N.Y. Public Authorities Law § 379: Further additional powers of the authority to finance certain repayment obligations of the state in connection with the purchase of real ...

§ 379. Further additional powers of the authority to finance certain

repayment obligations of the state in connection with the purchase of

real property for highway purposes. 1. (a) The authority is hereby

authorized, as a corporate purpose thereof, to issue bonds and notes in

an aggregate principal amount not to exceed fifty million dollars and to

make available the proceeds from the sale of such bonds and notes, net

of all costs to the authority in connection therewith, to the

commissioner, for the purposes of financing a portion of the repayment

to the treasurer of the United States of funds in an amount as

determined by the secretary of the United States department of

transportation to be equal to the amount of federal funds previously

expended as adjusted by credits received to acquire real property for

the portion of Interstate-478 which was withdrawn from the federal

interstate system in accordance with federal law. Provided, however,

that the authority shall not issue any bonds or notes authorized by this

section until the federal highway administration has ruled on an

application by the state, or the state and the city of New York, seeking

a waiver of the repayment obligation of the state and city for federal

funds expended to acquire real property for a portion of Interstate 478.

(b) Such bonds and notes shall be issued with the approval of the

director of the budget and shall be special limited obligations of the

authority, secured by and payable solely out of certain lease payments

made by the state and funds and accounts held under the resolution

pursuant to which such bonds and notes are issued, without recourse

against other assets, revenues or funds of or other payments due to the

authority.

(c) Such bonds and notes shall contain on the face thereof a statement

to the effect that they shall not be deemed to be an obligation of the

state and the state shall not be liable thereon.

(d) Such bonds shall be scheduled to mature over a term not to exceed

thirty years.

(e) The provisions of title ten of article nine of this chapter, shall

not apply in any way to the bonds or notes authorized to be issued by

this section.

(f) All the provisions of this title relating to bonds and notes,

which are not inconsistent with the provisions of this section, shall

apply to the bonds and the notes authorized by this section, including,

but not limited to, the power to issue renewal notes or refunding bonds

thereof.

2. (a) Notwithstanding any general, special or local law, the state,

acting by and through the commissioner, shall have the power to convey

to the authority or its successor agency, without public bidding, public

sale, or public notice, for such term, and upon such terms and

conditions as the parties thereto shall agree, a leasehold interest in

the real property purchased in part with federal funds in the name of

the state for the portion of then-designated Interstate-478 which was

withdrawn from the interstate system in accordance with federal law.

Any lease entered into pursuant to the provisions of this section shall

be for a period not less than that for which debt service is due and

payable on any bonds and notes issued by the authority pursuant to this

section and not more than thirty days after the period for which debt

service is due and payable on any bonds and notes issued by the

authority pursuant to this section.

(b) Notwithstanding the provisions of any general, special or local

law, the state, acting by and through the commissioner, is hereby

authorized to lease from the authority or its successor agency its

interest in the real property purchased in part with federal funds in

the name of the state for the portion of the then-designated

Interstate-478 which was withdrawn from the interstate system in

accordance with federal law, such lease to be upon such terms and

conditions as the parties thereto shall agree, provided that such lease

shall: (i) be for a period not less than that for which debt service is

due and payable on any bonds and notes issued by the authority pursuant

to this section and not more than thirty days after the period for which

debt service is due and payable on any bonds and notes issued by the

authority pursuant to this section, (ii) provide for lease rental

payments equal to the amount needed to pay debt service on said notes or

bonds as the same become due and equal to the amount needed to cover all

direct and/or indirect costs incurred by the authority and not

reimbursed from bond proceeds, (iii) provide that during any year in

which no debt service is due and payable on any such bonds and notes

such lease rental payments shall be in an amount equal to one dollar,

(iv) provide that the authority shall have no obligations or duties with

respect to such real property except as set forth in this section, (v)

provide that during such leasehold any future proposed acquisition,

disposition or new or different utilization, development or improvement

of the real property subject to such leasehold interest shall be subject

to the provision of paragraph b of subdivision five of section three

hundred forty-b of the highway law, if applicable by the terms thereof,

(vi) provide that the lease rental revenue stream thereunder may be

assigned to a trustee for the payment of holders of bonds authorized by

this chapter but prohibit the assignment of any other interests in the

land subject to such lease to said trustee, and (vii) provide that the

obligation of the state to make such lease rental payments 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 moneys made available to the state, and that no liability on account

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

the purpose thereof, and that any obligation to make lease rental

payments shall be subject to annual appropriation by the legislature.

(c) The attorney general shall approve or disapprove of the form and

sufficiency and manner of execution of any lease executed by the

commissioner pursuant to the provisions of this section.