N.Y. Public Authorities Law § 1680-m: Cultural education facilities

§ 1680-m. Cultural education facilities. 1. Notwithstanding the

provisions of any other law to the contrary, the authority and the urban

development corporation are hereby authorized to issue bonds or notes in

one or more series for the purpose of funding project costs for

construction and rehabilitation associated with the cultural education

facilities, including but not limited to acquisition costs and other

state costs associated with such capital projects, and the St. Regis

Mohawk elementary school. The aggregate principal amount of bonds

authorized to be issued pursuant to this section shall not exceed

seventy-nine million dollars, excluding bonds 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. Such bonds and notes of the authority and the urban

development corporation 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 the authority for

principal, interest, and related expenses pursuant to a service contract

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 other provision of law to the contrary, in

order to assist the authority and the urban development corporation in

undertaking the financing for construction and rehabilitation associated

with the cultural education facilities, including but not limited to

acquisition costs and other state costs associated with such capital

projects, and the St. Regis Mohawk elementary school, the director of

the budget is hereby authorized to enter into one or more service

contracts with the authority and the urban development corporation, none

of which shall exceed thirty years in duration, upon such terms and

conditions as the director of the budget and the authority and the urban

development corporation agree, so as to annually provide to the

authority and the urban development corporation, in the aggregate, a sum

not to exceed the principal, interest, and related expenses required for

such bonds and notes. Any service contract entered into pursuant to this

section 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

executory only to the extent of monies available and that no liability

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

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

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

and pledged by the authority and the urban development corporation as

security for its bonds and notes, as authorized by this section.