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.