§ 892-1-1-.01. Second Deposits In Support Of Small Business
A lending institution shall be restricted to a one-time participation in the small business portion of the Linked Deposit Program. Participation in the program should not exceed two years.
(1) A lending institution shall not request a renewal of an existing small business Linked Deposit at the end of the two-year term of such deposit.
(2) A lending institution can request an adjustment of the initial deposit by requesting an increase in that deposit. All statutory requirements must be met as if the original and additional amount were one and the same deposit. The rate for the additional amount shall be based on the prevailing market rate as of the time of the additional deposit.
(3) A lending institution shall not submit more than one request for the same corporation, partnership or proprietorship. In the case of a franchise business where multiple outlets are involved, only one deposit would be available for the franchise business.
Author: Lucy Baxley(New Rule: Filed February 21, 1996; effective March 27, 1996.)
Statutory Authority: Code of Ala. 1975, §§ 5-21-5(b), 5-21-7, 5-21-9.
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