Senate Bill S4393

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4393
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2021
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT  to  amend the urban development corporation act, in relation to
   establishing the New York state taxi medallion debt relief program act

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York state taxi medallion debt relief program act".
   § 2. Section 1 of chapter 174 of the laws of  1968,  constituting  the
 New York state urban development corporation act, is amended by adding a
 new section 57 to read as follows:
   §  57.  NEW  YORK STATE TAXI MEDALLION DEBT RELIEF PROGRAM. 1. FOR THE
 PURPOSES OF THIS SECTION:
   (A) "FINANCIAL  INSTITUTION"  SHALL  MEAN  ANY  BANK,  TRUST  COMPANY,
 SAVINGS  BANK,  SAVINGS  AND LOAN ASSOCIATION, OR COOPERATIVE BANK CHAR-
 TERED BY THE STATE OR ANY NATIONAL BANKING ASSOCIATION, FEDERAL  SAVINGS
 AND  LOAN ASSOCIATION OR FEDERAL SAVINGS BANK, ANY COMMUNITY DEVELOPMENT
 FINANCIAL INSTITUTION OR COMMUNITY-BASED LENDING  ORGANIZATION,  OR  ANY
 STATE  OR  FEDERALLY  CHARTERED  CREDIT  UNION,  OR ANY OTHER FEDERAL OR
 STATE-CHARTERED ENTITY WHOSE  PRINCIPAL  BUSINESS  IS  THE  ORIGINATING,
 PURCHASING,  OR  SERVICING  OF  COMMERCIAL  FINANCIAL  OBLIGATIONS OF OR
 RELATING TO MEDALLIONS.
   (B) "PARTICIPATING FINANCIAL INSTITUTION"  SHALL  MEAN  ANY  FINANCIAL
 INSTITUTION  PARTICIPATING  IN  THE  NEW  YORK STATE TAXI MEDALLION DEBT
 RELIEF PROGRAM.
   (C) "MEDALLION" SHALL HAVE THE SAME  MEANING  AS  DEFINED  BY  SECTION
 TWELVE HUNDRED EIGHTY OF THE TAX LAW.
   (D)  "MEDALLION  DRIVER-OWNER"  SHALL  MEAN ANY INDIVIDUAL OR GROUP OF
 INDIVIDUALS WHO OWN, OPERATE, AND DRIVE A SINGLE MEDALLION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06608-02-1
              

 S. 4393                             2
 
   2. (A) THE CORPORATION, OR ITS AGENT, SHALL ESTABLISH A TAXI MEDALLION
 DEBT RELIEF PROGRAM TO PROVIDE A LOAN LOSS RESERVE TO  ASSIST  MEDALLION
 DRIVER-OWNERS IN REFINANCING EXISTING LOANS WITH FINANCIAL INSTITUTIONS.
   (B)(I)  ASSISTANCE  UNDER THE TAXI MEDALLION DEBT RELIEF PROGRAM SHALL
 BE PROVIDED BY THE CORPORATION OR ITS AGENT, WHO SHALL BE AUTHORIZED  TO
 ASSIST  MEDALLION  DRIVER-OWNERS  THAT  OTHERWISE  FIND  IT DIFFICULT TO
 OBTAIN REGULAR OR SUFFICIENT BANK  FINANCING  OR  RESTRUCTURING  OF  ANY
 EXISTING LOAN.
   (II)  ANY  FINANCIAL  INSTITUTION  DESIRING  TO BECOME A PARTICIPATING
 FINANCIAL INSTITUTION SHALL EXECUTE AN AGREEMENT IN  SUCH  FORM  AS  THE
 CORPORATION  OR  ITS AGENT SHALL PRESCRIBE. SUCH AGREEMENT SHALL CONTAIN
 THE TERMS AND PROVISIONS SET FORTH IN PARAGRAPH (C) OF THIS  SUBDIVISION
 AND  SUCH  OTHER  TERMS  AND  PROVISIONS AS THE CORPORATION OR ITS AGENT
 SHALL DEEM NECESSARY OR APPROPRIATE.
   (C) A PARTICIPATING FINANCIAL INSTITUTION  REFINANCING  A  LOAN  TO  A
 MEDALLION DRIVER-OWNER PURSUANT TO THIS SECTION SHALL:
   (I)  REDUCE THE BALANCE OF THE OUTSTANDING LOAN TO ONE HUNDRED TWENTY-
 FIVE THOUSAND DOLLARS OF DEBT ON SUCH ORIGINAL LOAN;
   (II) CERTIFY TO THE CORPORATION OR ITS AGENT IN SUCH FASHION AND  WITH
 SUCH  SUPPORTING  INFORMATION  AS  THE  CORPORATION  OR  ITS AGENT SHALL
 PRESCRIBE, IN ADDITION TO ANY MEDALLION LOANS THAT IT HAS  RESTRUCTURED;
 AND
   (III)  UPON  REFINANCING,  EXTEND THE DATE OF MATURITY ON THE ORIGINAL
 LOAN BY AT LEAST TWENTY YEARS AND THE INTEREST PAYMENTS SHALL BE REDUCED
 TO FOUR PERCENT.
   (D) THE CORPORATION OR ITS AGENT SHALL, AFTER  SUCH  CERTIFICATION  AS
 PROVIDED  BY  SUBPARAGRAPH  (II)  OF  PARAGRAPH (C) OF THIS SUBDIVISION,
 TRANSFER TO THE PARTICIPATING FINANCIAL INSTITUTION AN AMOUNT  EQUAL  TO
 THE  TOTAL CONTRIBUTIONS OF SUCH PARTICIPATING FINANCIAL INSTITUTION AND
 THE MEDALLION OWNER OR SUCH ADDITIONAL AMOUNT UP TO ONE HUNDRED  TWENTY-
 FIVE  THOUSAND DOLLARS OF SUCH CONTRIBUTIONS AS DETERMINED BY THE CORPO-
 RATION OR ITS AGENT, PROVIDED HOWEVER THAT PRIOR TO SUCH  TRANSFER  SUCH
 PARTICIPATING FINANCIAL INSTITUTION MUST FIRST EXHAUST ALL OTHER OPTIONS
 FOR  RECOVERING  THE  OUTSTANDING  LOAN  AMOUNT  FROM THE LOAN DOCUMENTS
 INCLUDING, BUT NOT LIMITED TO THOSE OPTIONS AVAILABLE UNDER ARTICLE NINE
 OF THE UNIFORM COMMERCIAL CODE.
   (E) ONCE A  PARTICIPATING  FINANCIAL  INSTITUTION  HAS  EXHAUSTED  ITS
 RECOVERY  EFFORTS UNDER A MEDALLION LOAN AND SECURITY AGREEMENT, IF SUCH
 RECOVERIES AMOUNT TO LESS THAN ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS,
 SUCH PARTICIPATING FINANCIAL INSTITUTION MAY DRAW UPON THE FUNDS IN  THE
 LOAN  LOSS RESERVE ESTABLISHED BY THIS SECTION TO REPAY SUCH LOAN IN THE
 AMOUNT EQUAL TO THE DIFFERENCE BETWEEN ONE HUNDRED TWENTY-FIVE  THOUSAND
 DOLLARS AND THE AMOUNT OTHERWISE RECOVERED.
   3.  ADMINISTRATION  OF THE TAXI MEDALLION DEBT RELIEF PROGRAM. (A) THE
 CORPORATION IS HEREBY AUTHORIZED TO:
   (I) ENTER INTO CONTRACTS  WITH  THIRD  PARTY  FINANCIAL  INSTITUTIONS,
 INCLUDING  BUT  NOT  LIMITED TO THE NEW YORK BUSINESS DEVELOPMENT CORPO-
 RATION ESTABLISHED UNDER ARTICLE FIVE-A OF THE BANKING LAW,  TO  ACT  AS
 AGENT  OF  THE  CORPORATION  WITH  RESPECT  TO THE ADMINISTRATION OF THE
 PROGRAM, PROVIDED THAT THE SELECTION OF A THIRD PARTY OTHER THAN THE NEW
 YORK BUSINESS DEVELOPMENT  CORPORATION  SHALL  BE  MADE  PURSUANT  TO  A
 COMPETITIVE PROCESS;
   (II)  CONDUCT  AN  ANNUAL  REVIEW AND ASSESSMENT OF THE PERFORMANCE OF
 SUCH THIRD PARTY IN ITS CAPACITY AS AGENT FOR THE CORPORATION, TO DETER-
 MINE WHETHER THE CONTRACT REFERENCED IN SUBPARAGRAPH (I) OF  THIS  PARA-
 GRAPH  SHOULD  BE RENEWED FOR AN ADDITIONAL TWO YEAR PERIOD. SUCH REVIEW

 S. 4393                             3
 
 SHALL BE BASED ON WHETHER SUCH THIRD PARTY AGENT HAS SATISFACTORILY  MET
 THE TERMS AND CONDITIONS OF SUCH CONTRACT.  IF THE THIRD PARTY AGENT HAS
 NOT  SATISFACTORILY  MET  THE TERMS AND CONDITIONS OF SUCH CONTRACT THEY
 SHALL  BE  BARRED  FROM ENTERING INTO OTHER CONTRACTS WITH THE STATE FOR
 FIVE YEARS;
   (III) ALLOW SUCH THIRD PARTY AGENT THE OPPORTUNITY TO TAKE  CORRECTIVE
 ACTION  WHERE  AN  INITIAL DETERMINATION HAS FOUND THAT SUCH THIRD PARTY
 AGENT'S PERFORMANCE IS UNSATISFACTORY;
   (IV) SUBMIT TO THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT
 OF THE SENATE ITS RECOMMENDATION TO TERMINATE  THE  CONTRACT  WITH  SUCH
 THIRD  PARTY  AGENT  AND TRANSFER SUCH CONTRACT TO ANOTHER AGENT WHERE A
 FINAL REVIEW  OF  THE  THIRD  PARTY  AGENT'S  PERFORMANCE  CONTINUES  TO
 CONCLUDE  THAT  SUCH  THIRD PARTY AGENT'S PERFORMANCE IS UNSATISFACTORY;
 AND
   (V) PROMULGATE RULES AND REGULATIONS WITH RESPECT TO  THE  IMPLEMENTA-
 TION  OF  THE TAXI MEDALLION DEBT RELIEF PROGRAM AND ANY OTHER RULES AND
 REGULATIONS NECESSARY TO FULFILL THE PURPOSES  OF  THIS  SECTION,  WHICH
 SHALL  BE CONSISTENT WITH THE PROGRAM PLAN REQUIRED BY SUBDIVISION NINE-
 TEEN OF SECTION ONE HUNDRED OF THE ECONOMIC DEVELOPMENT LAW.
   (B) ANY CONTRACT ENTERED INTO PURSUANT TO SUBPARAGRAPH  (I)  OF  PARA-
 GRAPH (A) OF THIS SUBDIVISION SHALL:
   (I)  BE  FOR  A  PERIOD OF TWO YEARS AND SHALL BE RENEWED FOR AN ADDI-
 TIONAL TWO YEAR PERIOD SUBJECT TO THE REQUIREMENTS OF SUBPARAGRAPH  (II)
 OF PARAGRAPH (A) OF THIS SUBDIVISION; AND
   (II)  PROVIDE FOR COMPENSATION OF EXPENSES INCURRED BY THE THIRD PARTY
 AGENT IN CONNECTION WITH ITS  SERVICES  AS  AGENT  AND  FOR  SUCH  OTHER
 SERVICES  AS  THE  CORPORATION  MAY  DEEM APPROPRIATE INCLUDING, BUT NOT
 LIMITED TO, THE USE OF THE PREMISES, PERSONNEL, AND PERSONAL PROPERTY OF
 SUCH THIRD PARTY AGENT.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.