NY State Senate Bill S2520

Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (8)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 12, 2020	print number 2520c
Mar 12, 2020	amend (t) and recommit to banks
Mar 11, 2020	print number 2520b
Mar 11, 2020	amend and recommit to banks
Mar 10, 2020	print number 2520a
Mar 10, 2020	amend (t) and recommit to banks
Jan 08, 2020	referred to banks
Jan 25, 2019	referred to banks

Bill Amendments

Original

C (Active)

Original

C (Active)

S2520 - Details

Current Committee:: Senate Banks
Law Section:: Financial Services
Versions Introduced in 2021-2022 Legislative Session:: S3406

S2520 - Summary

Establishes the state of emergency small business and not-for-profit organization loan program.

S2520 - Sponsor Memo

S2520 - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2520

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 25, 2019
                               ___________

Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT establishing the federal shutdown affected employees loan program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Definitions. As used in this act, the following terms shall
have the following meanings:
  (a) "Affected employee" means a federal employee who, during the shut-
down,  is  (i)  a resident of this state, and (ii) required to work as a
federal employee without pay or furloughed as a federal employee without
pay;
  (b) "Bank" means a bank as such term is defined in  subdivision  1  of
section 2 of the banking law;
  (c)  "Credit  union"  means  a credit union as such term is defined in
subdivision 9 of section 2 of the banking law;
  (d) "Department" means the department of financial services;
  (e) "Eligible financial institution" means a bank or credit union that
has a physical presence in this state and is in good standing;
  (f) "Grace period" means  the  ninety-day  period  after  an  affected
employee's federal agency is funded; and
  (g)  "Shutdown"  means the federal fiscal year 2019 partial government
shutdown that began on December 22, 2018.
  § 2. Federal shutdown affected employee loan program. (a) The  depart-
ment  shall administer a federal shutdown affected employee loan program
to guarantee the repayment of loans made by an eligible financial insti-
tution to an eligible affected employee pursuant to this act.    Subject
to the cessation of new claim approvals under subdivision (d) of section
five of this act, the department shall submit all approved claims to the
comptroller,  who  shall  pay  from  the general fund any and all claims
submitted by the department.
  (b) Any bank or credit union may apply to the  department  to  partic-
ipate  in  the  loan  guarantee program. Not later than one business day
after receiving the application, the department shall determine  whether
the financial institution is an eligible financial institution and imme-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08858-02-9

S. 2520                             2

diately  notify  the  bank  or  credit  union of such determination. Any
eligible financial institution may make loans to affected  employees  in
accordance with this act.
  (c)  Each eligible financial institution that makes a loan pursuant to
this act, shall notify the department in  writing  not  later  than  one
business  day  after  making the loan, specifying such information about
the borrower as the department may request.
  § 3. Loan eligibility. An eligible financial institution  may  make  a
loan to an affected employee, provided:
  (a)  The  affected  employee  has  provided  to the eligible financial
institution (i) proof of the employee's status, income and residence  in
this  state,  and  (ii) the amount of unemployment compensation benefits
the employee has received and has been deemed eligible to receive during
the shutdown. Such proof may include a  paystub  or  bank  statement,  a
federal  employee  identification  card,  the federal tax identification
number of the employee's  employer  and  a  sworn  affidavit  from  such
employee  indicating  that  such  employee  (A)  is  currently a federal
employee residing in this state, (B) may be eligible to receive back-pay
when the shutdown ends, and (C) is not receiving a loan from  any  other
financial institution pursuant to this act.
  (b) The amount of the loan shall not exceed (i) the lesser of (A) five
thousand  dollars,  or  (B)  the affected employee's most recent monthly
after-tax pay, (ii) less four times the amount,  if  any,  the  affected
employee has reported to the eligible financial institution under subdi-
vision  (a)  of  this section related to any weekly unemployment compen-
sation benefits the employee has received or has been deemed eligible to
receive during the shutdown.
  (c) The loan is made in accordance with the eligible financial  insti-
tution's  underwriting  policy  and standards, provided further that the
affected employee's creditworthiness shall not be a factor used for  the
purposes of determining eligibility.
  (d)  The  loan  agreement  shall  not (i) require repayment during the
grace period, or (ii) charge interest on the principal amount before  or
during  the  grace period or for one hundred eighty days after the grace
period, provided after such one hundred eighty-day period, the  eligible
financial  institution  may  charge  interest or fees in accordance with
such financial institution's lending policy and the terms of the  under-
lying loan agreement.
  (e)  The loan agreement shall require that the affected employee repay
the loan in full not later than one hundred eighty days after the end of
the grace period by making at least three, and no more than  six,  equal
installment  payments.  The  loan  agreement  shall not contain a fee or
penalty for the prepayment or early payment of the loan.
  (f) The eligible financial institution shall offer  credit  counseling
services or refer such employee to nonprofit credit counselors.
  §  4.  Additional  loans. An affected employee who has received a loan
pursuant to this act may apply to the same eligible  financial  institu-
tion  for  an  additional  loan for each thirty-day period such employee
remains an affected employee, provided no affected employee may  receive
more than three loans under the program, and each such employee shall be
required  to  update the eligible financial institution as to the amount
of unemployment compensation benefits the employee has received and  has
been  deemed  eligible  to  receive during the shutdown. Each additional
loan shall be made in accordance with section three of this act.
  § 5. Collection of loans. (a) On and after  one  hundred  eighty  days
from the end of the grace period, an eligible financial institution that

S. 2520                             3

has made a good-faith effort to collect the outstanding principal from a
loan  issued pursuant to this act may make a claim to the department for
recovery of an amount equal to the outstanding principal for such  loan.
Prior  to the department's approving and submitting a claim to the comp-
troller, such eligible financial institution shall  demonstrate  to  the
satisfaction  of  the department that the eligible financial institution
has made a good-faith effort to collect the outstanding  principal  from
the  eligible  employee  in accordance with such financial institution's
loan servicing and collection policies. Upon payment  of  a  claim,  the
loan  shall  be assigned to the state, and the department shall have the
right to continue collection efforts on the loan.
  (b) The department shall maintain records in  the  regular  course  of
administration  of  the  loan  guarantee  program, including a record of
loans issued and of payments made to honor loan guarantees issued  under
this  section.  The  department  shall  regularly review such records to
determine total loans issued and identify duplicative applications.  The
department  shall  report  to  the  department of labor the names of the
affected employees who have received a loan under the program,  and  the
department of labor shall provide to the department information concern-
ing  such  employees' unemployment compensation benefits. If the depart-
ment determines that an affected  employee  misrepresented  unemployment
compensation  benefits,  the  affected employee may be deemed ineligible
for additional loans under this act.
  (c) The department may terminate any loan guarantee  if  the  eligible
financial  institution  misrepresents  any information pertaining to the
guarantee or fails to comply with any requirements of  this  section  in
connection with the guarantee of the underlying loan.
  (d) If the amounts expended to honor loan guarantees under the program
exceed  ten  percent  of  total loans issued, the department shall imme-
diately cease to approve claims and shall  notify  the  comptroller  and
each eligible financial institution of the total amount of payments made
and that the department has ceased honoring loan guarantees.
  (e)  Any  interest  deferred  or  not charged related to a loan issued
pursuant to this act shall be exempt from all state taxes  that  may  be
applicable  to  such  interest  amounts  as  they  relate to an affected
employee.  Eligible financial institutions shall  disclose  to  affected
employee  borrowers in the signed affidavit or loan documents that there
may be federal tax consequences to the program loans.
  (f) No new loan applications shall  be  submitted  under  the  program
after  the shutdown ends. The program shall expire upon the repayment of
all loans made under the program and, for  all  loans  in  default,  the
repayment  of  claims  made  under  the program, or the cessation of new
claim approvals under subdivision (d) of this section.
  § 6. Unemployment benefits. Upon the passage of federal legislation or
the issuance of federal guidance from the United  States  department  of
labor  or  another  federal  agency which allows an affected employee to
receive benefits, such affected employee may be eligible  for  unemploy-
ment  benefits  pursuant  to such federal legislation or guidance during
the period of the shutdown. If the shutdown ends and an affected employ-
ee is paid by the federal government for any period of time the affected
employee worked without pay during the shutdown, the  affected  employee
shall  reimburse  the  unemployment insurance fund in an amount equal to
the unemployment benefits the affected employee received for the  period
of the shutdown.
  § 7. This act shall take effect immediately.

S2520A - Details

Current Committee:: Senate Banks
Law Section:: Financial Services
Versions Introduced in 2021-2022 Legislative Session:: S3406

S2520A - Summary

Establishes the state of emergency small business and not-for-profit organization loan program.

S2520A - Sponsor Memo

S2520A - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2520--A

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 25, 2019
                               ___________

Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks  --  recommitted  to
  the  Committee  on  Banks  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 executive law, in relation to establishing the state
  of emergency small business loan program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The executive law is amended by adding a new  section  29-l
to read as follows:
  §  29-L.  STATE  OF  EMERGENCY  SMALL  BUSINESS LOAN PROGRAM. 1. DEFI-
NITIONS. AS USED IN THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
FOLLOWING MEANINGS:
  (A)  "AFFECTED  SMALL  BUSINESS" MEANS A SMALL BUSINESS LOCATED WITHIN
THIS STATE DURING A STATE OF EMERGENCY;
  (B) "BANK" MEANS A BANK AS SUCH TERM IS DEFINED IN SUBDIVISION ONE  OF
SECTION TWO OF THE BANKING LAW;
  (C)  "CREDIT  UNION"  MEANS  A CREDIT UNION AS SUCH TERM IS DEFINED IN
SUBDIVISION NINE OF SECTION TWO OF THE BANKING LAW;
  (D) "DEPARTMENT" MEANS THE DEPARTMENT OF FINANCIAL SERVICES;
  (E) "ELIGIBLE FINANCIAL INSTITUTION" MEANS A BANK OR CREDIT UNION THAT
HAS A PHYSICAL PRESENCE IN THIS STATE AND IS IN GOOD STANDING;
  (F) "GRACE PERIOD" MEANS THE NINETY-DAY PERIOD AFTER A STATE OF  EMER-
GENCY IS OVER;
  (G) "SMALL BUSINESS" MEANS A BUSINESS WITH NOT MORE THAN FIFTY EMPLOY-
EES; AND
  (H) "STATE OF EMERGENCY" MEANS THE PERIOD BEGINNING WITH A DECLARATION
BY THE GOVERNOR THAT A STATE OF EMERGENCY EXISTS.
  2.  STATE OF EMERGENCY SMALL BUSINESS LOAN PROGRAM. (A) THE DEPARTMENT
SHALL ADMINISTER A STATE OF EMERGENCY SMALL  BUSINESS  LOAN  PROGRAM  TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD08858-04-0

S. 2520--A                          2

GUARANTEE  THE REPAYMENT OF LOANS MADE BY AN ELIGIBLE FINANCIAL INSTITU-
TION TO AN ELIGIBLE AFFECTED SMALL BUSINESS PURSUANT  TO  THIS  SECTION.
SUBJECT  TO  THE CESSATION OF NEW CLAIM APPROVALS UNDER PARAGRAPH (D) OF
SUBDIVISION  FIVE  OF  THIS  SECTION,  THE  DEPARTMENT  SHALL SUBMIT ALL
APPROVED CLAIMS TO THE COMPTROLLER, WHO SHALL PAY FROM THE GENERAL  FUND
ANY AND ALL CLAIMS SUBMITTED BY THE DEPARTMENT.
  (B)  ANY  BANK  OR CREDIT UNION MAY APPLY TO THE DEPARTMENT TO PARTIC-
IPATE IN THE LOAN GUARANTEE PROGRAM. NOT LATER  THAN  ONE  BUSINESS  DAY
AFTER  RECEIVING THE APPLICATION, THE DEPARTMENT SHALL DETERMINE WHETHER
THE FINANCIAL INSTITUTION IS AN ELIGIBLE FINANCIAL INSTITUTION AND IMME-
DIATELY NOTIFY THE BANK OR  CREDIT  UNION  OF  SUCH  DETERMINATION.  ANY
ELIGIBLE  FINANCIAL  INSTITUTION  MAY MAKE LOANS TO AFFECTED SMALL BUSI-
NESSES IN ACCORDANCE WITH THIS SECTION.
  (C) EACH ELIGIBLE FINANCIAL INSTITUTION THAT MAKES A LOAN PURSUANT  TO
THIS  SECTION, SHALL NOTIFY THE DEPARTMENT IN WRITING NOT LATER THAN ONE
BUSINESS DAY AFTER MAKING THE LOAN, SPECIFYING  SUCH  INFORMATION  ABOUT
THE BORROWER AS THE DEPARTMENT MAY REQUEST.
  3. LOAN ELIGIBILITY. AN ELIGIBLE FINANCIAL INSTITUTION MAY MAKE A LOAN
TO AN AFFECTED SMALL BUSINESS, PROVIDED:
  (A) THE AFFECTED SMALL BUSINESS HAS PROVIDED TO THE ELIGIBLE FINANCIAL
INSTITUTION PROOF SATISFACTORY TO SUCH INSTITUTION THAT SUCH SMALL BUSI-
NESS IS A SMALL BUSINESS LOCATED WITHIN THE STATE OF NEW YORK.
  (B) THE AMOUNT OF THE LOAN SHALL NOT EXCEED FIVE THOUSAND DOLLARS.
  (C)  THE LOAN IS MADE IN ACCORDANCE WITH THE ELIGIBLE FINANCIAL INSTI-
TUTION'S UNDERWRITING POLICY AND STANDARDS, PROVIDED  FURTHER  THAT  THE
AFFECTED  SMALL  BUSINESS'S  CREDITWORTHINESS SHALL NOT BE A FACTOR USED
FOR THE PURPOSES OF DETERMINING ELIGIBILITY.
  (D) THE LOAN AGREEMENT SHALL NOT  (I)  REQUIRE  REPAYMENT  DURING  THE
GRACE  PERIOD, OR (II) CHARGE INTEREST ON THE PRINCIPAL AMOUNT BEFORE OR
DURING THE GRACE PERIOD OR FOR ONE HUNDRED EIGHTY DAYS AFTER  THE  GRACE
PERIOD,  PROVIDED AFTER SUCH ONE HUNDRED EIGHTY-DAY PERIOD, THE ELIGIBLE
FINANCIAL INSTITUTION MAY CHARGE INTEREST OR  FEES  IN  ACCORDANCE  WITH
SUCH  FINANCIAL INSTITUTION'S LENDING POLICY AND THE TERMS OF THE UNDER-
LYING LOAN AGREEMENT.
  (E) THE LOAN AGREEMENT SHALL REQUIRE THAT THE AFFECTED SMALL  BUSINESS
REPAY  THE LOAN IN FULL NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE
END OF THE GRACE PERIOD BY MAKING AT LEAST THREE, AND NO MORE THAN  SIX,
EQUAL  INSTALLMENT  PAYMENTS. THE LOAN AGREEMENT SHALL NOT CONTAIN A FEE
OR PENALTY FOR THE PREPAYMENT OR EARLY PAYMENT OF THE LOAN.
  (F) THE ELIGIBLE FINANCIAL INSTITUTION SHALL OFFER  CREDIT  COUNSELING
SERVICES OR REFER SUCH SMALL BUSINESS TO NONPROFIT CREDIT COUNSELORS.
  4.  ADDITIONAL  LOANS.  AN  AFFECTED SMALL BUSINESS WHO HAS RECEIVED A
LOAN PURSUANT TO THIS SECTION MAY APPLY TO THE SAME  ELIGIBLE  FINANCIAL
INSTITUTION FOR AN ADDITIONAL LOAN FOR EACH THIRTY-DAY PERIOD SUCH SMALL
BUSINESS  REMAINS AN AFFECTED SMALL BUSINESS, PROVIDED NO AFFECTED SMALL
BUSINESS MAY RECEIVE MORE THAN THREE LOANS UNDER THE PROGRAM. EACH ADDI-
TIONAL LOAN SHALL BE MADE IN ACCORDANCE WITH SUBDIVISION THREE  OF  THIS
SECTION.
  5.  COLLECTION OF LOANS. (A) ON AND AFTER ONE HUNDRED EIGHTY DAYS FROM
THE END OF THE GRACE PERIOD, AN ELIGIBLE FINANCIAL INSTITUTION THAT  HAS
MADE  A  GOOD-FAITH  EFFORT  TO COLLECT THE OUTSTANDING PRINCIPAL FROM A
LOAN ISSUED PURSUANT TO THIS SECTION MAY MAKE A CLAIM TO THE  DEPARTMENT
FOR  RECOVERY  OF  AN AMOUNT EQUAL TO THE OUTSTANDING PRINCIPAL FOR SUCH
LOAN. PRIOR TO THE DEPARTMENT'S APPROVING AND SUBMITTING A CLAIM TO  THE
COMPTROLLER,  SUCH  ELIGIBLE  FINANCIAL INSTITUTION SHALL DEMONSTRATE TO
THE SATISFACTION OF THE DEPARTMENT THAT THE ELIGIBLE FINANCIAL  INSTITU-

S. 2520--A                          3

TION  HAS  MADE A GOOD-FAITH EFFORT TO COLLECT THE OUTSTANDING PRINCIPAL
FROM THE ELIGIBLE SMALL BUSINESS EMPLOYEE IN ACCORDANCE WITH SUCH FINAN-
CIAL INSTITUTION'S LOAN SERVICING AND COLLECTION POLICIES. UPON  PAYMENT
OF  A CLAIM, THE LOAN SHALL BE ASSIGNED TO THE STATE, AND THE DEPARTMENT
SHALL HAVE THE RIGHT TO CONTINUE COLLECTION EFFORTS ON THE LOAN.
  (B) THE DEPARTMENT SHALL MAINTAIN RECORDS IN  THE  REGULAR  COURSE  OF
ADMINISTRATION  OF  THE  LOAN  GUARANTEE  PROGRAM, INCLUDING A RECORD OF
LOANS ISSUED AND OF PAYMENTS MADE TO HONOR LOAN GUARANTEES ISSUED  UNDER
THIS  SECTION.  THE  DEPARTMENT  SHALL  REGULARLY REVIEW SUCH RECORDS TO
DETERMINE TOTAL LOANS ISSUED AND IDENTIFY DUPLICATIVE APPLICATIONS.
  (C) THE DEPARTMENT MAY TERMINATE ANY LOAN GUARANTEE  IF  THE  ELIGIBLE
FINANCIAL  INSTITUTION  MISREPRESENTS  ANY INFORMATION PERTAINING TO THE
GUARANTEE OR FAILS TO COMPLY WITH ANY REQUIREMENTS OF  THIS  SECTION  IN
CONNECTION WITH THE GUARANTEE OF THE UNDERLYING LOAN.
  (D) IF THE AMOUNTS EXPENDED TO HONOR LOAN GUARANTEES UNDER THE PROGRAM
EXCEED  TEN  PERCENT  OF  TOTAL LOANS ISSUED, THE DEPARTMENT SHALL IMME-
DIATELY CEASE TO APPROVE CLAIMS AND SHALL  NOTIFY  THE  COMPTROLLER  AND
EACH ELIGIBLE FINANCIAL INSTITUTION OF THE TOTAL AMOUNT OF PAYMENTS MADE
AND THAT THE DEPARTMENT HAS CEASED HONORING LOAN GUARANTEES.
  (E)  ANY  INTEREST  DEFERRED  OR  NOT CHARGED RELATED TO A LOAN ISSUED
PURSUANT TO THIS SECTION SHALL BE EXEMPT FROM ALL STATE TAXES  THAT  MAY
BE  APPLICABLE  TO  SUCH  INTEREST AMOUNTS AS THEY RELATE TO AN AFFECTED
SMALL BUSINESS.   ELIGIBLE  FINANCIAL  INSTITUTIONS  SHALL  DISCLOSE  TO
AFFECTED  SMALL BUSINESS BORROWERS IN THE SIGNED AFFIDAVIT OR LOAN DOCU-
MENTS THAT THERE MAY BE FEDERAL TAX CONSEQUENCES TO THE PROGRAM LOANS.
  (F) NO NEW LOAN APPLICATIONS SHALL  BE  SUBMITTED  UNDER  THE  PROGRAM
AFTER  THE SHUTDOWN ENDS. THE PROGRAM SHALL EXPIRE UPON THE REPAYMENT OF
ALL LOANS MADE UNDER THE PROGRAM AND, FOR  ALL  LOANS  IN  DEFAULT,  THE
REPAYMENT  OF  CLAIMS  MADE  UNDER  THE PROGRAM, OR THE CESSATION OF NEW
CLAIM APPROVALS UNDER SUBDIVISION (D) OF THIS SECTION.
  § 2. This act shall take effect immediately.

S2520B - Details

Current Committee:: Senate Banks
Law Section:: Financial Services
Versions Introduced in 2021-2022 Legislative Session:: S3406

S2520B - Summary

Establishes the state of emergency small business and not-for-profit organization loan program.

S2520B - Sponsor Memo

S2520B - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2520--B

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 25, 2019
                               ___________

Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks  --  recommitted  to
  the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted  to  said committee -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the executive law, in relation to establishing the state
  of emergency small business loan program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The executive law is amended by adding a new section 29-l
to read as follows:
  § 29-L. STATE OF EMERGENCY  SMALL  BUSINESS  LOAN  PROGRAM.  1.  DEFI-
NITIONS.  AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (A) "AFFECTED SMALL BUSINESS" MEANS A SMALL  BUSINESS  LOCATED  WITHIN
THIS STATE DURING A STATE OF EMERGENCY;
  (B)  "BANK" MEANS A BANK AS SUCH TERM IS DEFINED IN SUBDIVISION ONE OF
SECTION TWO OF THE BANKING LAW;
  (C) "CREDIT UNION" MEANS A CREDIT UNION AS SUCH  TERM  IS  DEFINED  IN
SUBDIVISION NINE OF SECTION TWO OF THE BANKING LAW;
  (D) "DEPARTMENT" MEANS THE DEPARTMENT OF FINANCIAL SERVICES;
  (E) "ELIGIBLE FINANCIAL INSTITUTION" MEANS A BANK OR CREDIT UNION THAT
HAS A PHYSICAL PRESENCE IN THIS STATE AND IS IN GOOD STANDING;
  (F)  "GRACE PERIOD" MEANS THE NINETY-DAY PERIOD AFTER A STATE OF EMER-
GENCY IS OVER;
  (G) "SMALL BUSINESS" MEANS A BUSINESS WITH NOT MORE THAN FIFTY EMPLOY-
EES; AND
  (H) "STATE OF EMERGENCY" MEANS THE PERIOD BEGINNING WITH A DECLARATION
BY THE GOVERNOR THAT A STATE OF EMERGENCY EXISTS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08858-05-0

S. 2520--B                          2

  2. STATE OF EMERGENCY SMALL BUSINESS LOAN PROGRAM. (A) THE  DEPARTMENT
SHALL  ADMINISTER  A  STATE  OF EMERGENCY SMALL BUSINESS LOAN PROGRAM TO
GUARANTEE THE REPAYMENT OF LOANS MADE BY AN ELIGIBLE FINANCIAL  INSTITU-
TION  TO  AN  ELIGIBLE AFFECTED SMALL BUSINESS PURSUANT TO THIS SECTION.
SUBJECT  TO  THE CESSATION OF NEW CLAIM APPROVALS UNDER PARAGRAPH (D) OF
SUBDIVISION FIVE OF  THIS  SECTION,  THE  DEPARTMENT  SHALL  SUBMIT  ALL
APPROVED  CLAIMS TO THE COMPTROLLER, WHO SHALL PAY FROM THE GENERAL FUND
ANY AND ALL CLAIMS SUBMITTED BY THE DEPARTMENT.
  (B) ANY BANK OR CREDIT UNION MAY APPLY TO THE  DEPARTMENT  TO  PARTIC-
IPATE  IN  THE  LOAN  GUARANTEE PROGRAM. NOT LATER THAN ONE BUSINESS DAY
AFTER RECEIVING THE APPLICATION, THE DEPARTMENT SHALL DETERMINE  WHETHER
THE FINANCIAL INSTITUTION IS AN ELIGIBLE FINANCIAL INSTITUTION AND IMME-
DIATELY  NOTIFY  THE  BANK  OR  CREDIT  UNION OF SUCH DETERMINATION. ANY
ELIGIBLE FINANCIAL INSTITUTION MAY MAKE LOANS TO  AFFECTED  SMALL  BUSI-
NESSES IN ACCORDANCE WITH THIS SECTION.
  (C)  EACH ELIGIBLE FINANCIAL INSTITUTION THAT MAKES A LOAN PURSUANT TO
THIS SECTION, SHALL NOTIFY THE DEPARTMENT IN WRITING NOT LATER THAN  ONE
BUSINESS  DAY  AFTER  MAKING THE LOAN, SPECIFYING SUCH INFORMATION ABOUT
THE BORROWER AS THE DEPARTMENT MAY REQUEST.
  3. LOAN ELIGIBILITY. AN ELIGIBLE FINANCIAL INSTITUTION MAY MAKE A LOAN
TO AN AFFECTED SMALL BUSINESS, PROVIDED:
  (A) THE AFFECTED SMALL BUSINESS HAS PROVIDED TO THE ELIGIBLE FINANCIAL
INSTITUTION PROOF SATISFACTORY TO SUCH INSTITUTION THAT SUCH SMALL BUSI-
NESS IS A SMALL BUSINESS LOCATED WITHIN THE STATE OF NEW YORK.
  (B) THE AMOUNT OF THE LOAN SHALL NOT EXCEED FIVE THOUSAND DOLLARS.
  (C) THE LOAN IS MADE IN ACCORDANCE WITH THE ELIGIBLE FINANCIAL  INSTI-
TUTION'S  UNDERWRITING  POLICY  AND STANDARDS, PROVIDED FURTHER THAT THE
AFFECTED SMALL BUSINESS'S CREDITWORTHINESS SHALL NOT BE  A  FACTOR  USED
FOR THE PURPOSES OF DETERMINING ELIGIBILITY.
  (D)  THE  LOAN  AGREEMENT  SHALL  NOT (I) REQUIRE REPAYMENT DURING THE
GRACE PERIOD, OR (II) CHARGE INTEREST ON THE PRINCIPAL AMOUNT BEFORE  OR
DURING  THE  GRACE PERIOD OR FOR ONE HUNDRED EIGHTY DAYS AFTER THE GRACE
PERIOD, PROVIDED AFTER SUCH ONE HUNDRED EIGHTY-DAY PERIOD, THE  ELIGIBLE
FINANCIAL  INSTITUTION  MAY  CHARGE  INTEREST OR FEES IN ACCORDANCE WITH
SUCH FINANCIAL INSTITUTION'S LENDING POLICY AND THE TERMS OF THE  UNDER-
LYING LOAN AGREEMENT.
  (E)  THE LOAN AGREEMENT SHALL REQUIRE THAT THE AFFECTED SMALL BUSINESS
REPAY THE LOAN IN FULL NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER  THE
END  OF THE GRACE PERIOD BY MAKING AT LEAST THREE, AND NO MORE THAN SIX,
EQUAL INSTALLMENT PAYMENTS. THE LOAN AGREEMENT SHALL NOT CONTAIN  A  FEE
OR PENALTY FOR THE PREPAYMENT OR EARLY PAYMENT OF THE LOAN.
  (F)  THE  ELIGIBLE FINANCIAL INSTITUTION SHALL OFFER CREDIT COUNSELING
SERVICES OR REFER SUCH SMALL BUSINESS TO NONPROFIT CREDIT COUNSELORS.
  4. ADDITIONAL LOANS. AN AFFECTED SMALL BUSINESS  WHO  HAS  RECEIVED  A
LOAN  PURSUANT  TO THIS SECTION MAY APPLY TO THE SAME ELIGIBLE FINANCIAL
INSTITUTION FOR AN ADDITIONAL LOAN FOR EACH THIRTY-DAY PERIOD SUCH SMALL
BUSINESS REMAINS AN AFFECTED SMALL BUSINESS, PROVIDED NO AFFECTED  SMALL
BUSINESS MAY RECEIVE MORE THAN THREE LOANS UNDER THE PROGRAM. EACH ADDI-
TIONAL  LOAN  SHALL BE MADE IN ACCORDANCE WITH SUBDIVISION THREE OF THIS
SECTION.
  5. COLLECTION OF LOANS. (A) ON AND AFTER ONE HUNDRED EIGHTY DAYS  FROM
THE  END OF THE GRACE PERIOD, AN ELIGIBLE FINANCIAL INSTITUTION THAT HAS
MADE A GOOD-FAITH EFFORT TO COLLECT THE  OUTSTANDING  PRINCIPAL  FROM  A
LOAN  ISSUED PURSUANT TO THIS SECTION MAY MAKE A CLAIM TO THE DEPARTMENT
FOR RECOVERY OF AN AMOUNT EQUAL TO THE OUTSTANDING  PRINCIPAL  FOR  SUCH
LOAN.  PRIOR TO THE DEPARTMENT'S APPROVING AND SUBMITTING A CLAIM TO THE

S. 2520--B                          3

COMPTROLLER, SUCH ELIGIBLE FINANCIAL INSTITUTION  SHALL  DEMONSTRATE  TO
THE  SATISFACTION OF THE DEPARTMENT THAT THE ELIGIBLE FINANCIAL INSTITU-
TION HAS MADE A GOOD-FAITH EFFORT TO COLLECT THE  OUTSTANDING  PRINCIPAL
FROM THE ELIGIBLE SMALL BUSINESS EMPLOYEE IN ACCORDANCE WITH SUCH FINAN-
CIAL  INSTITUTION'S LOAN SERVICING AND COLLECTION POLICIES. UPON PAYMENT
OF A CLAIM, THE LOAN SHALL BE ASSIGNED TO THE STATE, AND THE  DEPARTMENT
SHALL HAVE THE RIGHT TO CONTINUE COLLECTION EFFORTS ON THE LOAN.
  (B)  THE  DEPARTMENT  SHALL  MAINTAIN RECORDS IN THE REGULAR COURSE OF
ADMINISTRATION OF THE LOAN GUARANTEE  PROGRAM,  INCLUDING  A  RECORD  OF
LOANS  ISSUED AND OF PAYMENTS MADE TO HONOR LOAN GUARANTEES ISSUED UNDER
THIS SECTION. THE DEPARTMENT SHALL  REGULARLY  REVIEW  SUCH  RECORDS  TO
DETERMINE TOTAL LOANS ISSUED AND IDENTIFY DUPLICATIVE APPLICATIONS.
  (C)  THE  DEPARTMENT  MAY TERMINATE ANY LOAN GUARANTEE IF THE ELIGIBLE
FINANCIAL INSTITUTION MISREPRESENTS ANY INFORMATION  PERTAINING  TO  THE
GUARANTEE  OR  FAILS  TO COMPLY WITH ANY REQUIREMENTS OF THIS SECTION IN
CONNECTION WITH THE GUARANTEE OF THE UNDERLYING LOAN.
  (D) IF THE AMOUNTS EXPENDED TO HONOR LOAN GUARANTEES UNDER THE PROGRAM
EXCEED TEN PERCENT OF TOTAL LOANS ISSUED,  THE  DEPARTMENT  SHALL  IMME-
DIATELY  CEASE  TO  APPROVE  CLAIMS AND SHALL NOTIFY THE COMPTROLLER AND
EACH ELIGIBLE FINANCIAL INSTITUTION OF THE TOTAL AMOUNT OF PAYMENTS MADE
AND THAT THE DEPARTMENT HAS CEASED HONORING LOAN GUARANTEES.
  (E) ANY INTEREST DEFERRED OR NOT CHARGED  RELATED  TO  A  LOAN  ISSUED
PURSUANT  TO  THIS SECTION SHALL BE EXEMPT FROM ALL STATE TAXES THAT MAY
BE APPLICABLE TO SUCH INTEREST AMOUNTS AS THEY  RELATE  TO  AN  AFFECTED
SMALL  BUSINESS.    ELIGIBLE  FINANCIAL  INSTITUTIONS  SHALL DISCLOSE TO
AFFECTED SMALL BUSINESS BORROWERS IN THE SIGNED AFFIDAVIT OR LOAN  DOCU-
MENTS THAT THERE MAY BE FEDERAL TAX CONSEQUENCES TO THE PROGRAM LOANS.
  (F)  NO  NEW  LOAN  APPLICATIONS  SHALL BE SUBMITTED UNDER THE PROGRAM
AFTER THE STATE OF EMERGENCY ENDS. THE PROGRAM  SHALL  EXPIRE  UPON  THE
REPAYMENT  OF  ALL  LOANS  MADE  UNDER THE PROGRAM AND, FOR ALL LOANS IN
DEFAULT, THE REPAYMENT OF CLAIMS MADE UNDER THE PROGRAM, OR  THE  CESSA-
TION OF NEW CLAIM APPROVALS UNDER SUBDIVISION (D) OF THIS SECTION.
  § 2. This act shall take effect immediately.

Co-Sponsors

S2520C (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Financial Services
Versions Introduced in 2021-2022 Legislative Session:: S3406

S2520C (ACTIVE) - Summary

Establishes the state of emergency small business and not-for-profit organization loan program.

S2520C (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S2520C

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the executive law, in relation to establishing the state
of emergency small business and not-for-profit organization loan program

 
PURPOSE:

This bill seeks to establish the state of emergency small business loan
program

 
SUMMARY OF PROVISIONS:

Section 1 defines relevant terms

Section 2 establishes the state of emergency small business and not-for-
profit organization loan program

Section 3 establishes the eligibility requirements for the program

Section 4 establishes procedure for small businesses to apply for addi-
tional loans within the program for each additional thirty days they
remain affected by the state of emergency

Section 5 establishes the procedures for loan collection Section 6 sets
the effective date

 
JUSTIFICATION:

With the outbreak of the coronavirus, many of New York's small busi-
nesses and not-for-profit organizations have been put into precarious
financial positions. Workers are forced to take sick days, customers are
staying home, and supply costs are skyrocketing. For small businesses
and not-for-profit organizations which already run on tight profit
margins this can be catastrophic. This bill seeks to create a loan
program that would allow eligible financial institutions to make loans
to small businesses with no interest during a 90 day grace period or 180
days following the grace period.  With the urgency that goes along with
combatting the coronavirus, it is vital to protect New York's small
businesses during this state of emergency.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately.

S2520C (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2520--C

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            January 25, 2019
                               ___________

Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks  --  recommitted  to
  the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted  to  said committee -- committee discharged, bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to amend the executive law, in relation to establishing the state
  of emergency  small  business  and  not-for-profit  organization  loan
  program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The executive law is amended by adding a new  section  29-l
to read as follows:
  § 29-L. STATE OF EMERGENCY SMALL BUSINESS AND NOT-FOR-PROFIT ORGANIZA-
TION  LOAN PROGRAM. 1. DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOW-
ING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "AFFECTED BUSINESS OR ORGANIZATION"  MEANS  AND  INCLUDES  BOTH  A
SMALL  BUSINESS  AND  A SMALL NOT-FOR-PROFIT ORGANIZATION LOCATED WITHIN
THIS STATE DURING A STATE OF EMERGENCY;
  (B) "BANK" MEANS A BANK AS SUCH TERM IS DEFINED IN SUBDIVISION ONE  OF
SECTION TWO OF THE BANKING LAW;
  (C)  "CREDIT  UNION"  MEANS  A CREDIT UNION AS SUCH TERM IS DEFINED IN
SUBDIVISION NINE OF SECTION TWO OF THE BANKING LAW;
  (D) "DEPARTMENT" MEANS THE DEPARTMENT OF FINANCIAL SERVICES;
  (E) "ELIGIBLE FINANCIAL INSTITUTION" MEANS A BANK OR CREDIT UNION THAT
HAS A PHYSICAL PRESENCE IN THIS STATE AND IS IN GOOD STANDING;
  (F) "GRACE PERIOD" MEANS THE NINETY-DAY PERIOD AFTER A STATE OF  EMER-
GENCY IS OVER;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08858-07-0

S. 2520--C                          2

  (G) "SMALL BUSINESS" MEANS A BUSINESS WITH NOT MORE THAN FIFTY EMPLOY-
EES;
  (H)  "SMALL NOT-FOR-PROFIT ORGANIZATION" MEANS A NOT-FOR-PROFIT ORGAN-
IZATION WITH NOT MORE THAN FIFTY EMPLOYEES; AND
  (I) "STATE OF EMERGENCY" MEANS THE PERIOD BEGINNING WITH A DECLARATION
BY THE GOVERNOR THAT A STATE OF EMERGENCY EXISTS.
  2. STATE OF EMERGENCY SMALL BUSINESS AND  NOT-FOR-PROFIT  ORGANIZATION
LOAN  PROGRAM.  (A) THE DEPARTMENT SHALL ADMINISTER A STATE OF EMERGENCY
SMALL BUSINESS AND NOT-FOR-PROFIT LOAN PROGRAM TO GUARANTEE  THE  REPAY-
MENT  OF  LOANS MADE BY AN ELIGIBLE FINANCIAL INSTITUTION TO AN ELIGIBLE
AFFECTED BUSINESS OR ORGANIZATION PURSUANT TO THIS SECTION.  SUBJECT  TO
THE  CESSATION OF NEW CLAIM APPROVALS UNDER PARAGRAPH (D) OF SUBDIVISION
FIVE OF THIS SECTION, THE DEPARTMENT SHALL SUBMIT ALL APPROVED CLAIMS TO
THE COMPTROLLER, WHO SHALL PAY FROM THE GENERAL FUND ANY AND ALL  CLAIMS
SUBMITTED BY THE DEPARTMENT.
  (B)  ANY  BANK  OR CREDIT UNION MAY APPLY TO THE DEPARTMENT TO PARTIC-
IPATE IN THE LOAN GUARANTEE PROGRAM. NOT LATER  THAN  ONE  BUSINESS  DAY
AFTER  RECEIVING THE APPLICATION, THE DEPARTMENT SHALL DETERMINE WHETHER
THE FINANCIAL INSTITUTION IS AN ELIGIBLE FINANCIAL INSTITUTION AND IMME-
DIATELY NOTIFY THE BANK OR  CREDIT  UNION  OF  SUCH  DETERMINATION.  ANY
ELIGIBLE FINANCIAL INSTITUTION MAY MAKE LOANS TO AFFECTED BUSINESSES AND
ORGANIZATIONS IN ACCORDANCE WITH THIS SECTION.
  (C)  EACH ELIGIBLE FINANCIAL INSTITUTION THAT MAKES A LOAN PURSUANT TO
THIS SECTION, SHALL NOTIFY THE DEPARTMENT IN WRITING NOT LATER THAN  ONE
BUSINESS  DAY  AFTER  MAKING THE LOAN, SPECIFYING SUCH INFORMATION ABOUT
THE BORROWER AS THE DEPARTMENT MAY REQUEST.
  3. LOAN ELIGIBILITY. AN ELIGIBLE FINANCIAL INSTITUTION MAY MAKE A LOAN
TO AN AFFECTED BUSINESS OR ORGANIZATION, PROVIDED:
  (A) THE AFFECTED BUSINESS OR ORGANIZATION HAS PROVIDED TO THE ELIGIBLE
FINANCIAL INSTITUTION PROOF SATISFACTORY TO SUCH INSTITUTION  THAT  SUCH
AFFECTED  BUSINESS  OR ORGANIZATION IS AN AFFECTED BUSINESS OR ORGANIZA-
TION LOCATED WITHIN THE STATE OF NEW YORK.
  (B) THE AMOUNT OF THE LOAN SHALL NOT EXCEED FIVE THOUSAND DOLLARS.
  (C) THE LOAN IS MADE IN ACCORDANCE WITH THE ELIGIBLE FINANCIAL  INSTI-
TUTION'S  UNDERWRITING  POLICY  AND STANDARDS, PROVIDED FURTHER THAT THE
AFFECTED BUSINESS OR ORGANIZATION'S  CREDITWORTHINESS  SHALL  NOT  BE  A
FACTOR USED FOR THE PURPOSES OF DETERMINING ELIGIBILITY.
  (D)  THE  LOAN  AGREEMENT  SHALL  NOT (I) REQUIRE REPAYMENT DURING THE
GRACE PERIOD, OR (II) CHARGE INTEREST ON THE PRINCIPAL AMOUNT BEFORE  OR
DURING  THE  GRACE PERIOD OR FOR ONE HUNDRED EIGHTY DAYS AFTER THE GRACE
PERIOD, PROVIDED AFTER SUCH ONE HUNDRED EIGHTY-DAY PERIOD, THE  ELIGIBLE
FINANCIAL  INSTITUTION  MAY  CHARGE  INTEREST OR FEES IN ACCORDANCE WITH
SUCH FINANCIAL INSTITUTION'S LENDING POLICY AND THE TERMS OF THE  UNDER-
LYING LOAN AGREEMENT.
  (E)  THE  LOAN  AGREEMENT  SHALL REQUIRE THAT THE AFFECTED BUSINESS OR
ORGANIZATION REPAY THE LOAN IN FULL NOT LATER THAN  ONE  HUNDRED  EIGHTY
DAYS  AFTER THE END OF THE GRACE PERIOD BY MAKING AT LEAST THREE, AND NO
MORE THAN SIX, EQUAL INSTALLMENT PAYMENTS. THE LOAN AGREEMENT SHALL  NOT
CONTAIN  A  FEE  OR  PENALTY  FOR THE PREPAYMENT OR EARLY PAYMENT OF THE
LOAN.
  (F) THE ELIGIBLE FINANCIAL INSTITUTION SHALL OFFER  CREDIT  COUNSELING
SERVICES  OR  REFER  SUCH AFFECTED BUSINESS OR ORGANIZATION TO NONPROFIT
CREDIT COUNSELORS.
  4. ADDITIONAL LOANS. AN AFFECTED  BUSINESS  OR  ORGANIZATION  WHO  HAS
RECEIVED  A LOAN PURSUANT TO THIS SECTION MAY APPLY TO THE SAME ELIGIBLE
FINANCIAL INSTITUTION FOR AN ADDITIONAL LOAN FOR EACH THIRTY-DAY  PERIOD

S. 2520--C                          3

SUCH  SMALL  BUSINESS OR NOT-FOR-PROFIT ORGANIZATION REMAINS AN AFFECTED
BUSINESS OR ORGANIZATION, PROVIDED NO AFFECTED BUSINESS OR  ORGANIZATION
MAY  RECEIVE  MORE  THAN  THREE LOANS UNDER THE PROGRAM. EACH ADDITIONAL
LOAN SHALL BE MADE IN ACCORDANCE WITH SUBDIVISION THREE OF THIS SECTION.
  5.  COLLECTION OF LOANS. (A) ON AND AFTER ONE HUNDRED EIGHTY DAYS FROM
THE END OF THE GRACE PERIOD, AN ELIGIBLE FINANCIAL INSTITUTION THAT  HAS
MADE  A  GOOD-FAITH  EFFORT  TO COLLECT THE OUTSTANDING PRINCIPAL FROM A
LOAN ISSUED PURSUANT TO THIS SECTION MAY MAKE A CLAIM TO THE  DEPARTMENT
FOR  RECOVERY  OF  AN AMOUNT EQUAL TO THE OUTSTANDING PRINCIPAL FOR SUCH
LOAN. PRIOR TO THE DEPARTMENT'S APPROVING AND SUBMITTING A CLAIM TO  THE
COMPTROLLER,  SUCH  ELIGIBLE  FINANCIAL INSTITUTION SHALL DEMONSTRATE TO
THE SATISFACTION OF THE DEPARTMENT THAT THE ELIGIBLE FINANCIAL  INSTITU-
TION  HAS  MADE A GOOD-FAITH EFFORT TO COLLECT THE OUTSTANDING PRINCIPAL
FROM THE ELIGIBLE SMALL BUSINESS OR NOT-FOR-PROFIT ORGANIZATION EMPLOYEE
IN ACCORDANCE WITH  SUCH  FINANCIAL  INSTITUTION'S  LOAN  SERVICING  AND
COLLECTION POLICIES. UPON PAYMENT OF A CLAIM, THE LOAN SHALL BE ASSIGNED
TO  THE  STATE,  AND  THE  DEPARTMENT  SHALL  HAVE THE RIGHT TO CONTINUE
COLLECTION EFFORTS ON THE LOAN.
  (B) THE DEPARTMENT SHALL MAINTAIN RECORDS IN  THE  REGULAR  COURSE  OF
ADMINISTRATION  OF  THE  LOAN  GUARANTEE  PROGRAM, INCLUDING A RECORD OF
LOANS ISSUED AND OF PAYMENTS MADE TO HONOR LOAN GUARANTEES ISSUED  UNDER
THIS  SECTION.  THE  DEPARTMENT  SHALL  REGULARLY REVIEW SUCH RECORDS TO
DETERMINE TOTAL LOANS ISSUED AND IDENTIFY DUPLICATIVE APPLICATIONS.
  (C) THE DEPARTMENT MAY TERMINATE ANY LOAN GUARANTEE  IF  THE  ELIGIBLE
FINANCIAL  INSTITUTION  MISREPRESENTS  ANY INFORMATION PERTAINING TO THE
GUARANTEE OR FAILS TO COMPLY WITH ANY REQUIREMENTS OF  THIS  SECTION  IN
CONNECTION WITH THE GUARANTEE OF THE UNDERLYING LOAN.
  (D) IF THE AMOUNTS EXPENDED TO HONOR LOAN GUARANTEES UNDER THE PROGRAM
EXCEED  TEN  PERCENT  OF  TOTAL LOANS ISSUED, THE DEPARTMENT SHALL IMME-
DIATELY CEASE TO APPROVE CLAIMS AND SHALL  NOTIFY  THE  COMPTROLLER  AND
EACH ELIGIBLE FINANCIAL INSTITUTION OF THE TOTAL AMOUNT OF PAYMENTS MADE
AND THAT THE DEPARTMENT HAS CEASED HONORING LOAN GUARANTEES.
  (E)  ANY  INTEREST  DEFERRED  OR  NOT CHARGED RELATED TO A LOAN ISSUED
PURSUANT TO THIS SECTION SHALL BE EXEMPT FROM ALL STATE TAXES  THAT  MAY
BE  APPLICABLE  TO  SUCH  INTEREST AMOUNTS AS THEY RELATE TO AN AFFECTED
BUSINESS  OR  ORGANIZATION.    ELIGIBLE  FINANCIAL  INSTITUTIONS   SHALL
DISCLOSE  TO  AFFECTED  BUSINESS OR ORGANIZATION BORROWERS IN THE SIGNED
AFFIDAVIT OR LOAN DOCUMENTS THAT THERE MAY BE FEDERAL  TAX  CONSEQUENCES
TO THE PROGRAM LOANS.
  (F)  NO  NEW  LOAN  APPLICATIONS  SHALL BE SUBMITTED UNDER THE PROGRAM
AFTER THE STATE OF EMERGENCY ENDS. THE PROGRAM  SHALL  EXPIRE  UPON  THE
REPAYMENT  OF  ALL  LOANS  MADE  UNDER THE PROGRAM AND, FOR ALL LOANS IN
DEFAULT, THE REPAYMENT OF CLAIMS MADE UNDER THE PROGRAM, OR  THE  CESSA-
TION OF NEW CLAIM APPROVALS UNDER PARAGRAPH (D) OF THIS SUBDIVISION.
  § 2. This act shall take effect immediately.

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The New York State Senate

senate Bill S2520

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Archive: Last Bill Status - In Senate Committee Banks Committee

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S2520A - Details

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S2520B - Details

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S2520B - Sponsor Memo

S2520B - Bill Text download pdf

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S2520C (ACTIVE) - Details

S2520C (ACTIVE) - Summary

S2520C (ACTIVE) - Sponsor Memo

S2520C (ACTIVE) - Bill Text download pdf

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senate Bill S2520

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Sponsored By

Pete Harckham

Archive: Last Bill Status - In Senate Committee Banks Committee

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S2520A - Details

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S2520A - Bill Text download pdf

S2520B - Details

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S2520B - Bill Text download pdf

Co-Sponsors

Jen Metzger

Luis R. Sepúlveda

S2520C (ACTIVE) - Details

S2520C (ACTIVE) - Summary

S2520C (ACTIVE) - Sponsor Memo

S2520C (ACTIVE) - Bill Text download pdf

Comments