N.Y. State Finance Law 179-V – Interest payments
§ 179-v. Interest payments. 1. A not-for-profit organization shall be entitled to interest payments pursuant to this section: (a) on those moneys that would be due under the terms of the contract or renewal contract from the scheduled commencement date or the date the organization begins to provide services, whichever is later, until the date the payment is made under the contract or renewal contract; or (b) if a not-for-profit organization borrows funds to provide services pursuant to a written directive by a state agency, provided however that a not-for-profit organization may only receive interest payments on such funds when such not-for-profit organization has received a written directive but has been denied payment pursuant to section one hundred seventy-nine-u of this article or did not obtain a loan from the not-for-profit short-term revolving loan fund.
Terms Used In N.Y. State Finance Law 179-V
- Advance payment: means a payment or payments made by a state agency to a not-for-profit organization for services rendered pursuant to a written directive or as the result of exercising an advance payment provision included in a contract or renewal contract. See N.Y. State Finance Law 179-Q
- Contract: A legal written agreement that becomes binding when signed.
- Contract: means an enforceable agreement entered into by a not-for-profit organization and a state agency or any agent acting for such state agency in the procurement process. See N.Y. State Finance Law 179-Q
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- organization: means a domestic corporation incorporated pursuant to or otherwise subject to the not-for-profit corporation law, a charitable organization registered with the secretary of state, a special act corporation created pursuant to chapter four hundred sixty-eight of the laws of eighteen hundred ninety-nine, as amended, a special act corporation formed pursuant to chapter two hundred fifty-six of the laws of nineteen hundred seventeen, as amended, a corporation authorized pursuant to an act of congress approved January fifth, nineteen hundred five, (33 stat. See N.Y. State Finance Law 179-Q
- Program: means a provision of law authorizing a state agency to undertake activities that are to be accomplished in whole or in part through contracts with not-for-profit organizations. See N.Y. State Finance Law 179-Q
- Renewal contract: means the documents necessary to continue in effect an existing contract between a state agency and not-for-profit organization, including any simplified contract documents in a form approved by the office of the state comptroller. See N.Y. State Finance Law 179-Q
- Scheduled commencement date: means the beginning date of the term of a contract as stated in the contract or in a written directive. See N.Y. State Finance Law 179-Q
- State agency: means any department, board, bureau, commission, division, office, council, institution or committee in the executive branch of government, the urban development corporation or the natural heritage trust to which an appropriation is made for the purposes of carrying out a program as defined herein. See N.Y. State Finance Law 179-Q
- Written directive: means a written request by a state agency to a not-for-profit organization authorizing such organization either to begin providing services during the negotiation of a contract or to continue providing services during the negotiation of a renewal contract. See N.Y. State Finance Law 179-Q
2. Such organizations shall receive such interest payments at a rate equal to the rate set by the commissioner of taxation and finance for corporate taxes pursuant to paragraph one of subsection (e) of § 1096 of the tax law. In order for a state agency to approve reimbursement of a not-for-profit organization at a rate other than the interest rate stated in this section the not-for-profit organization shall submit documentation indicating the rate at which such funds were borrowed, the lender of such funds and any other information requested by the state agency, attorney general or the comptroller. The comptroller may disallow such portions of the interest that the comptroller deems unreasonable.
3. Any interest payments made pursuant to subdivisions one and two of this section shall be made from appropriations for state operations that are available for the administrative programs of the state agency which contracted with the not-for-profit organization. In no event shall interest payments be made from amounts appropriated for program purposes.
4. The interest payment shall not reduce the amount of money that otherwise will be payable to the not-for-profit organization under the terms of the relevant contract.
5. No interest payments shall be made if the not-for-profit organization receives an advance payment pursuant to section one hundred seventy-nine-u of this article; provided, however, that if the contract is not fully executed at the end of the period covered by such advance payment, the not-for-profit organization may be eligible for interest payments in respect of services performed after such period.
6. Should the attorney general or the comptroller disapprove a contract or renewal contract, the provisions of this section shall not be applicable.
7. a. If the timeframes for processing a contract are met and the state agency is liable for interest due to a retroactive contract start date, the state agency and the not-for-profit organization may mutually agree to waive any interest owed to the not-for-profit organization under the provisions of this article. Waiver of interest shall not be a prerequisite to execution of such contract. If interest is so waived, the state agency shall immediately provide the office of the state comptroller, division of the budget and the not-for-profit organization with the written waiver of interest agreement signed by the not-for-profit organization and documentation (i) showing that the applicable timeframes set forth in section one hundred seventy-nine-s or one hundred seventy-nine-t of this article have been met, and (ii) explaining the reason for a retroactive contract start date.
b. Not more than twenty days after the receipt of such written waiver of interest agreement and required documentation, the comptroller shall determine whether the waiver of interest is warranted. The comptroller shall thereupon inform such state agency, the division of the budget, and such not-for-profit organization of such determination. If such determination concludes that a waiver of interest is unwarranted, such state agency shall then immediately submit for the comptroller's approval a voucher requesting the payment of interest to such not-for-profit organization as required by this section. If such voucher is not received within thirty days after the comptroller's determination, the comptroller shall assess the amount of unpaid interest in the manner prescribed by this section.