N.Y. Urban Development Corporation Act 174/68 § 55-a: Line of credit facilities; 2022

§ 55-a. Line of credit facilities; 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) Definitions. When used in this subdivision "related expenses and

fees" shall mean interest costs, commitment fees and other costs,

expenses and fees incurred in connection with a line of credit facility

and/or a service contract or other agreement of the state securing such

line of credit facility that contractually obligates the state to pay

debt service subject to an appropriation.

(c) 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, the dormitory authority

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

authorized until March 31, 2022 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 two billion dollars in aggregate principal amount; (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; provided, however, that the total amount of

such draws shall not exceed two billion dollars; and (iii) secure

repayment of such draws under such line of credit facilities, together

with related expenses and fees, 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 term of any line of credit facility shall be one year from

the date of incurrence; provided however that no draw on any such line

of credit facility shall occur after March 31, 2022, and provided

further that any such line of credit facility whose term extends beyond

March 31, 2022, shall be supported by sufficient appropriation authority

enacted by the legislature that provides for the repayment of all

amounts drawn and remaining unpaid as of March 31, 2022, together with

related expenses and fees incurred and to become due and payable by the

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

development corporation.

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

facility authorized by paragraph (c) of this subdivision, or for any

service contract or other agreement entered into in connection with any

such line of credit facility, all in accordance with this section.

(f) 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. Any such line of credit facility

shall be deemed to be incurred or issued for (i) an authorized purpose

within the meaning of subdivision 2 of section 68-a of the state finance

law for all purposes of article 5-C of the state finance law and section

92-z of the state finance law, and/or (ii) an authorized purpose within

the meaning of subdivision 2 of section 69-m of the state finance law

for all purposes of article 5-F of the state finance law and section

92-h of the state finance law, as the case may be. 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 line of credit facility and other similar revolving

financing arrangement established in accordance with the authorization

contained in paragraph (c) of this subdivision.

(g) Each draw on a line of credit facility authorized by paragraph (c)

of this subdivision shall only be made if the service contract or other

agreement entered into in connection with such line of credit facility

is supported by sufficient appropriation authority enacted by the

legislature to repay the amount of the draw, together with related

expenses and fees to become due and payable. Amounts repaid under a line

of credit facility may be re-borrowed under the same or another line of

credit facility authorized by paragraph (c) of this subdivision provided

that the legislature has enacted sufficient appropriation authority that

provides for the repayment of any such re-borrowed amounts, together

with related expenses and fees to become due and payable. 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 (c) of

this subdivision beyond the moneys received for such purpose under any

service contract or other agreement authorized by paragraph (h) of this

subdivision.

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

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

year 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 agreement 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 all amounts to become

due and payable under any line of credit facility. Any such service

contract or other agreement 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.

(i) Any service contract or other agreement entered into pursuant to

paragraph (h) 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 (c) of this subdivision.

(j) 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 or other agreement.

(k) No later than seven days after a draw occurs on a 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.

(l) 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 (c) of this

subdivision 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.

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

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

state personal income tax revenue bonds, state sales tax revenue bonds

or service contract bonds to perform their respective obligations with

respect to existing service contracts or other agreements.

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.