§ 386. Additional powers of the authority to issue special rail and
aviation transportation bonds. 1. The authority is hereby authorized, as
an additional corporate purpose thereof to enter into service contracts,
contracts, agreements, deeds, leases with the director of the budget,
the commissioner of transportation, municipalities and others to provide
for the financing by the authority of rail and aviation transportation
projects as authorized by section fourteen-j of the transportation law.

2. The authority is hereby authorized, as an additional corporate
purpose thereof, solely at the request of the director of the budget: a.
to issue special rail and aviation transportation bonds, notes or other
obligations in an aggregate principal amount not to exceed forty million
dollars plus a principal amount of bonds, notes or other obligations
issued (i) to fund any related debt service reserve fund, (ii) to
provide capitalized interest and (iii) to provide fees and other charges
and expenses, including but not limited to legal fees, underwriters'
discounts, related to the issuance of such bonds, notes and other
obligations and the maintenance of such reserves, all as determined by
the authority, excluding bonds, notes or other obligations issued to
refund outstanding bonds, notes or other obligations issued pursuant to
this section. Such bonds, notes or other obligations may be issued for a
term not to exceed thirty years and shall be secured by the moneys
provided pursuant to a service contract, contract, lease or agreement
entered into with the director of the budget, the commissioner of
transportation, municipalities or others pursuant to subdivision one of
this section for the purpose of financing activities pursuant to section
fourteen-j of the transportation law, such service contract, contract,
lease or agreement to provide for the payment of debt service, funding
of necessary reserves and all other expenses of the authority as agreed
to by the parties, provided, however, that such service contract,
contract, lease or agreement shall provide that the obligation of the
state to make such payments 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 moneys made available to
the state, and that no liability on account thereof shall be incurred by
the state beyond the moneys available for the purpose thereof and that
any obligation to make such payments shall be subject to annual
appropriations by the legislature; to make available the proceeds net of
all costs to the authority in connection therewith in accordance with
such agreements or as authorized and directed by law for the purposes of
financing activities pursuant to and in conformance with section
fourteen-j of the transportation law.

3. Such obligations shall be issued or incurred with the approval of
the director of the budget and shall be special limited obligations of
the authority secured by and payable solely out of amounts appropriated
by the legislature for payments pursuant to a service contract,
contract, lease or agreement authorized pursuant to subdivision one of
this section and any other funds appropriated by the legislature to the
authority therefor without recourse against any other assets, revenues
or funds of or other payments due to the authority.

4. Such obligations shall contain on the face thereof a statement to
the effect that they shall not be deemed to be an obligation of the
state and that the state shall not be liable thereon.

5. All of the provisions of this title relating to bonds and notes,
which are not inconsistent with the provisions of this section shall
apply to obligations authorized by this section, including but not
limited to the power to issue renewal notes or refunding bonds thereof,
provided, however, that the authority shall be authorized to issue
variable rate bonds or notes pursuant to this section only until June
thirtieth, nineteen hundred ninety-four, after which date no bonds or
notes issued by the authority pursuant to this section may have interest
rates which vary, provided further that the expiration of such authority
shall not affect any such bonds or notes issued prior to such date.

6. The authorization, sale and issuance of bonds, notes or other
obligations pursuant to this section shall not be deemed an action as
such term is defined in article eight of the environmental conservation
law for the purposes of such article. Such exemption shall be strictly
limited in its application to such financing activities of the authority
and does not exempt the department of transportation or any other entity
from compliance with such article.

7. The attorney general shall approve or disapprove of the form of any
service contract, contract, lease or agreement authorized pursuant to
this section.