§ 7433-A — Loan to workers' compensation security fund

§ 7433-a. Loan to workers' compensation security fund. (a) Upon\ncertification by the superintendent that further sums, not exceeding\nseventy million dollars in the aggregate, are required by the workers'\ncompensation security fund to meet its obligations and accomplish the\npurposes of article six-A of the workers' compensation law, the\nsuperintendent is hereby authorized to make one or more loans to such\nfund from the assets of one or more liquidation estates in such amounts\nas shall be specified by the superintendent. For purposes of this\nsection, "liquidation estate" shall mean the assets of an insurer\nagainst which an order of liquidation has been commenced pursuant to\nthis article. Such sums, not exceeding seventy million dollars in the\naggregate, shall be a liability of the workers' compensation security\nfund.\n (b) Notwithstanding any law, rule or regulation to the contrary, in\nthe event that a complaint is filed in a court of competent jurisdiction\nconcerning the superintendent's authority to loan monies to the workers'\ncompensation security fund pursuant to this section, the superintendent\nshall oppose such complaint, and appeal any adverse rulings of the\ncourt. In the event a court of competent jurisdiction issues an\ninjunction that expressly prohibits the superintendent from making loans\nunder this section, and such injunction has been unsuccessfully opposed\nin court by the superintendent, the superintendent may accomplish the\npurposes of this section through one or more loans from the assets of\nthe property/casualty insurance security fund to the workers'\ncompensation security fund. Such loans shall be made subject to the\nconditions set forth in this section, including the certification\nrequirement set forth in subsection (c) of this section and shall not\noccur more frequently than once every two months, and not be greater in\namount than that needed to sustain the workers' compensation security\nfund for the two month period.\n (c) Upon written certification by the superintendent that the assets\nfrom the liquidation estates are otherwise unavailable, loans may also\nbe made under the terms specified in this section from the assets of the\nproperty/casualty insurance security fund. Loans made pursuant to this\nsubsection shall not exceed the sum of thirty million dollars in the\naggregate. Such loans shall not occur more frequently than once every\ntwo months, and not be greater in amount than that needed to sustain the\nworkers' compensation security fund for the two month period. Monies\nfrom such loans shall not be used to pay administrative expenses. Each\nloan must be accompanied by such certification, which shall set forth\nthe specific reason or reasons why the assets of the liquidation estates\nare unavailable. The certification shall be provided to the temporary\npresident of the senate, the speaker of the assembly, the chair of the\nsenate finance committee and the chair of the assembly ways and means\ncommittee.\n (d) Any loan pursuant to this section shall be a liability of the\nworkers' compensation security fund, and shall be repaid pursuant to a\nplan of repayment to be prescribed by the superintendent which,\nnotwithstanding any other law, may provide, at the discretion of the\nsuperintendent, for an increase in the level of payments into the fund\nprovided for in subdivision two of section one hundred eight of the\nworkers' compensation law upon written notice by the superintendent to\nthe governor and both houses of the legislature of the necessity of any\nsuch increase, including the reasons therefor. Such plan shall among\nother things require: (i) that any loan be made upon commercially\nreasonable terms and in accordance with the superintendent's fiduciary\nresponsibilities, and (ii) immediate repayment, from the assets of the\nliquidation estates as referred to in subsection (a) of this section, of\nany loans from the property/casualty insurance security fund made\npursuant to subsection (b) or (c) of this section upon sufficient monies\nbecoming available from loans from liquidation estates pursuant to\nsubsection (a) of this section, and (iii) that one-fourth of the\npayments collected pursuant to section one hundred eight of the workers'\ncompensation law be dedicated to the repayment of any loans made\npursuant to this section.\n