NY Educ L § 378 (2021)
2021 New York Laws EDN - Education Title 1 - General Provisions Article 8-A - State University Construction Fund 378 - Lease Agreements.

§ 378. Lease  agreements.  1.  Any  agreement entered into between the   fund and a state retirement system pursuant  to  section  three  hundred   seventy-six  of  this  chapter  shall  provide for (i) the construction,   acquisition, reconstruction, rehabilitation or  improvement  of  one  or   more facilities, (ii) the leasing thereof and of the land upon which the   same   is   erected   to  the  fund  upon  completion  of  construction,   acquisition, reconstruction, rehabilitation or improvement  for  a  term   not  exceeding thirty years and upon such terms and conditions including   annual rental as may be agreed upon, and (iii)  the  conveyance  to  the   state of title to any such facility at the expiration of the term of the   lease  or upon the earlier payment in full of the total amount specified   therein, without additional charge therefor. The state university  shall   approve   any   such  agreement  and  shall  be  a  party  thereto.  Any   construction contract entered into  by  a  state  retirement  system  in   connection  with such lease agreement shall be let, or otherwise entered   into, by the retirement system or its agent pursuant to  the  provisions   of  section  three hundred seventy-six of this chapter. If so designated   by a state retirement system, the fund may act  as  the  agent  of  such   retirement  system  in  connection  with  the construction, acquisition,   reconstruction, rehabilitation or improvement which the lease  agreement   requires.2.  Any  agreement  entered  into  between  the fund and the dormitory   authority pursuant to section three hundred seventy-six of this  chapter   shall  provide  for  (i)  the construction, acquisition, reconstruction,   rehabilitation or improvement of one or more dormitories, and  (ii)  the   leasing  thereof  to the state university for a term not exceeding forty   years and upon such terms and conditions including annual rental as  may   be agreed upon. The state university shall approve any such contract and   shall be a party to any lease made pursuant to its terms.3.  Any  agreement  entered  into  between the fund and a state agency   (other  than  the  dormitory  authority)  which  is  a  public   benefit   corporation   shall  provide  for  (i)  the  construction,  acquisition,   reconstruction, rehabilitation or improvement of one or more facilities,   and  (ii)  the  leasing  thereof  to  the  fund   upon   completion   of   construction, acquisition, reconstruction, rehabilitation or improvement   for a term not exceeding thirty years and upon such terms and conditions   including  annual  rental  as  may  be agreed upon. The state university   shall approve any such agreement and shall be a party thereto.4. To secure the payment of rentals due or to become due in  any  year   under  any  lease  agreement entered into pursuant to subdivision one or   subdivision three of this section, the fund may pledge or assign any  or   all  moneys in the state university construction fund income account and   in any rental reserve account established pursuant to  subdivision  five   of  this  section,  and any or all moneys which may be in either or both   such accounts in the future, whether equal to or in excess of the amount   of such rentals due or becoming due in any year, and any or  all  right,   title  and  interest  of  the  fund  in  and  to  the moneys in or to be   deposited in such accounts.5. The fund may create and establish one or more separate accounts  to   be  known  as  "rental  reserve  accounts" and may pay into such reserve   accounts (i) any moneys apportioned  and  paid  by  the  state  for  the   purposes of such reserve accounts pursuant to this subdivision, (ii) any   moneys in the state university construction fund income account directed   to  be  transferred  by the fund to such reserve accounts, and (iii) any   other moneys which may be made available to the fund from any source  or   sources specifically for the purposes of such reserve accounts.The  moneys  credited  to any rental reserve account established under   this subdivision shall be used, except as hereinafter  provided,  solely    for  the  payment of rentals as they become due under one or more of the   lease agreements referred to in subdivision one or subdivision three  of   this  section,  provided, however, that the moneys in such account shall   not  be  withdrawn  therefrom at any time in such amount as would reduce   the amount thereof to less than the maximum amount  of  rental  becoming   due  in any succeeding calendar year under such lease agreements, except   for the purpose of paying such rentals becoming due for the  payment  of   which other moneys of the fund are not available.Moneys  in  a rental reserve account not required for immediate use or   disbursement may be invested in obligations of the United States or  the   state  or obligations the principal and interest of which are guaranteed   by the United States or the state. In computing the amount of  a  rental   reserve  account  for  the  purposes  of this subdivision, securities in   which all or a portion of the account are invested shall  be  valued  at   their  market value on a date within seven days of the computation or at   their cost to the fund, whichever is less.Any excess in a rental reserve account at the end of any  fiscal  year   of  the  fund  over  the  maximum  amount  of rental becoming due in any   succeeding calendar year under such lease agreements shall be  withdrawn   by  the  fund  from such account and transferred to the state university   construction fund income account to be used for the  corporate  purposes   of the fund.In  order  further  to  secure  the  maintenance in all rental reserve   accounts established pursuant to this subdivision of an amount equal  to   the  maximum  amount  of  rental becoming due in any succeeding calendar   year under the lease agreements to which the  reserve  account  relates,   there  shall be annually apportioned and paid to the fund for deposit in   such rental reserve accounts such sum, if any, as shall be certified  by   the  chairman  of the fund to the governor and director of the budget as   necessary to restore such accounts to an amount  equal  to  the  maximum   amount of rental becoming due in any succeeding calendar year under such   lease  agreements. The chairman of the fund shall annually, on or before   December first, make and deliver to the governor  and  director  of  the   budget  his  certificate stating the amount, if any, required to restore   such rental reserve accounts to the amount aforesaid and the  amount  so   stated in said certificate, if any, shall be apportioned and paid to the   fund during the then current state fiscal year.No lease agreement which contains a provision for the establishment or   maintenance  of  a rental reserve account shall be entered into pursuant   to this section unless the governor,  or  where  so  designated  by  the   governor  for  such  purpose,  the  director  of  the budget, shall have   approved the terms thereof.6. The attorney general shall pass upon the form and  sufficiency  and   manner of execution of any lease agreement entered into pursuant to this   section and the same shall not be effective unless so approved by him.7.  The  state shall not be liable for any rentals payable by the fund   pursuant to the terms of a lease agreement entered into pursuant to this   section and such agreement shall contain among its terms a statement  to   such effect.