§ 1680-I — Judiciary; authority financing of courthouse improvements

§ 1680-i. Judiciary; authority financing of courthouse improvements.\n1. The dormitory authority is hereby authorized to finance eligible\ncourthouse improvements.\n 2. (a) Subject to the provisions of chapter fifty-nine of the laws of\ntwo thousand and to the making of annual appropriations therefor by the\nlegislature, in order to assist the dormitory authority in providing for\nthe financing of courthouse improvements, the director of the budget is\nauthorized in any state fiscal year commencing April first, two thousand\ntwo or any state fiscal year thereafter to enter into one or more\nservice contracts, none of which shall exceed thirty years in duration,\nwith the dormitory authority, upon such terms as the director of the\nbudget and the dormitory authority agree.\n (b) Any service contract entered into pursuant to paragraph (a) of\nthis subdivision or any payments made or to be made thereunder may be\nassigned and pledged by the dormitory authority as security for its\nbonds, notes, or other obligations.\n (c) Any such service contracts shall provide that the obligation of\nthe director of the budget or of the state to fund or to pay the amounts\ntherein provided for shall not constitute a debt of the state within the\nmeaning of any constitutional or statutory provision in the event the\ndormitory authority assigns or pledges the service contract payments as\nsecurity for its bonds, notes, or other obligations and shall be deemed\nexecutory only to the extent monies are available and that no liability\nshall be incurred by the state beyond the monies available for the\npurpose, and that such obligation is subject to annual appropriations by\nthe legislature.\n (d) Any service contract or contracts entered into pursuant to this\nsubdivision shall provide for state commitments to provide annually to\nthe dormitory authority a sum or sums, upon such terms and conditions as\nshall be deemed appropriate by the director of the budget, to fund the\nprincipal, interest, or other related payments required for any bonds,\nnotes, or other obligations of the dormitory authority issued pursuant\nto this section.\n 3. (a) To obtain funds for the purposes of this section, the authority\nshall have power from time to time to issue negotiable bonds or notes.\nUnless the context shall clearly indicate otherwise, whenever the words\n"bond" or "bonds" are used in this section, such words shall include a\nnote or notes of the authority.\n (b) The dormitory authority shall not issue any bonds or notes in an\namount in excess of thirty-seven million six hundred thousand dollars\nfor the purposes of this section; excluding bonds or notes issued to\nfund one or more debt service reserve funds, to pay costs of issuance of\nsuch bonds, and bonds or notes issued to refund or otherwise repay such\nbonds or notes previously issued. Except for purposes of complying with\nthe internal revenue code, any interest on bond proceeds shall only be\nused to pay debt service on such bonds.\n (c) In computing for the purposes of paragraph (b) of this\nsubdivision, the aggregate amount of indebtedness evidenced by bonds and\nnotes of the dormitory authority issued pursuant to this title, there\nshall be excluded the amount of such indebtedness represented by such\nbonds or notes issued to refund or otherwise repay bonds or notes;\nprovided that the amount so excluded under this paragraph may exceed the\nprincipal amount of such bonds or notes that were issued to refund or\notherwise repay only if the present value of the aggregate debt service\non the refunding or repayment bonds or notes shall not have at the time\nof their issuance exceeded the present value of the aggregate debt\nservice of the bonds or notes they were issued to refund or repay, such\npresent value in each case being calculated by using the effective\ninterest rate of the refunding or repayment bonds or notes, which shall\nbe that rate arrived at by doubling the semi-annual interest rate\n(compounded semi-annually) necessary to discount the debt service\npayments on the refunding or repayment bonds or notes from the payment\ndate thereof to the date of issue of the refunding or repayment bonds or\nnotes and to the price bid therefor, or to the proceeds received by the\ndormitory authority from the sale thereof, in each case including\nestimated accrued interest.\n (d) The state of New York hereby covenants with the purchasers,\nholders, and owners from time to time of the bonds of the authority\nissued pursuant to this section that it will not, subject to the\nprovisions of paragraph (c) of subdivision two of this section, repeal,\nrevoke, rescind, modify, or amend the provisions of this section which\nrelate to the making of annual service contract payments to the\nauthority with respect to such bonds as to limit, impair, or impede the\nrights and remedies granted to bondholders under this title or otherwise\ndiminish the security pledged to such purchasers, holders, and owners or\nsignificantly impair the prospect of payment of any such bond.\n