§ 613-b. Loans to members of certain retirement systems. a. For the\npurposes of this section, the term "retirement board" or "board" shall\nmean the head of the retirement system as defined in subdivision f of\nsection six hundred one of this article.\n b. 1. A member of the New York state and local employees' retirement\nsystem, the New York city employees' retirement system or the New York\ncity board of education retirement system in active service who has\ncredit for at least one year of member service may borrow, no more than\nonce during each twelve month period, an amount not exceeding\nseventy-five percent of the total contributions made pursuant to section\nsix hundred thirteen (including interest credited at the rate set forth\nin subdivision c of such section six hundred thirteen compounded\nannually) and not less than one thousand dollars.\n 2. A member of the New York state and local employees' retirement\nsystem who first joins such system on or after January first, two\nthousand eighteen in active service who has credit for at least one year\nof member service may borrow, no more than once during each twelve month\nperiod, an amount, not less than one thousand dollars and which would\nnot cause the balance owed pursuant to this section, including any\namounts borrowed then outstanding, to exceed (i) fifty percent of the\nmember's total contributions made pursuant to section six hundred\nthirteen of this article (including interest credited at the rate set\nforth in subdivision c of such section six hundred thirteen compounded\nannually); or (ii) fifty thousand dollars, whichever is less.\n c. 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 (a) two percent of\nthe member's contract salary, and (b) 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 six\nhundred thirteen of this article or subdivision d 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 d. The rate of interest payable upon loans made pursuant to this\nsection shall: (1) for members of the New York state and local\nemployees' retirement syatem, be one percent less than the valuation\nrate of interest adopted for such system, however, in no event shall the\nrate be less than the rate set forth in subdivision c of section six\nhundred thirteen of this article; (2) for members of the New York city\nemployees' retirement system, be one percent less than the regular\ninterest rate established pursuant to subdivision (c) of section\n13-101.12 of the administrative code of the city of New York for such\nsystem, however, in no event shall the rate be less than the rate set\nforth in subdivision c of section six hundred thirteen of this article;\nand (3) for members of the New York city board of education retirement\nsystem, be one percent less than the regular interest rate established\npursuant to subparagraph four of paragraph (b) of subd
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