N.Y. Urban Development Corporation Act 174/68 § 54-a: Personal income tax notes; 2022

§ 54-a. Personal income tax notes; 2022. 1. Findings and declaration

of need. (a) The state of New York finds and determines that the global

spread of the COVID-19 pandemic has had and is expected to continue to

have a significant adverse impact on the health and welfare of

individuals in the state as well as to the financial condition of the

state during the state's 2021 and 2022 fiscal years and beyond. The

anticipated shortfalls and deferrals in the state's financial plan

receipts caused by the COVID-19 pandemic has required the state to adopt

policies, regulations and procedures that suspend various legal

requirements and address state budgetary pressures, some of which

require certain fiscal management authorization measures to be

legislatively authorized and established.

(b) Notwithstanding any other provision of law to the contrary,

including, specifically, the provisions of chapter 59 of the laws of

2000 and section sixty-seven-b of the state finance law, the dormitory

authority of the state of New York and the corporation are hereby

authorized for the state's 2022 fiscal year, to issue until December 31,

2021, notes with a maturity no later than March 31, 2022, to be

designated as personal income tax revenue anticipation notes, in one or

more series in an aggregate principal amount not to exceed three billion

dollars, excluding any such notes issued to finance one or more debt

service reserve funds, and to pay costs of issuance of such notes, for

the purpose of temporarily financing budgetary needs of the state. Such

purpose shall constitute an authorized purpose under subdivision two of

section sixty-eight-a of the state finance law for all purposes of

article five-C of the state finance law with respect to the notes

authorized by this paragraph. Such notes shall not be renewed or

refunded beyond March 31, 2022. For so long as any notes authorized by

this paragraph shall remain outstanding, the restrictions, limitations

and requirements contained in article five-B of the state finance law

shall not apply, other than subdivision four of section sixty-seven-b of

such article.

(c) Such notes of the dormitory authority and the corporation shall

not be a debt of the state, and the state shall not be liable thereon,

nor shall they be payable out of any funds other than those appropriated

by the state to the dormitory authority and the corporation for debt

service and related expenses pursuant to any financing agreement

described in paragraph (d) of this subdivision, and such notes shall

contain on the face thereof a statement to such effect. Such notes shall

be issued on a subordinate basis and shall be secured by subordinate

payments from the revenue bond tax fund established pursuant to section

ninety-two-z of the state finance law. Except for purposes of complying

with the internal revenue code, any interest income earned on note

proceeds shall only be used to pay debt service on such notes. All of

the provisions of the state finance law, the dormitory authority act and

this act relating to notes and bonds which are not inconsistent with the

provisions of this section shall apply to notes authorized by paragraph

(b) of this subdivision, including but not limited to the power to

establish adequate reserves therefor, subject to the final maturity

limitation for such notes set forth in paragraph (b) of this

subdivision. The issuance of any notes authorized by paragraph (b) of

this subdivision shall further be subject to the approval of the

director of the division of the budget.

(d) Notwithstanding any other law, rule or regulation to the contrary

but subject to the limitations contained in paragraph (b) of this

subdivision, in order to assist the dormitory authority and the

corporation in undertaking the administration and financing of such

notes, the director of the budget is hereby authorized to supplement any

existing financing agreement with the dormitory authority and the

corporation, or to enter into a new financing agreement with the

dormitory authority and the corporation, upon such terms and conditions

as the director of the budget and the dormitory authority and the

corporation shall agree, so as to provide to the dormitory authority and

the corporation, a sum not to exceed the debt service payments and

related expenses required for any notes issued pursuant to this section.

Any financing agreement supplemented or entered into pursuant to this

section shall provide that the obligation of the state to pay the amount

therein provided shall not constitute a debt of the state within the

meaning of any constitutional or statutory provision and shall be deemed

executory only to the extent of monies available and that no liability

shall be incurred by the state beyond the monies available for such

purposes, subject to annual appropriation by the legislature. Any such

financing agreement or any payments made or to be made thereunder may be

assigned or pledged by the dormitory authority and the corporation as

security for the notes authorized by paragraph (b) of this subdivision.

(e) Notwithstanding any other provision of law to the contrary,

including specifically the provisions of subdivision 3 of section 67-b

of the state finance law, no capital work or purpose shall be required

for any issuance of personal income tax revenue anticipation notes

issued by the dormitory authority and the corporation pursuant to this

section.

(f) Notwithstanding any other law, rule, or regulation to the

contrary, the comptroller is hereby authorized and directed to deposit

to the credit of the general fund, all proceeds of personal income tax

revenue anticipation notes issued by the dormitory authority and the New

York state urban development corporation pursuant to this section.

2. Effect of inconsistent provisions. Insofar as the provisions of

this section are inconsistent with the provisions of any other law,

general, special, or local, the provisions of this section shall be

controlling.

3. Severability; construction. The provisions of this section shall be

severable, and if the application of any clause, sentence, paragraph,

subdivision, section or part of this section to any person or

circumstance shall be adjudged by any court of competent jurisdiction to

be invalid, such judgment shall not necessarily affect, impair or

invalidate the application of any such clause, sentence, paragraph,

subdivision, section, part of this section or remainder thereof, as the

case may be, to any other person or circumstance, but shall be confined

in its operation to the clause, sentence, paragraph, subdivision,

section or part thereof directly involved in the controversy in which

such judgment shall have been rendered.