N.Y. Public Authorities Law § 1689-f: Public school districts; dormitory authority financing of payments made or to be made by the state on account of certain approved expendi...

§ 1689-f. Public school districts; dormitory authority financing of

payments made or to be made by the state on account of certain approved

expenditures for capital outlays.

1. (a) "Eligible school district projects" shall mean capital projects

eligible for a capital outlay transition grant aid apportionment

pursuant to subdivision twelve of section thirty-six hundred forty-one

of the education law for which payments are made, as reimbursement of

approved expenditures, from a school district's general fund, capital

fund, or reserved funds for capital outlays as defined in subdivision

six of section thirty-six hundred two of the education law, that are

incurred by the school district on or after July first, two thousand one

and on or before June thirtieth, two thousand two, and are not otherwise

reimbursable in the two thousand two--two thousand three school year

pursuant to subdivision six of section thirty-six hundred two of the

education law.

(b) Notwithstanding the provisions of any general or special law to

the contrary, for purposes of this section, the term "school district"

shall mean a common school district, a consolidated school district, a

union free school district, a central school district, a central high

school district, or a city school district.

2. (a) Subject to chapter fifty-nine of the laws of two thousand, but

notwithstanding any other provisions of any general or special law to

the contrary, and subject to the making of annual appropriations

therefor by the legislature, the dormitory authority is authorized to

enter into one or more service contracts, none of which shall exceed ten

years in duration, with the director of the budget, upon such terms as

the director of the budget and the dormitory authority agree, for the

purpose of financing eligible school district projects.

(b) Any service contract entered into pursuant to paragraph (a) of

this subdivision or any payments made or to be made thereunder may be

assigned and pledged by the dormitory authority as security for its

bonds, notes, or other obligations; and may contain such other items and

conditions as may be agreed upon by the parties thereto, including, but

not limited to, the establishment of reserve funds and indemnities.

(c) Any such service contract shall provide that the obligation of the

director of the budget or of the state to fund or to pay the amounts

therein provided for 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 moneys are available and that no liability

shall be incurred by the state beyond the moneys available for the

purpose, and that such obligation is subject to annual appropriation by

the legislature;

(d) Any service contract or contracts entered into pursuant to this

subdivision shall provide for state commitments to provide annually to

the dormitory authority a sum or sums, upon such terms and conditions as

shall be deemed appropriate by the director of the budget, to fund the

principal, interest, or related expenses required for any bonds, notes,

or other obligations, including bonds issued to fund any required debt

service reserve fund for bonds, of the dormitory authority issued

pursuant to paragraph (b) of subdivision four of this section.

3. (a) The commissioner of education shall certify, by September

thirtieth, two thousand two, to the dormitory authority, and the

director of the budget, each school district for which he has approved a

capital outlay transition grant pursuant to subdivision twelve of

section thirty-six hundred forty-one of the education law for an

eligible school district project as reimbursement of approved

expenditures for capital outlays in lieu of aid previously payable

pursuant to subdivision six of section thirty-six hundred two of the

education law, (1) a description of the eligible school district

projects for which such aid is granted for each school district,

including the cost of each project, and such other information regarding

the expenditures for capital outlays requested by the dormitory

authority as is necessary for the issuance of bonds, notes, or other

obligations, pursuant to this section and (2) the amount of that grant.

(b) On or before October first of each year, the dormitory authority

shall submit, and thereafter may resubmit, to the director of the budget

a report setting forth the amounts, if any, of all annual payments

required in the next state fiscal year and for the four state fiscal

years following such fiscal year estimated to be appropriated to the

dormitory authority pursuant to such service contract agreements between

the dormitory authority and the director of the budget pursuant to this

section. Such report may be incorporated into other reports required to

be given by the dormitory authority to the director of the budget on or

before those dates.

4. (a) To obtain funds for the purposes of this section, the authority

shall have power from time to time to issue negotiable bonds or notes of

the authority. Unless the context shall clearly indicate otherwise,

whenever the words "bond" or "bonds" are used in this section, such

words shall include a note or notes of the authority. All the provisions

of this title not inconsistent with the provisions of this section shall

be applicable with respect to any bonds of the authority issued to

obtain funds for the purposes authorized under this section.

(b) The dormitory authority shall not issue any bonds or notes in an

amount in excess of one hundred forty million dollars for the purposes

of this section, plus a principal amount of bonds or notes:

(1) to fund any debt service reserve fund, and

(2) to provide for the payment of fees and other charges and expenses,

including underwriters' discount, related to the issuance of such bonds

or notes, or related to the provision of any applicable bond or note

facilities.

In computing for the purposes of this paragraph, the aggregate amount

of indebtedness evidenced by bonds and notes of the dormitory authority

issued pursuant to this title, there shall be excluded the amount of

such indebtedness represented by such bonds or notes issued to refund or

otherwise repay bonds or notes, provided that the amount so excluded

under the clause may exceed the principal amount of such bonds or notes

that were issued to refund or otherwise repay only if the present value

of the aggregate debt service on the refunding or repayment bonds or

notes shall not have at the time of their issuance exceeded the present

value of the aggregate debt service of the bonds or notes they were

issued to refund or repay, such present value in each case being

calculated by using the effective interest rate of the refunding or

repayment bonds or notes, which shall be that rate arrived at by

doubling the semi-annual interest rate (compounded semi-annually)

necessary to discount the debt service payments on the refunding or

repayment bonds or notes from the payment date thereof to the date of

issue of the refunding or repayment bonds or notes from the payment date

thereof to the date of issue of the refunding or repayment bonds or

notes and to the price bid therefor, or to the proceeds received by the

dormitory authority from the sale thereof, in each case including

estimated accrued interest.

5. The state hereby covenants with the purchasers, holders and owners

from time to time of the bonds of the authority issued pursuant to this

section that it will not repeal, revoke, rescind, modify or amend the

provisions of this section which relate to the making of annual service

contract payments to the authority with respect to such bonds as to

limit, impair or impede the rights and remedies granted to bondholders

under this title or otherwise diminish the security pledged to such

purchasers, holders and owners or significantly impair the prospect of

payment of any such bond.