Section 67-C. Authorization for consolidated service contract refundings

1.
  In  addition to the authorizations for state-supported debt specified in
  any other provision of law, the issuers of state-supported debt may also
  issue bonds and notes to refund or  otherwise  repay  previously  issued
  state-supported debt.
    (a)  The aggregate amount of indebtedness evidenced by bonds and notes
  of the authorized issuer hereinafter issued pursuant  to  this  section,
  including  as is authorized in any other provision of law, shall exclude
  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 section may exceed the principal amount of
  such bonds or notes that were refunded or otherwise repaid only  if  the
  present  value  of  the aggregate debt service on the refunding 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 authorized issuer from the
  sale thereof.
    (b) Notwithstanding any other provision of law to  the  contrary,  and
  subject to the limitations of paragraph (a) of this subdivision, issuers
  of  state-supported  debt  may  also  refund or otherwise repay bonds or
  notes of any other issuers of state-supported debt where the payment  of
  debt  service  and  related expenses of both such refunding and refunded
  bonds and notes are subject to appropriation and not  otherwise  secured
  by a dedication of specific revenues.
    (i)  In  order  to  assist  the  issuer  of  such refunding bonds, the
  director of the budget is authorized to enter into one or  more  service
  contracts  or other agreements, none of which shall exceed the lesser of
  thirty years in duration or the  final  maturity  of  the  bonds  to  be
  refunded,  with  the issuer of such refunding bonds, upon such terms and
  conditions as the director of the budget and the issuer shall agree.
    (ii) Any service contract or other agreements entered into pursuant to
  subparagraph (i) of this paragraph or any payments made or  to  be  made
  thereunder may be assigned and pledged by the issuer as security for its
  bonds, notes, or other obligations.
    (iii) Any such service contract or other agreements 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 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 such  purpose,  and  that  such  obligation  is
  subject to annual appropriation by the legislature.
    (iv) Any service contract or other agreements entered into pursuant to
  subparagraph  (i)  of this paragraph shall provide for state commitments
  to provide annually to the issuer a sum or sums,  upon  such  terms  and
  conditions  as shall be deemed appropriate by the director of the budget
  and the authorized issuer, to fund the principal,  interest,  and  other
  related expenses required for any bonds, notes, or other obligations.
    (v)  In addition to the foregoing, the authorized issuers of the bonds
  to be so refunded shall be authorized to enter into such agreements with
  the director of the budget and/or the authorized issuer of the refunding

  bonds and related parties to take or cause to be taken any such  actions
  necessary to effectuate the purposes of such refunding issue.
    (vi)  Nothing  contained  in  this  subdivision, shall be construed to
  limit the abilities of the director of the  budget  and  the  authorized
  issuers  of state-supported debt to perform their respective obligations
  on existing service contracts or other agreements entered into prior  to
  April first, two thousand seven.
    (vii)  If an authorized issuer issues an amount of refunding bonds for
  an authorized purpose of another authorized issuer which would otherwise
  require the approval of the public authorities control board, then  such
  amount of refunding bonds shall be subject to the approval of the public
  authorities   control  board  pursuant  to  the  provisions  of  section
  fifty-one of the public authorities law.
    2. Refundings conducted pursuant to this section shall not be financed
  pursuant to article five-C of this chapter.