N.Y. Urban Development Corporation Act 174/68 § 50: No title

§ 50. 1. Notwithstanding the provisions of any other law to the

contrary, the dormitory authority and the urban development corporation

are hereby authorized to issue bonds or notes in one or more series for

the purpose of funding project costs undertaken by or on behalf of the

state education department, special act school districts,

state-supported schools for the blind and deaf, approved private special

education schools, non-public schools, community centers, day care

facilities, residential camps, day camps, Native American Indian Nation

schools, 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 four hundred eighty-five million nine

hundred sixty thousand dollars $485,960,000, 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 urban development 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 urban development 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 urban development

corporation in undertaking the financing for project costs undertaken by

or on behalf of special act school districts, state-supported schools

for the blind and deaf and approved private special education schools,

non-public schools, community centers, day care facilities, 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 urban development 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 urban development corporation agree, so as to annually provide to

the dormitory authority and the urban development 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 urban development corporation as security for its bonds and notes,

as authorized by this section.