N.Y. Urban Development Corporation Act 174/68 § 55: No title

§ 55. 1. Findings and declaration of need. (a) The state of New York

finds and determines that the global spread of the COVID-19 coronavirus

disease is having and is expected to continue to have a significant

impact on the health and welfare of individuals in the state as well as

a significant financial impact on the state. The serious threat posed by

the COVID-19 coronavirus disease has caused governments, including the

state, to adopt policies, regulations and procedures to suspend various

legal requirements in order to: (i) respond to and mitigate the impact

of the outbreak; and (ii) address budgetary pressures to the state

arising from anticipated shortfalls and deferrals in the state's fiscal

2021 financial plan receipts, thereby requiring that certain fiscal

management authorization measures be 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 67-b of the state finance law, during the state's 2021

fiscal year, the dormitory authority of the state of New York and the

urban development corporation are authorized to: (i) enter into

commitments with financial institutions for the establishment of one or

more line of credit facilities and other similar revolving financing

arrangements not in excess of three billion dollars in aggregate

principal amount outstanding at any one time; (ii) draw, at one or more

times at the direction of the director of the budget, upon such line of

credit facilities and provide to the state the amounts so drawn for the

purpose of assisting the state to temporarily finance its budgetary

needs; and (iii) secure repayment of such draws under such line of

credit facilities with a service contract of the state, which payment

obligation thereunder 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 moneys are available and that no

liability shall be incurred by the state beyond the moneys available for

such purpose, and that such payment obligation is subject to annual

appropriation by the legislature. Any line of credit facility agreements

entered by the dormitory authority of the state of New York and/or the

urban development corporation with financial institutions pursuant to

this section may contain such provisions that the dormitory authority of

the state of New York and/or the urban development corporation deem

necessary or desirable for the establishment of such credit facilities.

The maximum original term of any line of credit facility shall be one

year from the date of incurrence; provided however that any such line of

credit facility may be extended, renewed or refinanced for up to two

additional one year terms. If on or before the maturity date of the

original term of such line of credit facility or any renewal or

extension term thereof, the director of the division of the budget shall

determine that all or a portion of any outstanding line of credit

facility shall be refinanced on a long-term basis, the dormitory

authority of the state of New York and/or the urban development

corporation are authorized to refinance such line of credit facility

with state personal income tax revenue bonds and/or state service

contract bonds in one or more series in an aggregate principal amount

not to exceed the then outstanding principal amount of such line of

credit facility and any accrued interest thereon, plus an amount

necessary to finance one or more debt service reserve funds and to pay

costs of issuance of such state personal income tax revenue bonds and/or

state service contract bonds.

(c) 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 amounts provided by the dormitory

authority of the state of New York and/or the urban development

corporation to the state from draws made on any line of credit facility

authorized by paragraph (b) of this subdivision.

(d) 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 indebtedness incurred in connection with any line of credit

facility authorized by paragraph (b) of this subdivision and any

extensions or renewals thereof, or for any state personal income tax

revenue bonds and/or state service contract bonds issued to refinance

any of the foregoing, or for any service contract entered into in

connection with any line of credit facility, all in accordance with this

section.

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

long as any such line of credit facility shall remain outstanding, the

restrictions, limitations and requirements contained in article 5-B of

the state finance law shall not apply. In addition, such restrictions,

limitations and requirements shall not apply to any state personal

income tax revenue bonds and/or state service contract bonds issued to

refund such line of credit facility for so long as such state personal

income tax revenue bonds and/or state service contract bonds shall

remain outstanding, including any state-supported debt issued to refund

such state personal income tax revenue bonds and/or state service

contract bonds. Any such line of credit facility, including any

extensions or renewals thereof, and any state personal income tax

revenue bonds and/or state service contract bonds issued to refund such

line of credit facilities shall be deemed to be incurred or issued for

an authorized purpose within the meaning of subdivision 2 of section

68-a of the state finance law. As applicable, all of the provisions of

the state finance law, the dormitory authority act and the New York

state urban development corporation act relating to notes and bonds

which are not inconsistent with the provisions of this section shall

apply to any issuance of state personal income tax revenue bonds and/or

state service contract bonds issued to refinance any line of credit

facility authorized by paragraph (b) of this subdivision. The issuance

of any state personal income tax revenue bonds and/or state service

contract bonds issued to refinance any such line of credit facility

shall further be subject to the approval of the director of the division

of the budget.

(f) Any draws on a line of credit facility authorized by paragraph (b)

of this subdivision shall only be made and the service contract entered

into in connection with such line of credit facilities shall only be

executed and delivered to the dormitory authority of the state of New

York and/or the urban development corporation if the legislature has

enacted sufficient appropriation authority to provide for the repayment

of all amounts expected to be drawn by the dormitory authority of the

state of New York and/or the urban development corporation under such

line of credit facility during fiscal year 2021. Amounts repaid under a

line of credit facility during fiscal year 2021 may be re-borrowed

during such fiscal year provided that the legislature has enacted

sufficient appropriation authority to provide for the repayment of any

such re-borrowed amounts. Neither the dormitory authority of the state

of New York nor the urban development corporation shall have any

financial liability for the repayment of draws under any line of credit

facility authorized by paragraph (b) of this subdivision beyond the

moneys received for such purpose under the service contract authorized

by paragraph (g) of this subdivision.

(g) The director of the budget is authorized to enter into one or more

service contracts or other agreements, none of which shall exceed 30

years in duration, with the dormitory authority of the state of New York

and/or the urban development corporation, upon such terms and conditions

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

New York and/or the urban development corporation shall agree. Any

service contract or other agreements entered into pursuant to this

paragraph shall provide for state commitments to provide annually to the

dormitory authority of the state of New York and/or the urban

development corporation a sum or sums, upon such terms and conditions as

shall be deemed appropriate by the director of the budget and the

dormitory authority of the state of New York and/or the urban

development corporation, to fund the payment of amounts due under any

line of credit facility and any state personal income tax revenue bonds

and/or state service contract bonds issued to refinance such line of

credit facility. Any such service contract or other agreements shall

provide that the obligation of the director of the budget or of the

state to fund or to pay the amounts therein provided for 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

moneys are available and that no liability shall be incurred by the

state beyond the moneys available for such purpose, and that such

obligation is subject to annual appropriation by the legislature.

(h) Any service contract or other agreements entered into pursuant to

paragraph (g) of this subdivision or any payments made or to be made

thereunder may be assigned and pledged by the dormitory authority of the

state of New York and/or the urban development corporation as security

for any related payment obligation it may have with one or more

financial institutions in connection with a line of credit facility

authorized by paragraph (b) of this subdivision.

(i) In addition to the foregoing, the director of the budget, the

dormitory authority of the state of New York and the urban development

corporation shall each be authorized to enter into such other agreements

and to take or cause to be taken such additional actions as are

necessary or desirable to effectuate the purposes of the transactions

contemplated by a line of credit facility and the related service

contract.

(j) No later than seven days after a draw occurs on the line of credit

facility, the director of the budget shall provide notification of such

draw to the president pro tempore of the senate and the speaker of the

assembly.

(k) The authorization, establishment and use by the dormitory

authority of the state of New York and the urban development corporation

of a line of credit facility authorized by paragraph (b) of this

subdivision, and the execution, sale and issuance of state personal

income tax revenue bonds and/or state service contract bonds to

refinance any such line of credit facility shall not be deemed an

action, as such term is defined in article 8 of the environmental

conservation law, for the purposes of such article. Such exemption shall

be strictly limited in its application to such financing activities of

the dormitory authority of the state of New York and the urban

development corporation undertaken pursuant to this section and does not

exempt any other entity from compliance with such article.

(l) Nothing contained in this section shall be construed to limit the

abilities of the director of the budget and the authorized issuers of

state-supported debt to perform their respective obligations on existing

service contracts or other agreements entered into prior to April 1,

2020.

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 act 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.