Section 1680-I. Judiciary; authority financing of courthouse improvements

1.  The dormitory authority is hereby  authorized  to  finance  eligible
  courthouse improvements.
    2.  (a) Subject to the provisions of chapter fifty-nine of the laws of
  two thousand and to the making of annual appropriations therefor by  the
  legislature, in order to assist the dormitory authority in providing for
  the  financing of courthouse improvements, the director of the budget is
  authorized in any state fiscal year commencing April first, two thousand
  two or any state fiscal year  thereafter  to  enter  into  one  or  more
  service  contracts, none of which shall exceed thirty years in duration,
  with the dormitory authority, upon such terms as  the  director  of  the
  budget and the dormitory authority agree.
    (b)  Any  service  contract  entered into pursuant to paragraph (a) of
  this subdivision or any payments made or to be made  thereunder  may  be
  assigned  and  pledged  by  the  dormitory authority as security for its
  bonds, notes, or other obligations.
    (c) Any such service contracts shall provide that  the  obligation  of
  the director of the budget or of the state to fund or to pay the amounts
  therein provided for shall not constitute a debt of the state within the
  meaning  of  any  constitutional or statutory provision in the event the
  dormitory authority assigns or pledges the service contract payments  as
  security  for its bonds, notes, or other obligations and shall be deemed
  executory only to the extent monies are available and that no  liability
  shall  be  incurred  by  the  state  beyond the monies available for the
  purpose, and that such obligation is subject to annual appropriations by
  the legislature.
    (d) Any service contract or contracts entered into  pursuant  to  this
  subdivision  shall  provide for state commitments to provide annually to
  the dormitory authority a sum or sums, upon such terms and conditions as
  shall be deemed appropriate by the director of the budget, to  fund  the
  principal,  interest,  or other related payments required for any bonds,
  notes, or other obligations of the dormitory authority  issued  pursuant
  to this section.
    3. (a) To obtain funds for the purposes of this section, the authority
  shall  have  power from time to time to issue negotiable bonds or notes.
  Unless the context shall clearly indicate otherwise, whenever the  words
  "bond"  or  "bonds" are used in this section, such words shall include a
  note or notes of the authority.
    (b) The dormitory authority shall not issue any bonds or notes  in  an
  amount  in  excess  of thirty-seven million six hundred thousand dollars
  for the purposes of this section; excluding bonds  or  notes  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. Except for purposes of complying  with
  the  internal  revenue code, any interest on bond proceeds shall only be
  used to pay debt service on such bonds.
    (c)  In  computing  for  the  purposes  of  paragraph  (b)   of   this
  subdivision, the aggregate amount of indebtedness evidenced by bonds and
  notes  of  the  dormitory authority issued pursuant to this title, there
  shall be excluded the amount of such indebtedness  represented  by  such
  bonds  or  notes  issued  to  refund  or otherwise repay bonds or notes;
  provided that the amount so excluded under this paragraph may exceed the
  principal amount of such bonds or notes that were issued  to  refund  or
  otherwise  repay only if the present value of the aggregate debt service
  on the refunding or repayment bonds or notes shall not have at the  time
  of  their  issuance  exceeded  the  present  value of the aggregate debt
  service of the bonds or notes they were issued to refund or repay,  such
  present  value  in  each  case  being  calculated by using the effective

  interest rate of the refunding or repayment bonds or notes, which  shall
  be  that  rate  arrived  at  by  doubling  the semi-annual interest rate
  (compounded  semi-annually)  necessary  to  discount  the  debt  service
  payments  on  the refunding or repayment bonds or notes from the payment
  date thereof to the date of issue of the refunding or repayment bonds or
  notes and to the price bid therefor, or to the proceeds received by  the
  dormitory  authority  from  the  sale  thereof,  in  each case including
  estimated accrued interest.
    (d) The state of  New  York  hereby  covenants  with  the  purchasers,
  holders,  and  owners  from  time  to time of the bonds of the authority
  issued pursuant to this  section  that  it  will  not,  subject  to  the
  provisions  of paragraph (c) of subdivision two of this section, repeal,
  revoke, rescind, modify, or amend the provisions of this  section  which
  relate  to  the  making  of  annual  service  contract  payments  to the
  authority with respect to such bonds as to limit, impair, or impede  the
  rights and remedies granted to bondholders under this title or otherwise
  diminish the security pledged to such purchasers, holders, and owners or
  significantly impair the prospect of payment of any such bond.