1. The Laws of New York
  2. Unconsolidated Laws
  3. Urban Development Corporation Act 174/68


Section 48 Authorization for transportation infrastructure finance and innovation act loans

Urban Development Corporation Act 174/68 (UDA)

Authorization for transportation infrastructure finance and innovation act loans. 1. (a) Notwithstanding the provisions of any other law to the contrary, each of the authorized issuers, as such term is defined in paragraphs (a) and (b) of subdivision 1 of section 68-a of the state finance law, are hereby authorized to accept transportation infrastructure finance and innovation act (TIFIA) loans from the United States of America, subject to any applicable agreement with bondholders or noteholders, to enter into contracts, secured loan agreements, service agreements or repayment agreements and to execute all instruments necessary, convenient or desirable in connection therewith, including, its bonds, notes or other obligations evidencing any such loan from the United States of America, and to pledge and assign as security for any such grants or loans, bonds or notes issued by such authorized issuer or payments due to such authorized issuer in connection therewith or revenues of such authorized issuer, as applicable. The aggregate principal amount of bonds authorized to be issued by the authorized issuers pursuant to this section shall not exceed seven hundred fifty million dollars, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds, notes, or other obligations issued to refund or otherwise repay such bonds, notes, or other obligations previously issued. If such bonds, notes, or other obligations are secured by a service contract with the state of New York, such bonds, notes, or other obligations of the authorized issuers 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 authorized issuers for principal, interest, and related expenses pursuant to a service contract and such bonds, notes, and other obligations 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.

  (b) Any bonds, notes, or other obligations issued pursuant to this section shall (i) be in furtherance of capital projects and public purposes consistent with the objectives of the TIFIA loans from the United States of America, and (ii) any such financings shall provide a demonstrable benefit to the state of New York and the authorized issuers through a lower cost of financing than could otherwise be achieved, as evidenced by a report from an independent financial advisor.

  2. Notwithstanding the provisions of any other law to the contrary, in order to assist the authorized issuers in undertaking the TIFIA loans from the United States of America, the state of New York, acting through the director of the budget, is hereby authorized to enter into one or more service contracts with the authorized issuers upon such terms and conditions as the director of the budget and the authorized issuers agree, so as to annually provide to the authorized issuers, in the aggregate, a sum not to exceed the principal, interest, and related expenses required for such bonds, notes, and other obligations. 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 authorized issuers as security for their bonds, notes, and other obligations as authorized by this section.

  3. The state comptroller is hereby authorized to receive from the authorized issuers TIFIA loan proceeds from the United States of America, to reimburse the state for costs associated with capital projects related thereto and to credit such amounts to the capital projects fund or any other appropriate fund.

  4. Prior to submitting a letter of interest to the United States department of transportation for a TIFIA loan, the director of the budget shall submit a report from an independent financial advisor to the speaker of the assembly, the temporary president of the senate, the chair of the senate finance committee and the chair of the assembly ways and means committee evidencing a demonstrable benefit to the state of New York through a lower cost of financing than could otherwise be achieved.