§ 1689-C — Capital facility program, authority financing of eligible projects

New York § 1689-C

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 4: Dormitory Authority
• Art. 8: Miscellaneous Authorities

Text

§ 1689-c. Capital facility program, authority financing of eligible\nprojects. 1. The authority is authorized to finance eligible capital\nfacility program projects pursuant to the Jobs two thousand for New York\nState (J2K) Act.\n 2. (a) Notwithstanding the provisions of any general or special law to\nthe contrary, and subject to the making of annual appropriations\ntherefor by the legislature, in order to assist the authority in the\nfinancing and refinancing of such eligible capital facility program\nprojects, the director of the budget is authorized to enter into one or\nmore service contracts, none of which shall exceed thirty years in\nduration, with the 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 authority as security for its bonds, notes,\nor other obligations;\n (c) Any such service contract shall provide that the obligation of the\ndirector 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\nauthority assigns or pledges the service contract payments as security\nfor its bonds, notes, or other obligations and shall be deemed executory\nonly to the extent moneys are available and that no liability shall be\nincurred by the state beyond the moneys available for the purpose, and\nthat such obligation is subject to annual appropriation by the\nlegislature;\n (d) Any service contract or contracts entered into pursuant to this\nsubdivision shall provide for state commitments to provide annually to\nthe authority a sum or sums, upon such terms and conditions as shall be\ndeemed appropriate by the director of the budget, to fund the principal,\ninterest, or other related expenses required for any such bonds, notes,\nor other obligations.\n (e) On or before November fifteenth of each year and again on or after\nFebruary fifteenth of each year, the authority shall submit, and\nthereafter may resubmit, to the director of the budget, the state\ncomptroller, the executive director of the New York state office of\nscience, technology and academic research, the chair of the senate\nfinance committee and the chair of the assembly ways and means committee\na report setting forth the amounts, if any, of all annual payments\nestimated to be appropriated to the authority pursuant to such service\ncontracts between the authority and the director of the division of the\nbudget pursuant to this subdivision.\n 3. (a) To obtain funds for the purposes of this subdivision, the\nauthority shall have power from time to time, in accordance with a\nschedule certified to the authority by the executive director of the New\nYork state office of science, technology and academic research\nidentifying eligible capital facility program projects approved for\npayment pursuant to the Jobs two thousand for New York State (J2K) Act,\nto issue negotiable bonds or notes of the authority. Unless the context\nshall clearly indicate otherwise, whenever the words "bond" or "bonds"\nare used in this section, such words shall include a note or notes of\nthe authority.\n (b) The authority shall not issue any bonds or notes in an amount in\nexcess of forty-seven million five hundred thousand dollars for the\npurposes of this subdivision, excluding a principal amount of bonds or\nnotes issued to fund one or more debt service reserve funds, to pay for\nthe costs of issuance of such bonds, and bonds or notes issued to refund\nor otherwise repay such bonds, and bonds or notes previously issued.\nExcept for the purposes of complying with the internal revenue code, any\ninterest income earned on bond proceeds shall only be used to pay debt\nservice on such bonds or notes.\n In computing for the purposes of this subdivision, the aggregate\namount of indebtedness evidenced by bonds and notes of the authority\nissued pursuant to this subdivision, there shall be excluded the amount\nof such indebtedness represented by such bonds or notes issued to refund\nor otherwise repay bonds or notes, provided that the amount so excluded\nunder this paragraph may exceed the principal amount of such bonds or\nnotes that were issued to refund or otherwise repay only if the present\nvalue of the aggregate debt service on the refunding or repayment bonds\nor notes shall not have at the time of their issuance exceeded the\npresent value of the aggregate debt service of the bonds or notes they\nwere issued to refund or repay, such present value in each case being\ncalculated by using the effective interest rate of the refunding or\nrepayment bonds or notes, which shall be that rate arrived at by\ndoubling the semi-annual interest rate (compounded semi-annually)\nnecessary to discount the debt service payments on the refunding or\nrepayment bonds or notes from the payment date thereof to the date of\nissue of the refunding or repayment bonds or notes and to the price bid\ntherefor, or to the proceeds received by the dormitory authority from\nthe sale thereof, in each case including estimated accrued interest.\n