2020 New York Laws
STF - State Finance
Article 15 - Excelsior Linked Deposit Act
219 - Application Procedure.

§   219.  Application  procedure.  1.  The  commissioner  of  economic
development  shall  establish  procedures  and  other  requirements  for
participation in the program, and shall provide a simplified application
form  to  the participating lenders for linked deposits. Such form shall
reflect the qualifying information required by this article for eligible
businesses and shall contain a statement by the applicant that inability
to obtain the reduced interest rate provided by the program would impede
the ability of the applicant to undertake  the  eligible  project.  Upon
completion  of  any  application  for a linked deposit, the lender shall
send the application, together  with  the  interest  rate  certification
required  pursuant  to  section two hundred eighteen of this article, to
the commissioner of economic development who  shall  either  approve  or
reject  the  application  within  twenty-eight days. The commissioner of
economic development shall evaluate  each  application  based  upon  the
following criteria:
  (a)  the  significance  of  the  eligible  project  for  improving the
competitive position and profitability of the eligible business;
  (b) the materiality of a reduced cost of borrowing  through  a  linked
loan  to  the ability of the eligible business to undertake the eligible
project;
  (c) the number of jobs likely to be  created  or  retained,  or  other
substantial  economic  benefits likely to be achieved as a result of the
linked loan; and
  (d) such other criteria as the commissioner  of  economic  development
determines relevant.
  2.  If  the  deposit  application  is  approved by the commissioner of
economic  development,  the  commissioner  shall  notify  an  authorized
depositor  that  the  commissioner  has  determined that the application
satisfies the requirements of this article, and the  commissioner  shall
request  the  authorized  depositor  to deposit funds with the lender in
accordance with section ninety-eight-a of  this  chapter  and  with  the
authorized  depositor's  established  procedures. Such deposits shall be
secured in accordance with the provisions of section one hundred five of
this chapter, and lenders receiving such deposits shall satisfy, in  the
sole  judgment  of  the  authorized  depositor, all collateral and other
requirements generally applied by  the  authorized  depositor  to  funds
invested  by  it. The notified authorized depositor and the lender shall
enter into a written deposit agreement. In no event shall any defect  in
any  such  agreement  be asserted as a defense by a borrower on a linked
loan made pursuant to the program.