§ 240. Application procedure. 1. The corporation shall provide an application form to lenders for linked deposits. Such form shall reflect the qualifying information as developed by the commissioner of agriculture and markets for eligible borrowers involved in agricultural operations and as developed by the secretary of state for eligible borrowers involved in residential and small business on-site wastewater treatment system projects. The lender shall forward the completed application, its finding that the borrower is creditworthy, and the interest rate certification required pursuant to section two hundred thirty-nine of this article, to the corporation which, in consultation with the state or the department of agriculture and markets, shall either approve or reject the application within thirty days. Upon approval of any project application, the department of environmental conservation shall list such project on the intended use plan pursuant to section 17-1909 of the environmental conservation law. Failure to approve within thirty days shall be deemed a rejection of any application. The corporation shall evaluate each application based upon the availability of funds for the linked deposit.

2. If the linked loan application receives the approval of the corporation's board and any other approvals required by state or federal law, the corporation shall deposit funds with the lender pursuant to the terms of a written deposit agreement or an appropriate agreement with a farm credit system institution, as the corporation and lender shall determine.