N.Y. Urban Development Corporation Act 174/68 § 43: 2008 and 2009 Economic development initiatives

§ 43. 2008 and 2009 Economic development initiatives. 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 various economic development and regional initiatives, the

upstate regional blueprint fund, the downstate revitalization fund, the

upstate agricultural economic fund, the New York state capital

assistance program, the New York state economic development assistance

program 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 one billion two hundred sixty-nine 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 various economic development and regional

initiatives, the upstate regional blueprint fund, the downstate

revitalization fund, the upstate agricultural economic fund, the New

York state capital assistance program, the New York state economic

development assistance program 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.