S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5290
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2023
                                ___________
 
 Introduced  by M. of A. GONZALEZ-ROJAS, DAVILA -- read once and referred
   to the Committee on Judiciary
 
 AN ACT to amend the judiciary law, in relation to the purchase of claims
   by corporations or collection  agencies  and  to  certain  instruments
   calling for payment of a monetary obligation by a foreign state

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 2 of section 489 of the judiciary law, as added
 by chapter 394 of the laws of 2004, is amended to read as follows:
   2. Except as set forth in  subdivision  three  of  this  section,  the
 provisions  of  subdivision  one  of this section shall not apply to any
 assignment, purchase or transfer hereafter made of one  or  more  bonds,
 promissory  notes,  bills  of  exchange,  book debts, or other things in
 action, or any claims or demands, if such assignment, purchase or trans-
 fer included bonds, promissory notes,  bills  of  exchange  and/or  book
 debts,  issued  by  or  enforceable  against  the  same ELIGIBLE obligor
 (whether or not also issued by or enforceable against any other ELIGIBLE
 obligors), having an aggregate purchase price of at least  five  hundred
 thousand dollars, in which event the exemption provided by this subdivi-
 sion  shall  apply as well to all other items, including other things in
 action, claims and demands, included in  such  assignment,  purchase  or
 transfer  (but  only  if  such  other items are issued by or enforceable
 against the same ELIGIBLE obligor, or relate to or arise  in  connection
 with  such  bonds, promissory notes, bills of exchange and/or book debts
 or the issuance thereof).   FOR THE PURPOSES OF  THIS  SUBDIVISION,  THE
 TERM  "ELIGIBLE  OBLIGOR"  MEANS AN OBLIGOR THAT QUALIFIES AS A "DEBTOR"
 WITHIN THE MEANING OF TITLE 11 OF THE UNITED  STATES  CODE  (THE  UNITED
 STATES BANKRUPTCY CODE).
   §  2.  Section  489  of  the  judiciary law is amended by adding a new
 subdivision 4 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08948-01-3
 A. 5290                             2
              

 
   4. FOR PURPOSES OF SUBDIVISION ONE  OF  THIS  SECTION,  AN  ASSIGNEE'S
 INTENT AND PURPOSE IN TAKING AN ASSIGNMENT OF A CLAIM AGAINST AN OBLIGOR
 THAT IS NOT AN ELIGIBLE OBLIGOR MAY BE INFERRED FROM: (A) THE ASSIGNEE'S
 (OR   ITS  AFFILIATES')  HISTORY  OF  ACQUIRING  CLAIMS  AT  SIGNIFICANT
 DISCOUNTS  FROM  THEIR FACE VALUES AND BRINGING LEGAL ACTIONS TO ENFORCE
 THOSE CLAIMS, (B) THE ASSIGNEE (OR  ANY  PREDECESSOR  IN  TITLE  TO  THE
 CLAIM)  HAVING  REFUSED TO PARTICIPATE IN A CONSENSUAL SETTLEMENT OF THE
 CLAIM IF HOLDERS OF NOT LESS THAN TWO-THIRDS (BY OUTSTANDING AMOUNT)  OF
 SIMILAR  CLAIMS  AGAINST  THE  OBLIGOR HAD AGREED TO ACCEPT THE TERMS OF
 THAT SETTLEMENT, AND (C) SUCH OTHER FACTS OR CIRCUMSTANCES  AS  A  COURT
 MAY  FIND  RELEVANT  IN  ASSESSING  THE ASSIGNEE'S INTENT AND PURPOSE IN
 TAKING THE ASSIGNMENT.
   § 3. The judiciary law is amended by adding a  new  section  489-a  to
 read as follows:
   § 489-A. SOVEREIGN DEBT MODIFICATIONS. 1. EVERY INSTRUMENT GOVERNED BY
 THE  LAW  OF THE STATE OF NEW YORK CALLING FOR THE PAYMENT OF A MONETARY
 OBLIGATION BY A FOREIGN STATE  (AS  DEFINED  IN  28  U.S.C.  §  1603(A))
 IMPOSES A DUTY ON THE HOLDER TO PARTICIPATE IN GOOD FAITH IN A QUALIFIED
 RESTRUCTURING AFFECTING SUCH INSTRUMENT.
   2.  FOR  PURPOSES OF THIS SECTION, A "QUALIFIED RESTRUCTURING" MEANS A
 MODIFICATION OF THE TERMS OF SOME OR ALL OF THE UNSECURED  DEBT  INSTRU-
 MENTS  ISSUED  BY A FOREIGN STATE WHOSE DEBT HAS BEEN ASSESSED AS UNSUS-
 TAINABLE BY THE INTERNATIONAL MONETARY  FUND  WITHIN  THE  PRIOR  TWELVE
 MONTHS  PROVIDED THAT THE MODIFICATION IS ACCEPTED BY THE HOLDERS OF NOT
 LESS THAN TWO-THIRDS IN AMOUNT AND MORE THAN ONE-HALF IN NUMBER  OF  THE
 DEBT  INSTRUMENTS  AFFECTED BY THE MODIFICATION (EXCLUDING, FOR PURPOSES
 OF VOTING, ANY INSTRUMENTS THAT ARE OWNED  OR  CONTROLLED,  DIRECTLY  OR
 INDIRECTLY, BY THE FOREIGN STATE OR ANY OF ITS AGENCIES OR INSTRUMENTAL-
 ITIES).
   § 4. This act shall take effect immediately.