Section 15-1951. Financing of improvements

1.  For  defraying  the costs of all proceedings, surveys, studies and
  construction projects authorized by any section  of  title  19  of  this
  article,  the  department  may raise funds pursuant to the Local Finance
  Law. Such funds may not be borrowed unless the  proceedings  authorizing
  such expenditures have become final.
    2.  In  addition  the  department  is  authorized  in  the name of the
  district to apply for, receive and expend funds or services which may be
  granted or contributed for the purpose  by  the  federal  government  or
  other  public  authorities  or  by  private  persons  or  organizations.
  Obligations issued for such purpose shall not be construed in any  event
  as  obligations or indebtedness of the state, and neither the state, the
  department or any member thereof personally shall be  obligated  to  pay
  the  principal or interest therefor. Bonds issued for such purpose shall
  be lawful investments for savings banks, trust companies, executors  and
  trustees  and  for  any  of  the  funds of the state which by law may be
  invested.
    3. The proceeds of such bonds shall be  deposited  in  a  national  or
  state  bank  or trust company either in Albany or in one of the counties
  in which such improvement is made, to be designated by the  Comptroller.
  Before  any such deposit is made, the Comptroller shall require from the
  depository security for the repayment of the same to the department upon
  demand of the moneys so deposited in the manner provided in section  106
  of the State Finance Law.