A premium of one per centum per annum of the amount loaned, prorated to July first next, shall be deducted from the accumulated contributions of the member when the loan is made. Thereafter, a premium of one per centum per annum of the present value of the outstanding loan as of July first shall be deducted from the accumulated contributions of the member each succeeding year until such loan is repaid or the member is retired.
The retirement board in its discretion on any July first may increase or reduce the premium, modify the terms or conditions of coverage, or discontinue the insurance of loans. In no event shall this subdivision impose any obligation upon the retirement board to continue to insure loans of members upon the terms and conditions herein provided or upon any other terms or conditions.
N.Y. Educ. Law § 512-B