N.Y. Private Housing Finance Law § 47-a: State university construction bonds and notes

§ 47-a. State university construction bonds and notes. 1.

Definitions. For the purposes of section forty-seven and of this

section:

a. "State university facility" shall mean a classroom, lecture hall,

library, laboratory or other academic building, or any structure on or

improvement to real property of any kind or description, including

fixtures and equipment which are an integral part of any such building,

structure or improvement, a walkway or roadway, and improvements and

connections for water, sewer, gas, electrical, telephone, heating, air

conditioning and other utility services at a state-operated institution

or statutory or contract college under the jurisdiction of the state

university of New York, and shall include a housing unit or any

emergency temporary housing, with necessary and usual attendant and

related facilities and equipment, for the use of students, faculty and

staff, and their families, at such an institution or statutory or

contract college.

b. "State university construction bonds" and "state university

construction notes" shall mean bonds and notes respectively, issued by

the agency pursuant to subdivision two of this section.

2. Additional powers of the agency.

a. The agency shall have power to cause state university facilities to

be constructed, acquired, reconstructed, rehabilitated or improved on

any real property leased or made available by the state university of

New York, or any state-operated institution or statutory or contract

college under the jurisdiction of the state university of New York,

under an agreement with the state university construction fund created

by section three hundred seventy-one of the education law and in

connection therewith may authorize the state university construction

fund to act as its agent for the purpose of constructing, acquiring,

reconstructing, rehabilitating or improving such state university

facilities.

b. The agency shall have power and is hereby authorized from time to

time to issue negotiable bonds and notes in conformity with applicable

provisions of the uniform commercial code in such principal amount as,

in the opinion of the agency, shall be necessary, after taking into

account other monies which may be available for the purpose, to provide

sufficient funds for the construction, acquisition, reconstruction,

rehabilitation or improvement of state university facilities pursuant to

the preceding paragraph of this subdivision, the payment of interest on

state university construction bonds and state university construction

notes issued for such purposes, the establishment of reserves to secure

such bonds and notes, and all other expenditures of the agency incident

to and necessary or convenient for any such construction, acquisition,

reconstruction, rehabilitation or improvement; provided, however, that

the agency shall not issue state university construction bonds and state

university construction notes in an aggregate principal amount exceeding

three billion dollars, excluding state university construction bonds and

state university construction notes issued to refund outstanding state

university construction bonds or state university construction notes. In

no event, however, shall the agency issue state university construction

bonds or state university construction notes after August first,

nineteen hundred eighty-eight, except state university construction

bonds or state university construction notes issued to refund

outstanding state university construction bonds or state university

construction notes; provided, however, that only state university

construction bonds to be issued to refund state university construction

bonds may be issued after August first, nineteen hundred eighty-eight.

Such bonds shall be excluded from such limitation as to the aggregate

principal amount of state university construction bonds and state

university construction notes if the present value of the aggregate debt

service on the refunding bonds does not exceed the present value of the

aggregate debt service on the bonds refunded thereby. For purposes

hereof, the present value of the aggregate debt service of the refunding

bonds and the aggregate debt service of the bonds refunded, shall be

calculated by utilizing the true interest cost of the refunding bonds,

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 bonds from the payment dates thereof to the

date of issue of the refunding bonds to the purchase price of the

refunding bonds, including interest accrued thereon prior the issuance

thereof.

3. Application of other provisions of article. Except as stated in

section forty-seven, the other provisions of this article shall apply to

state university construction bonds and state university construction

notes issued by the agency pursuant to this section, provided, however,

that such bonds and notes, subject to any agreements with the holders of

particular bonds or notes pledging any specified portions thereof, shall

be secured by a pledge to the payment thereof of (i) rentals paid to the

agency with respect to state university facilities financed with the

proceeds of such bonds and notes, and (ii) any other assets, monies or

accounts pledged or assigned to the agency as security for the payment

of such rentals, and provided further that no resolution or resolutions

authorizing state university construction bonds and state university

construction notes shall (i) pledge all or any part of the fees and

charges made or received by the agency pursuant to subdivision eleven of

section forty-four in connection with the making of mortgage loans or

commitments therefor, or all or any part of the monies received in

payment of such mortgage loans and interest thereon, or (ii) pledge all

or any part of the mortgages of the agency or obligations securing the

same, or (iii) provide as to the use and disposition of the gross income

from mortgages owned by the agency or as to the payment of principal of

mortgages owned by the agency, or (iv) pledge all or any part of the

rentals paid to the agency under leases, subleases or other agreements

for health facilities or mental hygiene facilities entered into by the

agency in accordance with this article, or (v) pledge or assign all or

any part of any other assets, monies or accounts pledged or assigned to

the agency as security for the payment of rentals for such health

facilities or mental hygiene facilities.

4. Repayment fund. The agency shall create and establish a special

fund (herein referred to as state university repayment fund) and shall

pay into such fund any monies which the agency shall receive in payment

of rentals due under one or more lease agreements referred to in

subdivision three of this section. Such monies and any other monies paid

into the state university repayment fund may, in the discretion of the

agency but subject to agreements with the holders of state university

construction bonds and state university construction notes, be used by

the agency (a) for the repayment of advances, if any, from the state to

the agency in connection with state university facilities in accordance

with the provisions of repayment agreements between the agency and the

director of the budget, (b) to pay all costs, expenses and charges of

financing the construction, acquisition, reconstruction, rehabilitation

or improvement of state university facilities on any real property

leased or made available to the agency by the state university of New

York, including fees and expenses of trustees and paying agents and the

reasonable costs of services performed by the commissioner of housing

and division of housing in respect thereof, and (c) for the payment of

the principal of and interest on state university construction bonds or

state university construction notes issued by the agency when the same

shall become due whether at maturity or on call for redemption and for

the payment of any redemption premium required to be paid where such

bonds or notes are redeemed prior to their stated maturities, and to

purchase state university construction bonds or state university

construction notes issued by the agency.