§ 42 — New York state modernization projects

§ 42. New York state modernization projects. 1. Notwithstanding the\nprovisions of any other law to the contrary, the dormitory authority and\nthe corporation are hereby authorized to issue bonds or notes in one or\nmore series for the purpose of funding project costs for the Roosevelt\nIsland operating corporation related to the modernization of the aerial\ntramway, critical maintenance and improvement projects on Governor's\nIsland, redevelopment initiatives at the Harriman research and\ntechnology park and USA Niagara and other state costs associated with\nsuch projects. The aggregate principal amount of bonds authorized to be\nissued pursuant to this section shall not exceed fifty million four\nhundred fifty thousand dollars, excluding bonds issued to fund one or\nmore debt service reserve funds, to pay costs of issuance of such bonds,\nand bonds or notes issued to refund or otherwise repay such bonds or\nnotes previously issued. Such bonds and notes of the dormitory authority\nand the corporation shall not be a debt of the state, and the state\nshall not be liable thereon, nor shall they be payable out of any funds\nother than those appropriated by the state to the dormitory authority\nand the 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.\n 2. Notwithstanding any other provision of law to the contrary, in\norder to assist the dormitory authority and the corporation in\nundertaking the financing for the Roosevelt Island operating corporation\nrelated to the modernization of the aerial tramway, critical maintenance\nand improvement projects on Governor's Island, redevelopment initiatives\nat the Harriman research and technology park and USA Niagara and other\nstate costs associated with such projects, the director of the budget is\nhereby authorized to enter into one or more service contracts with the\ndormitory authority and the corporation, none of which shall exceed\nthirty years in duration, upon such terms and conditions as the director\nof the budget and the dormitory authority and the corporation agree, so\nas to annually provide to the dormitory authority and the corporation,\nin the aggregate, a sum not to exceed the principal, interest, and\nrelated expenses required for such bonds and notes. Any service contract\nentered into pursuant to this section shall provide that the obligation\nof the state to pay the amount therein provided shall not constitute a\ndebt of the state within the meaning of any constitutional or statutory\nprovision and shall be deemed executory only to the extent of monies\navailable and that no liability shall be incurred by the state beyond\nthe monies available for such purpose, subject to annual appropriation\nby the legislature. Any such contract or any payments made or to be made\nthereunder may be assigned and pledged by the dormitory authority and\nthe corporation as security for its bonds and notes, as authorized by\nthis section.\n