New York Laws
Title 4 - Dormitory Authority
1680-R - Authorization for the Issuance of Bonds for the Capital Restructuring Financing Program, the Health Care Facility Transformation Programs, and the Essential Health Care Provider Program.

§ 1680-r. Authorization for the issuance of bonds for the capital
restructuring financing program, the health care facility transformation
programs, and the essential health care provider program. 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 capital restructuring financing program
for health care and related facilities licensed pursuant to the public
health law or the mental hygiene law and other state costs associated
with such capital projects, the health care facility transformation
programs, the essential health care provider program, and other health
care capital project costs. The aggregate principal amount of bonds
authorized to be issued pursuant to this section shall not exceed five
billion one hundred fifty-three million dollars $5,153,000,000,
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
capital restructuring financing program for health care and related
facilities licensed pursuant to the public health law or the mental
hygiene law and other state costs associated with such capital projects,
the health care facility transformation programs, and the essential
health care provider program, 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.

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