1.   As part of the final budget agreement announced Thursday, the Legislature is to extend the loft law for three years, officials said.

2.   Before adjourning for the night, both houses passed legislation extending not just the loft law but also several health care programs that were to have expired at midnight.

3.   Mayor Rudolph Giuliani criticized the whole process of tying up individual legislation like the loft law in the larger budget battle.

4.   The impasse makes it increasingly likely that Pataki and Bruno would allow the loft law to expire on Wednesday night.

5.   The loft law, which is not part of the budget but has been held hostage to the negotiations, had been set to expire at midnight.

6.   Throughout the day, Pataki and Democrats contended that the other side should be blamed if the loft law expired.