§ 386 — Additional powers of the authority to issue special rail and aviation transportation bonds

§ 386. Additional powers of the authority to issue special rail and\naviation transportation bonds. 1. The authority is hereby authorized, as\nan additional corporate purpose thereof to enter into service contracts,\ncontracts, agreements, deeds, leases with the director of the budget,\nthe commissioner of transportation, municipalities and others to provide\nfor the financing by the authority of rail and aviation transportation\nprojects as authorized by section fourteen-j of the transportation law.\n 2. The authority is hereby authorized, as an additional corporate\npurpose thereof, solely at the request of the director of the budget: a.\nto issue special rail and aviation transportation bonds, notes or other\nobligations in an aggregate principal amount not to exceed forty million\ndollars plus a principal amount of bonds, notes or other obligations\nissued (i) to fund any related debt service reserve fund, (ii) to\nprovide capitalized interest and (iii) to provide fees and other charges\nand expenses, including but not limited to legal fees, underwriters'\ndiscounts, related to the issuance of such bonds, notes and other\nobligations and the maintenance of such reserves, all as determined by\nthe authority, excluding bonds, notes or other obligations issued to\nrefund outstanding bonds, notes or other obligations issued pursuant to\nthis section. Such bonds, notes or other obligations may be issued for a\nterm not to exceed thirty years and shall be secured by the moneys\nprovided pursuant to a service contract, contract, lease or agreement\nentered into with the director of the budget, the commissioner of\ntransportation, municipalities or others pursuant to subdivision one of\nthis section for the purpose of financing activities pursuant to section\nfourteen-j of the transportation law, such service contract, contract,\nlease or agreement to provide for the payment of debt service, funding\nof necessary reserves and all other expenses of the authority as agreed\nto by the parties, provided, however, that such service contract,\ncontract, lease or agreement shall provide that the obligation of the\nstate to make such payments shall not constitute a debt of the state\nwithin the meaning of any constitutional or statutory provision and\nshall be deemed executory only to the extent of moneys made available to\nthe state, and that no liability on account thereof shall be incurred by\nthe state beyond the moneys available for the purpose thereof and that\nany obligation to make such payments shall be subject to annual\nappropriations by the legislature; to make available the proceeds net of\nall costs to the authority in connection therewith in accordance with\nsuch agreements or as authorized and directed by law for the purposes of\nfinancing activities pursuant to and in conformance with section\nfourteen-j of the transportation law.\n 3. Such obligations shall be issued or incurred with the approval of\nthe director of the budget and shall be special limited obligations of\nthe authority secured by and payable solely out of amounts appropriated\nby the legislature for payments pursuant to a service contract,\ncontract, lease or agreement authorized pursuant to subdivision one of\nthis section and any other funds appropriated by the legislature to the\nauthority therefor without recourse against any other assets, revenues\nor funds of or other payments due to the authority.\n 4. Such obligations shall contain on the face thereof a statement to\nthe effect that they shall not be deemed to be an obligation of the\nstate and that the state shall not be liable thereon.\n 5. All of the provisions of this title relating to bonds and notes,\nwhich are not inconsistent with the provisions of this section shall\napply to obligations authorized by this section, including but not\nlimited to the power to issue renewal notes or refunding bonds thereof,\nprovided, however, that the authority shall be authorized to issue\nvariable rate bonds or notes pursuant to this section only until June\nthirtieth, nineteen hundred ninety-four, after which date no bonds or\nnotes issued by the authority pursuant to this section may have interest\nrates which vary, provided further that the expiration of such authority\nshall not affect any such bonds or notes issued prior to such date.\n 6. The authorization, sale and issuance of bonds, notes or other\nobligations pursuant to this section shall not be deemed an action as\nsuch term is defined in article eight of the environmental conservation\nlaw for the purposes of such article. Such exemption shall be strictly\nlimited in its application to such financing activities of the authority\nand does not exempt the department of transportation or any other entity\nfrom compliance with such article.\n 7. The attorney general shall approve or disapprove of the form of any\nservice contract, contract, lease or agreement authorized pursuant to\nthis section.\n