N.Y. State Finance Law § 219: Application procedure

§ 219. Application procedure. 1. The commissioner of economic

development shall establish procedures and other requirements for

participation in the program, and shall provide a simplified application

form to the participating lenders for linked deposits. Such form shall

reflect the qualifying information required by this article for eligible

businesses and shall contain a statement by the applicant that inability

to obtain the reduced interest rate provided by the program would impede

the ability of the applicant to undertake the eligible project. Upon

completion of any application for a linked deposit, the lender shall

send the application, together with the interest rate certification

required pursuant to section two hundred eighteen of this article, to

the commissioner of economic development who shall either approve or

reject the application within twenty-eight days. The commissioner of

economic development shall evaluate each application based upon the

following criteria:

(a) the significance of the eligible project for improving the

competitive position and profitability of the eligible business;

(b) the materiality of a reduced cost of borrowing through a linked

loan to the ability of the eligible business to undertake the eligible

project;

(c) the number of jobs likely to be created or retained, or other

substantial economic benefits likely to be achieved as a result of the

linked loan; and

(d) such other criteria as the commissioner of economic development

determines relevant.

2. If the deposit application is approved by the commissioner of

economic development, the commissioner shall notify an authorized

depositor that the commissioner has determined that the application

satisfies the requirements of this article, and the commissioner shall

request the authorized depositor to deposit funds with the lender in

accordance with section ninety-eight-a of this chapter and with the

authorized depositor's established procedures. Such deposits shall be

secured in accordance with the provisions of section one hundred five of

this chapter, and lenders receiving such deposits shall satisfy, in the

sole judgment of the authorized depositor, all collateral and other

requirements generally applied by the authorized depositor to funds

invested by it. The notified authorized depositor and the lender shall

enter into a written deposit agreement. In no event shall any defect in

any such agreement be asserted as a defense by a borrower on a linked

loan made pursuant to the program.