N.Y. Public Authorities Law § 386-b: Financing of peace bridge and transportation capital projects

§ 386-b. Financing of peace bridge and transportation capital

projects. 1. Notwithstanding any other provision of law to the

contrary, the authority, the dormitory authority and the urban

development corporation are hereby authorized to issue bonds or notes in

one or more series for the purpose of financing peace bridge projects

and capital costs of state and local highways, parkways, bridges, the

New York state thruway, Indian reservation roads, and facilities, and

transportation infrastructure projects including aviation projects,

non-MTA mass transit projects, and rail service preservation projects,

including work appurtenant and ancillary thereto. The aggregate

principal amount of bonds authorized to be issued pursuant to this

section shall not exceed eighteen billion five hundred sixty-two million

three hundred eighty-five thousand dollars $18,562,385,000, excluding

bonds issued to fund one or more debt service reserve funds, to pay

costs of issuance of such bonds, and to refund or otherwise repay such

bonds or notes previously issued. Such bonds and notes of the authority,

the dormitory authority and the urban development corporation shall not

be a debt of the state, and the state shall not be liable thereon, nor

shall they be payable out of any funds other than those appropriated by

the state to the authority, the dormitory authority and the urban

development corporation for principal, interest, and related expenses

pursuant to a service contract and such bonds and notes shall contain on

the face thereof a statement to such effect. Except for purposes of

complying with the internal revenue code, any interest income earned on

bond proceeds shall only be used to pay debt service on such bonds.

2. Notwithstanding any other provision of law to the contrary, in

order to assist the authority, the dormitory authority and the urban

development corporation in undertaking the financing of such

transportation facilities projects, the director of the budget is hereby

authorized to enter into one or more service contracts with the

authority, the dormitory authority and the urban development

corporation, none of which shall exceed thirty years in duration, upon

such terms and conditions as the director of the budget and the

authority, the dormitory authority and the urban development corporation

agree, so as to annually provide to the authority, the dormitory

authority and the urban development corporation, in the aggregate, a sum

not to exceed the principal, interest, and related expenses required for

such bonds and notes. Any service contract entered into pursuant to this

section shall provide that the obligation of the state to pay the amount

therein provided 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 monies available and that no liability

shall be incurred by the state beyond the monies available for such

purpose, subject to annual appropriation by the legislature. Any such

service contract or any payments made or to be made thereunder may be

assigned and pledged by the authority, the dormitory authority and the

urban development corporation as security for such bonds and notes, as

authorized by this section.