N.Y. State Finance Law § 220: Renewal of linked deposit

§ 220. Renewal of linked deposit. A lender may, on behalf of a

borrower, apply to the commissioner of economic development to request a

renewal of the linked deposit for an additional four year period to

correspond with a second four year period of a borrower's linked loan.

The commissioner may grant such application if the commissioner

determines that the borrower, during the second four year period of the

linked loan, will create additional industrial modernization benefits or

additional export trade benefits or additional jobs. If the commissioner

of economic development grants such application, the commissioner shall

notify the authorized depositor who made the linked deposit that the

commissioner has determined that the application satisfies the

requirements of this article and shall request the authorized depositor

to continue the linked deposit with the lender for an additional four

year period in accordance with section ninety-eight-a of this chapter

and with the authorized depositor's established procedures. Such linked

deposit shall continue to be secured in accordance with the provisions

of section one hundred five of this chapter. The fixed interest rate on

the continued linked deposit shall be the linked deposit interest rate

in effect on the first day of the continuation of the linked deposit.

The authorized depositor and the lender shall enter into a written

deposit agreement governing the continuation of the linked deposit. The

interest rate payable on the linked loan for the second four year period

shall be, in the case of a certified business in an economic development

zone or an eligible business located in an economically distressed area

or federal empowerment zone or enterprise or renewal community or a

minority or women-owned business enterprise or service-disabled

veteran-owned business enterprises, three percentage points below the

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

the first day of the continuation of the linked deposit; or in the case

of a business not located in an economic development zone or

economically distressed area or federal empowerment zone or enterprise

or renewal community or which is not a minority or women-owned business

enterprise, service-disabled veteran-owned business enterprises, two

percentage points below the interest rate the lender would have charged

for the loan in the absence of a linked deposit in effect on the first

day of the continuation of the linked deposit.