Section 386. Additional powers of the authority to issue special rail and aviation transportation bonds

1. The authority is hereby authorized, as  an additional corporate purpose thereof to enter into service contracts,
  contracts, agreements, deeds, leases with the director  of  the  budget,
  the commissioner of transportation, municipalities and others to provide
  for  the  financing by the authority of rail and aviation transportation
  projects as authorized by section fourteen-j of the transportation law.
    2. The authority is hereby  authorized,  as  an  additional  corporate
  purpose thereof, solely at the request of the director of the budget: a.
  to  issue special rail and aviation transportation bonds, notes or other
  obligations in an aggregate principal amount not to exceed forty million
  dollars plus a principal amount of bonds,  notes  or  other  obligations
  issued  (i)  to  fund  any  related  debt  service reserve fund, (ii) to
  provide capitalized interest and (iii) to provide fees and other charges
  and expenses, including but not limited  to  legal  fees,  underwriters'
  discounts,  related  to  the  issuance  of  such  bonds, notes and other
  obligations and the maintenance of such reserves, all as  determined  by
  the  authority,  excluding  bonds,  notes or other obligations issued to
  refund outstanding bonds, notes or other obligations issued pursuant  to
  this section. Such bonds, notes or other obligations may be issued for a
  term  not  to  exceed  thirty  years  and shall be secured by the moneys
  provided pursuant to a service contract, contract,  lease  or  agreement
  entered  into  with  the  director  of  the  budget, the commissioner of
  transportation, municipalities or others pursuant to subdivision one  of
  this section for the purpose of financing activities pursuant to section
  fourteen-j  of  the transportation law, such service contract, contract,
  lease or agreement to provide for the payment of debt  service,  funding
  of  necessary reserves and all other expenses of the authority as agreed
  to by the  parties,  provided,  however,  that  such  service  contract,
  contract,  lease  or  agreement shall provide that the obligation of the
  state to make such payments 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 moneys made available to
  the state, and that no liability on account thereof shall be incurred by
  the state beyond the moneys available for the purpose thereof  and  that
  any  obligation  to  make  such  payments  shall  be  subject  to annual
  appropriations by the legislature; to make available the proceeds net of
  all costs to the authority in connection therewith  in  accordance  with
  such agreements or as authorized and directed by law for the purposes of
  financing  activities  pursuant  to  and  in  conformance  with  section
  fourteen-j of the transportation law.
    3. Such obligations shall be issued or incurred with the  approval  of
  the  director  of the budget and shall be special limited obligations of
  the authority secured by and payable solely out of amounts  appropriated
  by  the  legislature  for  payments  pursuant  to  a  service  contract,
  contract, lease or agreement authorized pursuant to subdivision  one  of
  this  section and any other funds appropriated by the legislature to the
  authority therefor without recourse against any other  assets,  revenues
  or funds of or other payments due to the authority.
    4.  Such  obligations shall contain on the face thereof a statement to
  the effect that they shall not be deemed to  be  an  obligation  of  the
  state and that the state shall not be liable thereon.
    5.  All  of  the provisions of this title relating to bonds and notes,
  which are not inconsistent with the provisions  of  this  section  shall
  apply  to  obligations  authorized  by  this  section, including but not
  limited to the power to issue renewal notes or refunding bonds  thereof,
  provided,  however,  that  the  authority  shall  be authorized to issue
  variable rate bonds or notes pursuant to this section  only  until  June

  thirtieth,  nineteen  hundred  ninety-four, after which date no bonds or
  notes issued by the authority pursuant to this section may have interest
  rates which vary, provided further that the expiration of such authority
  shall not affect any such bonds or notes issued prior to such date.
    6.  The  authorization,  sale  and  issuance  of bonds, notes or other
  obligations pursuant to this section shall not be deemed  an  action  as
  such  term is defined in article eight of the environmental conservation
  law for the purposes of such article. Such exemption shall  be  strictly
  limited in its application to such financing activities of the authority
  and does not exempt the department of transportation or any other entity
  from compliance with such article.
    7. The attorney general shall approve or disapprove of the form of any
  service  contract,  contract,  lease or agreement authorized pursuant to
  this section.