§ 517-b. Loans to members of a teachers' retirement system. a. 1. A\nmember of a teachers' retirement system in active service who has credit\nfor at least one year of member service may borrow, no more than once\nduring each twelve-month period, an amount not exceeding seventy-five\npercent of the total contributions made pursuant to section five hundred\nseventeen of this article (including interest credited at the rate set\nforth in subdivision c of section five hundred seventeen compounded\nannually) and not less than one thousand dollars.\n 2. A member of the New York state teachers' retirement system who\nfirst joins such system on or after July first, two thousand twenty-two\nin active service and who has credit for at least one year of member\nservice may borrow, no more than once during each twelve-month period,\nan amount, not less than one thousand dollars and which would not cause\nthe balance owed pursuant to this section, including any amounts\nborrowed then outstanding to exceed (i) fifty percent of the member's\ntotal contributions made pursuant to section five hundred seventeen of\nthis article (including interest credited at the rate set forth in\nsubdivision c of this section compounded annually); or (ii) fifty\nthousand dollars, whichever is less.\n b. An amount so borrowed, together with interest on any unpaid balance\nthereof, shall be repaid in equal installments which shall be made by\nthe borrower directly to the retirement board or through regular payroll\ndeduction. Such installments shall be in such amount as the retirement\nboard shall approve; however, they shall be at least (i) two percent of\nthe member's contract salary, and (ii) sufficient to repay the amount\nborrowed, together with interest on unpaid balances thereof within a\nperiod not in excess of five years. In the event of default such\nretirement board shall be authorized to collect such payments due from\nthe employer of such member through payroll deduction and such member\nshall forfeit all future entitlement to borrow from the retirement\nsystem until the unpaid balance of the loan outstanding at the time of\ndefault is fully paid. Such retirement board, at any time, may accept\npayments on account of any loan in addition to the installments fixed\nfor repayment thereof. All payments of principal and interest, at the\nlower of the rates set forth in either subdivision c of section five\nhundred seventeen of this article or subdivision c of this section, made\nby the member shall be credited to his or her account as principal or\ninterest. Any additional interest paid by the member shall be credited\nto the appropriate fund of the retirement system.\n c. The rate of interest payable upon loans made pursuant to this\nsection shall: (i) for members of the New York state teachers'\nretirement system, be one percent less than regular interest pursuant to\nparagraph (b) of subdivision nine of section five hundred one of the\neducation law, however in no event shall the rate be less than the rate\nset forth in subdivision c of section five hundred seventeen of this\narticle; (ii) for members of the New York city teachers' retirement\nsystem, be one percent less than the regular interest rate established\npursuant to paragraph (d) of subdivision twenty-two of section 13-501 of\nthe administrative code of the city of New York for such system, however\nin no event shall the rate be less than the rate set forth in\nsubdivision c of section five hundred seventeen of this article.\nWhenever there is a change in the interest rate it shall be applicable\nto loans made or renegotiated after the date of such change in the\ninterest rate.\n d. A service charge payable upon loans made pursuant to this section\nshall be set by the retirement board in an amount sufficient to cover\nthe cost to the retirement system of administering the loans. Such\ncharge shall be paid to the retirement system when the loan is made or\nin equal installments over t
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