N.Y. State Finance Law § 218: Interest rate for linked loans; no lender's fees

§ 218. Interest rate for linked loans; no lender's fees. 1. Linked

loans made to certified businesses in empire zones or to eligible

businesses in highly distressed areas or to eligible businesses that are

defined in paragraph (b-1) of subdivision eleven of section two hundred

thirteen of this article that are located in a renewal community or

defined in paragraph (b-2) of such subdivision that are located in an

empowerment zone or defined in paragraph (b-3) of such subdivision that

are located in an enterprise community, respectively for eligible

projects defined in paragraph (c) of subdivision twelve of section two

hundred thirteen of this article or to service-disabled veteran-owned

business enterprises for an eligible project defined in paragraph (f) of

subdivision twelve of section two hundred thirteen of this article or to

minority- or women-owned business enterprises for an eligible project

defined in paragraph (e) of subdivision twelve of section two hundred

thirteen of this article or to a defense industry manufacturer for a

project defined in paragraph (d) of subdivision twelve of section two

hundred thirteen of this article or to an eligible business pursuant to

paragraph (a) of subdivision eleven of section two hundred thirteen of

this article that produces products defined in subdivision two of

section three hundred one of the agriculture and markets law for an

eligible project as defined in paragraph (b) of subdivision twelve of

section two hundred thirteen of this article shall bear interest at a

fixed rate equal to three percentage points below the fixed interest

rate the lender would have charged for the loan in the absence of a

linked deposit based on its usual credit considerations. All other

linked loans shall bear interest at a fixed rate equal to two percentage

points below the fixed interest rate the lender would have charged for

the loan in the absence of a linked deposit based on its usual credit

considerations. Lenders shall certify to the commissioner of economic

development that the rate to be charged on a linked loan is two

percentage points or three percentage points, as the case may be, below

the interest rate the lender would have charged for the loan in the

absence of a linked deposit.

2. Lenders who make loans pursuant to the program shall not be

entitled to charge any discount, points, origination fees, handling

fees, service charges, refinancing fees or penalties or any charge other

than those normally charged and in such amounts normally charged by the

lender for loans of the type being made without regard to the program.