§ 1689-I*2 — Public school districts; authority financing of projects under the expanding our children's education and learning (EXCEL) program

New York § 1689-I*2

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

Text

* § 1689-i. Public school districts; authority financing of projects\nunder the expanding our children's education and learning (EXCEL)\nprogram. 1. The dormitory authority is authorized to finance EXCEL\nprojects for those school districts which are eligible to receive an\napportionment for expanding our children's education and learning\n(EXCEL) pursuant to subdivision fourteen of section thirty-six hundred\nforty-one of the education law.\n 2. Notwithstanding the provisions of any general or special law to the\ncontrary, and subject to the making of annual appropriations therefor by\nthe legislature, in order to assist the dormitory authority in the\nfinancing of such EXCEL projects, the director of the budget is\nauthorized in any state fiscal year commencing April first, two thousand\nsix and thereafter to enter into one or more service contracts, none of\nwhich shall exceed thirty years in duration, with the dormitory\nauthority, upon such terms as the director of the budget and the\ndormitory authority agree.\n 3. Any service contract entered into pursuant to this section or any\npayments made or to be made thereunder may be assigned and pledged by\nthe dormitory authority as security for its bonds, notes, or other\nobligations.\n 4. 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\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 moneys are available and that no liability\nshall be incurred by the state beyond the moneys available for the\npurpose, and that such obligation is subject to annual appropriation by\nthe legislature.\n 5. Any service contract or contracts entered into pursuant to this\nsection shall provide for state commitments to provide annually to the\ndormitory 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 expenses required for any bonds,\nnotes, or other obligations.\n 6. The commissioner of education shall certify, from time to time, to\nthe dormitory authority, the comptroller, the director of the division\nof the budget, the chair of the senate finance committee and the chair\nof the assembly ways and means committee each school district for which\nhe or she has determined an aid apportionment for authority financing of\nan EXCEL project pursuant to subdivision fourteen of section thirty-six\nhundred forty-one of the education law. Such certification, which shall\nbe made within thirty days after such determination or as soon\nthereafter as is practicable, shall identify the amount of aid\napportionment which has been approved for such school district and shall\nestimate the date or dates when such project will be undertaken.\n 7. On or before November fifteenth of each year and again on or after\nFebruary fifteenth of each year, the dormitory authority shall submit,\nand thereafter may resubmit, to the director of the division of the\nbudget, the state comptroller, the commissioner of education, the chair\nof the senate finance committee and the chair of the assembly ways and\nmeans committee a report setting forth the estimated amounts, if any, of\nall annual payments required to be appropriated to the dormitory\nauthority pursuant to such service contracts between the dormitory\nauthority and the director of the division of the budget pursuant to\nthis section.\n 8. To obtain funds for the purposes of this section, the authority\nshall have power from time to time, to issue negotiable bonds or notes\nof the 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 9. The dormitory authority shall not issue any bonds or notes in an\namount in excess of two billion six hundred million dollars for the\npurposes of this section, excluding a principal amount of bonds or notes\nissued to fund one or more debt service reserve funds, to pay for the\ncosts of issuance of such bonds, and bonds or notes issued to refund or\notherwise repay such bonds, and bonds or notes previously issued. Except\nfor 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 10. In computing for the purposes of this subdivision, the aggregate\namount of indebtedness evidenced by bonds and notes of the dormitory\nauthority issued pursuant to this section, there shall be excluded the\namount of such indebtedness represented by such bonds or notes issued to\nrefund or otherwise repay bonds or notes, provided that the amount so\nexcluded under this clause may exceed the principal amount of such bonds\nor notes that were issued to refund or otherwise repay only if the\npresent value of the aggregate debt service on the refunding or\nrepayment bonds or notes shall not have at the time of their issuance\nexceeded the present value of the aggregate debt service of the bonds or\nnotes they were issued to refund or repay, such present value in each\ncase being calculated by using the effective interest rate of the\nrefunding or repayment bonds or notes, which shall be that rate arrived\nat by doubling 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 11. 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 repeal, revoke,\nrescind, modify or amend the provisions of this section which relate to\nthe making of annual service contract payments to the authority with\nrespect to such bonds as to limit, impair or impede the rights and\nremedies granted to bondholders under this title or otherwise diminish\nthe security pledged to such purchasers, holders and owners or\nsignificantly impair the prospect of payment of any such bond.\n * NB There are 2 § 1689-i's\n