New York § 220 - 220Renewal of linked deposit

§ 220. 220Renewal 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.