N.Y. State Finance Law 221 – Liability; early repayment and withdrawal
§ 221. Liability; early repayment and withdrawal. Nothing contained in this article shall impose liability on the state or any of its departments or employees for payment or delays in payment of the principal or interest of a linked loan. Any delay in payments or any default on a linked loan shall in no way affect the linked deposit agreement between the lender and the authorized depositor. However, in the event the interest rate of the linked loan shall be increased as a consequence of default or renegotiation, or the loan shall be charged off, the lender shall give the authorized depositor prompt notice of such event, and the authorized depositor shall thereafter withdraw the linked deposit upon not less than seven days' prior written notice to the lender. Upon early repayment of a linked loan, the lender shall within thirty days give the authorized depositor notice of such early repayment, and the authorized depositor shall thereafter withdraw the linked deposit upon not less than seven days' prior written notice to the lender, and the interest rate payable on the linked deposit from the date of early repayment of the linked loan to the date of withdrawal of the linked deposit shall be the interest rate upon which the linked deposit interest rate was calculated without regard to the applicable basis point reduction.
Terms Used In N.Y. State Finance Law 221
- Authorized depositor: means the comptroller with respect to linked deposits made by the comptroller and the commissioner of taxation and finance with respect to linked deposits made by the commissioner of taxation and finance. See N.Y. State Finance Law 213
- 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 :
(a) any commercial bank which is or shall become an approved depository of state funds under the provisions of section one hundred five of this chapter and which agrees to participate in the program; or
(b) any thrift or credit union which an authorized depositor determines is eligible to accept linked deposits based upon criteria applied by the authorized depositor in making determinations under section one hundred five of this chapter, and which agrees to participate in the program, provided that any linked deposit in such thrift or credit union shall be secured in the same manner as moneys deposited pursuant to section one hundred five of this chapter and such thrifts or credit unions shall pledge assets or furnish other security satisfactory in form and amount to the authorized depositor for the repayment of moneys. See N.Y. State Finance Law 213 - Linked deposit: means a deposit, or for farm credit system institutions and the New York business development corporation an investment eligible to be held by such institution or corporation placed with a lender by the comptroller or the commissioner of taxation and finance for a period of four years at the linked deposit interest rate, provided the lender agrees to:
(a) lend the equivalent value of such deposit to an eligible business at the interest rate provided in section two hundred eighteen of this article; and
(b) permit the deposit to be comprised of a series of ninety day deposits each bearing an interest rate equal to the linked deposit interest rate fixed at the time the original deposit is placed. See N.Y. State Finance Law 213 - Linked deposit interest rate: means :
(a) for a linked deposit made in connection with a linked loan to a certified business in an empire zone or to an eligible business located in a highly distressed area or to an eligible business that is defined in paragraph (b-1) of subdivision eleven of this section that is located in a renewal community or defined in paragraph (b-2) of such subdivision that is located in an empowerment zone or defined in paragraph (b-3) of such subdivision that is located in an enterprise community, or a qualifying technology or innovation business as defined in paragraph (g) of subdivision eleven of this section, respectively for eligible projects defined in paragraph (c) of subdivision twelve of this section or a certified minority- or women-owned business enterprise for an eligible project defined in paragraph (e) of subdivision twelve of this section or to a defense industry manufacturer for a project defined in paragraph (d) of subdivision twelve of this section, a fixed rate of interest which is three hundred basis points below the lender's posted four year certificate of deposit rate or, if the lender does not offer a four year certificate of deposit, is three hundred basis points below the average statewide rate for four year certificates of deposit as determined by the commissioner of economic development;
(b) for a linked deposit made in connection with any linked loan other than those specified in paragraph (a) of this subdivision, a fixed rate of interest which is two hundred basis points below the lender's posted four year certificate of deposit rate, or if the lender does not offer a four year certificate of deposit, is two hundred basis points below the average statewide rate for four year certificates of deposit as determined by the commissioner of economic development. See N.Y. State Finance Law 213 - Linked loan: means a loan for purposes of an eligible project, in an amount equal to a linked deposit and bearing interest for the first four years at the interest rate provided in section two hundred eighteen of this article. See N.Y. State Finance Law 213