N.Y. UDA Law § 50 — New York Code / Act UDA / Section 50
No title
Status: in_force

§ 50. 1. Notwithstanding the provisions of any other law to the\ncontrary, the dormitory authority and the urban development corporation\nare hereby authorized to issue bonds or notes in one or more series for\nthe purpose of funding project costs undertaken by or on behalf of the\nstate education department, special act school districts,\nstate-supported schools for the blind and deaf, approved private special\neducation schools, non-public schools, community centers, day care\nfacilities, residential camps, day camps, Native American Indian Nation\nschools, and other state costs associated with such capital projects.\nThe aggregate principal amount of bonds authorized to be issued pursuant\nto this section shall not exceed four hundred eighty-five million nine\nhundred sixty thousand dollars $485,960,000, excluding bonds issued to\nfund one or more debt service reserve funds, to pay costs of issuance of\nsuch bonds, and bonds or notes issued to refund or otherwise repay such\nbonds or notes previously issued. Such bonds and notes of the dormitory\nauthority and the urban development corporation shall not be a debt of\nthe state, and the state shall not be liable thereon, nor shall they be\npayable out of any funds other than those appropriated by the state to\nthe dormitory authority and the urban development corporation for\nprincipal, interest, and related expenses pursuant to a service contract\nand such bonds and notes shall contain on the face thereof a statement\nto such effect. Except for purposes of complying with the internal\nrevenue code, any interest income earned on bond proceeds shall only be\nused to pay debt service on such bonds.\n  2. Notwithstanding any other provision of law to the contrary, in\norder to assist the dormitory authority and the urban development\ncorporation in undertaking the financing for project costs undertaken by\nor on behalf of special act school districts, state-supported schools\nfor the blind and deaf and approved private special education schools,\nnon-public schools, community centers, day care facilities, and other\nstate costs associated with such capital projects, the director of the\nbudget is hereby authorized to enter into one or more service contracts\nwith the dormitory authority and the urban development corporation, none\nof which shall exceed thirty years in duration, upon such terms and\nconditions as the director of the budget and the dormitory authority and\nthe urban development corporation agree, so as to annually provide to\nthe dormitory authority and the urban development corporation, in the\naggregate, a sum not to exceed the principal, interest, and related\nexpenses required for such bonds and notes. Any service contract entered\ninto pursuant to this section shall provide that the obligation of the\nstate to pay the amount therein provided shall not constitute a debt of\nthe state within the meaning of any constitutional or statutory\nprovision and shall be deemed executory only to the extent of monies\navailable and that no liability shall be incurred by the state beyond\nthe monies available for such purpose, subject to annual appropriation\nby the legislature. Any such contract or any payments made or to be made\nthereunder may be assigned and pledged by the dormitory authority and\nthe urban development corporation as security for its bonds and notes,\nas authorized by this section.\n