NY State Senate Bill 2021-S2831

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to corporations, authorities and commissions
Jan 25, 2021	referred to corporations, authorities and commissions

co-Sponsors

2021-S2831 (ACTIVE) - Details

See Assembly Version of this Bill:: A6653
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Add §57, UDC Act
Versions Introduced in 2019-2020 Legislative Session:: S6085, A7966

2021-S2831 (ACTIVE) - Summary

Establishes the New York state taxi medallion guaranty program act to assist taxi medallion owners who are otherwise unable to obtain financing, refinancing, or restructuring of an existing loan.

2021-S2831 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2831

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the urban development corporation act, in relation to
establishing the New York state taxi medallion guaranty program act

 
PURPOSE:

Relates to establishing the New York state taxi medallion guaranty
program act.

 
SUMMARY OF PROVISIONS:

Section 1: Establishes the title of the act as the "New York state taxi
medallion guaranty program act".

Section 2: Provides a definition for the financial institutions and
lenders that will be eligible for participation in the guaranty program;
authorizes the urban development corporation to create a guaranty
program of up to $175,000 per medallion for new and existing loans;

creates a structure for collecting debts prior to utilizing any funds
from the guaranty; and allows the urban development corporation to
contract with a third party for administration of this program.

Section 3: Provides an effective date of 180 days from enactment.

 
JUSTIFICATION:

Taxi medallions have historically been used by many New Yorkers as a
vehicle into the middle class and a ladder in upward mobility. Due to
recent changes in the taxi industry, the value of these medallions have
dropped dramatically leaving their current owners with financial uncer-
tainty. It is critical that New York make an investment in the value of
these medallions so that the financial market for them rebounds and
investments and lending surrounding medallions is stabilized. The uncer-
tainty of the taxi medallion market doesn't just affect individual
medallion owners, but the financial institutions that have invested
significant amounts of money in them. This small financial guaranty will
help restore confidence in the market and allow the hard working holders
of medallions to once again see a pathway to the middle class through
their investments.

 
LEGISLATIVE HISTORY:

2020: S6085 (Ramos)

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become law.

2021-S2831 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2831
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 25, 2021
                                ___________
 
 Introduced  by  Sens.  RAMOS,  COMRIE,  MYRIE  -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Corpo-
   rations, Authorities and Commissions
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06608-01-1

 S. 2831                             2
 
 OWNERS THAT OTHERWISE FIND IT DIFFICULT TO OBTAIN REGULAR  BANK  FINANC-
 ING, REFINANCING, OR RESTRUCTURING OF ANY EXISTING LOAN.
   (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;

 S. 2831                             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.

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Senate Bill S2831

Sponsored By

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

co-Sponsors

2021-S2831 (ACTIVE) - Details

2021-S2831 (ACTIVE) - Summary

2021-S2831 (ACTIVE) - Sponsor Memo

2021-S2831 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2831

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Sponsored By

Jessica Ramos

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

co-Sponsors

Leroy Comrie

Zellnor Myrie

2021-S2831 (ACTIVE) - Details

2021-S2831 (ACTIVE) - Summary

2021-S2831 (ACTIVE) - Sponsor Memo

2021-S2831 (ACTIVE) - Bill Text download pdf

Comments