N.Y. Public Authorities Law § 2435-d: Special school purpose agreements

§ 2435-d. Special school purpose agreements. In order to fulfill the

purposes of this title and to provide a means by which the special

school purpose municipalities may receive assistance to meet their

obligations and, notwithstanding any general or special law to the

contrary, the agency and each special school purpose municipality are

hereby authorized to enter into one or more special school purpose

agreements in accordance with the provisions of this title as to

financing of costs by the agency, the application of school aid revenues

to the agency to secure its bonds and further assurances in respect of

the agency's receipt of such revenues. Any such special school purpose

agreements shall not constitute indebtedness of the special school

purpose municipality for purposes of section 20.00 of the local finance

law or any constitutional or statutory limitation. In addition, any

special school purpose bonds issued in connection with such special

school purpose agreement shall not constitute a debt of the state or of

the applicable special school purpose municipality under any

constitutional or statutory provision. Any such school aid revenues

shall belong to the agency, shall not be, or be treated as, revenues of

the special school purpose municipality for appropriation, accounting or

any other purpose, provided, however, that such school aid revenues

shall be deemed to be revenues of the special school purpose

municipality for the purpose of any computation of federal or state aid,

and shall not be consolidated, commingled or otherwise combined with any

other moneys of the agency and any such special school purpose agreement

shall include a statement to such effect. Any such school aid revenues

and any such special school purpose agreements may be pledged by the

agency in accordance with and with the effect of subdivision ten of

section two thousand four hundred thirty-seven of this title to secure

its bonds and may not be modified thereafter except as provided by the

terms of the pledge. Each special school purpose agreement shall specify

the amount to be made available to the respective special school purpose

municipality through the proceeds of an issue of special school purpose

bonds and such other matters as the agency shall determine necessary or

desirable as to the application of bond proceeds or the security of the

bonds. Such special school purpose agreement shall also provide that the

agency shall not be entitled to receive any special school purpose

school aid revenues. The receipt of the proceeds of any issue of special

school purpose bonds by the special school purpose municipality shall be

deemed to satisfy an equivalent amount of prior year claims owed to the

school district of such special school purpose municipality pursuant to

section thirty-six hundred four of the education law, and such proceeds

provided pursuant to this section shall not reduce the apportionments

payable for approved project costs pursuant to subdivisions six, six-a

and six-b and paragraph c of subdivision fourteen of section thirty-six

hundred two and subdivision twelve of section thirty-six hundred

forty-one of the education law and may be used by an eligible school

district to fund the principal amount of any costs that are in excess of

the costs approved for an apportionment pursuant to such subdivisions

six, six-a or six-b of section thirty-six hundred two or subdivision

twelve of section thirty-six hundred forty-one of the education law.