Sec. 23.3. Loan application procedure

(a) Only a not-for-profit organization in receipt of a written directive may request a loan from the Not-for-Profit Short-Term Revolving Loan Fund (hereinafter the fund) created pursuant to section 97-jj of the State Finance Law. In order to obtain a loan from the fund, a not-for-profit organization shall request a loan application from the State agency which has provided a written directive to such organization.

(b) Upon receipt of a request from a not-for-profit organization for a loan application, the State agency shall immediately provide the loan application and a repayment agreement to such organization. The application and the repayment agreement shall be in a form prescribed by the State Comptroller.

(c) The State agency, upon receipt of a completed application and executed repayment agreement, shall have not more than 15 days to make a determination recommending approval or disapproval of the loan application to the State Comptroller.

(d) Upon making its determination on a loan application submitted by a not-for-profit organization for a loan from the fund, the State agency shall immediately forward its determination, the completed application and executed repayment agreement to the State Comptroller. If the State agency makes a determination in accordance with subdivision (f) of this section, the agency shall not execute the repayment agreement.

(e) The State Comptroller, upon receipt of the completed application, executed repayment agreement and determination from a State agency pertaining to a loan for a not-for-profit organization from the fund, shall review such application and determination. Not more than 15 days after receipt of the application from the State agency, the State Comptroller shall notify the State agency and the not-for-profit organization whether or not the application for a loan from the fund has been approved. Upon approval the State Comptroller shall provide the loan to the not-for-profit organization.

(f) Should a State agency determine that a not-for-profit organization is ineligible for a loan from the fund and the State Comptroller agrees with this determination, the State Comptroller shall immediately notify the not-for-profit organization of its determination and the reasons therefor. If the State Comptroller disagrees with the State agency's determination and finds that a not-for-profit organization is eligible for a loan, the Comptroller shall return the repayment agreement to the agency for its execution. Immediately upon executing the repayment agreement the State agency shall return it to the Comptroller.

(g) Should the State Comptroller determine that a not-for-profit organization is ineligible for a loan from the fund or disapproves the loan application for any other reason, the State Comptroller shall immediately notify the not-for-profit organization and the State agency of its determination and the reasons therefor.