New York State Finance Code § 179-O

Court actions or other legal processes
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§ 179-o. Court actions or other legal processes. 1. Notwithstanding\nany other provision of law to the contrary, the liability of the state\ngovernment, insofar as incurring an obligation to make an interest\npayment to a contractor pursuant to the terms of this article is\nconcerned, shall not extend beyond the date of a notice of intention to\nfile a claim, the date of a notice of a claim, or the date commencing a\nlegal action for the payment of such interest, whichever occurs first.\nAny such interest payment owed by the state government in accordance\nwith the provisions of this article as of such date shall be paid as\ndirected by the court and, to the extent that the interest payment is\nattributable to processing delays caused by the state agency which\nreceived the proper invoice or by processing delays caused by the\ndepartment of audit and control, such interest payment shall be made\nfrom funds available to said state agency or to the department of audit\nand control at the time of final judgment.\n  2. With respect to the court actions or other legal processes referred\nto in subdivision one of this section, any interest obligation incurred\nby the state government after the date specified in such subdivision\npursuant to any provision of law other than this article shall be\ndetermined as prescribed by such separate provision of law, shall be\npaid as directed by the court, and shall be paid from any appropriation\navailable for that purpose.\n

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