N.Y. STF Law § 179-V — New York Code / Act STF / Article 11-B / Section 179-V
Interest payments
Status: in_force

§ 179-v. Interest payments. 1. A not-for-profit organization shall be\nentitled to interest payments pursuant to this section: (a) on those\nmoneys that would be due under the terms of the contract or renewal\ncontract from the scheduled commencement date or the date the\norganization begins to provide services, whichever is later, until the\ndate the payment is made under the contract or renewal contract; or (b)\nif a not-for-profit organization borrows funds to provide services\npursuant to a written directive by a state agency, provided however that\na not-for-profit organization may only receive interest payments on such\nfunds when such not-for-profit organization has received a written\ndirective but has been denied payment pursuant to section one hundred\nseventy-nine-u of this article or did not obtain a loan from the\nnot-for-profit short-term revolving loan fund.\n  2. Such organizations shall receive such interest payments at a rate\nequal to the rate set by the commissioner of taxation and finance for\ncorporate taxes pursuant to paragraph one of subsection (e) of section\none thousand ninety-six of the tax law. In order for a state agency to\napprove reimbursement of a not-for-profit organization at a rate other\nthan the interest rate stated in this section the not-for-profit\norganization shall submit documentation indicating the rate at which\nsuch funds were borrowed, the lender of such funds and any other\ninformation requested by the state agency, attorney general or the\ncomptroller. The comptroller may disallow such portions of the interest\nthat the comptroller deems unreasonable.\n  3. Any interest payments made pursuant to subdivisions one and two of\nthis section shall be made from appropriations for state operations that\nare available for the administrative programs of the state agency which\ncontracted with the not-for-profit organization. In no event shall\ninterest payments be made from amounts appropriated for program\npurposes.\n  4. The interest payment shall not reduce the amount of money that\notherwise will be payable to the not-for-profit organization under the\nterms of the relevant contract.\n  5. No interest payments shall be made if the not-for-profit\norganization receives an advance payment pursuant to section one hundred\nseventy-nine-u of this article; provided, however, that if the contract\nis not fully executed at the end of the period covered by such advance\npayment, the not-for-profit organization may be eligible for interest\npayments in respect of services performed after such period.\n  6. Should the attorney general or the comptroller disapprove a\ncontract or renewal contract, the provisions of this section shall not\nbe applicable.\n  7. a. If the timeframes for processing a contract are met and the\nstate agency is liable for interest due to a retroactive contract start\ndate, the state agency and the not-for-profit organization may mutually\nagree to waive any interest owed to the not-for-profit organization\nunder the provisions of this article. Waiver of interest shall not be a\nprerequisite to execution of such contract. If interest is so waived,\nthe state agency shall immediately provide the office of the state\ncomptroller, division of the budget and the not-for-profit organization\nwith the written waiver of interest agreement signed by the\nnot-for-profit organization and documentation (i) showing that the\napplicable timeframes set forth in section one hundred seventy-nine-s or\none hundred seventy-nine-t of this article have been met, and (ii)\nexplaining the reason for a retroactive contract start date.\n  b. Not more than twenty days after the receipt of such written waiver\nof interest agreement and required documentation, the comptroller shall\ndetermine whether the waiver of interest is warranted. The comptroller\nshall thereupon inform such state agency, the division of the budget,\nand such not-for-profit organization of such determination. If such\ndetermination concludes that a waiver of interest is unwarranted, such\nstate agency shall then immediately submit for the comptroller's\napproval a voucher requesting the payment of interest to such\nnot-for-profit organization as required by this section. If such voucher\nis not received within thirty days after the comptroller's\ndetermination, the comptroller shall assess the amount of unpaid\ninterest in the manner prescribed by this section.\n