N.Y. Urban Development Corporation Act 174/68 § 51: No title

§ 51. 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 for the nonprofit infrastructure

capital investment 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 one hundred seventy

million dollars $170,000,000, 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 for the

nonprofit infrastructure capital investment 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 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.