N.Y. Comp. Codes R. & Regs. tit. 21 § 2606.6

Current through Register Vol. 46, No. 50, December 11, 2024

Section 2606.6 - State assistance contract

In order to receive State assistance, a project owner shall enter into a State assistance contract with the corporation. Such State assistance contract may include, without limitation, the following:

(a) A certification by the project owner that it possesses, or shall timely obtain, any permits, licenses or other documents necessary to design, construct, operate and maintain the project.

(b) A certification by the project owner that any facilities or equipment funded with State assistance pursuant to this Part will remain in the State, or in a specified area of the State, for the useful life of such equipment.

(c) A certification by the project owner that it will procure and maintain, at its own expense, property liability insurance covering the certified equipment or facilities financed with State assistance for their useful life, in adequate amounts, and provided by insurance companies licensed to do business in the State. The project owner shall agree to furnish to the corporation a certificate in a form satisfactory to the corporation evidencing such insurance, and naming the corporation as an additional insured, additional assured or loss payee.

(d) A certification by the project owner that it will accept delivery of, construct, install, operate and maintain the facilities or equipment financed in whole or part with State assistance at its place of business in compliance with all applicable Federal, State and local laws, regulations, and guidance for the useful life of such equipment.

(e) A certification by the project owner that it is not the subject of any pending or contemplated proceeding under bankruptcy, reorganization or insolvency laws, and is not subject to a bankruptcy, liens or claims, not disclosed to the corporation.

(f) An agreement by the project owner to defend, indemnify, save and hold harmless the corporation, any municipality which has approved the project, the State, and their agents and employees, from and against all claims, damages, losses, expenses, including, without limitation, reasonable attorneys fees, arising out of or in consequence of any negligent act or omission or intentional act of the project owner by reason of any execution of the State assistance contract, the RFA or any other document relating to the project owner's receipt of State assistance under this Part, or the performance of work, construction, installation, operation or maintenance of the facilities or equipment financed in whole or part with State assistance.

(g) An agreement by the project owner to defend, at its own cost and expense, any action or proceeding commenced by or against the project owner and, at the written request of the corporation, the State or any municipality which has approved the project, any action or proceeding against the corporation, the State or any municipality which has approved the project, for the purpose of asserting or defending any claim arising out of the FAB Program. In addition, an agreement by the project owner that, in any case where the project owner is defending the corporation, the State or any municipality which has approved the project, the project owner may not settle any such case without the prior written consent of that respective party.

(h) An agreement by the project owner that its successors and assigns shall be bound by the terms and conditions of the State assistance contract.

(i) An acknowledgment by the project owner that any breach of any of the terms, conditions, or covenants of the State assistance contract may result in the project owner having to repay the corporation for the value of State assistance paid by the corporation to, or on behalf of, such project owner.

(j) An acknowledgment by the project owner that the corporation possesses a right of inspection during normal business hours of the facilities or equipment financed, in whole or part, with State assistance.

(k) An agreement by the corporation to reimburse certain costs of the eligible project, subject to certain conditions including the availability of funds.

(l) An acknowledgment by the project owner that in the event the corporation declares the project owner to be in default, the corporation shall be entitled to withhold State assistance, and to seek any remedy available to the corporation at law or in equity to recover State assistance paid by the corporation to, or on behalf of, the project owner, and to recover reasonable attorneys fees and costs.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 2606.6