Legislation

Search OpenLegislation Statutes
This entry was published on 2021-04-23
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 50
No title
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 50. 1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs undertaken by or on behalf of the
state education department, special act school districts,
state-supported schools for the blind and deaf, approved private special
education schools, non-public schools, community centers, day care
facilities, residential camps, day camps, 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
two hundred thirty-six million dollars $236,000,000, 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 urban development 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 urban development 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 urban development
corporation in undertaking the financing for project costs undertaken by
or on behalf of special act school districts, state-supported schools
for the blind and deaf and approved private special education schools,
non-public schools, community centers, day care facilities, 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 urban development 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 urban development corporation agree, so as to annually provide to
the dormitory authority and the urban development 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 urban development corporation as security for its bonds and notes,
as authorized by this section.