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This entry was published on 2014-09-22
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SECTION 218
Interest rate for linked loans; no lender's fees
State Finance (STF) CHAPTER 56, ARTICLE 15
§ 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 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.