§ 47-A — State university construction bonds and notes

New York § 47-A

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 3: New York State Housing Finance Agency

Text

§ 47-a. State university construction bonds and notes. 1.\nDefinitions. For the purposes of section forty-seven and of this\nsection:\n a. "State university facility" shall mean a classroom, lecture hall,\nlibrary, laboratory or other academic building, or any structure on or\nimprovement to real property of any kind or description, including\nfixtures and equipment which are an integral part of any such building,\nstructure or improvement, a walkway or roadway, and improvements and\nconnections for water, sewer, gas, electrical, telephone, heating, air\nconditioning and other utility services at a state-operated institution\nor statutory or contract college under the jurisdiction of the state\nuniversity of New York, and shall include a housing unit or any\nemergency temporary housing, with necessary and usual attendant and\nrelated facilities and equipment, for the use of students, faculty and\nstaff, and their families, at such an institution or statutory or\ncontract college.\n b. "State university construction bonds" and "state university\nconstruction notes" shall mean bonds and notes respectively, issued by\nthe agency pursuant to subdivision two of this section.\n 2. Additional powers of the agency.\n a. The agency shall have power to cause state university facilities to\nbe constructed, acquired, reconstructed, rehabilitated or improved on\nany real property leased or made available by the state university of\nNew York, or any state-operated institution or statutory or contract\ncollege under the jurisdiction of the state university of New York,\nunder an agreement with the state university construction fund created\nby section three hundred seventy-one of the education law and in\nconnection therewith may authorize the state university construction\nfund to act as its agent for the purpose of constructing, acquiring,\nreconstructing, rehabilitating or improving such state university\nfacilities.\n b. The agency shall have power and is hereby authorized from time to\ntime to issue negotiable bonds and notes in conformity with applicable\nprovisions of the uniform commercial code in such principal amount as,\nin the opinion of the agency, shall be necessary, after taking into\naccount other monies which may be available for the purpose, to provide\nsufficient funds for the construction, acquisition, reconstruction,\nrehabilitation or improvement of state university facilities pursuant to\nthe preceding paragraph of this subdivision, the payment of interest on\nstate university construction bonds and state university construction\nnotes issued for such purposes, the establishment of reserves to secure\nsuch bonds and notes, and all other expenditures of the agency incident\nto and necessary or convenient for any such construction, acquisition,\nreconstruction, rehabilitation or improvement; provided, however, that\nthe agency shall not issue state university construction bonds and state\nuniversity construction notes in an aggregate principal amount exceeding\nthree billion dollars, excluding state university construction bonds and\nstate university construction notes issued to refund outstanding state\nuniversity construction bonds or state university construction notes. In\nno event, however, shall the agency issue state university construction\nbonds or state university construction notes after August first,\nnineteen hundred eighty-eight, except state university construction\nbonds or state university construction notes issued to refund\noutstanding state university construction bonds or state university\nconstruction notes; provided, however, that only state university\nconstruction bonds to be issued to refund state university construction\nbonds may be issued after August first, nineteen hundred eighty-eight.\nSuch bonds shall be excluded from such limitation as to the aggregate\nprincipal amount of state university construction bonds and state\nuniversity construction notes if the present value of the aggregate debt\nservice on the refunding bonds does not exceed the present value of the\naggregate debt service on the bonds refunded thereby. For purposes\nhereof, the present value of the aggregate debt service of the refunding\nbonds and the aggregate debt service of the bonds refunded, shall be\ncalculated by utilizing the true interest cost of the refunding bonds,\nwhich shall be that rate arrived at by doubling the semi-annual interest\nrate (compounded semi-annually) necessary to discount the debt service\npayments on the refunding bonds from the payment dates thereof to the\ndate of issue of the refunding bonds to the purchase price of the\nrefunding bonds, including interest accrued thereon prior the issuance\nthereof.\n 3. Application of other provisions of article. Except as stated in\nsection forty-seven, the other provisions of this article shall apply to\nstate university construction bonds and state university construction\nnotes issued by the agency pursuant to this section, provided, however,\nthat such bonds and notes, subject to any agreements with the holders of\nparticular bonds or notes pledging any specified portions thereof, shall\nbe secured by a pledge to the payment thereof of (i) rentals paid to the\nagency with respect to state university facilities financed with the\nproceeds of such bonds and notes, and (ii) any other assets, monies or\naccounts pledged or assigned to the agency as security for the payment\nof such rentals, and provided further that no resolution or resolutions\nauthorizing state university construction bonds and state university\nconstruction notes shall (i) pledge all or any part of the fees and\ncharges made or received by the agency pursuant to subdivision eleven of\nsection forty-four in connection with the making of mortgage loans or\ncommitments therefor, or all or any part of the monies received in\npayment of such mortgage loans and interest thereon, or (ii) pledge all\nor any part of the mortgages of the agency or obligations securing the\nsame, or (iii) provide as to the use and disposition of the gross income\nfrom mortgages owned by the agency or as to the payment of principal of\nmortgages owned by the agency, or (iv) pledge all or any part of the\nrentals paid to the agency under leases, subleases or other agreements\nfor health facilities or mental hygiene facilities entered into by the\nagency in accordance with this article, or (v) pledge or assign all or\nany part of any other assets, monies or accounts pledged or assigned to\nthe agency as security for the payment of rentals for such health\nfacilities or mental hygiene facilities.\n 4. Repayment fund. The agency shall create and establish a special\nfund (herein referred to as state university repayment fund) and shall\npay into such fund any monies which the agency shall receive in payment\nof rentals due under one or more lease agreements referred to in\nsubdivision three of this section. Such monies and any other monies paid\ninto the state university repayment fund may, in the discretion of the\nagency but subject to agreements with the holders of state university\nconstruction bonds and state university construction notes, be used by\nthe agency (a) for the repayment of advances, if any, from the state to\nthe agency in connection with state university facilities in accordance\nwith the provisions of repayment agreements between the agency and the\ndirector of the budget, (b) to pay all costs, expenses and charges of\nfinancing the construction, acquisition, reconstruction, rehabilitation\nor improvement of state university facilities on any real property\nleased or made available to the agency by the state university of New\nYork, including fees and expenses of trustees and paying agents and the\nreasonable costs of services performed by the commissioner of housing\nand division of housing in respect thereof, and (c) for the payment of\nthe principal of and interest on state university construction bonds or\nstate university construction notes issued by the agency when the same\nshall become due whether at maturity or on call for redemption and for\nthe payment of any redemption premium required to be paid where such\nbonds or notes are redeemed prior to their stated maturities, and to\npurchase state university construction bonds or state university\nconstruction notes issued by the agency.\n