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If a customer defaults on the loan, when is the bank responsible for paying a pro rata amount of the lump sum back to NYSERDA? Is it the day of default or the day of collection?

April 26, 2017Bank customer defaults loan lump paying Pro rata responsible

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If a customer defaults on the loan, when is the bank responsible for paying a pro rata amount of the lump sum back to NYSERDA? Is it the day of default or the day of collection?

1 Answer

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Posted

The day of default. Under terms of the program, the bank must inform NYSERDA of the date they considered the loan in default and uncollectible. NYSERDA would consult with legal counsel to determine the pro rata amount of subsidy the bank must return on a case by case basis. Please note: currently there is a 0% default rate on Energy $martSM Loans.