N.Y. Public Authorities Law § 381: Further additional powers of the authority

§ 381. Further additional powers of the authority. 1. The authority is

hereby authorized, as additional corporate purposes thereof: (a) to

issue bonds and notes and to incur obligations secured by the moneys as

provided in the service contracts authorized pursuant to section

fourteen of the chapter of the laws of nineteen hundred ninety-one which

enacted this section; and (b) to make available the proceeds from the

sale of such bonds and notes, net of all costs to the authority in

connection therewith, to provide moneys to the authority to achieve the

same corporate purposes as set forth in section three hundred sixty-five

of this chapter. The authority is further authorized to issue such

obligations in an aggregate principal amount not to exceed eighty

million dollars, exclusive of the principal amount of bonds, notes or

other obligations issued and applied (1) to fund any related debt

service fund, or other reserve funds as may be needed, (2) to provide

capitalized interest, and (3) to provide fees and other charges and

expenses, including underwriters' discount and the purchase of any

credit or liquidity enhancement facilities, related to the issuance of

bonds, notes or other obligations and the maintenance of such reserves,

all as determined by the authority and excluding bonds, notes or other

obligations issued to refund or otherwise repay bonds, notes or other

obligations theretofore issued pursuant to this section. In computing

the total principal amount of bonds, notes or other obligations that may

at any time be issued for any purpose under this section, the amount of

the outstanding bonds, notes or other obligations that constitutes

interest under the United States Internal Revenue Code of 1986, as

amended to the effective date of this section, shall be excluded.

Provided, however, that upon any refunding or repayment, except in

connection with the termination of the existence of the authority or if

otherwise authorized by the legislature, the total aggregate principal

amount of outstanding bonds, notes or other obligations may be greater

than the amount authorized by this section only if the present value of

the aggregate debt service of the refunding or repayment bonds, notes or

other obligations to be issued shall not exceed the present value of the

aggregate debt service of the bonds, notes or other obligations so to be

refunded or repaid. For purposes of this section, the present values of

the aggregate debt service of the refunding or repayment bonds, notes or

other obligations and of the aggregate debt service of the bonds, notes

or other obligations so refunded or repaid, shall be calculated by

utilizing the effective interest rate of the refunding or repayment

bonds, notes or other obligations, 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, notes or other obligations from the payment dates

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

or other obligations and to the price bid including estimated accrued

interest or proceeds received by the authority including estimated

accrued interest from the sale thereof.

2. Such obligations shall be special limited obligations of the

authority, secured by and payable solely out of payments received

pursuant to service contract or contracts authorized by section fourteen

of the chapter of the laws of nineteen hundred ninety-one which enacted

this section, funded by amounts appropriated by the legislature and any

other funds appropriated by the legislature to the authority therefor,

without recourse against any other assets, revenues or funds of or other

payments due to the authority.

3. Such obligations 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 that the state shall not be liable thereon.

4. Such obligations shall be scheduled to mature over a term not to

exceed thirty years.

5. All the provisions of this title relating to bonds and notes, which

are not inconsistent with the provisions of this section, shall apply to

obligations authorized by this section, including, but not limited to,

the power to issue renewal notes or refunding bonds thereof.