N.Y. Urban Development Corporation Act 174/68 § 42: New York state modernization projects

§ 42. New York state modernization projects. 1. Notwithstanding the

provisions of any other law to the contrary, the dormitory authority and

the corporation are hereby authorized to issue bonds or notes in one or

more series for the purpose of funding project costs for the Roosevelt

Island operating corporation related to the modernization of the aerial

tramway, critical maintenance and improvement projects on Governor's

Island, redevelopment initiatives at the Harriman research and

technology park and USA Niagara and other state costs associated with

such projects. The aggregate principal amount of bonds authorized to be

issued pursuant to this section shall not exceed fifty million four

hundred fifty thousand dollars, excluding bonds issued to fund one or

more debt service reserve funds, to pay costs of issuance of such bonds,

and bonds or notes issued to refund or otherwise repay such bonds or

notes previously issued. Such bonds and notes of the dormitory authority

and the 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 dormitory authority

and the 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 dormitory authority and the corporation in

undertaking the financing for the Roosevelt Island operating corporation

related to the modernization of the aerial tramway, critical maintenance

and improvement projects on Governor's Island, redevelopment initiatives

at the Harriman research and technology park and USA Niagara and other

state costs associated with such projects, the director of the budget is

hereby authorized to enter into one or more service contracts with the

dormitory authority and the corporation, none of which shall exceed

thirty years in duration, upon such terms and conditions as the director

of the budget and the dormitory authority and the corporation agree, so

as to annually provide to the dormitory authority and the 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 contract or any payments made or to be made

thereunder may be assigned and pledged by the dormitory authority and

the corporation as security for its bonds and notes, as authorized by

this section.