New York Laws
Title 18 - State of New York Municipal Bond Bank Agency Act
2435-D - Special School Purpose Agreements.

§ 2435-d. Special school purpose agreements. In order to fulfill the
purposes of this title and to provide a means by which the special
school purpose municipalities may receive assistance to meet their
obligations and, notwithstanding any general or special law to the
contrary, the agency and each special school purpose municipality are
hereby authorized to enter into one or more special school purpose
agreements in accordance with the provisions of this title as to
financing of costs by the agency, the application of school aid revenues
to the agency to secure its bonds and further assurances in respect of
the agency's receipt of such revenues. Any such special school purpose
agreements shall not constitute indebtedness of the special school
purpose municipality for purposes of section 20.00 of the local finance
law or any constitutional or statutory limitation. In addition, any
special school purpose bonds issued in connection with such special
school purpose agreement shall not constitute a debt of the state or of
the applicable special school purpose municipality under any
constitutional or statutory provision. Any such school aid revenues
shall belong to the agency, shall not be, or be treated as, revenues of
the special school purpose municipality for appropriation, accounting or
any other purpose, provided, however, that such school aid revenues
shall be deemed to be revenues of the special school purpose
municipality for the purpose of any computation of federal or state aid,
and shall not be consolidated, commingled or otherwise combined with any
other moneys of the agency and any such special school purpose agreement
shall include a statement to such effect. Any such school aid revenues
and any such special school purpose agreements may be pledged by the
agency in accordance with and with the effect of subdivision ten of
section two thousand four hundred thirty-seven of this title to secure
its bonds and may not be modified thereafter except as provided by the
terms of the pledge. Each special school purpose agreement shall specify
the amount to be made available to the respective special school purpose
municipality through the proceeds of an issue of special school purpose
bonds and such other matters as the agency shall determine necessary or
desirable as to the application of bond proceeds or the security of the
bonds. Such special school purpose agreement shall also provide that the
agency shall not be entitled to receive any special school purpose
school aid revenues. The receipt of the proceeds of any issue of special
school purpose bonds by the special school purpose municipality shall be
deemed to satisfy an equivalent amount of prior year claims owed to the
school district of such special school purpose municipality pursuant to
section thirty-six hundred four of the education law, and such proceeds
provided pursuant to this section shall not reduce the apportionments
payable for approved project costs pursuant to subdivisions six, six-a
and six-b and paragraph c of subdivision fourteen of section thirty-six
hundred two and subdivision twelve of section thirty-six hundred
forty-one of the education law and may be used by an eligible school
district to fund the principal amount of any costs that are in excess of
the costs approved for an apportionment pursuant to such subdivisions
six, six-a or six-b of section thirty-six hundred two or subdivision
twelve of section thirty-six hundred forty-one of the education law.