2023 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.