2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 4 - Dormitory Authority › 1689 - Board of Cooperative Educational Services School Facilities.

§  1689.  Board of cooperative educational services school facilities.
1.  For all the purposes of this section sixteen hundred eighty-nine the
term "board of cooperative educational services school facilities" shall
mean any interest in real property, any building,  library,  laboratory,
classroom, or other building or structure essential, necessary or useful
in  a  career  education  or  other  program of any board of cooperative
educational services.
2.  a.  The  authority  is  hereby  authorized  and   empowered   upon
application  of  the board of cooperative educational services concerned
to  construct,  acquire,  reconstruct,  rehabilitate  and  improve,  and
furnish   and   equip  or  otherwise  provide  a  board  of  cooperative
educational services school facility. The board for whose  students  any
such  board  of  cooperative  educational  services  school  facility is
intended to be provided shall approve plans and specifications  and  the
location  of  such board of cooperative educational services facilities.
The authority shall have the same power and authority in respect to such
board of cooperative  educational  services  school  facilities  erected
pursuant to this section that it has relative to dormitories.
b.  The  authority  shall  have  power  to acquire, in the name of the
authority, on terms necessary or convenient by  purchase,  condemnation,
gift  or  devise,  real property, leasehold interest in real property or
rights of easement in relation to the board of  cooperative  educational
services school facilities erected pursuant to this section.
c.  When  authorized  by  the  voters  of  the  board  of  cooperative
educational services, any  board  of  cooperative  educational  services
shall  have  power  to  convey to the authority real property, leasehold
interest in real property or rights of easement, the title of  which  is
vested in the board, in relation to the board of cooperative educational
services  school facilities to be erected pursuant to this section, and,
when so authorized, any board of cooperative educational services  shall
have power to enter into any lease or other agreement with the authority
in  connection  with the provision of a board of cooperative educational
services school facility.
d. The authority shall have power to accept gifts of real and personal
property in the name of the authority for the purposes of this section.
e. The authority may lease any such board of  cooperative  educational
services  school  facilities  to  the  board  for  which  such  board of
cooperative educational services school facilities are erected. At  such
time  as the liabilities of the authority incurred for any such board of
cooperative educational services school facilities have been  discharged
and  the  bonds  of the authority issued therefor have been paid or such
liabilities and bonds have  otherwise  been  discharged,  the  authority
shall  transfer title to all real and personal property of such board of
cooperative  educational  services  school  facilities  vested  in   the
authority  to  the  board to which such board of cooperative educational
services school facilities are then leased, provided, however,  that  if
at  such  time  the  board  of  cooperative  educational services school
facilities are not located in any board or any successor thereto in  the
state of New York, then such title shall vest in the people of the state
of New York.
f.  Any  lease  of  a board of cooperative educational services school
facility authorized by this section may contain provisions  which  shall
be  a part of the contract with the holder of the bonds of the authority
issued  for  such  board  of  cooperative  educational  services  school
facility, as to
(1)  pledging all or any part of the moneys, income or revenues of the
lessee or other personal property of  the  lessee,  to  secure  payments
required under the terms of such lease;
(2)  the  setting  aside of reserves and the creation of special funds
and the regulation and disposition thereof;
(3)  the  procedure,  if  any, by which the terms of such lease may be
amended, the amount of bonds the holders of which must consent  thereto,
and the manner in which such consent may be given;
(4)  vesting  in  a  trustee  or  trustees  such specified properties,
rights, powers and duties as shall be deemed necessary or desirable  for
the  security  of  the  holders of the bonds of the authority issued for
such board of cooperative educational services school facilities;
(5) the obligations of the lessee with  respect  to  the  replacement,
reconstruction,  maintenance,  operations, repairs and insurance of such
board of cooperative educational services school facilities;
(6) defining the acts or omissions to act  which  shall  constitute  a
default  in  the obligations and duties of the lessee, and providing for
the rights and remedies of the authority and of its bondholders  in  the
event of such default;
(7)  any  other  matters, of like or different character, which may be
deemed necessary or desirable for the  security  or  protection  of  the
authority or the holders of its bonds.
3.  Whenever  the  authority  under  the  provisions  of  this section
undertakes to construct or otherwise  provide  a  board  of  cooperative
educational services school facility and to lease the same to a board of
cooperative  educational  services,  such  lease  shall  be  the general
obligation of the board and any successor thereto. Such lessee shall  be
responsible  for  the direct costs of operation, maintenance, repair and
replacement of such board of  cooperative  educational  services  school
facility,  and  in  addition  shall  be  responsible  for  the  over-all
supervision of each board of  cooperative  educational  services  school
facility,  for  the  overhead  and  general  administrative costs of the
lessee  which  are  incurred  because  of  such  board  of   cooperative
educational  services  school  facility  and  for the integration of the
operation of each such board of cooperative educational services  school
facility into the lessee's educational program.
4.  All  the  provisions  of this title four not inconsistent with the
provisions  of  this  section  sixteen  hundred  eighty-nine  shall   be
applicable  with  respect to any bonds of the authority issued to obtain
funds for any purpose authorized  under  this  section  sixteen  hundred
eighty-nine and with respect to the powers of the authority hereunder.
5.  To  obtain  funds  for the purposes of this section, the authority
shall have power from time to time 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.
6. Any pledge of or  other  security  interest  in  moneys,  earnings,
income,  revenues,  accounts,  contract  rights,  general intangibles or
other personal property made or created by the authority shall be valid,
binding and perfected from the time when such pledge or  other  security
interest  attaches,  without  any physical delivery of the collateral or
further act. The lien of any such  pledge  or  other  security  interest
shall  be  valid,  binding  and  perfected as against all parties having
claims of any kind in tort, contract or otherwise against the  authority
irrespective  of  whether  or  not  such parties have notice thereof. No
instrument by which such a pledge or other security interest is  created
nor  any financing statement need be recorded or filed. This subdivision
shall apply notwithstanding the provisions  of  the  uniform  commercial
code.
7.  Whenever  the  authority  undertakes  under the provisions of this
section to construct, acquire, reconstruct,  rehabilitate  and  improve,

and  furnish  and  equip  or  otherwise  provide  a board of cooperative
educational  services  school  facility,  each  board   of   cooperative
educational  services in connection with which such board of cooperative
educational  services  school  facility is built is authorized to assign
and pledge to the authority a sufficient portion of any and  all  public
funds  to be apportioned or otherwise to be made payable by the state of
New York to the board of cooperative educational services to  cover  the
payments required under the lease between the authority and the board of
cooperative   educational   services.  All  state  and  local  officials
concerned are hereby authorized to apportion and pay all such  funds  so
assigned and pledged to the authority. Such assignment and pledge by any
board of cooperative educational services shall be irrevocable and shall
continue  until  the  date on which the liabilities of the authority and
any such board of cooperative  educational  services  school  facilities
have been discharged and the bonds of the authority issued therefor have
been paid or such bonds have otherwise been discharged.
8.  No board of cooperative educational services school facility shall
be  constructed  or  otherwise  provided  by  the  authority  under  the
provisions of this section unless approved by the voters of the board of
cooperative  educational  services  and  unless  any  and  all necessary
approvals of the commissioner of education under  section  four  hundred
eight of the education law have been obtained.
9.  Any  payment  required  to  be  made  by  a  board  of cooperative
educational services to the authority shall be deemed an  administrative
or  capital expense within the meaning of section nineteen hundred fifty
of the education law.
10. a. The total amount payable annually to the authority by  a  board
shall be certified by the authority to the commissioner of education and
the  authority shall annually prepare and certify to the commissioner of
education a statement of the total amount necessary to be  paid  by  all
boards of cooperative educational services for the ensuing school year.
b.  The  commissioner  of  education  shall include in the certificate
which he files with the state comptroller showing the  amount  of  state
funds  apportioned  to  the  board of cooperative educational services a
statement showing the amount to be owed by the board  to  the  authority
for the ensuing school year.
c.  The comptroller shall deduct from any state funds to become due to
any such board of cooperative educational services an  amount  equal  to
the  amount  required to be paid by such board to the authority as shown
by the certificate of the  commissioner  of  education  filed  with  the
comptroller as required by paragraph b of this subdivision.
d. The state of New York hereby covenants with the purchasers, holders
and  owners from time to time of the bonds of the authority that it will
not repeal, revoke, rescind, modify or  amend  the  provisions  of  this
subdivision ten so as to limit, impair or impede the rights and remedies
granted  hereby  or  otherwise  diminish  the  security  pledged to such
purchasers, holders and owners or significantly impair the  prospect  of
payment  of  any  such  bond, nor shall any lien or charge on or pledge,
assignment, diversion, withholding, payment or other use of or deduction
from any state funds due or to become due or appropriated to  or  to  be
appropriated  to  or  to  be  apportioned  and  paid  to  any  board  of
cooperative educational services be created which is prior  in  time  or
superior  in  right  to  the  deduction  required by paragraph c of this
subdivision; provided, however, that nothing herein contained  shall  be
deemed  or  construed  as requiring the state to continue the payment of
the state aid or assistance to  any  board  of  cooperative  educational
services  or  as  limiting  or  prohibiting  the state from repealing or
amending any law theretofore or  hereafter  enacted  providing  for  the

payment  or  apportionment  of  state  aid  to  a  board  of cooperative
educational services or the manner, time or amount thereof.
11. In the event that the amount paid to the authority pursuant to the
provisions  of  subdivision  ten of this section is insufficient to meet
any payment required by the board of cooperative educational services to
the authority any such amount still due and owing shall be paid directly
to the authority by the board.
12. (a) After: (i) a proposition has been approved by the voters of  a
board  of  cooperative  educational  services  for  the  construction or
providing by  the  authority  of  a  board  of  cooperative  educational
services  school  facility  or  facilities  and  any  and  all necessary
approvals of the commissioner of education have been  obtained,  all  as
provided  by  subdivision eight of this section; (ii) an agreement and a
lease have been executed  by  and  between  such  board  of  cooperative
educational  services  and  the  dormitory  authority  relating  to  the
construction  or  otherwise  providing  of  such  board  of  cooperative
educational  services school facility or facilities, the leasing thereof
by the dormitory authority to  such  board  of  cooperative  educational
services  and  the  financing  thereof by the dormitory authority by the
issuance of its obligations;  and  (iii)  the  dormitory  authority  has
adopted   its   resolution  authorizing  obligations  of  the  dormitory
authority for such purpose, the dormitory  authority  may  determine  to
provide  that  the  validity of such agreement, lease, resolution of the
authority authorizing the issuance of obligations  and  the  obligations
authorized and issued pursuant thereto may be contested only if:
1.  Such agreement, lease, resolution and the obligations to be issued
pursuant to such resolution are authorized for a  board  of  cooperative
educational  services  school facility or facilities for which the board
of cooperative educational services and the dormitory authority are  not
authorized  to  execute  an  agreement  and  a  lease  or  for which the
dormitory authority is not authorized to issue obligations, or
2. The provisions of law which should be complied with at the date  of
the  publication  of  the  notice  hereinafter  provided  for,  are  not
substantially  complied  with,  and  an  action,  suit   or   proceeding
contesting  such validity is commenced within twenty days after the date
of such publication, or
3. Such obligations are authorized in violation of the  provisions  of
the constitution.
(b)  If  the  dormitory  authority  shall  determine  to  utilize  the
provisions of this subdivision, the dormitory authority shall publish or
shall cause a notice to be published in the manner hereinafter provided,
which notice shall be in substantially the following form:
The (here insert the name of  the  board  of  cooperative  educational
services)  and  the  dormitory  authority  of the state of New York have
entered into an agreement dated as of the ----- day of -----, 19---, and
a lease dated as of the ----- day of -----,  19---,  and  the  dormitory
authority has adopted a resolution on the ----- day of -----, 19---, and
the  validity  of  such agreement, lease, resolution and the obligations
issued  pursuant  thereto  may  be  hereafter  contested  only  if  such
agreement, lease, resolution and the obligations issued pursuant thereto
were  authorized  for a board of cooperative educational services school
facility or facilities for which such board of  cooperative  educational
services and the dormitory authority are not authorized to enter into an
agreement, lease and for which the dormitory authority is not authorized
to  issue such obligations or if the provisions of law which should have
been complied with as of the date of publication of this notice were not
substantially  complied  with,  and  an  action,  suit   or   proceeding
contesting  such validity is commenced within twenty days after the date

of publication of this notice, or such obligations  were  authorized  in
violation of the provisions of the constitution.
By  such  agreement  and  lease  such board of cooperative educational
services and the dormitory authority  have  agreed  that  the  dormitory
authority  shall  provide  the board of cooperative educational services
school facility or facilities  described  therein,  that  the  dormitory
authority  shall lease the same to such board of cooperative educational
services, which board of  cooperative  educational  services  shall  pay
annual  rentals  as  agreed  upon  in  such  lease sufficient to pay the
principal of and interest on the obligations of the authority issued  to
finance  such  facility  or  facilities,  the  amounts  required by such
resolution to establish and maintain the reserve funds, if any, required
by such resolution, any expenditures of  the  authority  for  insurance,
fees  and expenses of auditing and fees and expenses of the trustee, all
as required by the resolution, all  other  expenditures  reasonably  and
necessarily  incurred  by  the  authority  by  reason  of its ownership,
financing and leasing of the project and the annual  administrative  fee
payable  to the authority. Such resolution authorizes an issue of $-----
obligations of the authority, which amount is equal to the sum  of:  (i)
the  estimated  cost  of  construction  and  equipment  of such board of
cooperative educational services school  facility  or  facilities  after
first  deducting  federal  grants-in-aid to be received; (ii) the amount
required by the authority, if any, to be paid to reserve  funds  created
by  the resolution of the authority authorizing the bonds; and (iii) the
amounts required to make payments for legal,  financing,  administrative
and  other  costs  and expenses of the authority in connection with such
board of cooperative educational  services  school  facilities  and  the
financing thereof.
Executed counterparts of such agreement and lease and a certified copy
of   the   resolution   of  the  dormitory  authority  authorizing  such
obligations are on file in the office of the  clerk  of  such  board  of
cooperative  educational  services  at  (here  insert the address of the
office of such clerk) and at the office of the dormitory authority (here
insert the address of such office) and such documents may  be  inspected
at either of said offices during regular business hours.
DORMITORY AUTHORITY OF THE STATE OF
NEW YORK and (here insert the name of the
board of cooperative educational services)
(c) The notice described in subparagraph (b) of this subdivision shall
be  published  once in each of two newspapers, if there shall be two, or
in one newspaper, if there shall be but one, having general  circulation
within  the  board  of  cooperative  educational  services,  but  if  no
newspaper shall then have general circulation therein, such notice shall
be posted in at least twenty of the most public places in said board  of
cooperative educational services.
(d)  After  the  publication  of  such  notice,  the  validity  of the
obligations authorized thereby may be contested only if:
1. Such  agreement,  lease,  resolution  of  the  dormitory  authority
authorizing  the  obligations,  and  the  obligations  of  the dormitory
authority  were  authorized  for  a  board  of  cooperative  educational
services   school  facility  or  facilities  for  which  such  board  of
cooperative educational services and the dormitory  authority  were  not
authorized  to  execute  an  agreement  and  a  lease  or  for which the
dormitory authority is not authorized to issue obligations, or
2. The provisions of law which should be complied with at the date  of
publication   of   the   notice   hereinabove   provided  for,  are  not
substantially  complied  with,  and  an  action,  suit   or   proceeding

contesting  such validity is commenced within twenty days after the date
of such publication, or
3.  Such  obligations are authorized in violation of the provisions of
the constitution.
(e) If an action, suit or proceeding contesting the validity  of  such
agreement,   lease,   resolution  authorizing  the  obligations  or  the
obligations authorized thereby is commenced within twenty days from  the
date of publication of such notice, the court in which such action, suit
or   proceeding  is  commenced  shall  determine  whether  or  not  such
agreement, lease, resolution and obligations were authorized for a board
of cooperative educational services school facility  or  facilities  for
which  the  board  of cooperative educational services and the dormitory
authority were authorized to enter into an agreement and a lease and for
which  the  authority  was  authorized  to  issue  obligations  or   the
provisions   of   law   which   should  have  been  complied  with  were
substantially complied with. The court may determine that the provisions
of law which should have been complied with were substantially  complied
with if:
1.  The  aggregate amount of obligations authorized does not exceed an
amount equal to the sum of; (i) the estimated cost of  construction  and
equipment  of  such  a  board of cooperative educational services school
facility or facilities after first deducting federal grants-in-aid to be
received; (ii) the amount, if any, required  by  the  authority  by  the
resolution  to be paid to reserve funds created by the resolution of the
authority authorizing the obligations; and (iii) the  amounts  estimated
by  the  authority to be required to make payments for legal, financing,
administrative  and  other  costs  and  expenses  of  the  authority  in
connection  with  the  providing  of  the  facilities  and the financing
thereof.
2.  Such  agreement  and  lease  were  executed  after  a  proposition
authorizing the same had been submitted to and approved by a majority of
the  duly  qualified  voters  of  such  board of cooperative educational
services.
(f) Such determination of the court as described in  subparagraph  (e)
hereof  may be arrived at notwithstanding any irregularity or failure to
observe a technicality in:
1. The form of such proposition approved by the duly qualified  voters
of such board of cooperative educational services.
2. The notice of the meeting at which such proposition was submitted.
3. The time or manner of the publication of such notice.
4. The conduct of the meeting at which such proposition was adopted.
5. Like matters in such proceedings.
(g)  If  the dormitory authority shall have utilized the provisions of
this subdivision, the obligations of the authority  issued  pursuant  to
the   resolution   authorizing   the   same   shall  contain  a  recital
substantially to the effect that the procedure  for  the  validation  of
such  bonds  set  forth in this section have been complied with and such
recital shall bind the board of cooperative educational services and the
dormitory authority, and twenty days after such notice shall  have  been
published  and  after such obligations have been purchased in good faith
and for fair value by any person, the validity of such agreement, lease,
resolution and of the obligations issued  pursuant  to  such  resolution
shall  not  be  questioned  by  such  board  of  cooperative educational
services or by any taxpayer thereof in any court.
(h)  If  the  dormitory  authority  and  such  board  of   cooperative
educational  services  shall deem it necessary to increase the amount of
obligations of the  authority  to  be  issued  in  connection  with  the
construction or providing of a board of cooperative educational services

school  facility or facilities and shall have authorized the issuance of
such additional obligations by the execution of a supplemental agreement
and a supplemental lease between the dormitory authority and such  board
of  cooperative  educational  services  and  the authority has adopted a
supplemental resolution authorizing  such  additional  obligations,  the
provisions  of  this  subdivision  also  shall  be  applicable  to  such
supplemental agreement, supplemental lease, supplemental resolution  and
additional obligations authorized and issued pursuant thereto.
13.  No  authorization  given  by the voters of a board of cooperative
educational services prior to April first, nineteen hundred  seventy-six
of  a lease or other agreement with the authority in connection with the
provision of a board of cooperative educational services school facility
shall be held invalid by  reason  of  any  irregularity  or  failure  to
observe a technicality in:
a.  The form of such proposition approved by the duly qualified voters
of such board of cooperative educational services,
b. The notice of the meeting at which such proposition was submitted,
c. The time or manner of the publication of such notice,
d. The conduct of the meeting at which such proposition was adopted,
e. Like matters in such  proceedings,  in  any  action  or  proceeding
commenced  more than two years after the date of approval by such voters
of the proposition  authorizing  such  lease  or  other  agreement.  The
foregoing  limitation shall not be construed as extending any limitation
period  otherwise  provided  by  law  or  authorizing  any   action   or
proceeding.