Section 378. Lease agreements

1.  Any  agreement entered into between the
  fund and a state retirement system pursuant  to  section  three  hundred
  seventy-six  of  this  chapter  shall  provide for (i) the construction,
  acquisition, reconstruction, rehabilitation or  improvement  of  one  or
  more facilities, (ii) the leasing thereof and of the land upon which the
  same   is   erected   to  the  fund  upon  completion  of  construction,
  acquisition, reconstruction, rehabilitation or improvement  for  a  term
  not  exceeding thirty years and upon such terms and conditions including
  annual rental as may be agreed upon, and (iii)  the  conveyance  to  the
  state of title to any such facility at the expiration of the term of the
  lease  or upon the earlier payment in full of the total amount specified
  therein, without additional charge therefor. The state university  shall
  approve   any   such  agreement  and  shall  be  a  party  thereto.  Any
  construction contract entered into  by  a  state  retirement  system  in
  connection  with such lease agreement shall be let, or otherwise entered
  into, by the retirement system or its agent pursuant to  the  provisions
  of  section  three hundred seventy-six of this chapter. If so designated
  by a state retirement system, the fund may act  as  the  agent  of  such
  retirement  system  in  connection  with  the construction, acquisition,
  reconstruction, rehabilitation or improvement which the lease  agreement
  requires.
    2.  Any  agreement  entered  into  between  the fund and the dormitory
  authority pursuant to section three hundred seventy-six of this  chapter
  shall  provide  for  (i)  the construction, acquisition, reconstruction,
  rehabilitation or improvement of one or more dormitories, and  (ii)  the
  leasing  thereof  to the state university for a term not exceeding forty
  years and upon such terms and conditions including annual rental as  may
  be agreed upon. The state university shall approve any such contract and
  shall be a party to any lease made pursuant to its terms.
    3.  Any  agreement  entered  into  between the fund and a state agency
  (other  than  the  dormitory  authority)  which  is  a  public   benefit
  corporation   shall  provide  for  (i)  the  construction,  acquisition,
  reconstruction, rehabilitation or improvement of one or more facilities,
  and  (ii)  the  leasing  thereof  to  the  fund   upon   completion   of
  construction, acquisition, reconstruction, rehabilitation or improvement
  for a term not exceeding thirty years and upon such terms and conditions
  including  annual  rental  as  may  be agreed upon. The state university
  shall approve any such agreement and shall be a party thereto.
    3-a. (a) Any lease, sublease or other agreement entered  into  between
  the  fund  and  the  dormitory authority in relation to the provision of
  state university educational facilities or  any  agreement  supplemental
  thereto  (i)  may  provide  for  the  design, construction, acquisition,
  reconstruction, rehabilitation, improvement of or  other  provision  for
  one  or  more  state  university  educational  facilities, including the
  provision of furnishings and equipment therefor, and  (ii)  may  provide
  for  the  transfer  of  interests  in  real  property  to  the dormitory
  authority and the leasing thereof by the dormitory authority to the fund
  or the  university,  as  provided  therein,  for  an  initial  term  not
  exceeding  thirty  years  and  upon  such terms and conditions including
  annual rentals as may be agreed upon,  subject  to  the  rights  of  the
  holders   of  any  outstanding  bonds  issued  to  finance  the  design,
  construction, acquisition, reconstruction,  rehabilitation,  improvement
  of  or  other  provision for such facilities, including the provision of
  furnishings and equipment therefor. The state university  shall  approve
  any  such  lease,  sublease  or  other  agreement  and  shall be a party
  thereto. Any such lease, sublease or other agreement shall be subject to
  the approval of the director of  the  budget.  The  dormitory  authority
  shall  not  issue  obligations  for  the provision of a state university

  educational facility unless a certificate of availability of  funds  has
  been  approved  by  the  director of the budget and an appropriation for
  such facility has been enacted.
    (b)  The  fund  may create and establish an account to be known as the
  "state  university  construction  fund  educational  facilities  payment
  account"  and shall pay into such account (i) moneys appropriated by the
  state to the fund for the payment of annual rentals and  other  payments
  as they become due by the fund to the dormitory authority pursuant to an
  agreement  entered  into  between  the  fund and the dormitory authority
  pursuant to subdivision two of section three hundred seventy-six of this
  article and this subdivision, and (ii) any other  moneys  which  may  be
  made  available  by the fund from any source or sources specifically for
  the purpose of such account.
    The  moneys  credited  to  any  state  university  construction   fund
  educational   facilities   payment   account   established   under  this
  subdivision shall be used, except as hereinafter  provided,  solely  for
  the payment of annual rentals or other payments as they become due under
  any lease, sublease or other agreements referred to in this subdivision.
    Moneys  in a state university construction fund educational facilities
  payment account not required for immediate use or  disbursement  may  be
  invested in obligations of the United States or the state or obligations
  the  principal and interest of which are guaranteed by the United States
  or the state. In computing the amount of a state university construction
  fund educational facilities payment account for  the  purposes  of  this
  subdivision,  obligations  in  which all or a portion of the account are
  invested shall be valued at their market value on a  date  within  three
  business days of the computation or at their cost to the fund, whichever
  is less.
    (c)  To  secure  the  payment  of  rentals or other payments due or to
  become due in any year under any  lease,  sublease  or  other  agreement
  entered into pursuant to this subdivision, the fund may pledge or assign
  to  the  dormitory  authority  any or all moneys in the state university
  construction fund educational facilities payment account and any or  all
  moneys which may be in such account in the future, and any or all right,
  title  and  interest  of  the  fund  in  and  to  the moneys in or to be
  deposited in such account.
    (d) The provisions of this subdivision shall not apply to  any  lease,
  sublease  or  other  agreement between the state university construction
  fund and the dormitory authority for the provision of an ambulatory care
  training facility, as  defined  in  subdivision  thirty-one  of  section
  sixteen hundred seventy-six of the public authorities law.
    4.  To  secure the payment of rentals due or to become due in any year
  under any lease agreement entered into pursuant to  subdivision  one  or
  subdivision  three of this section, the fund may pledge or assign any or
  all moneys in the state university construction fund income account  and
  in  any  rental reserve account established pursuant to subdivision five
  of this section, and any or all moneys which may be in  either  or  both
  such accounts in the future, whether equal to or in excess of the amount
  of  such  rentals due or becoming due in any year, and any or all right,
  title and interest of the fund  in  and  to  the  moneys  in  or  to  be
  deposited in such accounts.
    5.  The fund may create and establish one or more separate accounts to
  be known as "rental reserve accounts" and  may  pay  into  such  reserve
  accounts  (i)  any  moneys  apportioned  and  paid  by the state for the
  purposes of such reserve accounts pursuant to this subdivision, (ii) any
  moneys in the state university construction fund income account directed
  to be transferred by the fund to such reserve accounts,  and  (iii)  any

  other  moneys which may be made available to the fund from any source or
  sources specifically for the purposes of such reserve accounts.
    The  moneys  credited  to any rental reserve account established under
  this subdivision shall be used, except as hereinafter  provided,  solely
  for  the  payment of rentals as they become due under one or more of the
  lease agreements referred to in subdivision one or subdivision three  of
  this  section,  provided, however, that the moneys in such account shall
  not be withdrawn therefrom at any time in such amount  as  would  reduce
  the  amount  thereof  to less than the maximum amount of rental becoming
  due in any succeeding calendar year under such lease agreements,  except
  for  the  purpose of paying such rentals becoming due for the payment of
  which other moneys of the fund are not available.
    Moneys in a rental reserve account not required for immediate  use  or
  disbursement  may be invested in obligations of the United States or the
  state or obligations the principal and interest of which are  guaranteed
  by  the  United States or the state. In computing the amount of a rental
  reserve account for the purposes  of  this  subdivision,  securities  in
  which  all  or  a portion of the account are invested shall be valued at
  their market value on a date within seven days of the computation or  at
  their cost to the fund, whichever is less.
    Any  excess  in a rental reserve account at the end of any fiscal year
  of the fund over the maximum  amount  of  rental  becoming  due  in  any
  succeeding  calendar year under such lease agreements shall be withdrawn
  by the fund from such account and transferred to  the  state  university
  construction  fund  income account to be used for the corporate purposes
  of the fund.
    In order further to secure  the  maintenance  in  all  rental  reserve
  accounts  established pursuant to this subdivision of an amount equal to
  the maximum amount of rental becoming due  in  any  succeeding  calendar
  year  under  the  lease agreements to which the reserve account relates,
  there shall be annually apportioned and paid to the fund for deposit  in
  such  rental reserve accounts such sum, if any, as shall be certified by
  the chairman of the fund to the governor and director of the  budget  as
  necessary  to  restore  such  accounts to an amount equal to the maximum
  amount of rental becoming due in any succeeding calendar year under such
  lease agreements. The chairman of the fund shall annually, on or  before
  December  first,  make  and  deliver to the governor and director of the
  budget his certificate stating the amount, if any, required  to  restore
  such  rental  reserve accounts to the amount aforesaid and the amount so
  stated in said certificate, if any, shall be apportioned and paid to the
  fund during the then current state fiscal year.
    No lease agreement which contains a provision for the establishment or
  maintenance of a rental reserve account shall be entered  into  pursuant
  to  this  section  unless  the  governor,  or where so designated by the
  governor for such purpose,  the  director  of  the  budget,  shall  have
  approved the terms thereof.
    6.  The  attorney general shall pass upon the form and sufficiency and
  manner of execution of any lease agreement entered into pursuant to this
  section and the same shall not be effective unless so approved by him.
    7. The state shall not be liable for any rentals payable by  the  fund
  pursuant to the terms of a lease agreement entered into pursuant to this
  section  and such agreement shall contain among its terms a statement to
  such effect.