§ 54 — No title

New York § 54

• Jurisdiction: New York
• Law UDA: Urban Development Corporation Act 174/68

Text

§ 54. 1. Findings and declaration of need. (a) The state of New York\nfinds and determines that the global spread of the COVID-19 coronavirus\ndisease is having and is expected to continue to have a significant\nimpact on the health and welfare of individuals in the state as well as\na significant financial impact on the state. The serious threat posed by\nthe COVID-19 coronavirus disease has caused governments, including the\nstate, to adopt policies, regulations and procedures to suspend various\nlegal requirements in order to (i) respond to and mitigate the impact of\nthe outbreak, and (ii) provide temporary relief to individuals,\nincluding the deferral of the federal income tax payment deadline from\nApril 15, 2020 to a later date in the calendar year. The state of New\nYork further finds and determines that certain fiscal management\nauthorization measures should be authorized and established.\n (b) Notwithstanding any other provision of law to the contrary,\nincluding, specifically, the provisions of chapter 59 of the laws of\n2000 and section sixty-seven-b of the state finance law, the dormitory\nauthority of the state of New York and the corporation are hereby\nauthorized to issue until December 31, 2020, notes with a maturity no\nlater than March 31, 2021, to be designated as personal income tax\nrevenue or bond anticipation notes, in one or more series in an\naggregate principal amount not to exceed eight billion dollars,\nexcluding notes issued to finance one or more debt service reserve\nfunds, to pay costs of issuance of such notes, and notes issued to\nrenew, refund or otherwise repay such notes previously issued, for the\npurpose of temporarily financing budgetary needs of the state following\nthe federal government deferral of the federal income tax payment\ndeadline from April 15, 2020 to a later date in the calendar year. Such\npurpose shall constitute an authorized purpose under subdivision two of\nsection sixty-eight-a of the state finance law for all purposes of\narticle five-C of the state finance law with respect to the notes,\nrenewal notes, refunding notes and any state personal income tax revenue\nbonds issued to refinance any notes, renewal notes, refunding notes\nauthorized by this paragraph. On or before their maturity, such notes\nmay be renewed or refunded once with renewal or refunding notes for an\nadditional period not to exceed one year from the date of renewal or\nrefunding. If on or before the maturity date of such notes or such\nrenewal or refunding notes, the director of the division of the budget\nshall determine that all or a portion of such notes or such renewal or\nrefunding notes shall be refinanced on a long term basis, such notes or\nsuch renewal or refunding notes may be refinanced with state personal\nincome tax revenue bonds in one or more series in an aggregate principal\namount not to exceed the then outstanding principal amount of such notes\nor such renewal or refunding notes plus an amount necessary to finance\none or more debt service reserve funds and to pay costs of issuance of\nsuch refunding bonds, notwithstanding any other provision of law to the\ncontrary, including, specifically, the provisions of chapter fifty-nine\nof the laws of two thousand and section sixty-seven-b of the state\nfinance law. For so long as any notes, renewal or refunding notes or\nsuch refunding bonds authorized by this paragraph shall remain\noutstanding, including any state-supported debt issued to refinance the\nrefunding bonds authorized by this paragraph, the restrictions,\nlimitations and requirements contained in article five-B of the state\nfinance law shall not apply.\n (c) Such notes, renewal or refunding notes and refunding bonds of the\ndormitory authority and the corporation shall not be a debt of the\nstate, and the state shall not be liable thereon, nor shall they be\npayable out of any funds other than those appropriated by the state to\nthe dormitory authority and the corporation for debt service and related\nexpenses pursuant to any financing agreement described in paragraph (d)\nof this subdivision, and such notes, renewal or refunding notes and\nrefunding bonds shall contain on the face thereof a statement to such\neffect. Such notes, renewal or refunding notes and any refunding bonds\nissued to refinance such notes and/or any renewal or refunding notes on\na subordinate basis shall be secured by subordinate payments from the\nrevenue bond tax fund established pursuant to section ninety-two-z of\nthe state finance law. Refunding bonds issued to refinance any such\nnotes and/or renewal or refunding notes on a parity basis with\noutstanding state personal income tax revenue bonds shall be issued only\nin accordance with the provisions of the applicable resolution of the\ndormitory authority or the corporation authorizing the issuance of state\npersonal income tax revenue bonds and shall be secured by payments from\nthe revenue bond tax fund on a parity with such outstanding state\npersonal income tax revenue bonds. Except for purposes of complying with\nthe internal revenue code, any interest income earned on note proceeds\nshall only be used to pay debt service on such notes. All of the\nprovisions of the dormitory authority act and the New York state urban\ndevelopment corporation act relating to notes and bonds which are not\ninconsistent with the provisions of this section shall apply to notes\nand bonds authorized by paragraph (b) of this subdivision, including but\nnot limited to the power to establish adequate reserves therefor and to\nissue renewal notes, refunding notes and refunding bonds, in any case\nsubject to the final maturity limitation for such notes set forth in\nparagraph (b) of this subdivision. The issuance of any notes, renewal or\nrefunding notes and refunding bonds authorized by paragraph (b) of this\nsubdivision shall further be subject to the approval of the director of\nthe division of the budget.\n (d) Notwithstanding any other law, rule or regulation to the contrary\nbut subject to the limitations contained in paragraph (b) of this\nsubdivision, in order to assist the dormitory authority and the\ncorporation in undertaking the administration and financing of such\nnotes, renewal or refunding notes and refunding bonds, the director of\nthe budget is hereby authorized to supplement any existing financing\nagreement with the dormitory authority and the corporation, or to enter\ninto a new financing agreement with the dormitory authority and the\ncorporation, upon such terms and conditions as the director of the\nbudget and the dormitory authority and the corporation shall agree, so\nas to annually provide to the dormitory authority and the corporation,\nin the aggregate, a sum not to exceed the annual debt service payments\nand related expenses required for any notes, renewal or refunding notes\nand refunding bonds issued pursuant to this section. Any financing\nagreement supplemented or entered into pursuant to this section shall\nprovide that the obligation of the state to pay the amount therein\nprovided shall not constitute a debt of the state within the meaning of\nany constitutional or statutory provision and shall be deemed executory\nonly to the extent of monies available and that no liability shall be\nincurred by the state beyond the monies available for such purposes,\nsubject to annual appropriation by the legislature. Any such financing\nagreement or any payments made or to be made thereunder may be assigned\nor pledged by the dormitory authority and the corporation as security\nfor the notes, renewal and refunding notes and refunding bonds\nauthorized by paragraph (b) of this subdivision.\n (e) Notwithstanding any other provision of law to the contrary,\nincluding specifically the provisions of subdivision 3 of section 67-b\nof the state finance law, no capital work or purpose shall be required\nfor any issuance of personal income tax revenue or bond anticipation\nnotes, renewal or refunding notes or refunding bonds issued by the\ndormitory authority and the corporation pursuant to this section.\n (f) Notwithstanding any other law, rule, or regulation to the\ncontrary, the comptroller is hereby authorized and directed to deposit\nto the credit of the general fund, all proceeds of personal income tax\nrevenue or bond anticipation notes issued by the dormitory authority and\nthe New York state urban development corporation pursuant to this\nsection.\n 2. Effect of inconsistent provisions. Insofar as the provisions of\nthis section are inconsistent with the provisions of any other law,\ngeneral, special, or local, the provisions of this section shall be\ncontrolling.\n 3. Severability; construction. The provisions of this section shall be\nseverable, and if the application of any clause, sentence, paragraph,\nsubdivision, section or part of this section to any person or\ncircumstance shall be adjudged by any court of competent jurisdiction to\nbe invalid, such judgment shall not necessarily affect, impair or\ninvalidate the application of any such clause, sentence, paragraph,\nsubdivision, section, part of this section or remainder thereof, as the\ncase may be, to any other person or circumstance, but shall be confined\nin its operation to the clause, sentence, paragraph, subdivision,\nsection or part thereof directly involved in the controversy in which\nsuch judgment shall have been rendered.\n