Section 55-b - Line of credit facilities1. Findings and declaration of need. (a) The state of New York finds and determines that shortfalls in the state's financial plan arising from adverse economic and fiscal events and risks, disasters and emergencies, including but not limited to, public health emergencies, may occur or develop, and that the financial impact of such events, risks, disasters and emergencies could be prudently mitigated by certain fiscal management authorization measures being legislatively authorized and established.(b) Definitions. When used in this subdivision: (i) "Line of credit facility" shall mean one or more revolving credit commitment arrangements between the dormitory authority of the state of New York and/or the urban development corporation with an individual financial institution or a consortium of financial institutions for the purpose of assisting the state to temporarily finance its budgetary needs.(ii) "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, 2024 to: (i) enter into one or more line of credit facilities not in excess of one 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 principal amounts of such draws for each fiscal year shall not exceed one billion dollars; and (iii) secure repayment of all draws under such line of credit facilities and the payment of related expenses and fees, which repayment and payment obligations 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 into 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, 2024, and provided further that any such line of credit facility whose term extends beyond March 31, 2024 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, 2024, as well as the payment of 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, for so long as any amounts under a line of credit facility authorized by paragraph (c) of this subdivision are due and payable, such amounts shall not constitute nor be treated as state-supported debt for purposes of article 5-B 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 line of credit facility established in accordance with the authorization contained in paragraph (c) of this subdivision.(f) 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 and to pay the 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 and the payment of the 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 and the payment of the related expenses and fees beyond the moneys received for such purpose under any service contract or other agreement 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 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.(h) Any service contract or other agreement 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 (c) 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 or other agreement, subject to the limitations and restrictions set forth in this subdivision.(j) 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.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.N.Y. Urban Development Corporation Act Law § 55-b
Amended by New York Laws 2023, ch. 56,Sec. PP-50, eff. 5/3/2023, op. 4/1/2023.Added by New York Laws 2022, ch. 56,Sec. FFF-55, eff. 4/9/2022, op. 4/1/2022.