N.Y. Public Authorities Law § 1689-i: Library construction

* § 1689-i. Library construction. 1. The dormitory authority is

authorized to issue bonds, at the request of the commissioner of

education, to finance eligible library construction projects pursuant to

section two hundred seventy-three-a of the education law, in amounts

certified by such commissioner not to exceed a total principal amount of

four hundred ninety-nine million dollars $499,000,000.

2. (a) Notwithstanding the provisions of any general or special law to

the contrary, and subject to the making of annual appropriations

therefor by the legislature, in order to assist the dormitory authority

in the financing and refinancing of such eligible library construction

projects, the director of the budget is authorized in state fiscal year

commencing April first, two thousand six to enter into one or more

service contracts, none of which shall exceed thirty years in duration,

with the dormitory authority, upon such terms as the director of the

budget and the dormitory authority agree;

(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;

(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 in the event the

dormitory authority assigns or pledges the service contract payments as

security for its bonds, notes, or other obligations 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 other related expenses required for any bonds,

notes, or other obligations.

3. The commissioner of education shall issue one or more

certifications to the dormitory authority, the comptroller, the director

of the division of the budget, the chairman of the senate finance

committee and the chairman of the assembly ways and means committee the

names of all public libraries and library systems for which he has

approved construction aid apportionments for authority financing of

library construction projects pursuant to section two hundred

seventy-three-a of the education law. Such certification, which shall be

made within thirty days after such approval or as soon thereafter as is

practicable, shall contain one or more projects such that the total of

amounts to be financed shall be in excess of minimum amounts of bonds,

in accordance with guidelines of the dormitory authority, which may be

issued so as to minimize the issuing costs of such bonds, and shall

identify the amount of aid apportionment which has been approved for

each such public library and library system and shall estimate the date

or dates when such project will be undertaken to assist the authority in

establishing a schedule for financing such project. The commissioner

shall notify the authority if there is a change in such dates.

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

shall have power from time to time, in accordance with a schedule

certified to the authority by the commissioner of education identifying

eligible library construction projects approved for the payment of aid

apportionments pursuant to section two hundred seventy-three-a of the

education law, 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.

5. The state of New York 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.

* NB There are 2 § 1689-i's