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SECTION 54
No title
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 54. 1. Findings and declaration of need. (a) The state of New York
finds and determines that the global spread of the COVID-19 coronavirus
disease is having and is expected to continue to have a significant
impact on the health and welfare of individuals in the state as well as
a significant financial impact on the state. The serious threat posed by
the COVID-19 coronavirus disease has caused governments, including the
state, to adopt policies, regulations and procedures to suspend various
legal requirements in order to (i) respond to and mitigate the impact of
the outbreak, and (ii) provide temporary relief to individuals,
including the deferral of the federal income tax payment deadline from
April 15, 2020 to a later date in the calendar year. The state of New
York further finds and determines that certain fiscal management
authorization measures should be authorized and established.

(b) Notwithstanding any other provision of law to the contrary,
including, specifically, the provisions of chapter 59 of the laws of
2000 and section sixty-seven-b of the state finance law, the dormitory
authority of the state of New York and the corporation are hereby
authorized to issue until December 31, 2020, notes with a maturity no
later than March 31, 2021, to be designated as personal income tax
revenue or bond anticipation notes, in one or more series in an
aggregate principal amount not to exceed eight billion dollars,
excluding notes issued to finance one or more debt service reserve
funds, to pay costs of issuance of such notes, and notes issued to
renew, refund or otherwise repay such notes previously issued, for the
purpose of temporarily financing budgetary needs of the state following
the federal government deferral of the federal income tax payment
deadline from April 15, 2020 to a later date in the calendar year. Such
purpose shall constitute an authorized purpose under subdivision two of
section sixty-eight-a of the state finance law for all purposes of
article five-C of the state finance law with respect to the notes,
renewal notes, refunding notes and any state personal income tax revenue
bonds issued to refinance any notes, renewal notes, refunding notes
authorized by this paragraph. On or before their maturity, such notes
may be renewed or refunded once with renewal or refunding notes for an
additional period not to exceed one year from the date of renewal or
refunding. If on or before the maturity date of such notes or such
renewal or refunding notes, the director of the division of the budget
shall determine that all or a portion of such notes or such renewal or
refunding notes shall be refinanced on a long term basis, such notes or
such renewal or refunding notes may be refinanced with state personal
income tax revenue bonds in one or more series in an aggregate principal
amount not to exceed the then outstanding principal amount of such notes
or such renewal or refunding notes plus an amount necessary to finance
one or more debt service reserve funds and to pay costs of issuance of
such refunding bonds, notwithstanding any other provision of law to the
contrary, including, specifically, the provisions of chapter fifty-nine
of the laws of two thousand and section sixty-seven-b of the state
finance law. For so long as any notes, renewal or refunding notes or
such refunding bonds authorized by this paragraph shall remain
outstanding, including any state-supported debt issued to refinance the
refunding bonds authorized by this paragraph, the restrictions,
limitations and requirements contained in article five-B of the state
finance law shall not apply.

(c) Such notes, renewal or refunding notes and refunding bonds of the
dormitory authority and the corporation shall not be a debt of the
state, and the state shall not be liable thereon, nor shall they be
payable out of any funds other than those appropriated by the state to
the dormitory authority and the corporation for debt service and related
expenses pursuant to any financing agreement described in paragraph (d)
of this subdivision, and such notes, renewal or refunding notes and
refunding bonds shall contain on the face thereof a statement to such
effect. Such notes, renewal or refunding notes and any refunding bonds
issued to refinance such notes and/or any renewal or refunding notes on
a subordinate basis shall be secured by subordinate payments from the
revenue bond tax fund established pursuant to section ninety-two-z of
the state finance law. Refunding bonds issued to refinance any such
notes and/or renewal or refunding notes on a parity basis with
outstanding state personal income tax revenue bonds shall be issued only
in accordance with the provisions of the applicable resolution of the
dormitory authority or the corporation authorizing the issuance of state
personal income tax revenue bonds and shall be secured by payments from
the revenue bond tax fund on a parity with such outstanding state
personal income tax revenue bonds. Except for purposes of complying with
the internal revenue code, any interest income earned on note proceeds
shall only be used to pay debt service on such notes. All of the
provisions of the dormitory authority act and the New York state urban
development corporation act relating to notes and bonds which are not
inconsistent with the provisions of this section shall apply to notes
and bonds authorized by paragraph (b) of this subdivision, including but
not limited to the power to establish adequate reserves therefor and to
issue renewal notes, refunding notes and refunding bonds, in any case
subject to the final maturity limitation for such notes set forth in
paragraph (b) of this subdivision. The issuance of any notes, renewal or
refunding notes and refunding bonds authorized by paragraph (b) of this
subdivision shall further be subject to the approval of the director of
the division of the budget.

(d) Notwithstanding any other law, rule or regulation to the contrary
but subject to the limitations contained in paragraph (b) of this
subdivision, in order to assist the dormitory authority and the
corporation in undertaking the administration and financing of such
notes, renewal or refunding notes and refunding bonds, the director of
the budget is hereby authorized to supplement any existing financing
agreement with the dormitory authority and the corporation, or to enter
into a new financing agreement with the dormitory authority and the
corporation, upon such terms and conditions as the director of the
budget and the dormitory authority and the corporation shall agree, so
as to annually provide to the dormitory authority and the corporation,
in the aggregate, a sum not to exceed the annual debt service payments
and related expenses required for any notes, renewal or refunding notes
and refunding bonds issued pursuant to this section. Any financing
agreement supplemented or entered into pursuant to this section shall
provide that the obligation of the state to pay the amount therein
provided shall not constitute a debt of the state within the meaning of
any constitutional or statutory provision and shall be deemed executory
only to the extent of monies available and that no liability shall be
incurred by the state beyond the monies available for such purposes,
subject to annual appropriation by the legislature. Any such financing
agreement or any payments made or to be made thereunder may be assigned
or pledged by the dormitory authority and the corporation as security
for the notes, renewal and refunding notes and refunding bonds
authorized by paragraph (b) of this subdivision.

(e) Notwithstanding any other provision of law to the contrary,
including specifically the provisions of subdivision 3 of section 67-b
of the state finance law, no capital work or purpose shall be required
for any issuance of personal income tax revenue or bond anticipation
notes, renewal or refunding notes or refunding bonds issued by the
dormitory authority and the corporation pursuant to this section.

(f) Notwithstanding any other law, rule, or regulation to the
contrary, the comptroller is hereby authorized and directed to deposit
to the credit of the general fund, all proceeds of personal income tax
revenue or bond anticipation notes issued by the dormitory authority and
the New York state urban development corporation pursuant to this
section.

2. Effect of inconsistent provisions. Insofar as the provisions of
this section are inconsistent with the provisions of any other law,
general, special, or local, the provisions of this section shall be
controlling.

3. Severability; construction. The provisions of this section shall be
severable, and if the application of any clause, sentence, paragraph,
subdivision, section or part of this section to any person or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not necessarily affect, impair or
invalidate the application of any such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be confined
in its operation to the clause, sentence, paragraph, subdivision,
section or part thereof directly involved in the controversy in which
such judgment shall have been rendered.