New York Laws
Title 4 - Dormitory Authority
1680-I - Judiciary; Authority Financing of Courthouse Improvements.

(b) Any service contract entered into pursuant to paragraph (a) of
this subdivision or any payments made or to be made thereunder may be
assigned and pledged by the dormitory authority as security for its
bonds, notes, or other obligations.
(c) Any such service contracts shall provide that the obligation of
the director of the budget or of the state to fund or to pay the amounts
therein provided for shall not constitute a debt of the state within the
meaning of any constitutional or statutory provision in the event the
dormitory authority assigns or pledges the service contract payments as
security for its bonds, notes, or other obligations and shall be deemed
executory only to the extent monies are available and that no liability
shall be incurred by the state beyond the monies available for the
purpose, and that such obligation is subject to annual appropriations by
the legislature.
(d) Any service contract or contracts entered into pursuant to this
subdivision shall provide for state commitments to provide annually to
the dormitory authority a sum or sums, upon such terms and conditions as
shall be deemed appropriate by the director of the budget, to fund the
principal, interest, or other related payments required for any bonds,
notes, or other obligations of the dormitory authority issued pursuant
to this section.
3. (a) To obtain funds for the purposes of this section, the authority
shall have power from time to time to issue negotiable bonds or notes.
Unless the context shall clearly indicate otherwise, whenever the words
"bond" or "bonds" are used in this section, such words shall include a
note or notes of the authority.
(b) The dormitory authority shall not issue any bonds or notes in an
amount in excess of thirty-seven million six hundred thousand dollars
for the purposes of this section; excluding bonds or notes 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. Except for purposes of complying with
the internal revenue code, any interest on bond proceeds shall only be
used to pay debt service on such bonds.
(c) In computing for the purposes of paragraph (b) of this
subdivision, the aggregate amount of indebtedness evidenced by bonds and
notes of the dormitory authority issued pursuant to this title, there
shall be excluded the amount of such indebtedness represented by such
bonds or notes issued to refund or otherwise repay bonds or notes;
provided that the amount so excluded under this paragraph may exceed the
principal amount of such bonds or notes that were issued to refund or
otherwise repay only if the present value of the aggregate debt service
on the refunding or repayment bonds or notes shall not have at the time
of their issuance exceeded the present value of the aggregate debt
service of the bonds or notes they were issued to refund or repay, such
present value in each case being calculated by using the effective

interest rate of the refunding or repayment bonds or notes, which shall
be that rate arrived at by doubling the semi-annual interest rate
(compounded semi-annually) necessary to discount the debt service
payments on the refunding or repayment bonds or notes from the payment
date thereof to the date of issue of the refunding or repayment bonds or
notes and to the price bid therefor, or to the proceeds received by the
dormitory authority from the sale thereof, in each case including
estimated accrued interest.
(d) The state of New York hereby covenants with the purchasers,
holders, and owners from time to time of the bonds of the authority
issued pursuant to this section that it will not, subject to the
provisions of paragraph (c) of subdivision two of this section, repeal,
revoke, rescind, modify, or amend the provisions of this section which
relate to the making of annual service contract payments to the
authority with respect to such bonds as to limit, impair, or impede the
rights and remedies granted to bondholders under this title or otherwise
diminish the security pledged to such purchasers, holders, and owners or
significantly impair the prospect of payment of any such bond.

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