N.Y. Public Authorities Law § 1680-k: Financing of department of agriculture and markets facilities

§ 1680-k. Financing of department of agriculture and markets

facilities. In order to effectuate the purpose of this title, the

dormitory authority shall have the following additional powers:

1. Subject to the provisions of chapter fifty-nine of the laws of two

thousand, but notwithstanding any provisions of law to the contrary, the

dormitory authority is hereby authorized to issue bonds or notes in one

or more series in an aggregate principal amount not to exceed forty-one

million two hundred ninety thousand dollars $41,290,000, excluding bonds

issued to finance 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, for the purpose

of financing the construction of the New York state agriculture and

markets food laboratory. Eligible project costs may include, but not be

limited to the cost of design, financing, site investigations, site

acquisition and preparation, demolition, construction, rehabilitation,

acquisition of machinery and equipment, and infrastructure improvements.

Such bonds and notes of such authorized issuers shall not be a debt of

the state, and the state shall not be liable thereon, nor shall they be

payable out of any funds other than those appropriated by the state to

such authorized issuers for debt service and related expenses pursuant

to any service contract executed pursuant to subdivision two of this

section and such bonds and notes shall contain on the face thereof a

statement to such effect. Except for 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.

2. Notwithstanding any provisions of law to the contrary, in order to

assist such authorized issuers in undertaking the administration and

financing of the projects authorized pursuant to subdivision one of this

section, the director of the budget is hereby authorized to enter into

one or more service contracts with such authorized issuers, none of

which shall exceed more than twenty years in duration, upon such terms

and conditions as the director of the budget and such authorized issuers

shall agree, so as to annually provide to such authorized issuers, in

the aggregate, a sum not to exceed the annual debt service payments and

related expenses required for the bonds and notes issued pursuant to

this section. Any service contract entered into pursuant to this

subdivision shall provide that the obligation of the state to pay the

amount therein provided shall not constitute a debt of the state within

the meaning of any constitutional or statutory provision and shall be

deemed executor only to the extent of monies available and that no

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

such purposes, subject to annual appropriation by the legislature. Any

such contract or any payments made or to be made thereunder may be

assigned or pledged by such authorized issuers as security for its bonds

and notes, as authorized by this section.