§ 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.