N.Y. Urban Development Corporation Act 174/68 § 48: Authorization for transportation infrastructure finance and innovation act loans

§ 48. Authorization for transportation infrastructure finance and

innovation act loans. 1. (a) Notwithstanding the provisions of any other

law to the contrary, each of the authorized issuers, as such term is

defined in paragraphs (a) and (b) of subdivision 1 of section 68-a of

the state finance law, are hereby authorized to accept transportation

infrastructure finance and innovation act (TIFIA) loans from the United

States of America, subject to any applicable agreement with bondholders

or noteholders, to enter into contracts, secured loan agreements,

service agreements or repayment agreements and to execute all

instruments necessary, convenient or desirable in connection therewith,

including, its bonds, notes or other obligations evidencing any such

loan from the United States of America, and to pledge and assign as

security for any such grants or loans, bonds or notes issued by such

authorized issuer or payments due to such authorized issuer in

connection therewith or revenues of such authorized issuer, as

applicable. The aggregate principal amount of bonds authorized to be

issued by the authorized issuers pursuant to this section shall not

exceed seven hundred fifty million dollars, excluding bonds issued to

fund one or more debt service reserve funds, to pay costs of issuance of

such bonds, and bonds, notes, or other obligations issued to refund or

otherwise repay such bonds, notes, or other obligations previously

issued. If such bonds, notes, or other obligations are secured by a

service contract with the state of New York, such bonds, notes, or other

obligations of the authorized issuers 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

authorized issuers for principal, interest, and related expenses

pursuant to a service contract and such bonds, notes, and other

obligations 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.

(b) Any bonds, notes, or other obligations issued pursuant to this

section shall (i) be in furtherance of capital projects and public

purposes consistent with the objectives of the TIFIA loans from the

United States of America, and (ii) any such financings shall provide a

demonstrable benefit to the state of New York and the authorized issuers

through a lower cost of financing than could otherwise be achieved, as

evidenced by a report from an independent financial advisor.

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

order to assist the authorized issuers in undertaking the TIFIA loans

from the United States of America, the state of New York, acting through

the director of the budget, is hereby authorized to enter into one or

more service contracts with the authorized issuers upon such terms and

conditions as the director of the budget and the authorized issuers

agree, so as to annually provide to the authorized issuers, in the

aggregate, a sum not to exceed the principal, interest, and related

expenses required for such bonds, notes, and other obligations. 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 authorized issuers as security for their bonds, notes, and other

obligations as authorized by this section.

3. The state comptroller is hereby authorized to receive from the

authorized issuers TIFIA loan proceeds from the United States of

America, to reimburse the state for costs associated with capital

projects related thereto and to credit such amounts to the capital

projects fund or any other appropriate fund.

4. Prior to submitting a letter of interest to the United States

department of transportation for a TIFIA loan, the director of the

budget shall submit a report from an independent financial advisor to

the speaker of the assembly, the temporary president of the senate, the

chair of the senate finance committee and the chair of the assembly ways

and means committee evidencing a demonstrable benefit to the state of

New York through a lower cost of financing than could otherwise be

achieved.