S T A T E O F N E W Y O R K
2011-2012 Regular Sessions
I N S E N A T E
June 9, 2011
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance -- recommit-
ted to the Committee on Finance in accordance with Senate Rule 6, sec.
8 -- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the state finance law, in relation to the amount of a
letter of credit used as guarantee of performance of a state procure-
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph d of subdivision 10 of section 163 of the state
finance law, as added by chapter 83 of the laws of 1995, is amended to
read as follows:
d. It shall be in the discretion of the commissioner or state agency
to require a bond or other guarantee of performance, and to approve the
amount, form and sufficiency thereof. PROVIDED HOWEVER IF A LETTER OF
CREDIT, EITHER BY ITSELF OR IN CONJUNCTION WITH ANOTHER FORM OF GUARAN-
TEE, IS USED FOR THIS PURPOSE, THE AMOUNT OF THE LETTER OF CREDIT SHALL
NOT EXCEED THREE PERCENT OF THE TOTAL CONTRACT AWARD AMOUNT. THESE
RESTRICTIONS SHALL NOT APPLY TO ANY BOND REQUIREMENTS ISSUED PURSUANT TO
THIS SECTION. AN AGENCY MAY REQUIRE OTHER GUARANTEES OF PERFORMANCE IN
ADDITION TO A LETTER OF CREDIT AS PROVIDED IN THIS PARAGRAPH.
S 2. This act shall take effect immediately; provided, however, that
the amendments to paragraph d of subdivision 10 of section 163 of the
state finance law made by section one of this act shall not affect the
repeal of such section and shall be deemed repealed therewith.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.