Section 1680-N. Acquisition of state buildings and other 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  the  acquisition  of  state  buildings  and   other
  facilities.  The  aggregate  principal  amount of bonds authorized to be
  issued pursuant to this section  shall  not  exceed  one  hundred  forty
  million 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  and  the  urban
  development  corporation  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 the  acquisition  of  state  buildings  and
  other  facilities,  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 twenty-two
  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.