What's happening
This bill extends the law on installment loans and related obligations until September 30, 2029.
Why it matters
Maintains access to installment loans for local governments across New York State. , allowing cities, towns, and other municipalities to continue using this financing tool for infrastructure and public projects until at least 2029.
Avoids disruption in local government budgeting and project planning. , since the expiration of this law could have forced localities to seek more expensive or complex financing options in the middle of long-term initiatives.
Signals continued state support for flexible municipal borrowing. , which is particularly important for smaller or financially constrained communities that rely on installment loans to upgrade water systems, schools, and other essential public services.
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Who cares
Local Governments
Local governments that rely on installment loans and related financial mechanisms to fund infrastructure and other projects will care deeply, as the bill extends their ability to use these financial tools until 2029.
Environmental Facilities Corporation
As the requesting agency, the Environmental Facilities Corporation is directly invested in the extension since it likely manages or supports projects financed by these loans.
Municipal Bond Investors and Lenders
Financial institutions and investors that purchase or underwrite municipal installment loans and obligations will care, as the extension preserves ongoing business opportunities.
Taxpayers and Residents
Citizens in municipalities that benefit from infrastructure improvements funded through these loans may have an interest, as the extension could impact the financing and speed of local projects.
Headline styles
Extend Installment Loan Rules
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A11004
- Ordered to third reading cal.1424
- Committee discharged and committed to rules
- Reported and committed to finance
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Extend Installment Loan Rules
Signed by Governor · Sponsor Michaelle C. Solages
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
9901
IN SENATE
April 13, 2026
Introduced by Sen. C. RYAN -- (at request of the Environmental Facilities Corporation) -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend chapter 492 of the laws of 1993 amending the local finance law relating to installment loans and obligations evidencing installment loans, in relation to extending the effectiveness thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3 of chapter 492 of the laws of 1993, amending the local finance law relating to installment loans and obligations evidencing installment loans, as amended by chapter 342 of the laws of 2023, is amended to read as follows:
§ 3. This act shall take effect immediately and shall remain in full force and effect until September 30, [2026] 2029, at which time it shall be deemed repealed.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15008-01-6
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend chapter 492 of the laws of 1993 amending the local finance law relating to installment loans and obligations evidencing installment loans, in relation to extending the effectiveness thereof
Purpose of the bill
The bill would extend to September 30, 2029 provisions relating to bonds or notes bonds issued to the New York State Environmental Facilities Corporation ("EFC") evidencing installment loans from the Clean Water State Revolving Fund ("CWSRF") and the Drinking Water State Revolving Fund ("DWSRF").
Summary of provisions
Section 1 of the bill would extend until September 30, 2029 the "sunset" provision of Section 3 of Chapter 492 of the Laws of 1993, thereby extending for an additional three years the provisions of Local Finance Law ("LFL") § 169.00 which authorizes municipalities to issue their bonds or notes evidencing installment loans to EFC in order to obtain financial assistance from the CWSRF and the DWSRF.
Read the full memo (714 words)
Section 2 of the bill provides for an immediate effective date.
Justification
EFC administers the CWSRF and the DWSRF. Under these revolving fund programs, EFC provides low cost financial assistance to municipalities and other entities for water and wastewater infrastructure and other environmental projects. As of June 1, 2025, EFC has issued approximately $23 billion in State Revolving Fund Bonds under the CWSRF program and the DWSRF program for the purpose of providing financial assistance to local governments and public benefit corporations.
Under both the CWSRF and the DWSRF, EFC is authorized to provide assist- ance in several forms to recipients for the purpose of financing or refinancing their capital projects. Normally, when financing is provided to a municipality under either the CWSRF or the DWSRF, EFC receives a general obligation bond or note from the municipality as evidence of its obligation to repay such financing. Installment loans, through the use of a grid note, allow municipalities to draw financing proceeds on a cost-incurred basis without having to issue a separate bond or note to EFC for each amount advanced. Without grid notes, a municipality would be required to "close" a new loan each time it requested funds. The resultant transactional costs could be prohibitive. The use of grid notes was authorized for the CWSRF by Chapter 492 of the Laws of 1993, and for the DWSRF by Chapter 304 of the Laws of 1997.
The use of grid notes in EFC's short-term financing program has been an unqualified success in saving municipalities money. Hundreds of coun- ties, cities, towns and villages throughout New York have successfully utilized grid notes to secure short-term CWSRF or DWSRF financing. The use of grid notes has provided recipients with flexibility and savings, and helped make low-cost financing readily available for financing plan- ning and design costs, as well as actual construction, and, in many cases, interest-free "bridge" financing for municipalities which antic- ipate receiving grants or other funding for a project.
Prior legislative history
Chapter 492 of the Laws of 1993 enacted LFL 169.00 and applied initially only to the CWSRF. Chapter 304 of the Laws of 1997 extended the applica- tion of LFL 169.00 to the DWSRF. By its terms, Chapter 304 of the Laws of 1997 expires the same date as Chapter 492 of the Laws of 1993. Chap- ter 492 of the Laws of 1993, which would have expired on June 30, 1996, was extended until June 30, 1999 by Chapter 250 of the Laws of 1996. It has been extended every three years since 1999, until September 30, 2002 by Chapter 122 of the Laws of 1999; until September 30, 2005 by Chapter 339 of the Laws of 2002; until September 30, 2008 by Chapter 628 of the Laws of 2005; until September 30, 2011 by Chapter 212 of the Laws of 2008; until September 30, 2014 by Chapter 41 of the Laws of 2011; until September 30, 2017 by Chapter 111 of the Laws of 2014; until September 30, 2020 by Chapter 46 of the Laws of 2017; until September 30, 2023 by Chapter 58 of the Laws of 2020; and until September 30, 2026 by Chapter 342 of the Laws of 2023.
Fiscal implications
The bill would have no budget implications to the State.
Effective date
The bill would take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.