S T A T E   O F   N E W   Y O R K
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                                   6653
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 23, 2021
                                ___________
 
 Introduced  by M. of A. REYES -- read once and referred to the Committee
   on Economic Development
 
 AN ACT to amend the urban development corporation act,  in  relation  to
   establishing the New York state taxi medallion guaranty program act
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York state taxi medallion guaranty program act".
   §  2.  Section  1 of chapter 174 of the laws of 1968, constituting the
 New York state urban development corporation act, is amended by adding a
 new section 57 to read as follows:
   § 57. NEW YORK STATE TAXI  MEDALLION  GUARANTY  PROGRAM.  1.  FOR  THE
 PURPOSES OF THIS SECTION:
   (A)  "FINANCIAL  INSTITUTION"  SHALL  MEAN  ANY  BANK,  TRUST COMPANY,
 SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, OR  COOPERATIVE  BANK  CHAR-
 TERED  BY THE STATE OR ANY NATIONAL BANKING ASSOCIATION, FEDERAL SAVINGS
 AND LOAN ASSOCIATION OR FEDERAL SAVINGS BANK, ANY COMMUNITY  DEVELOPMENT
 FINANCIAL  INSTITUTION  OR  COMMUNITY-BASED LENDING ORGANIZATION, OR ANY
 STATE OR FEDERALLY CHARTERED CREDIT  UNION,  OR  ANY  OTHER  FEDERAL  OR
 STATE-CHARTERED  ENTITY  WHOSE  PRINCIPAL  BUSINESS  IS THE ORIGINATING,
 PURCHASING, OR SERVICING  OF  COMMERCIAL  FINANCIAL  OBLIGATIONS  OF  OR
 RELATING TO MEDALLIONS.
   (B)  "PARTICIPATING  FINANCIAL  INSTITUTION"  SHALL MEAN ANY FINANCIAL
 INSTITUTION PARTICIPATING IN THE NEW YORK STATE TAXI MEDALLION  GUARANTY
 PROGRAM.
   (C)  "MEDALLION"  SHALL  HAVE  THE  SAME MEANING AS DEFINED BY SECTION
 TWELVE HUNDRED EIGHTY OF THE TAX LAW.
   2. (A) THE CORPORATION, OR ITS AGENT, SHALL ESTABLISH A TAXI MEDALLION
 GUARANTY PROGRAM TO PROVIDE A LOAN  LOSS  RESERVE  TO  ASSIST  MEDALLION
 OWNERS  THAT  OTHERWISE FIND IT DIFFICULT TO OBTAIN REGULAR BANK FINANC-
 ING, REFINANCING, OR RESTRUCTURING OF ANY EXISTING LOAN.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06608-01-1

 A. 6653                             2
 
   (B)(I) ASSISTANCE UNDER THE TAXI MEDALLION GUARANTY PROGRAM  SHALL  BE
 PROVIDED  BY  THE  CORPORATION  OR ITS AGENT, WHO SHALL BE AUTHORIZED TO
 ASSIST SMALL BUSINESSES AND INDIVIDUALS THAT OTHERWISE FIND IT DIFFICULT
 TO OBTAIN REGULAR OR SUFFICIENT BANK FINANCING OR RESTRUCTURING  OF  ANY
 EXISTING LOAN.
   (II)  ANY  FINANCIAL  INSTITUTION  DESIRING  TO BECOME A PARTICIPATING
 FINANCIAL INSTITUTION SHALL EXECUTE AN AGREEMENT IN  SUCH  FORM  AS  THE
 CORPORATION  OR  ITS AGENT SHALL PRESCRIBE. SUCH AGREEMENT SHALL CONTAIN
 THE TERMS AND PROVISIONS SET FORTH IN PARAGRAPH (C) OF THIS  SUBDIVISION
 AND  SUCH  OTHER  TERMS  AND  PROVISIONS AS THE CORPORATION OR ITS AGENT
 SHALL DEEM NECESSARY OR APPROPRIATE.
   (C) A PARTICIPATING FINANCIAL INSTITUTION REFINANCING OR RESTRUCTURING
 A LOAN TO A SMALL BUSINESS PURSUANT TO THIS SECTION SHALL:
   (I) UPON REFINANCING OR RESTRUCTURING OF ANY LOAN,  FORGIVE  AT  LEAST
 ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS OF DEBT ON SUCH ORIGINAL LOAN;
   (II)  CERTIFY TO THE CORPORATION OR ITS AGENT IN SUCH FASHION AND WITH
 SUCH SUPPORTING INFORMATION  AS  THE  CORPORATION  OR  ITS  AGENT  SHALL
 PRESCRIBE,  IN ADDITION TO ANY MEDALLION LOANS THAT IT HAS RESTRUCTURED;
 AND
   (III) UPON REFINANCING OR RESTRUCTURING OF ANY LOAN, EXTEND  THE  DATE
 OF MATURITY ON THE ORIGINAL LOAN BY AT LEAST FOUR YEARS.
   (D)  THE  CORPORATION  OR ITS AGENT SHALL, AFTER SUCH CERTIFICATION AS
 PROVIDED BY SUBPARAGRAPH (II) OF  PARAGRAPH  (C)  OF  THIS  SUBDIVISION,
 TRANSFER  TO  THE PARTICIPATING FINANCIAL INSTITUTION AN AMOUNT EQUAL TO
 THE TOTAL CONTRIBUTIONS OF SUCH PARTICIPATING FINANCIAL INSTITUTION  AND
 THE  MEDALLION  OWNER OR SUCH ADDITIONAL AMOUNT UP TO ONE HUNDRED SEVEN-
 TY-FIVE THOUSAND DOLLARS OF SUCH  CONTRIBUTIONS  AS  DETERMINED  BY  THE
 CORPORATION  OR  ITS AGENT, PROVIDED HOWEVER THAT PRIOR TO SUCH TRANSFER
 SUCH PARTICIPATING FINANCIAL INSTITUTION MUST FIRST  EXHAUST  ALL  OTHER
 OPTIONS  FOR  RECOVERING THE OUTSTANDING LOAN AMOUNT FROM THE LOAN DOCU-
 MENTS INCLUDING, BUT NOT LIMITED TO THOSE OPTIONS AVAILABLE UNDER  ARTI-
 CLE NINE OF THE UNIFORM COMMERCIAL CODE.
   (E)  ONCE  A  PARTICIPATING  FINANCIAL  INSTITUTION  HAS EXHAUSTED ITS
 RECOVERY EFFORTS UNDER A MEDALLION LOAN AND SECURITY AGREEMENT, IF  SUCH
 RECOVERIES  AMOUNT  TO  LESS  THAN  ONE  HUNDRED  SEVENTY-FIVE  THOUSAND
 DOLLARS, SUCH PARTICIPATING FINANCIAL  INSTITUTION  MAY  DRAW  UPON  THE
 FUNDS IN THE LOAN LOSS RESERVE ESTABLISHED BY THIS SECTION TO REPAY SUCH
 LOAN  IN THE AMOUNT EQUAL TO THE DIFFERENCE BETWEEN ONE HUNDRED SEVENTY-
 FIVE THOUSAND DOLLARS AND THE AMOUNT OTHERWISE RECOVERED.
   3. ADMINISTRATION OF THE TAXI  MEDALLION  GUARANTY  PROGRAM.  (A)  THE
 CORPORATION IS HEREBY AUTHORIZED TO:
   (I)  ENTER  INTO  CONTRACTS  WITH  THIRD PARTY FINANCIAL INSTITUTIONS,
 INCLUDING BUT NOT LIMITED TO THE NEW YORK  BUSINESS  DEVELOPMENT  CORPO-
 RATION  ESTABLISHED  UNDER  ARTICLE FIVE-A OF THE BANKING LAW, TO ACT AS
 AGENT OF THE CORPORATION WITH  RESPECT  TO  THE  ADMINISTRATION  OF  THE
 PROGRAM, PROVIDED THAT THE SELECTION OF A THIRD PARTY OTHER THAN THE NEW
 YORK  BUSINESS  DEVELOPMENT  CORPORATION  SHALL  BE  MADE  PURSUANT TO A
 COMPETITIVE PROCESS;
   (II) CONDUCT AN ANNUAL REVIEW AND ASSESSMENT  OF  THE  PERFORMANCE  OF
 SUCH THIRD PARTY IN ITS CAPACITY AS AGENT FOR THE CORPORATION, TO DETER-
 MINE  WHETHER  THE CONTRACT REFERENCED IN SUBPARAGRAPH (I) OF THIS PARA-
 GRAPH SHOULD BE RENEWED FOR AN ADDITIONAL TWO YEAR PERIOD.  SUCH  REVIEW
 SHALL  BE BASED ON WHETHER SUCH THIRD PARTY AGENT HAS SATISFACTORILY MET
 THE TERMS AND CONDITIONS OF SUCH CONTRACT;

 A. 6653                             3
 
   (III) ALLOW SUCH THIRD PARTY AGENT THE OPPORTUNITY TO TAKE  CORRECTIVE
 ACTION  WHERE  AN  INITIAL DETERMINATION HAS FOUND THAT SUCH THIRD PARTY
 AGENT'S PERFORMANCE IS UNSATISFACTORY;
   (IV) SUBMIT TO THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT
 OF  THE  SENATE  ITS  RECOMMENDATION TO TERMINATE THE CONTRACT WITH SUCH
 THIRD PARTY AGENT AND TRANSFER SUCH CONTRACT TO ANOTHER  AGENT  WHERE  A
 FINAL  REVIEW  OF  THE  THIRD  PARTY  AGENT'S  PERFORMANCE  CONTINUES TO
 CONCLUDE THAT SUCH THIRD PARTY AGENT'S  PERFORMANCE  IS  UNSATISFACTORY;
 AND
   (V)  PROMULGATE  RULES AND REGULATIONS WITH RESPECT TO THE IMPLEMENTA-
 TION OF THE TAXI MEDALLION GUARANTY PROGRAM  AND  ANY  OTHER  RULES  AND
 REGULATIONS  NECESSARY  TO  FULFILL  THE PURPOSES OF THIS SECTION, WHICH
 SHALL BE CONSISTENT WITH THE PROGRAM PLAN REQUIRED BY SUBDIVISION  NINE-
 TEEN OF SECTION ONE HUNDRED OF THE ECONOMIC DEVELOPMENT LAW.
   (B)  ANY  CONTRACT  ENTERED INTO PURSUANT TO SUBPARAGRAPH (I) OF PARA-
 GRAPH (A) OF THIS SUBDIVISION SHALL:
   (I) BE FOR A PERIOD OF TWO YEARS AND SHALL BE  RENEWED  FOR  AN  ADDI-
 TIONAL  TWO YEAR PERIOD SUBJECT TO THE REQUIREMENTS OF SUBPARAGRAPH (II)
 OF PARAGRAPH (A) OF THIS SUBDIVISION; AND
   (II) PROVIDE FOR COMPENSATION OF EXPENSES INCURRED BY THE THIRD  PARTY
 AGENT  IN  CONNECTION  WITH  ITS  SERVICES  AS  AGENT AND FOR SUCH OTHER
 SERVICES AS THE CORPORATION MAY  DEEM  APPROPRIATE  INCLUDING,  BUT  NOT
 LIMITED TO, THE USE OF THE PREMISES, PERSONNEL, AND PERSONAL PROPERTY OF
 SUCH THIRD PARTY AGENT.
   § 3. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law. Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.