NY Pub Auth L § 1689-C (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 4 - Dormitory Authority 1689-C - Capital Facility Program, Authority Financing of Eligible Projects.

§  1689-c.  Capital  facility program, authority financing of eligible projects. 1. The authority is authorized  to  finance  eligible  capital facility program projects pursuant to the Jobs two thousand for New York State (J2K) Act.   2. (a) Notwithstanding the provisions of any general or special law to the  contrary,  and  subject  to  the  making  of  annual appropriations therefor by the legislature, in order to assist  the  authority  in  the financing  and  refinancing  of  such  eligible capital facility program projects, the director of the budget is authorized to enter into one  or more  service  contracts,  none  of  which  shall exceed thirty years in duration, with the authority, upon such terms as  the  director  of  the budget and the dormitory authority agree;  (b)  Any  service  contract  entered into pursuant to paragraph (a) of this subdivision or any payments made or to be made  thereunder  may  be assigned  and pledged by the authority as security for its bonds, notes, or other obligations;  (c) Any such service contract shall provide that the obligation of the director of the budget or of the state to fund or  to  pay  the  amounts therein provided for shall not constitute a debt of the state within the meaning  of  any  constitutional or statutory provision in the event the authority assigns or pledges the service contract payments  as  security for its bonds, notes, or other obligations and shall be deemed executory only  to  the extent moneys are available and that no liability shall be incurred by the state beyond the moneys available for the  purpose,  and that   such  obligation  is  subject  to  annual  appropriation  by  the legislature;  (d) Any service contract or contracts entered into  pursuant  to  this subdivision  shall  provide for state commitments to provide annually to the authority a sum or sums, upon such terms and conditions as shall  be deemed appropriate by the director of the budget, to fund the principal, interest,  or other related expenses required for any such bonds, notes, or other obligations.  (e) On or before November fifteenth of each year and again on or after February fifteenth  of  each  year,  the  authority  shall  submit,  and thereafter  may  resubmit,  to  the  director  of  the budget, the state comptroller, the executive director of the  New  York  state  office  of science,  technology  and  academic  research,  the  chair of the senate finance committee and the chair of the assembly ways and means committee a report setting forth the amounts,  if  any,  of  all  annual  payments estimated  to  be appropriated to the authority pursuant to such service contracts between the authority and the director of the division of  the budget pursuant to this subdivision.   3.  (a)  To  obtain  funds  for  the purposes of this subdivision, the authority shall have power from time  to  time,  in  accordance  with  a schedule certified to the authority by the executive director of the New York   state   office  of  science,  technology  and  academic  research identifying eligible capital  facility  program  projects  approved  for payment  pursuant to the Jobs two thousand for New York State (J2K) Act, to issue negotiable bonds or notes of the authority. Unless the  context shall  clearly  indicate otherwise, whenever the words "bond" or "bonds" are used in this section, such words shall include a note  or  notes  of the authority.  (b)  The  authority shall not issue any bonds or notes in an amount in excess of forty-seven million five  hundred  thousand  dollars  for  the purposes  of  this subdivision, excluding a principal amount of bonds or notes issued to fund one or more debt service reserve funds, to pay  for the costs of issuance of such bonds, and bonds or notes issued to refund or  otherwise  repay  such  bonds, and bonds or notes previously issued.  Except for the purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to  pay  debt service on such bonds or notes.   In  computing  for  the  purposes  of  this subdivision, the aggregate amount of indebtedness evidenced by bonds and  notes  of  the  authority issued  pursuant to this subdivision, there shall be excluded the amount of such indebtedness represented by such bonds or notes issued to refund or otherwise repay bonds or notes, provided that the amount so  excluded under  this  paragraph  may exceed the principal amount of such bonds or notes that were issued to refund or otherwise repay only if the  present value  of the aggregate debt service on the refunding or repayment bonds or notes shall not have at the  time  of  their  issuance  exceeded  the present  value  of the aggregate debt service of the bonds or notes they were issued to refund or repay, such present value in  each  case  being calculated  by  using  the  effective  interest rate of the refunding or repayment bonds or notes,  which  shall  be  that  rate  arrived  at  by doubling   the  semi-annual  interest  rate  (compounded  semi-annually) necessary to discount the debt service  payments  on  the  refunding  or repayment  bonds  or  notes from the payment date thereof to the date of issue of the refunding or repayment bonds or notes and to the price  bid therefor,  or  to  the proceeds received by the dormitory authority from the sale thereof, in each case including estimated accrued interest.