Jose Gonzalez testifies on Resolution 27
Jose Gonzalez, senior director at New York Communities for Change, testifies in support of Resolution 27. He explains the history of champerty and how the bill would reinstate protections against predatory creditors.
Next, we're going to have Jose Gonzalez.
You may begin.
Jose, you are still on mute.
Jose, if you're speaking, we cannot hear you, but it seems that you are not on mute right now.
Okay.
So we're going to swing back.
Oh, Jose is there.
Okay.
I'm sorry.
Is it my turn?
Yes.
Yes, please.
Go ahead, Jose.
We're ready for you.
Jose Gonzalez, please begin.
I don't think he hears me.
I'm going to start.
Deputy Speaker Williams, Council Member Aviles, members of the City Council, buenas tardes.
Thank you for listening to my testimony on Resolution 27.
My name is Jose Gonzalez.
I'm a senior director and researcher at New York Communities for Change, NYCC.
NYCC is a 20,000 member New York economic and social justice organization.
Since 2018 or so, I have worked with a coalition of other New York nonprofits on a Wall Street accountability campaign connected to the Puerto Rico debt crisis.
Our work has led to a package of legislation that includes the reinstatement of charity, a law that stretches back a century that prevented creditors from abusing the court systems, and is one of the few legal protectionist countries in financial trouble had access to until 2004.
Buying the debt of a country in economic distress to extract profits by endlessly litigating should be and was illegal until 2004.
Debt relief organizations, the investor community, and government all agree this situation allows creditors of this category of debt to opportunistic debt to opportunistic debt.
take advantage of an anomaly in the law.
Our narrow change in this pre-existing law ameliorates the effects of leaving countries disproportionately vulnerable to exploitative creditors because they did not have the same protections others were eligible for.
And most people see as an egregious abuse of the judicial process.
Nations default under New York law must also deal with the 9% interest of their debt, a number established in an era of much higher rates.
That payment starts right away and goes directly to the litigator until the judgment is arrived at, giving the litigious creditor a perverse incentive to prolong the situation.
This revised bill would also reduce this antiquated rate to a current and fair level.
And your communities are changing.
We are ultimately grateful to our members from the Puerto Rican diaspora who led the charge on this campaign because it is their experiences that has given us and gives us the motivation to persevere through years of challenges to arrive at this moment when we can see the light at the end of a long tunnel.
New York has the power to reinstate champion and give back a tool that creates stability for countries.
The New York bond market and holds vulture funds accountable.
Your support of this legislation is appreciated and important.
Thank you again for your time and consideration on this matter.
Thank you so much, Jose, for your testimony.