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

§ 54-b. Personal income tax notes. 1. Findings and declaration of

need. (a) The state of New York finds and determines that shortfalls in

the state's financial plan arising from adverse economic and fiscal

events and risks, disasters and emergencies, including but not limited

to, public health emergencies, may occur or develop, and that the

financial impact of such events, risks, disasters and emergencies could

be prudently mitigated by certain fiscal management authorization

measures being 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 to issue personal income tax revenue anticipation notes with

a maturity no later than March 31, 2027, in one or more series in an

aggregate principal amount for each fiscal year not to exceed three

billion dollars, 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, extended

or refunded. For so long as any notes authorized by this paragraph shall

be outstanding, the restrictions, limitations and requirements contained

in article five-B of the state finance law shall not apply.

(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/or the

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

dormitory authority and/or 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 paragraph (b)

of this subdivision. 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

paragraph (b) of this subdivision.

(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 paragraph (b) of

this subdivision.

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.