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This entry was published on 2021-04-23
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SECTION 49
No title
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 49. 1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the corporation are hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the state and municipal facilities program
and other state costs associated with such capital projects. The
aggregate principal amount of bonds authorized to be issued pursuant to
this section shall not exceed three billion one hundred eighty-three
million five hundred thousand dollars $3,183,500,000, 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 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 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 corporation in
undertaking the financing for project costs for the state and municipal
facilities program and other state costs associated with such capital
projects, the director of the budget is hereby authorized to enter into
one or more service contracts with the dormitory authority and the
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 corporation agree, so as to annually provide
to the dormitory authority and the 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 corporation as security
for its bonds and notes, as authorized by this section.

3. The comptroller is hereby authorized to receive from the dormitory
authority and the corporation any portion of bond proceeds paid to
provide funds for or reimburse the state for its costs associated with
such capital project costs and to credit such amounts to the capital
projects fund or any other appropriate fund.