§ 50 — No title

§ 50. 1. Notwithstanding the provisions of any other law to the\ncontrary, the dormitory authority and the urban development corporation\nare hereby authorized to issue bonds or notes in one or more series for\nthe purpose of funding project costs undertaken by or on behalf of the\nstate education department, special act school districts,\nstate-supported schools for the blind and deaf, approved private special\neducation schools, non-public schools, community centers, day care\nfacilities, residential camps, day camps, Native American Indian Nation\nschools, and other state costs associated with such capital projects.\nThe aggregate principal amount of bonds authorized to be issued pursuant\nto this section shall not exceed four hundred forty million three\nhundred ninety-seven thousand dollars $440,397,000, excluding bonds\nissued to fund one or more debt service reserve funds, to pay costs of\nissuance of such bonds, and bonds or notes issued to refund or otherwise\nrepay such bonds or notes previously issued. Such bonds and notes of the\ndormitory authority and the urban development corporation shall not be a\ndebt of the state, and the state shall not be liable thereon, nor shall\nthey be payable out of any funds other than those appropriated by the\nstate to the dormitory authority and the urban development corporation\nfor principal, interest, and related expenses pursuant to a service\ncontract and such bonds and notes shall contain on the face thereof a\nstatement to such effect. Except for purposes of complying with the\ninternal revenue code, any interest income earned on bond proceeds shall\nonly 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 urban development\ncorporation in undertaking the financing for project costs undertaken by\nor on behalf of special act school districts, state-supported schools\nfor the blind and deaf and approved private special education schools,\nnon-public schools, community centers, day care facilities, and other\nstate costs associated with such capital projects, the director of the\nbudget is hereby authorized to enter into one or more service contracts\nwith the dormitory authority and the urban development corporation, none\nof which shall exceed thirty years in duration, upon such terms and\nconditions as the director of the budget and the dormitory authority and\nthe urban development corporation agree, so as to annually provide to\nthe dormitory authority and the urban development corporation, in the\naggregate, a sum not to exceed the principal, interest, and related\nexpenses required for such bonds and notes. Any service contract entered\ninto pursuant to this section shall provide that the obligation of the\nstate to pay the amount therein provided shall not constitute a debt of\nthe 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 urban development corporation as security for its bonds and notes,\nas authorized by this section.\n