N.Y. State Finance Law 240 – Application procedure
§ 240. Application procedure. 1. The corporation shall provide an application form to lenders for linked deposits. Such form shall reflect the qualifying information as developed by the commissioner of agriculture and markets for eligible borrowers involved in agricultural operations and as developed by the secretary of state for eligible borrowers involved in residential and small business on-site wastewater treatment system projects. The lender shall forward the completed application, its finding that the borrower is creditworthy, and the interest rate certification required pursuant to section two hundred thirty-nine of this article, to the corporation which, in consultation with the state or the department of agriculture and markets, shall either approve or reject the application within thirty days. Upon approval of any project application, the department of environmental conservation shall list such project on the intended use plan pursuant to section 17-1909 of the environmental conservation law. Failure to approve within thirty days shall be deemed a rejection of any application. The corporation shall evaluate each application based upon the availability of funds for the linked deposit.
Terms Used In N.Y. State Finance Law 240
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means the New York state environmental facilities corporation, as continued by § 1282 of the public authorities law. See N.Y. State Finance Law 236
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Lender: means any state or federally-chartered savings bank, savings and loan association, federal savings bank, federal savings and loan association, farm credit system institution, or commercial bank or trust company designated by the corporation to participate in the program. See N.Y. State Finance Law 236
- Linked deposit: means financial assistance undertaken by the corporation for the construction of an eligible project through a deposit, or for a farm credit system institution an investment eligible to be held by such institution, placed with a lender by the corporation bearing interest at the linked deposit interest rate, provided the lender has agreed to:
(a) lend the equivalent value of such deposit to an eligible borrower at the linked loan interest rate; and
(b) permit the deposit to be comprised of a series of certificates of deposit each bearing an interest rate equal to the linked deposit interest rate fixed at the time the original linked deposit is placed. See N.Y. State Finance Law 236 - Linked loan: means a loan for purposes of an eligible project, in an amount equal to a linked deposit and bearing interest at the linked loan interest rate. See N.Y. State Finance Law 236
- Residential and small business on-site wastewater treatment system: means a system serving a residence or small business that provides for the treatment and/or disposition of the combination of human and sanitary waste with water not exceeding one thousand gallons per day. See N.Y. State Finance Law 236
- Small business: means any business which is resident in this state, independently owned and operated, not dominant in its field, and employing not more than one hundred individuals. See N.Y. State Finance Law 236
2. If the linked loan application receives the approval of the corporation's board and any other approvals required by state or federal law, the corporation shall deposit funds with the lender pursuant to the terms of a written deposit agreement or an appropriate agreement with a farm credit system institution, as the corporation and lender shall determine.