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SECTION 47-A
State university construction bonds and notes
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 3
§ 47-a. State university construction bonds and notes. 1.
Definitions. For the purposes of section forty-seven and of this
section:

a. "State university facility" shall mean a classroom, lecture hall,
library, laboratory or other academic building, or any structure on or
improvement to real property of any kind or description, including
fixtures and equipment which are an integral part of any such building,
structure or improvement, a walkway or roadway, and improvements and
connections for water, sewer, gas, electrical, telephone, heating, air
conditioning and other utility services at a state-operated institution
or statutory or contract college under the jurisdiction of the state
university of New York, and shall include a housing unit or any
emergency temporary housing, with necessary and usual attendant and
related facilities and equipment, for the use of students, faculty and
staff, and their families, at such an institution or statutory or
contract college.

b. "State university construction bonds" and "state university
construction notes" shall mean bonds and notes respectively, issued by
the agency pursuant to subdivision two of this section.

2. Additional powers of the agency.

a. The agency shall have power to cause state university facilities to
be constructed, acquired, reconstructed, rehabilitated or improved on
any real property leased or made available by the state university of
New York, or any state-operated institution or statutory or contract
college under the jurisdiction of the state university of New York,
under an agreement with the state university construction fund created
by section three hundred seventy-one of the education law and in
connection therewith may authorize the state university construction
fund to act as its agent for the purpose of constructing, acquiring,
reconstructing, rehabilitating or improving such state university
facilities.

b. The agency shall have power and is hereby authorized from time to
time to issue negotiable bonds and notes in conformity with applicable
provisions of the uniform commercial code in such principal amount as,
in the opinion of the agency, shall be necessary, after taking into
account other monies which may be available for the purpose, to provide
sufficient funds for the construction, acquisition, reconstruction,
rehabilitation or improvement of state university facilities pursuant to
the preceding paragraph of this subdivision, the payment of interest on
state university construction bonds and state university construction
notes issued for such purposes, the establishment of reserves to secure
such bonds and notes, and all other expenditures of the agency incident
to and necessary or convenient for any such construction, acquisition,
reconstruction, rehabilitation or improvement; provided, however, that
the agency shall not issue state university construction bonds and state
university construction notes in an aggregate principal amount exceeding
three billion dollars, excluding state university construction bonds and
state university construction notes issued to refund outstanding state
university construction bonds or state university construction notes. In
no event, however, shall the agency issue state university construction
bonds or state university construction notes after August first,
nineteen hundred eighty-eight, except state university construction
bonds or state university construction notes issued to refund
outstanding state university construction bonds or state university
construction notes; provided, however, that only state university
construction bonds to be issued to refund state university construction
bonds may be issued after August first, nineteen hundred eighty-eight.
Such bonds shall be excluded from such limitation as to the aggregate
principal amount of state university construction bonds and state
university construction notes if the present value of the aggregate debt
service on the refunding bonds does not exceed the present value of the
aggregate debt service on the bonds refunded thereby. For purposes
hereof, the present value of the aggregate debt service of the refunding
bonds and the aggregate debt service of the bonds refunded, shall be
calculated by utilizing the true interest cost of the refunding bonds,
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 bonds from the payment dates thereof to the
date of issue of the refunding bonds to the purchase price of the
refunding bonds, including interest accrued thereon prior the issuance
thereof.

3. Application of other provisions of article. Except as stated in
section forty-seven, the other provisions of this article shall apply to
state university construction bonds and state university construction
notes issued by the agency pursuant to this section, provided, however,
that such bonds and notes, subject to any agreements with the holders of
particular bonds or notes pledging any specified portions thereof, shall
be secured by a pledge to the payment thereof of (i) rentals paid to the
agency with respect to state university facilities financed with the
proceeds of such bonds and notes, and (ii) any other assets, monies or
accounts pledged or assigned to the agency as security for the payment
of such rentals, and provided further that no resolution or resolutions
authorizing state university construction bonds and state university
construction notes shall (i) pledge all or any part of the fees and
charges made or received by the agency pursuant to subdivision eleven of
section forty-four in connection with the making of mortgage loans or
commitments therefor, or all or any part of the monies received in
payment of such mortgage loans and interest thereon, or (ii) pledge all
or any part of the mortgages of the agency or obligations securing the
same, or (iii) provide as to the use and disposition of the gross income
from mortgages owned by the agency or as to the payment of principal of
mortgages owned by the agency, or (iv) pledge all or any part of the
rentals paid to the agency under leases, subleases or other agreements
for health facilities or mental hygiene facilities entered into by the
agency in accordance with this article, or (v) pledge or assign all or
any part of any other assets, monies or accounts pledged or assigned to
the agency as security for the payment of rentals for such health
facilities or mental hygiene facilities.

4. Repayment fund. The agency shall create and establish a special
fund (herein referred to as state university repayment fund) and shall
pay into such fund any monies which the agency shall receive in payment
of rentals due under one or more lease agreements referred to in
subdivision three of this section. Such monies and any other monies paid
into the state university repayment fund may, in the discretion of the
agency but subject to agreements with the holders of state university
construction bonds and state university construction notes, be used by
the agency (a) for the repayment of advances, if any, from the state to
the agency in connection with state university facilities in accordance
with the provisions of repayment agreements between the agency and the
director of the budget, (b) to pay all costs, expenses and charges of
financing the construction, acquisition, reconstruction, rehabilitation
or improvement of state university facilities on any real property
leased or made available to the agency by the state university of New
York, including fees and expenses of trustees and paying agents and the
reasonable costs of services performed by the commissioner of housing
and division of housing in respect thereof, and (c) for the payment of
the principal of and interest on state university construction bonds or
state university construction notes issued by the agency when the same
shall become due whether at maturity or on call for redemption and for
the payment of any redemption premium required to be paid where such
bonds or notes are redeemed prior to their stated maturities, and to
purchase state university construction bonds or state university
construction notes issued by the agency.