S T A T E O F N E W Y O R K
________________________________________________________________________
3208
2021-2022 Regular Sessions
I N A S S E M B L Y
January 22, 2021
___________
Introduced by M. of A. McDONALD -- Multi-Sponsored by -- M. of A. SAYEGH
-- read once and referred to the Committee on Judiciary
AN ACT to amend the general municipal law, the public housing law, the
state finance law and chapter 585 of the laws of 1939, relating to the
rate of interest to be paid by certain public corporations upon judg-
ments and accrued claims, in relation to interest rates on judgments
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 1 and 2 of section 3-a of the general munici-
pal law, subdivision 1 as amended by chapter 4 of the laws of 1991, and
subdivision 2 as amended by chapter 777 of the laws of 1978, are amended
to read as follows:
1. Except as provided in subdivisions two, four and five of this
section, the rate of interest to be paid by a municipal corporation upon
any judgment or accrued claim against the municipal corporation shall
[not exceed] BE CALCULATED AT A RATE EQUAL TO THE WEEKLY AVERAGE ONE
YEAR CONSTANT MATURITY TREASURY YIELD, AS PUBLISHED BY THE BOARD OF
GOVERNORS OF THE FEDERAL RESERVE SYSTEM, FOR THE CALENDAR WEEK PRECEDING
THE DATE OF THE ENTRY OF THE JUDGMENT AWARDING DAMAGES. IN NO EVENT,
HOWEVER, SHALL AN AUTHORITY PAY A RATE OF INTEREST ON ANY JUDGMENT OR
ACCRUED CLAIM EXCEEDING nine per centum per annum.
2. The rate of interest to be paid upon any judgment or accrued claim
against the municipal corporation arising out of condemnation
proceedings or action to recover damages for wrongful death shall [not
exceed] BE CALCULATED AT A RATE EQUAL TO THE WEEKLY AVERAGE ONE YEAR
CONSTANT MATURITY TREASURY YIELD, AS PUBLISHED BY THE BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM, FOR THE CALENDAR WEEK PRECEDING THE DATE
OF THE ENTRY OF THE JUDGMENT AWARDING DAMAGES. IN NO EVENT, HOWEVER,
SHALL AN AUTHORITY PAY A RATE OF INTEREST ON ANY JUDGMENT OR ACCRUED
CLAIM EXCEEDING six per centum per annum.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01863-01-1
A. 3208 2
§ 2. Subdivision 5 of section 157 of the public housing law, as
amended by chapter 681 of the laws of 1982, is amended to read as
follows:
5. The rate of interest to be paid by an authority upon any judgment
or accrued claim against the authority shall [not exceed] BE CALCULATED
AT A RATE EQUAL TO THE WEEKLY AVERAGE ONE YEAR CONSTANT MATURITY TREAS-
URY YIELD, AS PUBLISHED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM, FOR THE CALENDAR WEEK PRECEDING THE DATE OF THE ENTRY OF THE
JUDGMENT AWARDING DAMAGES. IN NO EVENT, HOWEVER, SHALL AN AUTHORITY PAY
A RATE OF INTEREST ON ANY JUDGMENT OR ACCRUED CLAIM EXCEEDING nine per
centum per annum.
§ 3. Section 16 of the state finance law, as amended by chapter 681 of
the laws of 1982, is amended to read as follows:
§ 16. Rate of interest on judgments and accrued claims against the
state. The rate of interest to be paid by the state upon any judgment
or accrued claim against the state shall [not exceed] BE CALCULATED AT A
RATE EQUAL TO THE WEEKLY AVERAGE ONE YEAR CONSTANT MATURITY TREASURY
YIELD, AS PUBLISHED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM, FOR THE CALENDAR WEEK PRECEDING THE DATE OF THE ENTRY OF THE
JUDGMENT AWARDING DAMAGES. IN NO EVENT, HOWEVER, SHALL AN AUTHORITY PAY
A RATE OF INTEREST ON ANY JUDGMENT OR ACCRUED CLAIM EXCEEDING nine per
centum per annum.
§ 4. Section 1 of chapter 585 of the laws of 1939, relating to the
rate of interest to be paid by certain public corporations upon judg-
ments and accrued claims, as amended by chapter 681 of the laws of 1982,
is amended to read as follows:
Section 1. The rate of interest to be paid by a public corporation
upon any judgment or accrued claim against the public corporation shall
[not exceed] BE CALCULATED AT A RATE EQUAL TO THE WEEKLY AVERAGE ONE
YEAR CONSTANT MATURITY TREASURY YIELD, AS PUBLISHED BY THE BOARD OF
GOVERNORS OF THE FEDERAL RESERVE SYSTEM, FOR THE CALENDAR WEEK PRECEDING
THE DATE OF THE ENTRY OF THE JUDGMENT AWARDING DAMAGES. IN NO EVENT,
HOWEVER, SHALL AN AUTHORITY PAY A RATE OF INTEREST ON ANY JUDGMENT OR
ACCRUED CLAIM EXCEEDING nine per centum per annum. The term "public
corporation" as used in this act shall mean and include every corpo-
ration created for the construction of public improvements, other than a
county, city, town, village, school district or fire district or an
improvement district established in a town or towns, and possessing both
the power to contract indebtedness and the power to collect rentals,
charges, rates or fees for services or facilities furnished or supplied.
§ 5. This act shall take effect on the first of April next succeeding
the date upon which it shall have become a law.