Bill > A08769

This bill enacts the "New York state credit risk transparency and investor protection act", which requires issuers of state-backed bonds to provide comprehensive quarterly risk reconciliation statements to enhance investor protection and financial transparency. The bill mandates that bond issuers disclose detailed information including credit ratings, material credit events, yield-to-maturity drift, and other relevant credit performance metrics. It defines several key terms such as "material credit event" (significant impacts on an issuer's ability to meet obligations) and establishes an "investor right of action" that allows investors to seek damages if bond issuers fail to disclose critical credit information. The legislation requires the Department of Economic Development to create a searchable database of these quarterly statements and gives the Attorney General broad investigative powers to pursue legal action against entities that materially devalue state-backed bonds through intentional or arbitrary actions. Brokers, dealers, and municipal securities dealers are prohibited from issuing state or municipal bonds unless they comply with these new disclosure requirements, and the bill provides mechanisms for enforcement, including potential investigations and legal proceedings to protect investor interests and the state's credit reputation.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A8769