2-3705.   Procedures for making deposits; depositagreement, terms.(a) If sufficient moneys are not available for a remediationlinked deposit,applications may be considered in the order received when moneys are once againavailable,subject to a review by the lending institution.

      (b)   Upon acceptance, the state treasurer shall certify to the director ofinvestments theamount required for a remediation linked deposit loan package and the directorof investmentsshall place a remediation linked deposit in the amount certified by the statetreasurer with theeligible lending institution at an interest rate which is 2% below the marketrate, as determined under K.S.A. 75-4237, and amendments thereto, and whichshallbe recalculated on the first business day of January and July of eachcalendar year using themarket rate then in effect.The minimum interest rate shall be .50%, if the market rate is below2.5%.Whennecessary, the state treasurer may requestthe director of investments to place such remediation linked deposit prior toacceptance of aremediation linked deposit loan package.

      (c)   The eligible lending institution shall enter into a remediation linkeddeposit agreementwith the state treasurer. Such agreement shall include requirements necessaryto implement thepurposes of the remediation linked deposit loan program. Such requirementsshall include anagreement by the eligible lending institution to lend an amount equal to theremediation linkeddeposit to eligible persons at an interest rate that is not more than 2% abovethe market rate, as determined under K.S.A. 75-4237, and amendments thereto,and which shallbe recalculated on the first business day of each calendar year using themarket rate then in effect.Theagreement shallinclude provisions for the remediation linked deposit to be placed for amaturity consideredappropriate in coordination with the underlying remediation linked depositloan. The agreementshall include provisions for the reduction of the remediation linked deposit inan amount equal toany payment of loan principal by the eligible person.

      History:   L. 2000, ch. 82, § 5;L. 2009, ch. 123, § 1; July 1.