§ 262. New York state agricultural wastewater energy conservation loan\nprogram. 1. Definitions. As used in this section, unless a different\nmeaning clearly appears from the context, the term:\n a. "Financing institution" shall mean and include all banks, trust\ncompanies, savings banks, savings and loan associations and credit\nunions, whether incorporated, chartered, organized or licensed under the\nlaws of this state, any other state of the United States or the federal\ngovernment. This term may also include public authorities, public\nbenefit corporations, units of local government, domestic insurance\ncompanies and not-for-profit corporations, which make loans for\nimprovements for the benefit of eligible applicants.\n b. "Eligible applicant" or "applicant" shall mean: a business involved\nin food processing which employs less than five hundred workers or has\ngross annual sales of less than ten million dollars and which owns the\nbuilding to be improved with the proceeds of a program loan or which has\na lease or management agreement for the building.\n c. "Food processors" shall mean businesses engaged in the processing\nof vegetables, fruits, meats, dairy products or other food products.\n d. "Loan" or "program loan" shall mean a loan from the department or a\ncooperating financing institution pursuant to an agreement with the\ndepartment as part of the New York state agricultural wastewater energy\nconservation loan program.\n e. "Program" shall mean the New York state agricultural wastewater\nenergy conservation loan program.\n f. "Region" shall mean one or more of the economic development regions\ncreated pursuant to section 5-127 of the energy law.\n g. "Wastewater treatment project" shall mean the acquisition,\nconstruction, alteration, repair or improvement of a building, fixtures,\nmachinery or equipment constituting a facility which provides treatment\nof wastewater to improve its quality and which reduces energy\nconsumption provided that: (i) the cost of such improvement will be\nreturned in savings in energy costs within a period of not less than one\nyear nor more than ten years as identified in an energy audit; (ii) work\non such improvement commenced after submittal of an application under\nthe program; and (iii) such construction, alteration, repair or\nimprovement is permissible under federal requirements and court\ndecisions applicable to overcharge funds appropriated to this program.\n 2. Agricultural wastewater treatment energy conservation loans. The\ndepartment is hereby authorized to utilize monies appropriated to this\nprogram for the purpose of providing loans, principal reductions, loan\nguarantees and interest subsidies for wastewater treatment for\nbusinesses engaged in food processing.\n 3. a. Interest subsidies. The department may enter into cooperative\nagreements with one or more cooperating financial institutions within\nthe state to offer loans for the purposes of this section by eligible\napplicants at a rate that is no more than seventy-five percent of the\nprime interest rate. Such interest rate shall initially be five percent.\n b. Principal reductions and loan guarantees. The department shall be\nauthorized to utilize monies appropriated to this program for the\npurpose of providing principal reductions and loan guarantees for\neligible applicants, if such uses are permissible under the conditions\napplicable to the appropriated overcharge funds. Such principal\nreduction shall be limited to not more than fifty percent of the amount\neligible for a loan through the program as is provided in this section.\n 4. Loan agreements and agreements in connection with loans. Loan\nagreements and agreements in connection with loans made pursuant to this\nsection shall provide that: (a) the maximum loan per applicant shall be\ntwo hundred fifty thousand dollars; (b) loans or agreements in\nconnection with loans shall be made only after an application has been\nmade to the departmen
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