§ 378 — Lease agreements

§ 378. Lease agreements. 1. Any agreement entered into between the\nfund and a state retirement system pursuant to section three hundred\nseventy-six of this chapter shall provide for (i) the construction,\nacquisition, reconstruction, rehabilitation or improvement of one or\nmore facilities, (ii) the leasing thereof and of the land upon which the\nsame is erected to the fund upon completion of construction,\nacquisition, reconstruction, rehabilitation or improvement for a term\nnot exceeding thirty years and upon such terms and conditions including\nannual rental as may be agreed upon, and (iii) the conveyance to the\nstate of title to any such facility at the expiration of the term of the\nlease or upon the earlier payment in full of the total amount specified\ntherein, without additional charge therefor. The state university shall\napprove any such agreement and shall be a party thereto. Any\nconstruction contract entered into by a state retirement system in\nconnection with such lease agreement shall be let, or otherwise entered\ninto, by the retirement system or its agent pursuant to the provisions\nof section three hundred seventy-six of this chapter. If so designated\nby a state retirement system, the fund may act as the agent of such\nretirement system in connection with the construction, acquisition,\nreconstruction, rehabilitation or improvement which the lease agreement\nrequires.\n 2. Any agreement entered into between the fund and the dormitory\nauthority pursuant to section three hundred seventy-six of this chapter\nshall provide for (i) the construction, acquisition, reconstruction,\nrehabilitation or improvement of one or more dormitories, and (ii) the\nleasing thereof to the state university for a term not exceeding forty\nyears and upon such terms and conditions including annual rental as may\nbe agreed upon. The state university shall approve any such contract and\nshall be a party to any lease made pursuant to its terms.\n 3. Any agreement entered into between the fund and a state agency\n(other than the dormitory authority) which is a public benefit\ncorporation shall provide for (i) the construction, acquisition,\nreconstruction, rehabilitation or improvement of one or more facilities,\nand (ii) the leasing thereof to the fund upon completion of\nconstruction, acquisition, reconstruction, rehabilitation or improvement\nfor a term not exceeding thirty years and upon such terms and conditions\nincluding annual rental as may be agreed upon. The state university\nshall approve any such agreement and shall be a party thereto.\n 4. To secure the payment of rentals due or to become due in any year\nunder any lease agreement entered into pursuant to subdivision one or\nsubdivision three of this section, the fund may pledge or assign any or\nall moneys in the state university construction fund income account and\nin any rental reserve account established pursuant to subdivision five\nof this section, and any or all moneys which may be in either or both\nsuch accounts in the future, whether equal to or in excess of the amount\nof such rentals due or becoming due in any year, and any or all right,\ntitle and interest of the fund in and to the moneys in or to be\ndeposited in such accounts.\n 5. The fund may create and establish one or more separate accounts to\nbe known as "rental reserve accounts" and may pay into such reserve\naccounts (i) any moneys apportioned and paid by the state for the\npurposes of such reserve accounts pursuant to this subdivision, (ii) any\nmoneys in the state university construction fund income account directed\nto be transferred by the fund to such reserve accounts, and (iii) any\nother moneys which may be made available to the fund from any source or\nsources specifically for the purposes of such reserve accounts.\n The moneys credited to any rental reserve account established under\nthis subdivision shall be used, except as hereinafter provided, solely\nfor the payment of rentals as they become due under one or more of the\nlease agreements referred to in subdivision one or subdivision three of\nthis section, provided, however, that the moneys in such account shall\nnot be withdrawn therefrom at any time in such amount as would reduce\nthe amount thereof to less than the maximum amount of rental becoming\ndue in any succeeding calendar year under such lease agreements, except\nfor the purpose of paying such rentals becoming due for the payment of\nwhich other moneys of the fund are not available.\n Moneys in a rental reserve account not required for immediate use or\ndisbursement may be invested in obligations of the United States or the\nstate or obligations the principal and interest of which are guaranteed\nby the United States or the state. In computing the amount of a rental\nreserve account for the purposes of this subdivision, securities in\nwhich all or a portion of the account are invested shall be valued at\ntheir market value on a date within seven days of the computation or at\ntheir cost to the fund, whichever is less.\n Any excess in a rental reserve account at the end of any fiscal year\nof the fund over the maximum amount of rental becoming due in any\nsucceeding calendar year under such lease agreements shall be withdrawn\nby the fund from such account and transferred to the state university\nconstruction fund income account to be used for the corporate purposes\nof the fund.\n In order further to secure the maintenance in all rental reserve\naccounts established pursuant to this subdivision of an amount equal to\nthe maximum amount of rental becoming due in any succeeding calendar\nyear under the lease agreements to which the reserve account relates,\nthere shall be annually apportioned and paid to the fund for deposit in\nsuch rental reserve accounts such sum, if any, as shall be certified by\nthe chairman of the fund to the governor and director of the budget as\nnecessary to restore such accounts to an amount equal to the maximum\namount of rental becoming due in any succeeding calendar year under such\nlease agreements. The chairman of the fund shall annually, on or before\nDecember first, make and deliver to the governor and director of the\nbudget his certificate stating the amount, if any, required to restore\nsuch rental reserve accounts to the amount aforesaid and the amount so\nstated in said certificate, if any, shall be apportioned and paid to the\nfund during the then current state fiscal year.\n No lease agreement which contains a provision for the establishment or\nmaintenance of a rental reserve account shall be entered into pursuant\nto this section unless the governor, or where so designated by the\ngovernor for such purpose, the director of the budget, shall have\napproved the terms thereof.\n 6. The attorney general shall pass upon the form and sufficiency and\nmanner of execution of any lease agreement entered into pursuant to this\nsection and the same shall not be effective unless so approved by him.\n 7. The state shall not be liable for any rentals payable by the fund\npursuant to the terms of a lease agreement entered into pursuant to this\nsection and such agreement shall contain among its terms a statement to\nsuch effect.\n