§ 218 — Interest rate for linked loans; no lender's fees

§ 218. Interest rate for linked loans; no lender's fees. 1. Linked\nloans made to certified businesses in empire zones or to eligible\nbusinesses in highly distressed areas or to eligible businesses that are\ndefined in paragraph (b-1) of subdivision eleven of section two hundred\nthirteen of this article that are located in a renewal community or\ndefined in paragraph (b-2) of such subdivision that are located in an\nempowerment zone or defined in paragraph (b-3) of such subdivision that\nare located in an enterprise community, respectively for eligible\nprojects defined in paragraph (c) of subdivision twelve of section two\nhundred thirteen of this article or to service-disabled veteran-owned\nbusiness enterprises for an eligible project defined in paragraph (f) of\nsubdivision twelve of section two hundred thirteen of this article or to\nminority- or women-owned business enterprises for an eligible project\ndefined in paragraph (e) of subdivision twelve of section two hundred\nthirteen of this article or to a defense industry manufacturer for a\nproject defined in paragraph (d) of subdivision twelve of section two\nhundred thirteen of this article or to an eligible business pursuant to\nparagraph (a) of subdivision eleven of section two hundred thirteen of\nthis article that produces products defined in subdivision two of\nsection three hundred one of the agriculture and markets law for an\neligible project as defined in paragraph (b) of subdivision twelve of\nsection two hundred thirteen of this article shall bear interest at a\nfixed rate equal to three percentage points below the fixed interest\nrate the lender would have charged for the loan in the absence of a\nlinked deposit based on its usual credit considerations. All other\nlinked loans shall bear interest at a fixed rate equal to two percentage\npoints below the fixed interest rate the lender would have charged for\nthe loan in the absence of a linked deposit based on its usual credit\nconsiderations. Lenders shall certify to the commissioner of economic\ndevelopment that the rate to be charged on a linked loan is two\npercentage points or three percentage points, as the case may be, below\nthe interest rate the lender would have charged for the loan in the\nabsence of a linked deposit.\n 2. Lenders who make loans pursuant to the program shall not be\nentitled to charge any discount, points, origination fees, handling\nfees, service charges, refinancing fees or penalties or any charge other\nthan those normally charged and in such amounts normally charged by the\nlender for loans of the type being made without regard to the program.\n