221 - Liability; early repayment and withdrawal. - New York Statutes

§ 221. Liability; early repayment and withdrawal. Nothing contained in this article shall impose liability on the state or any of its departments or employees for payment or delays in payment of the principal or interest of a linked loan. Any delay in payments or any default on a linked loan shall in no way affect the linked deposit agreement between the lender and the authorized depositor. However, in the event the interest rate of the linked loan shall be increased as a consequence of default or renegotiation, or the loan shall be charged off, the lender shall give the authorized depositor prompt notice of such event, and the authorized depositor shall thereafter withdraw the linked deposit upon not less than seven days' prior written notice to the lender. Upon early repayment of a linked loan, the lender shall within thirty days give the authorized depositor notice of such early repayment, and the authorized depositor shall thereafter withdraw the linked deposit upon not less than seven days' prior written notice to the lender, and the interest rate payable on the linked deposit from the date of early repayment of the linked loan to the date of withdrawal of the linked deposit shall be the interest rate upon which the linked deposit interest rate was calculated without regard to the applicable basis point reduction.