2 No. 54
   R/S Associates et al.,
   Appellants,
   v.
   New York Job Development Authority,
   Respondent.
     _________________________________________________________________

   2002 NY Int. 48

   April 30, 2002

   This opinion is uncorrected and subject to revision before publication
   in the New York Reports.

   Sanford F. Young, for appellants.
   David A. Schulz, for respondent.
     _________________________________________________________________

   WESLEY, J.:

   At issue here is the interpretation of the term "effective cost of
   funds" in a loan agreement between R/S Associates and the New York Job
   Development Authority. Because the term is not ambiguous as used in
   this agreement, we affirm.

   The New York Job Development Authority (JDA) is a public benefit
   corporation created by constitutional amendment in 1961 (L 1961, ch
   443, § 2). Its purpose is to "assist, promote, encourage, develop and
   advance the general prosperity and economic welfare of the people of
   the state and improve their standard of living" (Public Authorities
   Law § 1803(1)). The JDA pursues this goal by providing loans and loan
   guarantees to help businesses expand or build facilities in New York
   or acquire equipment for use in this state (id. at § 1803(2)).
   Borrowers from the JDA generally do not have access to more
   traditional funding sources.

   Unlike a typical commercial lender, the JDA operates as a conduit
   funding organization. It finances loans through the sale of either
   taxable or tax-exempt long-term bonds, guaranteed by the State (see
   Public Authorities Law § 1813). The JDA is self-supporting; all of
   its operating and administrative expenses -- including any loan
   defaults-- are funded through payments made by borrowers.

   R/S Associates, a real estate holding company, and Ittco Sales Co.,
   Inc., a manufacturer and distributor of automotive accessories