2023 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.