N.Y. Public Authorities Law § 1680-o: Courthouse improvements and training facilities

§ 1680-o. Courthouse improvements and training 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 eligible courthouse improvements and training

facilities. The aggregate principal amount of bonds authorized to be

issued pursuant to this section shall not exceed seventy-six million one

hundred thousand 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 eligible courthouse improvements and

training 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 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.