Section 1680-M. Cultural education facilities

1.  Notwithstanding  the
  provisions of any other law to the contrary, the 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
  construction  and  rehabilitation associated with the cultural education
  facilities and the St. Regis Mohawk  elementary  school.  The  aggregate
  principal  amount  of  bonds  authorized  to  be issued pursuant to this
  section shall not exceed ninety-one  million  five  hundred  eighty-five
  thousand  dollars,  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 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  authority  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 authority and the urban development corporation in
  undertaking the financing  of  construction  of  a  collections  storage
  facility for the state museum, the state library and the state archives,
  the  director  of  the  budget is hereby authorized to enter into one or
  more service contracts with the  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
  authority and the urban development corporation agree, so as to annually
  provide  to  the 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 authority and the urban
  development  corporation  as  security  for  its  bonds  and  notes,  as
  authorized by this section.