N.Y. Public Authorities Law § 1680-n: Acquisition of state buildings and other facilities

§ 1680-n. Acquisition of state buildings and other 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 the acquisition of state buildings and other

facilities. The aggregate principal amount of bonds authorized to be

issued pursuant to this section shall not exceed one hundred sixty-five

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 and the urban

development corporation 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 of the acquisition of state buildings and

other facilities, 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 twenty-two

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.