Excelsior Linked Deposit Program
The Excelsior Linked Deposit Program is authorized under sections 212-224 of the State Finance law. The objective of the program is to encourage qualified New York State businesses to improve productivity and competitiveness by offering a reduced rate on loans provided by commercial banks, farm credit institutions and the New York State Business Development Corporation. The Law authorizes the Comptroller to deposit State funds, for up to four years, with participants in the Program at a reduced rate of return when such participants make below market loans to qualifying businesses. Participation in the Program is contingent on the issuance of a Project and Depositor Approval Form from the New York State Department of Economic Development. The Linked Deposit may be either a Collateralized Certificate of Deposit for banks participating in the Program or a Repurchase Agreement for participating Farm Credit Institutions and BDC.
Office of the Comptroller Linked Deposit Program
Procedures for Issuing Banks
The Comptroller's Office will not deposit funds or enter into an investment with a program participant until:
- The lender has signed a Linked Deposit Program Agreement
- The New York State Department of Economic Development has issued a Project and Depositor Approval Notification
- The lender has signed the State's Undertaking Agreement or Master Repurchase Agreement
- Sufficient collateral has been pledged with the State's custodial bank
- The loan linked to the deposit or investment has closed
- To obtain the Linked Deposit Program Agreement and the Project and Depositor Approval Notification, contact Joanne FitzGibbon or Dolores O'Connor at the Department of Economic Development, telephone number (518) 292-5261.
- To obtain an Undertaking Agreement and arrange for delivery of collateral, contact the Cash Management Unit in the Office of the State Comptroller (OSC), (firstname.lastname@example.org).
- At OSC, contact ShortTermUnit@osc.state.ny.us to arrange for the initial deposit. At OSC's discretion, the deposit may be comprised of a series of ninety day, six month or one year deposits, each bearing interest at a rate equal to the rate established at the time the original deposit is placed.