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This entry was published on 2014-09-22
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SECTION 220
Renewal of linked deposit
State Finance (STF) CHAPTER 56, ARTICLE 15
§ 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, 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, 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.