Assembly Bill A9676

Signed By Governor
2011-2012 Legislative Session

Relates to limitations on insurers that may provide certain surety bonds by changing the claims-paying ability rating needed for eligibility

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Archive: Last Bill Status Via S6483 - Signed by Governor

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2011-A9676 (ACTIVE) - Details

See Senate Version of this Bill:
S6483
Law Section:
Local Finance Law
Laws Affected:
Amd ยง58.00, Loc Fin L

2011-A9676 (ACTIVE) - Summary

Relates to limitations on insurers that may provide certain surety bonds by changing the claims-paying ability rating needed for eligibility.

2011-A9676 (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9676

                          I N  A S S E M B L Y

                             March 23, 2012
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on Local Governments

AN ACT to amend the local finance law, in  relation  to  limitations  on
  insurers that may provide certain surety bonds

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 3 of paragraph c of section 58.00 of the  local
finance  law,  as amended by chapter 386 of the laws of 2010, is amended
to read as follows:
  3. A requirement that as a condition precedent to the consideration of
his or her bid, each bidder shall deposit  with  such  official  as  the
agency  in  charge  of  the sale may designate, a certified or cashier's
check drawn upon an incorporated bank or trust company to the  order  of
the  municipality, school district or district corporation or such offi-
cial, for the amount specified in the notice, but in no event less  than
one-half  of  one       per centum of the amount of bonds to be bid for.
Such notice may also provide that, in lieu of a certified  or  cashier's
check,  bidders  may furnish as security cash in such amount remitted by
wire transfer to an account specified in the notice or an eligible sure-
ty bond or an eligible letter of credit, approved by such official as to
form, sufficiency,  and  manner  of  execution.  For  purposes  of  this
section,  "eligible surety bond" shall mean a bond executed by an insur-
ance company authorized to do business in this state, the  claims-paying
ability  of which is rated in ONE OF the THREE highest rating [category]
CATEGORIES by at  least  [two]  ONE  nationally  recognized  statistical
rating  [organizations]  ORGANIZATION;  and  "eligible letter of credit"
shall mean an irrevocable letter of credit issued in favor of the  muni-
cipality,  school  district  or  district corporation, for a term not to
exceed ninety days by a bank, as that term is defined in section two  of
the  banking  law, whose commercial paper and other unsecured short-term
debt obligations (or, in the case of  a  bank  which  is  the  principal
subsidiary  of  a  holding  company,  whose holding company's commercial
paper and other unsecured short-term debt obligations) are rated in  one
of the three highest rating categories (based on the credit of such bank

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

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