Sec. 160.8. Renewal of linked deposit

A lender may, on behalf of a borrower, apply to the commissioner 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 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 Part and shall request the authorized depositor to continue the linked deposit with the lender for an additional four-year period in accordance with section 98-a of the State Finance Law and with the authorized depositor’s established procedures. Such linked deposit shall continue to be secured in accordance with the provisions of section 105 of the State Finance Law. 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 Empire Zone or an eligible business located in an highly distressed area 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 Empire Zone or highly distressed area 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.