Bill > A02102

This bill amends the New York State banking law to create a new Article 7, which provides effective mechanisms for restructuring unsustainable sovereign and subnational (state or local) debt. The key provisions of this bill include: 1. Allowing a state to file a voluntary petition for relief with the State of New York to restructure its unsustainable debt under this new law. 2. Establishing a process for notifying creditors, reconciling debt claims, and submitting and voting on a restructuring plan. 3. Authorizing the state to borrow money to finance the restructuring, subject to creditor approval. 4. Prioritizing the repayment of the new borrowing over other creditor claims. 5. Allowing the appointment of an independent monitor to help facilitate the restructuring process and resolve any disputes. 6. Applying retroactively to debt governed by New York law and allowing other creditors to opt-in to the law's provisions. The purpose of this bill is to provide effective mechanisms to reduce the social and economic costs of sovereign and subnational debt crises, strengthen New York's role as a center for sovereign debt issuance and trading, and protect the state's economy from the adverse impacts of debt defaults.