(a) The Equipment Loan Fund for the disabled provides low interest loans to eligible persons with disabilities, to provide them the financial opportunity to purchase or replace essential equipment used for daily living or vocational functioning following rehabilitation. Each loan may be for any amount from $500 to $4,000. Outstanding loans cannot be renegotiated for a larger amount, unless the loan is at least 75 percent repaid and the additional amount is to be used for upgrading equipment obtained with the loan, at the discretion of the loan committee. Repayment periods are at the option of the borrower to choose when notified by the department of the approval of the loan. However, the repayment period must be no less than two years for any loan and not more than five years for loans of $2,500 or less; not more than six years for loans of $2,501 to $3,000; not more than seven years for loans of $3,001 to $3,500; and not more than eight years for loans of $3,501 to $4,000.

(b) The loan fund is under the joint custody of the commissioner of the Department of Social Services and the Comptroller of the State of New York. Loans to eligible applicants must be made in accordance with this Part and may be made directly to the disabled person or to the parent, legal guardian, or other individual with whom such disabled person resides.