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This entry was published on 2014-09-22
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SECTION 221
Liability; early repayment and withdrawal
State Finance (STF) CHAPTER 56, ARTICLE 15
§ 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.