N.Y. Public Authorities Law § 1680-i: Judiciary; authority financing of courthouse improvements

§ 1680-i. Judiciary; authority financing of courthouse improvements.

1. The dormitory authority is hereby authorized to finance eligible

courthouse improvements.

2. (a) Subject to the provisions of chapter fifty-nine of the laws of

two thousand and to the making of annual appropriations therefor by the

legislature, in order to assist the dormitory authority in providing for

the financing of courthouse improvements, the director of the budget is

authorized in any state fiscal year commencing April first, two thousand

two or any state fiscal year thereafter to enter into one or more

service contracts, none of which shall exceed thirty years in duration,

with the dormitory 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 dormitory authority as security for its

bonds, notes, or other obligations.

(c) Any such service contracts 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

dormitory 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 monies are available and that no liability

shall be incurred by the state beyond the monies available for the

purpose, and that such obligation is subject to annual appropriations 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 dormitory 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 payments required for any bonds,

notes, or other obligations of the dormitory authority issued pursuant

to this section.

3. (a) To obtain funds for the purposes of this section, the authority

shall have power from time to time to issue negotiable bonds or notes.

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 dormitory authority shall not issue any bonds or notes in an

amount in excess of thirty-seven million six hundred thousand dollars

for the purposes of this section; excluding bonds or notes issued to

fund one or more debt service reserve funds, to pay costs of issuance of

such bonds, and bonds or notes issued to refund or otherwise repay such

bonds or notes previously issued. Except for purposes of complying with

the internal revenue code, any interest on bond proceeds shall only be

used to pay debt service on such bonds.

(c) In computing for the purposes of paragraph (b) of this

subdivision, the aggregate amount of indebtedness evidenced by bonds and

notes of the dormitory authority issued pursuant to this title, 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.

(d) The state of New York hereby covenants with the purchasers,

holders, and owners from time to time of the bonds of the authority

issued pursuant to this section that it will not, subject to the

provisions of paragraph (c) of subdivision two of this section, repeal,

revoke, rescind, modify, or amend the provisions of this section which

relate to the making of annual service contract payments to the

authority with respect to such bonds as to limit, impair, or impede the

rights and remedies granted to bondholders under this title or otherwise

diminish the security pledged to such purchasers, holders, and owners or

significantly impair the prospect of payment of any such bond.