N.Y. Comp. Codes R. & Regs. tit. 21 § 2602.5

Current through Register Vol. 46, No. 50, December 11, 2024

Section 2602.5 - Linked deposits

(a) The corporation shall develop and maintain a list of eligible lenders. In consultation with DAM and DOS, the corporation shall develop an application to be provided to eligible lenders. The corporation shall provide eligible lenders with linked deposit program information and application forms as requested by eligible lenders.

(b) The lender shall forward the completed application along with all material terms and conditions of the linked loan to the corporation for its review. Upon receipt of a completed application from a lender, the corporation shall either approve or deny such application based on whether the application is eligible for CWSRF assistance. Upon approval of an application by the corporation, the application shall be forwarded to DAM for concurrent approval for agricultural projects and DOS for concurrent approval of residential and small business on-site wastewater treatment system projects. Failure to approve any application within 30 days of receipt by the corporation shall be deemed a rejection of such application.

(c) Each completed application shall be accompanied by certification from the lender to the corporation certifying that the linked loan interest rate is below the interest rate the lender would have charged for the loan in the absence of a linked deposit based on its usual credit considerations.

(d) Following approval of a linked deposit application, the department shall update the intended use plan to list such project.

(e) After approval by the corporation's board of directors, and receipt of any other approvals necessary, the corporation may execute an agreement with the lender pursuant to terms of an appropriate agreement. Such agreement may include, but not be limited to, the following:

(1) amount(s), interest rate and term of the linked deposit;

(2) provisions requiring that any linked deposit mature upon the event of an uncured default by the linked loan borrower;

(3) provisions requiring that the lender credit linked deposit spread on a monthly basis to the linked loan borrower to offset the interest rate charged on a linked loan;

(4) periodic reporting requirements by the lender regarding the linked loan;

(5) a prohibition against a lender charging 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.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 2602.5