§ 386-A — Financing of metropolitan transportation authority (MTA) transportation facilities

§ 386-a. Financing of metropolitan transportation authority (MTA)\ntransportation facilities. 1. Notwithstanding any other provision of\nlaw to the contrary, the authority, the dormitory authority and the\nurban development corporation are hereby authorized to issue bonds or\nnotes in one or more series for the purpose of assisting the\nmetropolitan transportation authority in the financing of transportation\nfacilities as defined in subdivision seventeen of section twelve hundred\nsixty-one of this chapter or other capital projects. The aggregate\nprincipal amount of bonds authorized to be issued pursuant to this\nsection shall not exceed fifteen billion five hundred fifteen million\neight hundred fifty-six thousand dollars $15,515,856,000, excluding\nbonds issued to fund one or more debt service reserve funds, to pay\ncosts of issuance of such bonds, and to refund or otherwise repay such\nbonds or notes previously issued. Such bonds and notes of the authority,\nthe dormitory authority and the urban development corporation shall not\nbe a debt of the state, and the state shall not be liable thereon, nor\nshall they be payable out of any funds other than those appropriated by\nthe state to the authority, the dormitory authority and the urban\ndevelopment corporation for principal, interest, and related expenses\npursuant to a service contract and such bonds and notes shall contain on\nthe face thereof a statement to such effect. Except for 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.\nNotwithstanding any other provision of law to the contrary, including\nthe limitations contained in subdivision four of section sixty-seven-b\nof the state finance law, (A) any bonds and notes issued prior to April\nfirst, two thousand twenty-seven pursuant to this section may be issued\nwith a maximum maturity of fifty years, and (B) any bonds issued to\nrefund such bonds and notes may be issued with a maximum maturity of\nfifty years from the respective date of original issuance of such bonds\nand notes.\n 2. Notwithstanding any other provision of law to the contrary, in\norder to assist the authority, the dormitory authority and the urban\ndevelopment corporation in undertaking the financing of such\ntransportation facilities projects, the director of the budget is hereby\nauthorized to enter into one or more service contracts with the\nauthority, the dormitory authority and the urban development\ncorporation, none of which shall exceed thirty years in duration, upon\nsuch terms and conditions as the director of the budget and the\nauthority, the dormitory authority and the urban development corporation\nagree, so as to annually provide to the authority, the dormitory\nauthority and the urban development corporation, in the aggregate, a sum\nnot to exceed the principal, interest, and related expenses required for\nsuch bonds and notes. Any service contract entered into pursuant to this\nsection shall provide that the obligation of the state to pay the amount\ntherein provided shall not constitute a debt of the state within the\nmeaning of any constitutional or statutory provision and shall be deemed\nexecutory only to the extent of monies available and that no liability\nshall be incurred by the state beyond the monies available for such\npurpose, subject to annual appropriation by the legislature. Any such\nservice contract or any payments made or to be made thereunder may be\nassigned and pledged by the authority, the dormitory authority and the\nurban development corporation as security for such bonds and notes, as\nauthorized by this section.\n