§ 1689 — Board of cooperative educational services school facilities

§ 1689. Board of cooperative educational services school facilities.\n1. For all the purposes of this section sixteen hundred eighty-nine the\nterm "board of cooperative educational services school facilities" shall\nmean any interest in real property, any building, library, laboratory,\nclassroom, or other building or structure essential, necessary or useful\nin a career education or other program of any board of cooperative\neducational services.\n 2. a. The authority is hereby authorized and empowered upon\napplication of the board of cooperative educational services concerned\nto construct, acquire, reconstruct, rehabilitate and improve, and\nfurnish and equip or otherwise provide a board of cooperative\neducational services school facility. The board for whose students any\nsuch board of cooperative educational services school facility is\nintended to be provided shall approve plans and specifications and the\nlocation of such board of cooperative educational services facilities.\nThe authority shall have the same power and authority in respect to such\nboard of cooperative educational services school facilities erected\npursuant to this section that it has relative to dormitories.\n b. The authority shall have power to acquire, in the name of the\nauthority, on terms necessary or convenient by purchase, condemnation,\ngift or devise, real property, leasehold interest in real property or\nrights of easement in relation to the board of cooperative educational\nservices school facilities erected pursuant to this section.\n c. When authorized by the voters of the board of cooperative\neducational services, any board of cooperative educational services\nshall have power to convey to the authority real property, leasehold\ninterest in real property or rights of easement, the title of which is\nvested in the board, in relation to the board of cooperative educational\nservices school facilities to be erected pursuant to this section, and,\nwhen so authorized, any board of cooperative educational services shall\nhave power to enter into any lease or other agreement with the authority\nin connection with the provision of a board of cooperative educational\nservices school facility.\n d. The authority shall have power to accept gifts of real and personal\nproperty in the name of the authority for the purposes of this section.\n e. The authority may lease any such board of cooperative educational\nservices school facilities to the board for which such board of\ncooperative educational services school facilities are erected. At such\ntime as the liabilities of the authority incurred for any such board of\ncooperative educational services school facilities have been discharged\nand the bonds of the authority issued therefor have been paid or such\nliabilities and bonds have otherwise been discharged, the authority\nshall transfer title to all real and personal property of such board of\ncooperative educational services school facilities vested in the\nauthority to the board to which such board of cooperative educational\nservices school facilities are then leased, provided, however, that if\nat such time the board of cooperative educational services school\nfacilities are not located in any board or any successor thereto in the\nstate of New York, then such title shall vest in the people of the state\nof New York.\n f. Any lease of a board of cooperative educational services school\nfacility authorized by this section may contain provisions which shall\nbe a part of the contract with the holder of the bonds of the authority\nissued for such board of cooperative educational services school\nfacility, as to\n (1) pledging all or any part of the moneys, income or revenues of the\nlessee or other personal property of the lessee, to secure payments\nrequired under the terms of such lease;\n (2) the setting aside of reserves and the creation of special funds\nand the regulation and disposition thereof;\n (3) the procedure, if any, by which the terms of such lease may be\namended, the amount of bonds the holders of which must consent thereto,\nand the manner in which such consent may be given;\n (4) vesting in a trustee or trustees such specified properties,\nrights, powers and duties as shall be deemed necessary or desirable for\nthe security of the holders of the bonds of the authority issued for\nsuch board of cooperative educational services school facilities;\n (5) the obligations of the lessee with respect to the replacement,\nreconstruction, maintenance, operations, repairs and insurance of such\nboard of cooperative educational services school facilities;\n (6) defining the acts or omissions to act which shall constitute a\ndefault in the obligations and duties of the lessee, and providing for\nthe rights and remedies of the authority and of its bondholders in the\nevent of such default;\n (7) any other matters, of like or different character, which may be\ndeemed necessary or desirable for the security or protection of the\nauthority or the holders of its bonds.\n 3. Whenever the authority under the provisions of this section\nundertakes to construct or otherwise provide a board of cooperative\neducational services school facility and to lease the same to a board of\ncooperative educational services, such lease shall be the general\nobligation of the board and any successor thereto. Such lessee shall be\nresponsible for the direct costs of operation, maintenance, repair and\nreplacement of such board of cooperative educational services school\nfacility, and in addition shall be responsible for the over-all\nsupervision of each board of cooperative educational services school\nfacility, for the overhead and general administrative costs of the\nlessee which are incurred because of such board of cooperative\neducational services school facility and for the integration of the\noperation of each such board of cooperative educational services school\nfacility into the lessee's educational program.\n 4. All the provisions of this title four not inconsistent with the\nprovisions of this section sixteen hundred eighty-nine shall be\napplicable with respect to any bonds of the authority issued to obtain\nfunds for any purpose authorized under this section sixteen hundred\neighty-nine and with respect to the powers of the authority hereunder.\n 5. To obtain funds for the purposes of this section, the authority\nshall have power from time to time to issue negotiable bonds or notes of\nthe authority. Unless the context shall clearly indicate otherwise\nwhenever the words "bond" or "bonds" are used in this section, such\nwords shall include a note or notes of the authority.\n 6. Any pledge of or other security interest in moneys, earnings,\nincome, revenues, accounts, contract rights, general intangibles or\nother personal property made or created by the authority shall be valid,\nbinding and perfected from the time when such pledge or other security\ninterest attaches, without any physical delivery of the collateral or\nfurther act. The lien of any such pledge or other security interest\nshall be valid, binding and perfected as against all parties having\nclaims of any kind in tort, contract or otherwise against the authority\nirrespective of whether or not such parties have notice thereof. No\ninstrument by which such a pledge or other security interest is created\nnor any financing statement need be recorded or filed. This subdivision\nshall apply notwithstanding the provisions of the uniform commercial\ncode.\n 7. Whenever the authority undertakes under the provisions of this\nsection to construct, acquire, reconstruct, rehabilitate and improve,\nand furnish and equip or otherwise provide a board of cooperative\neducational services school facility, each board of cooperative\neducational services in connection with which such board of cooperative\neducational services school facility is built is authorized to assign\nand pledge to the authority a sufficient portion of any and all public\nfunds to be apportioned or otherwise to be made payable by the state of\nNew York to the board of cooperative educational services to cover the\npayments required under the lease between the authority and the board of\ncooperative educational services. All state and local officials\nconcerned are hereby authorized to apportion and pay all such funds so\nassigned and pledged to the authority. Such assignment and pledge by any\nboard of cooperative educational services shall be irrevocable and shall\ncontinue until the date on which the liabilities of the authority and\nany such board of cooperative educational services school facilities\nhave been discharged and the bonds of the authority issued therefor have\nbeen paid or such bonds have otherwise been discharged.\n 8. No board of cooperative educational services school facility shall\nbe constructed or otherwise provided by the authority under the\nprovisions of this section unless approved by the voters of the board of\ncooperative educational services and unless any and all necessary\napprovals of the commissioner of education under section four hundred\neight of the education law have been obtained.\n 9. Any payment required to be made by a board of cooperative\neducational services to the authority shall be deemed an administrative\nor capital expense within the meaning of section nineteen hundred fifty\nof the education law.\n 10. a. The total amount payable annually to the authority by a board\nshall be certified by the authority to the commissioner of education and\nthe authority shall annually prepare and certify to the commissioner of\neducation a statement of the total amount necessary to be paid by all\nboards of cooperative educational services for the ensuing school year.\n b. The commissioner of education shall include in the certificate\nwhich he files with the state comptroller showing the amount of state\nfunds apportioned to the board of cooperative educational services a\nstatement showing the amount to be owed by the board to the authority\nfor the ensuing school year.\n c. The comptroller shall deduct from any state funds to become due to\nany such board of cooperative educational services an amount equal to\nthe amount required to be paid by such board to the authority as shown\nby the certificate of the commissioner of education filed with the\ncomptroller as required by paragraph b of this subdivision.\n d. The state of New York hereby covenants with the purchasers, holders\nand owners from time to time of the bonds of the authority that it will\nnot repeal, revoke, rescind, modify or amend the provisions of this\nsubdivision ten so as to limit, impair or impede the rights and remedies\ngranted hereby or otherwise diminish the security pledged to such\npurchasers, holders and owners or significantly impair the prospect of\npayment of any such bond, nor shall any lien or charge on or pledge,\nassignment, diversion, withholding, payment or other use of or deduction\nfrom any state funds due or to become due or appropriated to or to be\nappropriated to or to be apportioned and paid to any board of\ncooperative educational services be created which is prior in time or\nsuperior in right to the deduction required by paragraph c of this\nsubdivision; provided, however, that nothing herein contained shall be\ndeemed or construed as requiring the state to continue the payment of\nthe state aid or assistance to any board of cooperative educational\nservices or as limiting or prohibiting the state from repealing or\namending any law theretofore or hereafter enacted providing for the\npayment or apportionment of state aid to a board of cooperative\neducational services or the manner, time or amount thereof.\n 11. In the event that the amount paid to the authority pursuant to the\nprovisions of subdivision ten of this section is insufficient to meet\nany payment required by the board of cooperative educational services to\nthe authority any such amount still due and owing shall be paid directly\nto the authority by the board.\n 12. (a) After: (i) a proposition has been approved by the voters of a\nboard of cooperative educational services for the construction or\nproviding by the authority of a board of cooperative educational\nservices school facility or facilities and any and all necessary\napprovals of the commissioner of education have been obtained, all as\nprovided by subdivision eight of this section; (ii) an agreement and a\nlease have been executed by and between such board of cooperative\neducational services and the dormitory authority relating to the\nconstruction or otherwise providing of such board of cooperative\neducational services school facility or facilities, the leasing thereof\nby the dormitory authority to such board of cooperative educational\nservices and the financing thereof by the dormitory authority by the\nissuance of its obligations; and (iii) the dormitory authority has\nadopted its resolution authorizing obligations of the dormitory\nauthority for such purpose, the dormitory authority may determine to\nprovide that the validity of such agreement, lease, resolution of the\nauthority authorizing the issuance of obligations and the obligations\nauthorized and issued pursuant thereto may be contested only if:\n 1. Such agreement, lease, resolution and the obligations to be issued\npursuant to such resolution are authorized for a board of cooperative\neducational services school facility or facilities for which the board\nof cooperative educational services and the dormitory authority are not\nauthorized to execute an agreement and a lease or for which the\ndormitory authority is not authorized to issue obligations, or\n 2. The provisions of law which should be complied with at the date of\nthe publication of the notice hereinafter provided for, are not\nsubstantially complied with, and an action, suit or proceeding\ncontesting such validity is commenced within twenty days after the date\nof such publication, or\n 3. Such obligations are authorized in violation of the provisions of\nthe constitution.\n (b) If the dormitory authority shall determine to utilize the\nprovisions of this subdivision, the dormitory authority shall publish or\nshall cause a notice to be published in the manner hereinafter provided,\nwhich notice shall be in substantially the following form:\n The (here insert the name of the board of cooperative educational\nservices) and the dormitory authority of the state of New York have\nentered into an agreement dated as of the ----- day of -----, 19---, and\na lease dated as of the ----- day of -----, 19---, and the dormitory\nauthority has adopted a resolution on the ----- day of -----, 19---, and\nthe validity of such agreement, lease, resolution and the obligations\nissued pursuant thereto may be hereafter contested only if such\nagreement, lease, resolution and the obligations issued pursuant thereto\nwere authorized for a board of cooperative educational services school\nfacility or facilities for which such board of cooperative educational\nservices and the dormitory authority are not authorized to enter into an\nagreement, lease and for which the dormitory authority is not authorized\nto issue such obligations or if the provisions of law which should have\nbeen complied with as of the date of publication of this notice were not\nsubstantially complied with, and an action, suit or proceeding\ncontesting such validity is commenced within twenty days after the date\nof publication of this notice, or such obligations were authorized in\nviolation of the provisions of the constitution.\n By such agreement and lease such board of cooperative educational\nservices and the dormitory authority have agreed that the dormitory\nauthority shall provide the board of cooperative educational services\nschool facility or facilities described therein, that the dormitory\nauthority shall lease the same to such board of cooperative educational\nservices, which board of cooperative educational services shall pay\nannual rentals as agreed upon in such lease sufficient to pay the\nprincipal of and interest on the obligations of the authority issued to\nfinance such facility or facilities, the amounts required by such\nresolution to establish and maintain the reserve funds, if any, required\nby such resolution, any expenditures of the authority for insurance,\nfees and expenses of auditing and fees and expenses of the trustee, all\nas required by the resolution, all other expenditures reasonably and\nnecessarily incurred by the authority by reason of its ownership,\nfinancing and leasing of the project and the annual administrative fee\npayable to the authority. Such resolution authorizes an issue of $-----\nobligations of the authority, which amount is equal to the sum of: (i)\nthe estimated cost of construction and equipment of such board of\ncooperative educational services school facility or facilities after\nfirst deducting federal grants-in-aid to be received; (ii) the amount\nrequired by the authority, if any, to be paid to reserve funds created\nby the resolution of the authority authorizing the bonds; and (iii) the\namounts required to make payments for legal, financing, administrative\nand other costs and expenses of the authority in connection with such\nboard of cooperative educational services school facilities and the\nfinancing thereof.\n Executed counterparts of such agreement and lease and a certified copy\nof the resolution of the dormitory authority authorizing such\nobligations are on file in the office of the clerk of such board of\ncooperative educational services at (here insert the address of the\noffice of such clerk) and at the office of the dormitory authority (here\ninsert the address of such office) and such documents may be inspected\nat either of said offices during regular business hours.\n DORMITORY AUTHORITY OF THE STATE OF\n NEW YORK and (here insert the name of the\n board of cooperative educational services)\n (c) The notice described in subparagraph (b) of this subdivision shall\nbe published once in each of two newspapers, if there shall be two, or\nin one newspaper, if there shall be but one, having general circulation\nwithin the board of cooperative educational services, but if no\nnewspaper shall then have general circulation therein, such notice shall\nbe posted in at least twenty of the most public places in said board of\ncooperative educational services.\n (d) After the publication of such notice, the validity of the\nobligations authorized thereby may be contested only if:\n 1. Such agreement, lease, resolution of the dormitory authority\nauthorizing the obligations, and the obligations of the dormitory\nauthority were authorized for a board of cooperative educational\nservices school facility or facilities for which such board of\ncooperative educational services and the dormitory authority were not\nauthorized to execute an agreement and a lease or for which the\ndormitory authority is not authorized to issue obligations, or\n 2. The provisions of law which should be complied with at the date of\npublication of the notice hereinabove provided for, are not\nsubstantially complied with, and an action, suit or proceeding\ncontesting such validity is commenced within twenty days after the date\nof such publication, or\n 3. Such obligations are authorized in violation of the provisions of\nthe constitution.\n (e) If an action, suit or proceeding contesting the validity of such\nagreement, lease, resolution authorizing the obligations or the\nobligations authorized thereby is commenced within twenty days from the\ndate of publication of such notice, the court in which such action, suit\nor proceeding is commenced shall determine whether or not such\nagreement, lease, resolution and obligations were authorized for a board\nof cooperative educational services school facility or facilities for\nwhich the board of cooperative educational services and the dormitory\nauthority were authorized to enter into an agreement and a lease and for\nwhich the authority was authorized to issue obligations or the\nprovisions of law which should have been complied with were\nsubstantially complied with. The court may determine that the provisions\nof law which should have been complied with were substantially complied\nwith if:\n 1. The aggregate amount of obligations authorized does not exceed an\namount equal to the sum of; (i) the estimated cost of construction and\nequipment of such a board of cooperative educational services school\nfacility or facilities after first deducting federal grants-in-aid to be\nreceived; (ii) the amount, if any, required by the authority by the\nresolution to be paid to reserve funds created by the resolution of the\nauthority authorizing the obligations; and (iii) the amounts estimated\nby the authority to be required to make payments for legal, financing,\nadministrative and other costs and expenses of the authority in\nconnection with the providing of the facilities and the financing\nthereof.\n 2. Such agreement and lease were executed after a proposition\nauthorizing the same had been submitted to and approved by a majority of\nthe duly qualified voters of such board of cooperative educational\nservices.\n (f) Such determination of the court as described in subparagraph (e)\nhereof may be arrived at notwithstanding any irregularity or failure to\nobserve a technicality in:\n 1. The form of such proposition approved by the duly qualified voters\nof such board of cooperative educational services.\n 2. The notice of the meeting at which such proposition was submitted.\n 3. The time or manner of the publication of such notice.\n 4. The conduct of the meeting at which such proposition was adopted.\n 5. Like matters in such proceedings.\n (g) If the dormitory authority shall have utilized the provisions of\nthis subdivision, the obligations of the authority issued pursuant to\nthe resolution authorizing the same shall contain a recital\nsubstantially to the effect that the procedure for the validation of\nsuch bonds set forth in this section have been complied with and such\nrecital shall bind the board of cooperative educational services and the\ndormitory authority, and twenty days after such notice shall have been\npublished and after such obligations have been purchased in good faith\nand for fair value by any person, the validity of such agreement, lease,\nresolution and of the obligations issued pursuant to such resolution\nshall not be questioned by such board of cooperative educational\nservices or by any taxpayer thereof in any court.\n (h) If the dormitory authority and such board of cooperative\neducational services shall deem it necessary to increase the amount of\nobligations of the authority to be issued in connection with the\nconstruction or providing of a board of cooperative educational services\nschool facility or facilities and shall have authorized the issuance of\nsuch additional obligations by the execution of a supplemental agreement\nand a supplemental lease between the dormitory authority and such board\nof cooperative educational services and the authority has adopted a\nsupplemental resolution authorizing such additional obligations, the\nprovisions of this subdivision also shall be applicable to such\nsupplemental agreement, supplemental lease, supplemental resolution and\nadditional obligations authorized and issued pursuant thereto.\n 13. No authorization given by the voters of a board of cooperative\neducational services prior to April first, nineteen hundred seventy-six\nof a lease or other agreement with the authority in connection with the\nprovision of a board of cooperative educational services school facility\nshall be held invalid by reason of any irregularity or failure to\nobserve a technicality in:\n a. The form of such proposition approved by the duly qualified voters\nof such board of cooperative educational services,\n b. The notice of the meeting at which such proposition was submitted,\n c. The time or manner of the publication of such notice,\n d. The conduct of the meeting at which such proposition was adopted,\n e. Like matters in such proceedings, in any action or proceeding\ncommenced more than two years after the date of approval by such voters\nof the proposition authorizing such lease or other agreement. The\nforegoing limitation shall not be construed as extending any limitation\nperiod otherwise provided by law or authorizing any action or\nproceeding.\n