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This entry was published on 2021-04-23
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SECTION 55-A
Line of credit facilities; 2022
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 55-a. Line of credit facilities; 2022. 1. Findings and declaration
of need. (a) The state of New York finds and determines that the global
spread of the COVID-19 pandemic has had and is expected to continue to
have a significant adverse impact on the health and welfare of
individuals in the state as well as to the financial condition of the
state during the state's 2021 and 2022 fiscal years and beyond. The
anticipated shortfalls and deferrals in the state's financial plan
receipts caused by the COVID-19 pandemic has required the state, to
adopt policies, regulations and procedures that suspend various legal
requirements and address state budgetary pressures, some of which
require certain fiscal management authorization measures to be
legislatively authorized and established.

(b) Definitions. When used in this subdivision "related expenses and
fees" shall mean interest costs, commitment fees and other costs,
expenses and fees incurred in connection with a line of credit facility
and/or a service contract or other agreement of the state securing such
line of credit facility that contractually obligates the state to pay
debt service subject to an appropriation.

(c) 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, the dormitory authority
of the state of New York and the urban development corporation are
authorized until March 31, 2022 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 two billion dollars in aggregate principal amount; (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; provided, however, that the total amount of
such draws shall not exceed two billion dollars; and (iii) secure
repayment of such draws under such line of credit facilities, together
with related expenses and fees, 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 term of any line of credit facility shall be one year from
the date of incurrence; provided however that no draw on any such line
of credit facility shall occur after March 31, 2022, and provided
further that any such line of credit facility whose term extends beyond
March 31, 2022, shall be supported by sufficient appropriation authority
enacted by the legislature that provides for the repayment of all
amounts drawn and remaining unpaid as of March 31, 2022, together with
related expenses and fees incurred and to become due and payable by the
dormitory authority of the state of New York and/or the urban
development corporation.

(d) 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 (c) 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 indebtedness incurred in connection with any line of credit
facility authorized by paragraph (c) of this subdivision, or for any
service contract or other agreement entered into in connection with any
such line of credit facility, all in accordance with this section.

(f) 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. Any such line of credit facility
shall be deemed to be incurred or issued for (i) an authorized purpose
within the meaning of subdivision 2 of section 68-a of the state finance
law for all purposes of article 5-C of the state finance law and section
92-z of the state finance law, and/or (ii) an authorized purpose within
the meaning of subdivision 2 of section 69-m of the state finance law
for all purposes of article 5-F of the state finance law and section
92-h of the state finance law, as the case may be. 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 line of credit facility and other similar revolving
financing arrangement established in accordance with the authorization
contained in paragraph (c) of this subdivision.

(g) Each draw on a line of credit facility authorized by paragraph (c)
of this subdivision shall only be made if the service contract or other
agreement entered into in connection with such line of credit facility
is supported by sufficient appropriation authority enacted by the
legislature to repay the amount of the draw, together with related
expenses and fees to become due and payable. Amounts repaid under a line
of credit facility may be re-borrowed under the same or another line of
credit facility authorized by paragraph (c) of this subdivision provided
that the legislature has enacted sufficient appropriation authority that
provides for the repayment of any such re-borrowed amounts, together
with related expenses and fees to become due and payable. 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 (c) of
this subdivision beyond the moneys received for such purpose under any
service contract or other agreement authorized by paragraph (h) of this
subdivision.

(h) The director of the budget is authorized to enter into one or more
service contracts or other agreements, none of which shall exceed one
year 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 agreement 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 all amounts to become
due and payable under any line of credit facility. Any such service
contract or other agreement 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.

(i) Any service contract or other agreement entered into pursuant to
paragraph (h) 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 (c) of this subdivision.

(j) 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 or other agreement.

(k) No later than seven days after a draw occurs on a 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.

(l) 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 (c) of this
subdivision 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.

(m) Nothing contained in this section shall be construed to limit the
abilities of the director of the budget and the authorized issuers of
state personal income tax revenue bonds, state sales tax revenue bonds
or service contract bonds to perform their respective obligations with
respect to existing service contracts or other agreements.

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.