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This entry was published on 2020-04-17
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SECTION 55
No title
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 55. 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) address budgetary pressures to the state
arising from anticipated shortfalls and deferrals in the state's fiscal
2021 financial plan receipts, thereby requiring that certain fiscal
management authorization measures 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 67-b of the state finance law, during the state's 2021
fiscal year, the dormitory authority of the state of New York and the
urban development corporation are authorized to: (i) enter into
commitments with financial institutions for the establishment of one or
more line of credit facilities and other similar revolving financing
arrangements not in excess of three billion dollars in aggregate
principal amount outstanding at any one time; (ii) draw, at one or more
times at the direction of the director of the budget, upon such line of
credit facilities and provide to the state the amounts so drawn for the
purpose of assisting the state to temporarily finance its budgetary
needs; and (iii) secure repayment of such draws under such line of
credit facilities with a service contract of the state, which payment
obligation thereunder 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 moneys are available and that no
liability shall be incurred by the state beyond the moneys available for
such purpose, and that such payment obligation is subject to annual
appropriation by the legislature. Any line of credit facility agreements
entered by the dormitory authority of the state of New York and/or the
urban development corporation with financial institutions pursuant to
this section may contain such provisions that the dormitory authority of
the state of New York and/or the urban development corporation deem
necessary or desirable for the establishment of such credit facilities.
The maximum original term of any line of credit facility shall be one
year from the date of incurrence; provided however that any such line of
credit facility may be extended, renewed or refinanced for up to two
additional one year terms. If on or before the maturity date of the
original term of such line of credit facility or any renewal or
extension term thereof, the director of the division of the budget shall
determine that all or a portion of any outstanding line of credit
facility shall be refinanced on a long-term basis, the dormitory
authority of the state of New York and/or the urban development
corporation are authorized to refinance such line of credit facility
with state personal income tax revenue bonds and/or state service
contract bonds in one or more series in an aggregate principal amount
not to exceed the then outstanding principal amount of such line of
credit facility and any accrued interest thereon, plus an amount
necessary to finance one or more debt service reserve funds and to pay
costs of issuance of such state personal income tax revenue bonds and/or
state service contract bonds.

(c) 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 amounts provided by the dormitory
authority of the state of New York and/or the urban development
corporation to the state from draws made on any line of credit facility
authorized by paragraph (b) of this subdivision.

(d) 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 indebtedness incurred in connection with any line of credit
facility authorized by paragraph (b) of this subdivision and any
extensions or renewals thereof, or for any state personal income tax
revenue bonds and/or state service contract bonds issued to refinance
any of the foregoing, or for any service contract entered into in
connection with any line of credit facility, all in accordance with this
section.

(e) Notwithstanding any other provision of law to the contrary, for so
long as any such line of credit facility shall remain outstanding, the
restrictions, limitations and requirements contained in article 5-B of
the state finance law shall not apply. In addition, such restrictions,
limitations and requirements shall not apply to any state personal
income tax revenue bonds and/or state service contract bonds issued to
refund such line of credit facility for so long as such state personal
income tax revenue bonds and/or state service contract bonds shall
remain outstanding, including any state-supported debt issued to refund
such state personal income tax revenue bonds and/or state service
contract bonds. Any such line of credit facility, including any
extensions or renewals thereof, and any state personal income tax
revenue bonds and/or state service contract bonds issued to refund such
line of credit facilities shall be deemed to be incurred or issued for
an authorized purpose within the meaning of subdivision 2 of section
68-a of the state finance law. As applicable, all of the provisions of
the state finance law, 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 any issuance of state personal income tax revenue bonds and/or
state service contract bonds issued to refinance any line of credit
facility authorized by paragraph (b) of this subdivision. The issuance
of any state personal income tax revenue bonds and/or state service
contract bonds issued to refinance any such line of credit facility
shall further be subject to the approval of the director of the division
of the budget.

(f) Any draws on a line of credit facility authorized by paragraph (b)
of this subdivision shall only be made and the service contract entered
into in connection with such line of credit facilities shall only be
executed and delivered to the dormitory authority of the state of New
York and/or the urban development corporation if the legislature has
enacted sufficient appropriation authority to provide for the repayment
of all amounts expected to be drawn by the dormitory authority of the
state of New York and/or the urban development corporation under such
line of credit facility during fiscal year 2021. Amounts repaid under a
line of credit facility during fiscal year 2021 may be re-borrowed
during such fiscal year provided that the legislature has enacted
sufficient appropriation authority to provide for the repayment of any
such re-borrowed amounts. Neither the dormitory authority of the state
of New York nor the urban development corporation shall have any
financial liability for the repayment of draws under any line of credit
facility authorized by paragraph (b) of this subdivision beyond the
moneys received for such purpose under the service contract authorized
by paragraph (g) of this subdivision.

(g) The director of the budget is authorized to enter into one or more
service contracts or other agreements, none of which shall exceed 30
years in duration, with the dormitory authority of the state of New York
and/or the urban development corporation, upon such terms and conditions
as the director of the budget and dormitory authority of the state of
New York and/or the urban development corporation shall agree. Any
service contract or other agreements entered into pursuant to this
paragraph shall provide for state commitments to provide annually to the
dormitory authority of the state of New York and/or the urban
development corporation a sum or sums, upon such terms and conditions as
shall be deemed appropriate by the director of the budget and the
dormitory authority of the state of New York and/or the urban
development corporation, to fund the payment of amounts due under any
line of credit facility and any state personal income tax revenue bonds
and/or state service contract bonds issued to refinance such line of
credit facility. Any such service contract or other agreements shall
provide that the obligation of the director of the budget or of the
state to fund or to pay the amounts therein provided for 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
moneys are available and that no liability shall be incurred by the
state beyond the moneys available for such purpose, and that such
obligation is subject to annual appropriation by the legislature.

(h) Any service contract or other agreements entered into pursuant to
paragraph (g) of this subdivision or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority of the
state of New York and/or the urban development corporation as security
for any related payment obligation it may have with one or more
financial institutions in connection with a line of credit facility
authorized by paragraph (b) of this subdivision.

(i) In addition to the foregoing, the director of the budget, the
dormitory authority of the state of New York and the urban development
corporation shall each be authorized to enter into such other agreements
and to take or cause to be taken such additional actions as are
necessary or desirable to effectuate the purposes of the transactions
contemplated by a line of credit facility and the related service
contract.

(j) No later than seven days after a draw occurs on the line of credit
facility, the director of the budget shall provide notification of such
draw to the president pro tempore of the senate and the speaker of the
assembly.

(k) The authorization, establishment and use by the dormitory
authority of the state of New York and the urban development corporation
of a line of credit facility authorized by paragraph (b) of this
subdivision, and the execution, sale and issuance of state personal
income tax revenue bonds and/or state service contract bonds to
refinance any such line of credit facility shall not be deemed an
action, as such term is defined in article 8 of the environmental
conservation law, for the purposes of such article. Such exemption shall
be strictly limited in its application to such financing activities of
the dormitory authority of the state of New York and the urban
development corporation undertaken pursuant to this section and does not
exempt any other entity from compliance with such article.

(l) Nothing contained in this section shall be construed to limit the
abilities of the director of the budget and the authorized issuers of
state-supported debt to perform their respective obligations on existing
service contracts or other agreements entered into prior to April 1,
2020.

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 act 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.