N.Y. Comp. Codes R. & Regs. tit. 9, § 6404.12 – Repayment of funds.

(a) The organization shall provide the council with 30 days prior notice of any sale or other disposition of the property or termination of the lease which occurs prior to the expiration of the useful life of the project or, if financial assistance was provided in the form of a loan, prior to the expiration of the term of the loan. Upon receipt of such notice, the council shall require the owner of the property or the guarantor to repay to the council:
1. (1) if financial assistance was provided in the form of a grant, an amount equal to that portion of the approved costs of the project financed by the financial assistance less accumulated depreciation as of the date of such sale, disposition or termination;
2. (2) if financial assistance was provided in the form of a loan, an amount equal to the unpaid balance of the loan; or
3. (3) if financial assistance was provided in a combination of a grant and a loan, an amount equal to:
  1. (i) the grant portion less accumulated depreciation; and
  2. (ii) the unpaid balance of the loan portion.
(b) In the event that the council finds that a project is not completed, or is not completed in accordance with the terms of the cultural services contract, the council shall notify the organization which received financial assistance of the breach and shall either foreclose on the lien obtained on the property or require the guarantor to repay the full amount of the financial assistance provided in the form of a grant or the outstanding balance of financial assistance provided in the form of a loan within 30 days of such notice; provided, however, that upon a showing of good cause by the organization, the council shall grant an extension on the time period in which to foreclose or require repayment of up to 90 days from the date of such finding to allow the organization to complete the project in accordance with the terms of the cultural services contract. The council shall not permit more than two such extensions.