§ 219 — Application procedure

§ 219. Application procedure. 1. The commissioner of economic\ndevelopment shall establish procedures and other requirements for\nparticipation in the program, and shall provide a simplified application\nform to the participating lenders for linked deposits. Such form shall\nreflect the qualifying information required by this article for eligible\nbusinesses and shall contain a statement by the applicant that inability\nto obtain the reduced interest rate provided by the program would impede\nthe ability of the applicant to undertake the eligible project. Upon\ncompletion of any application for a linked deposit, the lender shall\nsend the application, together with the interest rate certification\nrequired pursuant to section two hundred eighteen of this article, to\nthe commissioner of economic development who shall either approve or\nreject the application within twenty-eight days. The commissioner of\neconomic development shall evaluate each application based upon the\nfollowing criteria:\n (a) the significance of the eligible project for improving the\ncompetitive position and profitability of the eligible business;\n (b) the materiality of a reduced cost of borrowing through a linked\nloan to the ability of the eligible business to undertake the eligible\nproject;\n (c) the number of jobs likely to be created or retained, or other\nsubstantial economic benefits likely to be achieved as a result of the\nlinked loan; and\n (d) such other criteria as the commissioner of economic development\ndetermines relevant.\n 2. If the deposit application is approved by the commissioner of\neconomic development, the commissioner shall notify an authorized\ndepositor that the commissioner has determined that the application\nsatisfies the requirements of this article, and the commissioner shall\nrequest the authorized depositor to deposit funds with the lender in\naccordance with section ninety-eight-a of this chapter and with the\nauthorized depositor's established procedures. Such deposits shall be\nsecured in accordance with the provisions of section one hundred five of\nthis chapter, and lenders receiving such deposits shall satisfy, in the\nsole judgment of the authorized depositor, all collateral and other\nrequirements generally applied by the authorized depositor to funds\ninvested by it. The notified authorized depositor and the lender shall\nenter into a written deposit agreement. In no event shall any defect in\nany such agreement be asserted as a defense by a borrower on a linked\nloan made pursuant to the program.\n