2013 New York Consolidated Laws
ISC - Insurance
Article 74 - (7401 - 7437) 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.