N.Y. Urban Development Corporation Act 174/68 § 49: No title

§ 49. 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 state and municipal facilities program

and other state costs associated with such capital projects. The

aggregate principal amount of bonds authorized to be issued pursuant to

this section shall not exceed three billion one hundred eighty-three

million five hundred thousand dollars $3,183,500,000, 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 project costs for the state and municipal

facilities program and other state costs associated with such capital

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.

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

authority and the corporation any portion of bond proceeds paid to

provide funds for or reimburse the state for its costs associated with

such capital project costs and to credit such amounts to the capital

projects fund or any other appropriate fund.