2-3705. Procedures for making deposits; deposit agreement, terms.
2-3705
2-3705. Procedures for making deposits; deposit
agreement, terms.
(a) If sufficient moneys are not available for a remediation
linked deposit,
applications may be considered in the order received when moneys are once again
available,
subject to a review by the lending institution.
(b) Upon acceptance, the state treasurer shall certify to the director of
investments the
amount required for a remediation linked deposit loan package and the director
of investments
shall place a remediation linked deposit in the amount certified by the state
treasurer with the
eligible lending institution at an interest rate which is 2% below the market
rate, as determined under K.S.A. 75-4237, and amendments thereto, and which
shall
be recalculated on the first business day of January and July of each
calendar year using the
market rate then in effect.
The minimum interest rate shall be .50%, if the market rate is below
2.5%.
When
necessary, the state treasurer may request
the director of investments to place such remediation linked deposit prior to
acceptance of a
remediation linked deposit loan package.
(c) The eligible lending institution shall enter into a remediation linked
deposit agreement
with the state treasurer. Such agreement shall include requirements necessary
to implement the
purposes of the remediation linked deposit loan program. Such requirements
shall include an
agreement by the eligible lending institution to lend an amount equal to the
remediation linked
deposit to eligible persons at an interest rate that is not more than 2% above
the market rate, as determined under K.S.A. 75-4237, and amendments thereto,
and which shall
be recalculated on the first business day of each calendar year using the
market rate then in effect.
The
agreement shall
include provisions for the remediation linked deposit to be placed for a
maturity considered
appropriate in coordination with the underlying remediation linked deposit
loan. The agreement
shall include provisions for the reduction of the remediation linked deposit in
an amount equal to
any payment of loan principal by the eligible person.
History: L. 2000, ch. 82, § 5;
L. 2009, ch. 123, § 1; July 1.