Sec. 160.4. Application procedure

(a) Eligible businesses seeking a linked loan for an eligible project shall first make a loan application to a lender in the manner customarily required by such lender. The lender shall make its credit decision with respect to such loan application in accordance with its customary standards. Upon approval of such loan, the lender shall submit to the department, a linked deposit application.

(b) The linked deposit application shall require such information as the commissioner shall deem necessary and shall be in as simple a form as possible. It shall elicit, but not be limited to, the following:

(1) the principal amount and interest rate of the loan;

(2) identifying information for the lender and the borrower, including the borrower's principal place of business;

(3) a description of the borrower's business;

(4) a description of the project for which the loan has been sought;

(5) information on the importance of the project to the competitive position and profitability of the borrower;

(6) information relating to the number jobs to be retained or created in connection with the project; and

(7) a request by the borrower, if applicable, to treat information about its business as confidential pursuant to section 87(2)(d) of the Public Officers Law.

(c) The application shall contain the following certifications:

(1) a lender's certification to the effect that:

(i) the linked deposit interest rate was calculated based upon the current interest rate that would be charged for the loan in the absence of the program, and the linked deposit interest rate will be a fixed interest rate charged during the term of the linked deposit applicable to the loan, even if the rate is determined upon variable rate conditions;

(ii) no fees other than those normally charged in such amounts normally charged will be charged by the lender in connection with the loan;

(iii) the lender agrees to give prompt notice to the authorized depositor of any increase in interest rate of the linked loan as a consequence of default on or renegotiation of the linked loan or the linked loan is charged off, prepayment of all or part of a linked loan, or sale or assignment of all or part of a linked loan; and

(iv) the information provided by the lender in the application is, to the best of lender's knowledge after due inquiry, true and correct;

(2) a borrower's certification to the effect that:

(i) the borrower is not currently participating in the program;

(ii) inability to obtain the reduced rate of interest provided by the program would impede the ability of the borrower to undertake the project. For this purpose, impede shall mean that the borrower would consider delaying or reducing the scale of the project for which the loan has been sought or would experience other difficulties in proceeding with the project; and

(iii) the information contained in the application is, to the best of the borrower's knowledge, true and correct.

(d) The commissioner shall approve or reject an application within 28 days after receipt of a fully complete application, and shall notify the lender in writing. Notification may be made, alternatively, by facsimile transmission followed by a confirmation hard copy.