§ 221 — Liability; early repayment and withdrawal

New York § 221

• Jurisdiction: New York
• Law STF: State Finance
• Art. 15: Excelsior Linked Deposit Act

Text

§ 221. Liability; early repayment and withdrawal. Nothing contained in\nthis article shall impose liability on the state or any of its\ndepartments or employees for payment or delays in payment of the\nprincipal or interest of a linked loan. Any delay in payments or any\ndefault on a linked loan shall in no way affect the linked deposit\nagreement between the lender and the authorized depositor. However, in\nthe event the interest rate of the linked loan shall be increased as a\nconsequence of default or renegotiation, or the loan shall be charged\noff, the lender shall give the authorized depositor prompt notice of\nsuch event, and the authorized depositor shall thereafter withdraw the\nlinked deposit upon not less than seven days' prior written notice to\nthe lender. Upon early repayment of a linked loan, the lender shall\nwithin thirty days give the authorized depositor notice of such early\nrepayment, and the authorized depositor shall thereafter withdraw the\nlinked deposit upon not less than seven days' prior written notice to\nthe lender, and the interest rate payable on the linked deposit from the\ndate of early repayment of the linked loan to the date of withdrawal of\nthe linked deposit shall be the interest rate upon which the linked\ndeposit interest rate was calculated without regard to the applicable\nbasis point reduction.\n