New York Laws
Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers
7433-A - Loan to 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.