§ 1689-E — Biomedical facilities program, authority financing of eligible projects

§ 1689-e. Biomedical facilities program, authority financing of\neligible projects. 1. The authority is authorized to finance eligible\nbiomedical facilities program projects pursuant to an appropriation\ncontained in a chapter of the laws of 2000 to the New York state office\nof science, technology and academic research.\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 biomedical facilities program\nprojects, the director of the budget is authorized to enter into one or\nmore service contracts, none of which shall exceed twenty 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 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 biomedical facilities program projects approved for\npayment pursuant to a biomedical facilities program appropriation to the\nNew York state office of science, technology and academic research, to\nissue 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 ten million dollars for the purposes of this subdivision,\nexcluding a principal amount of bonds or notes issued to fund one or\nmore debt service reserve funds, to pay for the costs of issuance of\nsuch bonds, and bonds or notes issued to refund or otherwise repay such\nbonds, and bonds or notes previously issued. Except for the purposes of\ncomplying with the internal revenue code, any interest income earned on\nbond proceeds shall only be used to pay debt service on such bonds or\nnotes.\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