N.Y. Insurance Law § 7433-a: Loan to workers' compensation security fund

§ 7433-a. Loan to workers' compensation security fund. (a) Upon

certification by the superintendent that further sums, not exceeding

seventy million dollars in the aggregate, are required by the workers'

compensation security fund to meet its obligations and accomplish the

purposes of article six-A of the workers' compensation law, the

superintendent is hereby authorized to make one or more loans to such

fund from the assets of one or more liquidation estates in such amounts

as shall be specified by the superintendent. For purposes of this

section, "liquidation estate" shall mean the assets of an insurer

against which an order of liquidation has been commenced pursuant to

this article. Such sums, not exceeding seventy million dollars in the

aggregate, shall be a liability of the workers' compensation security

fund.

(b) Notwithstanding any law, rule or regulation to the contrary, in

the event that a complaint is filed in a court of competent jurisdiction

concerning the superintendent's authority to loan monies to the workers'

compensation security fund pursuant to this section, the superintendent

shall oppose such complaint, and appeal any adverse rulings of the

court. In the event a court of competent jurisdiction issues an

injunction that expressly prohibits the superintendent from making loans

under this section, and such injunction has been unsuccessfully opposed

in court by the superintendent, the superintendent may accomplish the

purposes of this section through one or more loans from the assets of

the property/casualty insurance security fund to the workers'

compensation security fund. Such loans shall be made subject to the

conditions set forth in this section, including the certification

requirement set forth in subsection (c) of this section and shall not

occur more frequently than once every two months, and not be greater in

amount than that needed to sustain the workers' compensation security

fund for the two month period.

(c) Upon written certification by the superintendent that the assets

from the liquidation estates are otherwise unavailable, loans may also

be made under the terms specified in this section from the assets of the

property/casualty insurance security fund. Loans made pursuant to this

subsection shall not exceed the sum of thirty million dollars in the

aggregate. Such loans shall not occur more frequently than once every

two months, and not be greater in amount than that needed to sustain the

workers' compensation security fund for the two month period. Monies

from such loans shall not be used to pay administrative expenses. Each

loan must be accompanied by such certification, which shall set forth

the specific reason or reasons why the assets of the liquidation estates

are unavailable. The certification shall be provided to the temporary

president of the senate, the speaker of the assembly, the chair of the

senate finance committee and the chair of the assembly ways and means

committee.

(d) Any loan pursuant to this section shall be a liability of the

workers' compensation security fund, and shall be repaid pursuant to a

plan of repayment to be prescribed by the superintendent which,

notwithstanding any other law, may provide, at the discretion of the

superintendent, for an increase in the level of payments into the fund

provided for in subdivision two of section one hundred eight of the

workers' compensation law upon written notice by the superintendent to

the governor and both houses of the legislature of the necessity of any

such increase, including the reasons therefor. Such plan shall among

other things require: (i) that any loan be made upon commercially

reasonable terms and in accordance with the superintendent's fiduciary

responsibilities, and (ii) immediate repayment, from the assets of the

liquidation estates as referred to in subsection (a) of this section, of

any loans from the property/casualty insurance security fund made

pursuant to subsection (b) or (c) of this section upon sufficient monies

becoming available from loans from liquidation estates pursuant to

subsection (a) of this section, and (iii) that one-fourth of the

payments collected pursuant to section one hundred eight of the workers'

compensation law be dedicated to the repayment of any loans made

pursuant to this section.