§ 2438 — Bond authorization

§ 2438. Bond authorization. (1) The agency shall not issue bonds and\nnotes in an aggregate principal amount at any one time outstanding\nexceeding one billion dollars, excluding tax lien collateralized\nsecurities, special school purpose bonds, special school deficit program\nbonds, special program bonds issued to finance the reconstruction,\nrehabilitation or renovation of an educational facility pursuant to the\nprovisions of subdivision (b) of section sixteen of chapter six hundred\nfive of the laws of two thousand, special program bonds issued to\nfinance the cost of a project for design, reconstruction or\nrehabilitation of a school building pursuant to the provisions of\nsection fourteen of the city of Syracuse and the board of education of\nthe city school district of the city of Syracuse cooperative school\nreconstruction act, special program bonds issued to finance the cost of\na project for design, construction, reconstruction or rehabilitation of\na school building pursuant to the provisions of section thirteen of the\nYonkers city school district joint schools construction and\nmodernization act, recovery act bonds, public safety communications\nbonds and bonds and notes issued to refund outstanding bonds and notes.\n (2) The agency shall not issue special school purpose bonds in an\naggregate principal amount in excess of: for the city of New York, four\nhundred thirty-five million dollars; for the city of Buffalo, four\nmillion seven hundred thousand dollars; for the city of Rochester, five\nmillion one hundred thousand dollars; for the city of Syracuse, eight\nhundred thousand dollars; and for the city of Yonkers, three hundred\nthousand dollars; or the amount of prior year claims that are due and\npayable to each such school district of each such special school purpose\nmunicipality pursuant to section thirty-six hundred four of the\neducation law. Such amount shall exclude bonds issued to fund any debt\nservice reserve fund, bonds issued to refund such special school purpose\nbonds, bonds issued to pay the costs of issuance of such special school\npurpose bonds and the amount of bonds that would constitute interest\nunder the Internal Revenue Code of 1986, as amended. Notwithstanding any\nprovision of law to the contrary, the special school purpose bonds\nissued for the city of New York shall be issued in such principal amount\nas will provide funds sufficient to pay interest on such bonds for a\nperiod of at least two years after the date of issuance thereof and such\namount shall be excluded from the limitation contained in this\nsubdivision.\n (3) The agency shall not issue special school deficit program bonds\n(a) prior to the time the state comptroller determines the amount of the\naccumulated projected deficit of a special school deficit program\ndistrict in its general fund at the close of its current fiscal year\nending June thirtieth, two thousand two, including any budget notes and\nrevenue anticipation notes which may be part of such deficit, as\nprovided in a chapter of the laws of two thousand two, and (b) in\naggregate principal amount in excess of the lesser of (i) the amount of\nsuch deficit as determined by the state comptroller or (ii) sixteen\nmillion five hundred thousand dollars, excluding bonds to fund any debt\nservice reserve fund, bonds issued to refund special school deficit\nprogram bonds, bonds issued to pay the costs of issuance of such special\nschool deficit program bonds and the amount of bonds that would\nconstitute interest under the Internal Revenue Code of 1986, as amended.\n (4) The fixing of the statutory maximum in this section shall not be\nconstrued as constituting a contract between the agency and the holders\nof its bonds or notes that additional bonds and notes may not be issued\nsubsequently by the agency in the event that such statutory maximum\nshall subsequently be increased by law.\n