N.Y. UDA Law § 54-B — New York Code / Act UDA / Section 54-B
Personal income tax notes
Status: in_force

§ 54-b. Personal income tax notes. 1. Findings and declaration of\nneed.  (a) The state of New York finds and determines that shortfalls in\nthe state's financial plan arising from adverse economic and fiscal\nevents and risks, disasters and emergencies, including but not limited\nto, public health emergencies, may occur or develop, and that the\nfinancial impact of such events, risks, disasters and emergencies could\nbe prudently mitigated by certain fiscal management authorization\nmeasures being legislatively authorized and established.\n  (b) Notwithstanding any other provision of law to the contrary,\nincluding, specifically, the provisions of chapter 59 of the laws of\n2000 and section sixty-seven-b of the state finance law, the dormitory\nauthority of the state of New York and the corporation are hereby\nauthorized to issue personal income tax revenue anticipation notes with\na maturity no later than March 31, 2027, in one or more series in an\naggregate principal amount for each fiscal year not to exceed three\nbillion dollars, and to pay costs of issuance of such notes, for the\npurpose of temporarily financing budgetary needs of the state. Such\npurpose shall constitute an authorized purpose under subdivision two of\nsection sixty-eight-a of the state finance law for all purposes of\narticle five-C of the state finance law with respect to the notes\nauthorized by this paragraph. Such notes shall not be renewed, extended\nor refunded. For so long as any notes authorized by this paragraph shall\nbe outstanding, the restrictions, limitations and requirements contained\nin article five-B of the state finance law shall not apply.\n  (c) Such notes of the dormitory authority and the corporation shall\nnot be a debt of the state, and the state shall not be liable thereon,\nnor shall they be payable out of any funds other than those appropriated\nby the state to the dormitory authority and the corporation for debt\nservice and related expenses pursuant to any financing agreement\ndescribed in paragraph (d) of this subdivision, and such notes shall\ncontain on the face thereof a statement to such effect. Such notes shall\nbe issued on a subordinate basis and shall be secured by subordinate\npayments from the revenue bond tax fund established pursuant to section\nninety-two-z of the state finance law. Except for purposes of complying\nwith the internal revenue code, any interest income earned on note\nproceeds shall only be used to pay debt service on such notes. All of\nthe provisions of the state finance law, the dormitory authority act and\nthis act relating to notes and bonds which are not inconsistent with the\nprovisions of this section shall apply to notes authorized by paragraph\n(b) of this subdivision, including but not limited to the power to\nestablish adequate reserves therefor, subject to the final maturity\nlimitation for such notes set forth in paragraph (b) of this\nsubdivision. The issuance of any notes authorized by paragraph (b) of\nthis subdivision shall further be subject to the approval of the\ndirector of the division of the budget.\n  (d) Notwithstanding any other law, rule or regulation to the contrary\nbut subject to the limitations contained in paragraph (b) of this\nsubdivision, in order to assist the dormitory authority and the\ncorporation in undertaking the administration and financing of such\nnotes, the director of the budget is hereby authorized to supplement any\nexisting financing agreement with the dormitory authority and/or the\ncorporation, or to enter into a new financing agreement with the\ndormitory authority and/or the corporation, upon such terms and\nconditions as the director of the budget and the dormitory authority and\nthe corporation shall agree, so as to provide to the dormitory authority\nand the corporation, a sum not to exceed the debt service payments and\nrelated expenses required for any notes issued pursuant to paragraph (b)\nof this subdivision. Any financing agreement supplemented or entered\ninto pursuant to this section shall provide that the obligation of the\nstate to pay the amount therein provided shall not constitute a debt of\nthe state within the meaning of any constitutional or statutory\nprovision and shall be deemed executory only to the extent of monies\navailable and that no liability shall be incurred by the state beyond\nthe monies available for such purposes, subject to annual appropriation\nby the legislature. Any such financing agreement or any payments made or\nto be made thereunder may be assigned or pledged by the dormitory\nauthority and the corporation as security for the notes authorized by\nparagraph (b) of this subdivision.\n  (e) Notwithstanding any other provision of law to the contrary,\nincluding specifically the provisions of subdivision 3 of section 67-b\nof the state finance law, no capital work or purpose shall be required\nfor any issuance of personal income tax revenue anticipation notes\nissued by the dormitory authority and the corporation pursuant to\nparagraph (b) of this subdivision.\n  (f) Notwithstanding any other law, rule, or regulation to the\ncontrary, the comptroller is hereby authorized and directed to deposit\nto the credit of the general fund, all proceeds of personal income tax\nrevenue anticipation notes issued by the dormitory authority and the New\nYork state urban development corporation pursuant to paragraph (b) of\nthis subdivision.\n  2. Effect of inconsistent provisions. Insofar as the provisions of\nthis section are inconsistent with the provisions of any other law,\ngeneral, special, or local, the provisions of this section shall be\ncontrolling.\n  3. Severability; construction. The provisions of this section shall be\nseverable, and if the application of any clause, sentence, paragraph,\nsubdivision, section or part of this section to any person or\ncircumstance shall be adjudged by any court of competent jurisdiction to\nbe invalid, such judgment shall not necessarily affect, impair or\ninvalidate the application of any such clause, sentence, paragraph,\nsubdivision, section, part of this section or remainder thereof, as the\ncase may be, to any other person or circumstance, but shall be confined\nin its operation to the clause, sentence, paragraph, subdivision,\nsection or part thereof directly involved in the controversy in which\nsuch judgment shall have been rendered.\n