NY Ins L § 7433-A (2021)
2021 New York Laws ISC - Insurance Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers 7433-A - Loan to Workers' Compensation Security Fund.

§  7433-a.  Loan  to  workers'  compensation  security  fund. (a) Upon certification by the superintendent that  further  sums,  not  exceeding seventy  million  dollars in the aggregate, are required by the workers' compensation security fund to meet its obligations  and  accomplish  the purposes  of  article  six-A  of  the  workers'  compensation  law,  the superintendent is hereby authorized to make one or more  loans  to  such fund  from the assets of one or more liquidation estates in such amounts as shall be specified  by  the  superintendent.  For  purposes  of  this section,  "liquidation  estate"  shall  mean  the  assets  of an insurer against which an order of liquidation has  been  commenced  pursuant  to this  article.  Such  sums, not exceeding seventy million dollars in the aggregate, shall be a liability of the  workers'  compensation  security fund.  (b)  Notwithstanding  any  law, rule or regulation to the contrary, in the event that a complaint is filed in a court of competent jurisdiction concerning the superintendent's authority to loan monies to the workers' compensation security fund pursuant to this section, the  superintendent shall  oppose  such  complaint,  and  appeal  any adverse rulings of the court. In  the  event  a  court  of  competent  jurisdiction  issues  an injunction that expressly prohibits the superintendent from making loans under  this section, and such injunction has been unsuccessfully opposed in court by the superintendent, the superintendent  may  accomplish  the purposes  of  this  section through one or more loans from the assets of the  property/casualty  insurance  security   fund   to   the   workers' compensation  security  fund.  Such  loans  shall be made subject to the conditions set  forth  in  this  section,  including  the  certification requirement  set  forth  in subsection (c) of this section and shall not occur more frequently than once every two months, and not be greater  in amount  than  that  needed to sustain the workers' compensation security fund for the two month period.  (c) Upon written certification by the superintendent that  the  assets from  the  liquidation estates are otherwise unavailable, loans may also be made under the terms specified in this section from the assets of the property/casualty insurance security fund. Loans made pursuant  to  this subsection  shall  not  exceed  the sum of thirty million dollars in the aggregate. Such loans shall not occur more frequently  than  once  every two months, and not be greater in amount than that needed to sustain the workers'  compensation  security  fund  for the two month period. Monies from such loans shall not be used to pay administrative  expenses.  Each loan  must  be  accompanied by such certification, which shall set forth the specific reason or reasons why the assets of the liquidation estates are unavailable. The certification shall be provided  to  the  temporary president  of  the senate, the speaker of the assembly, the chair of the senate finance committee and the chair of the assembly  ways  and  means committee.  (d)  Any  loan  pursuant  to  this section shall be a liability of the workers' compensation security fund, and shall be repaid pursuant  to  a plan  of  repayment  to  be  prescribed  by  the  superintendent  which, notwithstanding any other law, may provide, at  the  discretion  of  the superintendent,  for  an increase in the level of payments into the fund provided for in subdivision two of section  one  hundred  eight  of  the workers'  compensation  law upon written notice by the superintendent to the governor and both houses of the legislature of the necessity of  any such  increase,  including  the  reasons therefor. Such plan shall among other things require: (i)  that  any  loan  be  made  upon  commercially reasonable  terms  and in accordance with the superintendent's fiduciary responsibilities, and (ii) immediate repayment, from the assets  of  the liquidation estates as referred to in subsection (a) of this section, of  any  loans  from  the  property/casualty  insurance  security  fund made pursuant to subsection (b) or (c) of this section upon sufficient monies becoming available from  loans  from  liquidation  estates  pursuant  to subsection  (a)  of  this  section,  and  (iii)  that  one-fourth of the payments collected pursuant to section one hundred eight of the workers' compensation law be  dedicated  to  the  repayment  of  any  loans  made pursuant to this section.