred five of this chapter, and which agrees to
participate in the program, provided that any linked deposit in such
thrift or credit union shall be secured in the same manner as moneys
deposited pursuant to section one hundred five of this chapter and such
thrifts or credit unions shall pledge assets or furnish other security
satisfactory in form and amount to the authorized depositor for the
repayment of moneys. Until April first, nineteen hundred ninety-six, in
the determination of thrifts eligible to accept linked deposits, the
authorized depositor shall give priority to applications by those
thrifts seeking to make linked loans in economic development regions in
which fewer than ten linked loans have been made on or before April
first, nineteen hundred ninety-five. Provided, however, that the
granting of such priority shall in no way relieve an authorized
depositor of his or her duty and obligation to review all thrift
applications from all economic development regions in the state on a
timely basis.

(c) any farm credit system institution which agrees to participate in
the program.

(d) the New York business development corporation.

15. "Linked deposit" means a deposit, or for farm credit system
institutions and the New York business development corporation an
investment eligible to be held by such institution or corporation placed
with a lender by the comptroller or the commissioner of taxation and
finance for a period of four years at the linked deposit interest rate,
provided the lender agrees to:

(a) lend the equivalent value of such deposit to an eligible business
at the interest rate provided in section two hundred eighteen of this
article; and

(b) permit the deposit to be comprised of a series of ninety day
deposits each bearing an interest rate equal to the linked deposit
interest rate fixed at the time the original deposit is placed.

This article and the related statutes that refer to this article do
not grant thrifts, credit unions, farm credit system institutions or the
New York business development corporation eligibility to accept public
funds or public moneys from public entities for investment purposes. For
farm credit system institutions, the linked deposit program is available
for loans with an agricultural purpose as defined by the farm credit act
of nineteen hundred seventy-one, as amended and regulations promulgated
thereunder. A linked deposit is intended to enable a lender to make a
linked loan to an eligible business and such deposit earns a yield lower
than posted rates in order to accomplish the goals of this article.

16. "Linked deposit interest rate" means:

(a) for a linked deposit made in connection with a linked loan to a
certified business in an empire zone or to an eligible business located
in a highly distressed area or to an eligible business that is defined
in paragraph (b-1) of subdivision eleven of this section that is located
in a renewal community or defined in paragraph (b-2) of such subdivision
that is located in an empowerment zone or defined in paragraph (b-3) of
such subdivision that is located in an enterprise community, or a
qualifying technology or innovation business as defined in paragraph (g)
of subdivision eleven of this section, respectively for eligible
projects defined in paragraph (c) of subdivision twelve of this section
or a certified minority- or women-owned business enterprise for an
eligible project defined in paragraph (e) of subdivision twelve of this
section or to a defense industry manufacturer for a project defined in
paragraph (d) of subdivision twelve of this section, a fixed rate of
interest which is three hundred basis points below the lender's posted
four year certificate of deposit rate or, if the lender does not offer a
four year certificate of deposit, is three hundred basis points below
the average statewide rate for four year certificates of deposit as
determined by the commissioner of economic development;

(b) for a linked deposit made in connection with any linked loan other
than those specified in paragraph (a) of this subdivision, a fixed rate
of interest which is two hundred basis points below the lender's posted
four year certificate of deposit rate, or if the lender does not offer a
four year certificate of deposit, is two hundred basis points below the
average statewide rate for four year certificates of deposit as
determined by the commissioner of economic development.

17. "Linked loan" means a loan for purposes of an eligible project, in
an amount equal to a linked deposit and bearing interest for the first
four years at the interest rate provided in section two hundred eighteen
of this article.

18. "Manufacturing firm" means a firm involved with extracting,
smelting, recovering, developing, preparing, compounding, converting,
assembling or producing in any manner, minerals, raw materials, products
or substances of any kind or nature, and shall include facilities
related thereto for storage, warehousing or distribution, for research
and development or for the discovery of new, and the refinement of
known, substances, processes, and products.

19. "Program" means the excelsior linked deposit program.

20. "Thrift" means any savings bank or savings and loan association,
federal savings bank or federal savings and loan association.

21. "Economic development region" shall refer to those regions
established by the department of economic development pursuant to
section two hundred thirty of the economic development law.

22. "Renewal community" means an area within the state that has been
designated by such term in accordance with section 1400E of the federal
Internal Revenue Code (26 United States Code § 1400E) under the federal
Community Renewal Tax Relief Act of 2000.

23. "Renewal community business" means a business that is designated
by such term pursuant to section 1400G of the federal Internal Revenue
Code (26 United States Code § 1400G) under the federal Community Renewal
Tax Relief Act of 2000.

24. "Credit union" means any credit union chartered under article
eleven of the banking law or any federal credit union.

25. "Community development financial institution" means an
organization as defined in 12 U.S.C. 4702(5)(a).