New York Unconsolidated|SECTION 51

                                                

  § 51. 1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs for the nonprofit infrastructure
capital investment program and other state costs associated with such
capital projects. The aggregate principal amount of bonds authorized to
be issued pursuant to this section shall not exceed one hundred twenty
million dollars, excluding bonds issued to fund one or more debt service
reserve funds, to pay costs of issuance of such bonds, and bonds or
notes issued to refund or otherwise repay such bonds or notes previously
issued. Such bonds and notes of the dormitory authority and the urban
development corporation shall not be a debt of the state, and the state
shall not be liable thereon, nor shall they be payable out of any funds
other than those appropriated by the state to the dormitory authority
and the urban development corporation for principal, interest, and
related expenses pursuant to a service contract and such bonds and notes
shall contain on the face thereof a statement to such effect. Except for
purposes of complying with the internal revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.

2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the urban development
corporation in undertaking the financing for project costs for the
nonprofit infrastructure capital investment program and other state
costs associated with such capital projects, the director of the budget
is hereby authorized to enter into one or more service contracts with
the dormitory authority and the urban development corporation, none of
which shall exceed thirty years in duration, upon such terms and
conditions as the director of the budget and the dormitory authority and
the urban development corporation agree, so as to annually provide to
the dormitory authority and the urban development corporation, in the
aggregate, a sum not to exceed the principal, interest, and related
expenses required for such bonds and notes. Any service contract entered
into pursuant to this section shall provide that the obligation of the
state to pay the amount therein provided shall not constitute a debt of
the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to the extent of monies
available and that no liability shall be incurred by the state beyond
the monies available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority and
the urban development corporation as security for its bonds and notes,
as authorized by this section.