Section 47-A. State university construction bonds and notes

1.
  Definitions.   For the purposes  of  section  forty-seven  and  of  this
  section:
    a.  "State  university facility" shall mean a classroom, lecture hall,
  library, laboratory or other academic building, or any structure  on  or
  improvement  to  real  property  of  any  kind or description, including
  fixtures and equipment which are an integral part of any such  building,
  structure  or  improvement,  a  walkway or roadway, and improvements and
  connections for water, sewer, gas, electrical, telephone,  heating,  air
  conditioning  and other utility services at a state-operated institution
  or statutory or contract college under the  jurisdiction  of  the  state
  university  of  New  York,  and  shall  include  a  housing  unit or any
  emergency temporary housing, with  necessary  and  usual  attendant  and
  related  facilities  and equipment, for the use of students, faculty and
  staff, and their families,  at  such  an  institution  or  statutory  or
  contract college.
    b.   "State  university  construction  bonds"  and  "state  university
  construction notes" shall mean bonds and notes respectively,  issued  by
  the agency pursuant to subdivision two of this section.
    2. Additional powers of the agency.
    a. The agency shall have power to cause state university facilities to
  be  constructed,  acquired,  reconstructed, rehabilitated or improved on
  any real property leased or made available by the  state  university  of
  New  York,  or  any  state-operated institution or statutory or contract
  college under the jurisdiction of the  state  university  of  New  York,
  under  an  agreement with the state university construction fund created
  by section three  hundred  seventy-one  of  the  education  law  and  in
  connection  therewith  may  authorize  the state university construction
  fund to act as its agent for the  purpose  of  constructing,  acquiring,
  reconstructing,   rehabilitating  or  improving  such  state  university
  facilities.
    b. The agency shall have power and is hereby authorized from  time  to
  time  to  issue negotiable bonds and notes in conformity with applicable
  provisions of the uniform commercial code in such principal  amount  as,
  in  the  opinion  of  the  agency, shall be necessary, after taking into
  account other monies which may be available for the purpose, to  provide
  sufficient  funds  for  the  construction,  acquisition, reconstruction,
  rehabilitation or improvement of state university facilities pursuant to
  the preceding paragraph of this subdivision, the payment of interest  on
  state  university  construction  bonds and state university construction
  notes issued for such purposes, the establishment of reserves to  secure
  such  bonds and notes, and all other expenditures of the agency incident
  to and necessary or convenient for any such  construction,  acquisition,
  reconstruction,  rehabilitation  or improvement; provided, however, that
  the agency shall not issue state university construction bonds and state
  university construction notes in an aggregate principal amount exceeding
  three billion dollars, excluding state university construction bonds and
  state university construction notes issued to refund  outstanding  state
  university construction bonds or state university construction notes. In
  no  event, however, shall the agency issue state university construction
  bonds  or  state  university  construction  notes  after  August  first,
  nineteen  hundred  eighty-eight,  except  state  university construction
  bonds  or  state  university  construction  notes   issued   to   refund
  outstanding  state  university  construction  bonds  or state university
  construction  notes;  provided,  however,  that  only  state  university
  construction  bonds to be issued to refund state university construction
  bonds may be issued after August first, nineteen  hundred  eighty-eight.
  Such  bonds  shall  be excluded from such limitation as to the aggregate

  principal amount  of  state  university  construction  bonds  and  state
  university construction notes if the present value of the aggregate debt
  service  on the refunding bonds does not exceed the present value of the
  aggregate  debt  service  on  the  bonds  refunded thereby. For purposes
  hereof, the present value of the aggregate debt service of the refunding
  bonds and the aggregate debt service of the  bonds  refunded,  shall  be
  calculated  by  utilizing the true interest cost of the refunding bonds,
  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 bonds from the payment dates thereof to the
  date of issue of the refunding  bonds  to  the  purchase  price  of  the
  refunding  bonds,  including interest accrued thereon prior the issuance
  thereof.
    3. Application of other provisions of article.  Except  as  stated  in
  section forty-seven, the other provisions of this article shall apply to
  state  university  construction  bonds and state university construction
  notes issued by the agency pursuant to this section, provided,  however,
  that such bonds and notes, subject to any agreements with the holders of
  particular bonds or notes pledging any specified portions thereof, shall
  be secured by a pledge to the payment thereof of (i) rentals paid to the
  agency  with  respect  to  state university facilities financed with the
  proceeds of such bonds and notes, and (ii) any other assets,  monies  or
  accounts  pledged  or assigned to the agency as security for the payment
  of such rentals, and provided further that no resolution or  resolutions
  authorizing  state  university  construction  bonds and state university
  construction notes shall (i) pledge all or any  part  of  the  fees  and
  charges made or received by the agency pursuant to subdivision eleven of
  section  forty-four  in  connection with the making of mortgage loans or
  commitments therefor, or all or any  part  of  the  monies  received  in
  payment  of such mortgage loans and interest thereon, or (ii) pledge all
  or any part of the mortgages of the agency or obligations  securing  the
  same, or (iii) provide as to the use and disposition of the gross income
  from  mortgages owned by the agency or as to the payment of principal of
  mortgages owned by the agency, or (iv) pledge all or  any  part  of  the
  rentals  paid  to the agency under leases, subleases or other agreements
  for health facilities or mental hygiene facilities entered into  by  the
  agency  in  accordance with this article, or (v) pledge or assign all or
  any part of any other assets, monies or accounts pledged or assigned  to
  the  agency  as  security  for  the  payment  of rentals for such health
  facilities or mental hygiene facilities.
    4. Repayment fund. The agency shall create  and  establish  a  special
  fund  (herein  referred to as state university repayment fund) and shall
  pay into such fund any monies which the agency shall receive in  payment
  of  rentals  due  under  one  or  more  lease  agreements referred to in
  subdivision three of this section. Such monies and any other monies paid
  into the state university repayment fund may, in the discretion  of  the
  agency  but  subject  to agreements with the holders of state university
  construction bonds and state university construction notes, be  used  by
  the  agency (a) for the repayment of advances, if any, from the state to
  the agency in connection with state university facilities in  accordance
  with  the  provisions of repayment agreements between the agency and the
  director of the budget, (b) to pay all costs, expenses  and  charges  of
  financing  the construction, acquisition, reconstruction, rehabilitation
  or improvement of state  university  facilities  on  any  real  property
  leased  or  made  available to the agency by the state university of New
  York, including fees and expenses of trustees and paying agents and  the
  reasonable  costs  of  services performed by the commissioner of housing
  and division of housing in respect thereof, and (c) for the  payment  of

  the  principal of and interest on state university construction bonds or
  state university construction notes issued by the agency when  the  same
  shall  become  due whether at maturity or on call for redemption and for
  the  payment  of  any  redemption premium required to be paid where such
  bonds or notes are redeemed prior to their  stated  maturities,  and  to
  purchase   state  university  construction  bonds  or  state  university
  construction notes issued by the agency.