New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4251 - Capital Access Program
Section 4251.4 - Program operations
Current through Register Vol. 46, No. 12, March 20, 2024
(a) A participating financial institution shall:
(b) With respect to each program loan, the corporation or its third party agent, after satisfactory certification pursuant to paragraph (a)(5) of this section, shall transfer to the loan loss reserve fund account an amount, as determined by the corporation or the third party agent, that is:
(c) In the event the participating financial institution suffers a loss on its portfolio of program loans, the participating financial institution may in its discretion draw upon the funds in such loan loss reserve fund to cover such loss in whole or in part.
(d) With respect to a participating financial institution, if there are insufficient funds in the loan loss reserve fund account to cover losses on such institution's program loans, the corporation or its agent may authorize the participating financial institution to withdraw an amount equal to the current balance in the loan loss reserve fund account, which payment shall be deemed to satisfy fully the claim(s) on the loan loss reserve fund with respect to such losses, and the participating financial institution shall have no right to receive any further amount from the loan loss reserve fund account with respect to such claim(s).