§ 55-A — Line of credit facilities; 2022

New York § 55-A

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

Text

§ 55-a. Line of credit facilities; 2022. 1. Findings and declaration\nof need. (a) The state of New York finds and determines that the global\nspread of the COVID-19 pandemic has had and is expected to continue to\nhave a significant adverse impact on the health and welfare of\nindividuals in the state as well as to the financial condition of the\nstate during the state's 2021 and 2022 fiscal years and beyond. The\nanticipated shortfalls and deferrals in the state's financial plan\nreceipts caused by the COVID-19 pandemic has required the state, to\nadopt policies, regulations and procedures that suspend various legal\nrequirements and address state budgetary pressures, some of which\nrequire certain fiscal management authorization measures to be\nlegislatively authorized and established.\n (b) Definitions. When used in this subdivision "related expenses and\nfees" shall mean interest costs, commitment fees and other costs,\nexpenses and fees incurred in connection with a line of credit facility\nand/or a service contract or other agreement of the state securing such\nline of credit facility that contractually obligates the state to pay\ndebt service subject to an appropriation.\n (c) Notwithstanding any other provision of law to the contrary,\nincluding, specifically, the provisions of chapter 59 of the laws of\n2000 and section 67-b of the state finance law, the dormitory authority\nof the state of New York and the urban development corporation are\nauthorized until March 31, 2022 to: (i) enter into commitments with\nfinancial institutions for the establishment of one or more line of\ncredit facilities and other similar revolving financing arrangements not\nin excess of two billion dollars in aggregate principal amount; (ii)\ndraw, at one or more times at the direction of the director of the\nbudget, upon such line of credit facilities and provide to the state the\namounts so drawn for the purpose of assisting the state to temporarily\nfinance its budgetary needs; provided, however, that the total amount of\nsuch draws shall not exceed two billion dollars; and (iii) secure\nrepayment of such draws under such line of credit facilities, together\nwith related expenses and fees, which payment obligation thereunder\nshall not constitute a debt of the state within the meaning of any\nconstitutional or statutory provision and shall be deemed executory only\nto the extent moneys are available and that no liability shall be\nincurred by the state beyond the moneys available for such purpose, and\nthat such payment obligation is subject to annual appropriation by the\nlegislature. Any line of credit facility agreements entered by the\ndormitory authority of the state of New York and/or the urban\ndevelopment corporation with financial institutions pursuant to this\nsection may contain such provisions that the dormitory authority of the\nstate of New York and/or the urban development corporation deem\nnecessary or desirable for the establishment of such credit facilities.\nThe maximum term of any line of credit facility shall be one year from\nthe date of incurrence; provided however that no draw on any such line\nof credit facility shall occur after March 31, 2022, and provided\nfurther that any such line of credit facility whose term extends beyond\nMarch 31, 2022, shall be supported by sufficient appropriation authority\nenacted by the legislature that provides for the repayment of all\namounts drawn and remaining unpaid as of March 31, 2022, together with\nrelated expenses and fees incurred and to become due and payable by the\ndormitory authority of the state of New York and/or the urban\ndevelopment corporation.\n (d) 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 amounts provided by the dormitory\nauthority of the state of New York and/or the urban development\ncorporation to the state from draws made on any line of credit facility\nauthorized by paragraph (c) 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 indebtedness incurred in connection with any line of credit\nfacility authorized by paragraph (c) of this subdivision, or for any\nservice contract or other agreement entered into in connection with any\nsuch line of credit facility, all in accordance with this section.\n (f) Notwithstanding any other provision of law to the contrary, for so\nlong as any such line of credit facility shall remain outstanding, the\nrestrictions, limitations and requirements contained in article 5-B of\nthe state finance law shall not apply. Any such line of credit facility\nshall be deemed to be incurred or issued for (i) an authorized purpose\nwithin the meaning of subdivision 2 of section 68-a of the state finance\nlaw for all purposes of article 5-C of the state finance law and section\n92-z of the state finance law, and/or (ii) an authorized purpose within\nthe meaning of subdivision 2 of section 69-m of the state finance law\nfor all purposes of article 5-F of the state finance law and section\n92-h of the state finance law, as the case may be. As applicable, all of\nthe provisions of the state finance law, the dormitory authority act and\nthe New York state urban development corporation act relating to notes\nand bonds which are not inconsistent with the provisions of this section\nshall apply to any line of credit facility and other similar revolving\nfinancing arrangement established in accordance with the authorization\ncontained in paragraph (c) of this subdivision.\n (g) Each draw on a line of credit facility authorized by paragraph (c)\nof this subdivision shall only be made if the service contract or other\nagreement entered into in connection with such line of credit facility\nis supported by sufficient appropriation authority enacted by the\nlegislature to repay the amount of the draw, together with related\nexpenses and fees to become due and payable. Amounts repaid under a line\nof credit facility may be re-borrowed under the same or another line of\ncredit facility authorized by paragraph (c) of this subdivision provided\nthat the legislature has enacted sufficient appropriation authority that\nprovides for the repayment of any such re-borrowed amounts, together\nwith related expenses and fees to become due and payable. Neither the\ndormitory authority of the state of New York nor the urban development\ncorporation shall have any financial liability for the repayment of\ndraws under any line of credit facility authorized by paragraph (c) of\nthis subdivision beyond the moneys received for such purpose under any\nservice contract or other agreement authorized by paragraph (h) of this\nsubdivision.\n (h) The director of the budget is authorized to enter into one or more\nservice contracts or other agreements, none of which shall exceed one\nyear in duration, with the dormitory authority of the state of New York\nand/or the urban development corporation, upon such terms and conditions\nas the director of the budget and dormitory authority of the state of\nNew York and/or the urban development corporation shall agree. Any\nservice contract or other agreement entered into pursuant to this\nparagraph shall provide for state commitments to provide annually to the\ndormitory authority of the state of New York and/or the urban\ndevelopment corporation a sum or sums, upon such terms and conditions as\nshall be deemed appropriate by the director of the budget and the\ndormitory authority of the state of New York and/or the urban\ndevelopment corporation, to fund the payment of all amounts to become\ndue and payable under any line of credit facility. Any such service\ncontract or other agreement shall provide that the obligation of the\ndirector of the budget or of the state to fund or to pay the amounts\ntherein provided for shall not constitute a debt of the state within the\nmeaning of any constitutional or statutory provision and shall be deemed\nexecutory only to the extent moneys are available and that no liability\nshall be incurred by the state beyond the moneys available for such\npurpose, and that such obligation is subject to annual appropriation by\nthe legislature.\n (i) Any service contract or other agreement entered into pursuant to\nparagraph (h) of this subdivision or any payments made or to be made\nthereunder may be assigned and pledged by the dormitory authority of the\nstate of New York and/or the urban development corporation as security\nfor any related payment obligation it may have with one or more\nfinancial institutions in connection with a line of credit facility\nauthorized by paragraph (c) of this subdivision.\n (j) In addition to the foregoing, the director of the budget, the\ndormitory authority of the state of New York and the urban development\ncorporation shall each be authorized to enter into such other agreements\nand to take or cause to be taken such additional actions as are\nnecessary or desirable to effectuate the purposes of the transactions\ncontemplated by a line of credit facility and the related service\ncontract or other agreement.\n (k) No later than seven days after a draw occurs on a line of credit\nfacility, the director of the budget shall provide notification of such\ndraw to the president pro tempore of the senate and the speaker of the\nassembly.\n (l) The authorization, establishment and use by the dormitory\nauthority of the state of New York and the urban development corporation\nof a line of credit facility authorized by paragraph (c) of this\nsubdivision shall not be deemed an action, as such term is defined in\narticle 8 of the environmental conservation law, for the purposes of\nsuch article. Such exemption shall be strictly limited in its\napplication to such financing activities of the dormitory authority of\nthe state of New York and the urban development corporation undertaken\npursuant to this section and does not exempt any other entity from\ncompliance with such article.\n (m) Nothing contained in this section shall be construed to limit the\nabilities of the director of the budget and the authorized issuers of\nstate personal income tax revenue bonds, state sales tax revenue bonds\nor service contract bonds to perform their respective obligations with\nrespect to existing service contracts or other agreements.\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 act 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