N.Y. Public Authorities Law § 1680-r: Authorization for the issuance of bonds for the capital restructuring financing program, the health care facility transformation programs...

§ 1680-r. Authorization for the issuance of bonds for the capital

restructuring financing program, the health care facility transformation

programs, and the essential health care provider program. 1.

Notwithstanding the provisions of any other law to the contrary, the

dormitory 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 capital restructuring financing program

for health care and related facilities licensed pursuant to the public

health law or the mental hygiene law and other state costs associated

with such capital projects, the health care facility transformation

programs, the essential health care provider program, and other health

care capital project costs. The aggregate principal amount of bonds

authorized to be issued pursuant to this section shall not exceed seven

billion one hundred seventy-eight million dollars $7,178,000,000,

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 dormitory 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 dormitory 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 dormitory authority and the urban development

corporation in undertaking the financing for project costs for the

capital restructuring financing program for health care and related

facilities licensed pursuant to the public health law or the mental

hygiene law and other state costs associated with such capital projects,

the health care facility transformation programs, and the essential

health care provider program, the director of the budget is hereby

authorized to enter into one or more service contracts with the

dormitory 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 dormitory authority and the urban

development corporation agree, so as to annually provide to the

dormitory 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 dormitory authority and

the urban development corporation as security for its bonds and notes,

as authorized by this section.