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This entry was published on 2021-04-23
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SECTION 53
No title
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 53. 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 for the acquisition of equipment,
including but not limited to the creation or modernization of
information technology systems and related research and development
equipment, health and safety equipment, heavy equipment and machinery,
the creation or improvement of security systems, and laboratory
equipment 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 ninety-three million
dollars $293,000,000, 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 for the
acquisition of equipment, including but not limited to the creation or
modernization of information technology systems and related research and
development equipment, health and safety equipment, heavy equipment and
machinery, the creation or improvement of security systems, and
laboratory equipment 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.