Section 1689-I*2. Public school districts; authority financing of projects under the expanding our children's education and learning (EXCEL) program

1.  The  dormitory  authority  is  authorized to finance EXCEL  projects for those school districts which are  eligible  to  receive  an
  apportionment  for  expanding  our  children's  education  and  learning
  (EXCEL) pursuant to subdivision fourteen of section  thirty-six  hundred
  forty-one of the education law.
    2. 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 dormitory authority in the
  financing of  such  EXCEL  projects,  the  director  of  the  budget  is
  authorized in any state fiscal year commencing April first, two thousand
  six  and 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.
    3. Any service contract entered into pursuant to this section  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.
    4.  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
  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 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.
    5.  Any  service  contract  or contracts entered into pursuant to this
  section 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 expenses required for any bonds,
  notes, or other obligations.
    6. The commissioner of education shall certify, from time to time,  to
  the  dormitory  authority, the comptroller, the director of the division
  of the budget, the chair of the senate finance committee and  the  chair
  of  the assembly ways and means committee each school district for which
  he or she has determined an aid apportionment for authority financing of
  an EXCEL project pursuant to subdivision fourteen of section  thirty-six
  hundred  forty-one of the education law. Such certification, which shall
  be  made  within  thirty  days  after  such  determination  or  as  soon
  thereafter   as  is  practicable,  shall  identify  the  amount  of  aid
  apportionment which has been approved for such school district and shall
  estimate the date or dates when  such  project  will  be  undertaken  to
  assist  the  authority  in  establishing  a  schedule for financing such
  project. The commissioner of education shall  notify  the  authority  if
  there is a change in such date.
    7.  On or before November fifteenth of each year and again on or after
  February fifteenth of each year, the dormitory authority  shall  submit,
  and  thereafter  may  resubmit,  to  the director of the division of the
  budget, the state comptroller, the commissioner of education, the  chair
  of  the  senate finance committee and the chair of the assembly ways and
  means committee a report setting forth the estimated amounts, if any, of
  all annual  payments  required  to  be  appropriated  to  the  dormitory
  authority  pursuant  to  such  service  contracts  between the dormitory

  authority and the director of the division of  the  budget  pursuant  to
  this section.
    8.  To  obtain  funds  for the purposes of this section, the authority
  shall have power from time to time, in accordance with  a  certification
  to   the   authority  by  the  commissioner  of  education  pursuant  to
  subdivision six of this section, 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.
    9.  The  dormitory  authority shall not issue any bonds or notes in an
  amount in excess of two billion six  hundred  million  dollars  for  the
  purposes of this section, 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.
    10.  In  computing for the purposes of this subdivision, the aggregate
  amount of indebtedness evidenced by bonds and  notes  of  the  dormitory
  authority  issued  pursuant to this section, 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 clause 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.
    11. 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  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.
    * NB There are 2 § 1689-i's