Extends certain provisions relating to installment loans and obligations evidencing installment loans

◆ The sponsor's argument

Why Christopher Ryan says this is needed

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.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.