Section 1689-E. Biomedical facilities program, authority financing of eligible projects

1. The authority is authorized  to  finance  eligible  biomedical  facilities  program  projects  pursuant  to an appropriation
  contained in a chapter of the laws of 2000 to the New York state  office
  of science, technology and academic research.
    2. (a) Notwithstanding the provisions of any general or special law to
  the  contrary,  and  subject  to  the  making  of  annual appropriations
  therefor by the legislature, in order to assist  the  authority  in  the
  financing and refinancing of such eligible biomedical facilities program
  projects,  the director of the budget is authorized to enter into one or
  more service contracts, none of  which  shall  exceed  twenty  years  in
  duration,  with  the  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 authority as security for its bonds,  notes,
  or other obligations;
    (c) Any such service contract 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
  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 moneys are available and that no liability  shall  be
  incurred  by  the state beyond the moneys available for the purpose, and
  that  such  obligation  is  subject  to  annual  appropriation  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  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 expenses required for any such bonds,  notes,
  or other obligations.
    3.  (a)  To  obtain  funds  for  the purposes of this subdivision, the
  authority shall have power from time  to  time,  in  accordance  with  a
  schedule certified to the authority by the executive director of the New
  York   state   office  of  science,  technology  and  academic  research
  identifying eligible biomedical facilities program projects approved for
  payment pursuant to a biomedical facilities program appropriation to the
  New York state office of science, technology and academic  research,  to
  issue  negotiable  bonds  or  notes of the authority. 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 authority shall not issue any bonds or notes in an  amount  in
  excess  of  ten  million  dollars  for the purposes of this subdivision,
  excluding a principal amount of bonds or notes issued  to  fund  one  or
  more  debt  service  reserve  funds, to pay for the costs of issuance of
  such bonds, and bonds or notes issued to refund or otherwise repay  such
  bonds,  and bonds or notes previously issued. Except for the 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 or
  notes.
    In computing for the  purposes  of  this  subdivision,  the  aggregate
  amount  of  indebtedness  evidenced  by bonds and notes of the authority
  issued pursuant to this subdivision, 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.