N.Y. State Finance Law § 67-b: Limitations on the issuance of state-supported debt

§ 67-b. Limitations on the issuance of state-supported debt. 1. (a)

State-supported debt may not be contracted for unless, as of October

thirty-first, two thousand one and as of each October thirty-first

thereafter, the total outstanding principal amount of such debt, as of

the last day of the immediately preceding fiscal year, is less than the

designated percentage of the total personal income of the state. Nothing

shall preclude the contracting of state-supported debt prior to October

thirty-first of each year if, as of the last day of the immediately

preceding fiscal year, the total outstanding principal amount of such

debt was less than the designated percentage of the total personal

income of the state. The total outstanding principal amount of debt

shall include all state-supported debt issued on and after April first,

two thousand. Such designated percentage shall be seven and

one-half-tenths of one percent for fiscal year two thousand--two

thousand one, and shall increase by five-tenths of one percent in fiscal

year two thousand one--two thousand two, by an additional four-tenths of

one percent in fiscal year two thousand two--two thousand three, and by

an additional one-third of one percent in each of the seven subsequent

fiscal years. The designated percentage for fiscal year two thousand

ten--two thousand eleven and for each fiscal year thereafter shall be

four percent.

(b) If state-supported debt is issued to refund or otherwise affect

the refunding, retirement or defeasance of state-supported debt

originally issued on and after April first, two thousand, provided such

refundings are conducted in accordance with section thirteen of article

VII of the state constitution, the calculation of the total outstanding

principal amount of debt shall include such refunding debt, and shall

exclude the amount of prior refunded debt, in each year until such

refunding debt is finally retired. Notwithstanding the foregoing, the

provisions of such section thirteen of article VII of the state

constitution relating to the maintenance or management of escrow funds

and sinking funds shall only be applicable to state-supported debt

issued by the state comptroller. If state-supported debt is issued to

refund or otherwise affect the refunding, retirement or defeasance of

state-supported debt issued prior to April first, two thousand, then the

amount of such refunding debt shall be included in the calculation of

the total outstanding principal amount of debt in each year until such

refunding debt is finally retired. In addition, if state-supported debt

is retired or defeased with payments in any fiscal year made by the

state that are not required by mandatory payments, such debt shall be

excluded from the calculation of the total outstanding principal amount

of debt, including retirements or defeasances accomplished on an

economic basis.

2. State-supported debt may not be contracted for unless, as of

October thirty-first, two thousand one and as of each October

thirty-first thereafter, the total amount of interest, installments of

principal, contributions to sinking funds, and related payments on a

cash basis of accounting for state-supported debt in the immediately

preceding fiscal year is less than the designated percentage of total

governmental funds receipts for such fiscal year. Nothing shall preclude

the contracting of state-supported debt prior to October thirty-first of

each year if, in the immediately preceding fiscal year, the total amount

of interest, installments of principal, contributions to sinking funds,

and related payments was less than the designated percentage of total

governmental funds receipts. This shall include the total amount of

payments on such debt issued on and after April first, two thousand, but

shall not include payments in any fiscal year made by the state to

defease or retire debt not required by mandatory payments nor payments

made by the state for debt issued to refund debt that was issued prior

to April first, two thousand. In addition, if state-supported debt is

issued to refund or otherwise affect the refunding, retirement or

defeasance of state-supported debt originally issued on and after April

first, two thousand, provided such refundings are conducted in

accordance with section thirteen of article VII of the state

constitution, the calculation of the total amount of interest,

installments of principal, contributions to sinking funds, and related

payments shall include payments made on such refunding debt, and shall

exclude the payments on the prior refunded debt, in each year until such

refunding debt is finally retired. Such designated percentage shall be

seven and one-half-tenths of one percent for fiscal year two

thousand--two thousand one, and shall increase by five-tenths of one

percent in fiscal year two thousand one--two thousand two, by an

additional four-tenths of one percent in fiscal year two thousand

two--two thousand three, and by an additional one-third of one percent

in each of the ten subsequent fiscal years. The designated percentage

for fiscal year two thousand thirteen--two thousand fourteen and for

each fiscal year thereafter shall be five percent.

3. No state-supported debt shall be contracted except to finance

capital works or purposes.

4. Notwithstanding any other provision of law to the contrary, no

state-supported debt shall be issued with a final maturity of more than

thirty years.

5. The provisions of this section shall apply to debt issued pursuant

to section nine of article VII of the state constitution only to the

extent that such notes remain outstanding.