Section 58. Issuance of higher education bonds

1. Whenever the legislature,
  under  the  power  granted to it by section nineteen of article seven of
  the state constitution, shall have authorized the creation  of  a  state
  debt  or  debts  to provide moneys for the construction, reconstruction,
  rehabilitation,  improvement  and  equipment  of  facilities   for   the
  expansion  and  development  of the program of higher education provided
  and to be provided at institutions now or hereafter comprised within the
  state university, for acquisition of real  property  therefor,  and  for
  payment  of  the  state's share of the capital cost of locally sponsored
  institutions of higher education approved and  regulated  by  the  state
  university  trustees,  bonds  of the state, to the amount of the debt or
  debts so authorized, shall be issued and sold by the state  comptroller.
  Any  appropriation  from  the proceeds of the sale of bonds, pursuant to
  this section, shall be deemed to be an authorization for the creation of
  a state debt or debts to the extent of such appropriation. They shall be
  known as "higher education bonds."   They shall bear  interest  at  such
  rate  or  rates  as  in  the  judgment  of  the state comptroller may be
  sufficient or necessary to effect a sale of the bonds, and such interest
  shall be payable semi-annually in the city of New York.
    2. Such bonds, or the portion thereof at any  time  issued,  shall  be
  made  payable  in equal annual installments, the first of which shall be
  payable not more than one year from the date of issue and  the  last  of
  which shall be payable at such time as the comptroller may determine but
  not  more  than  thirty years after the date of issue provided, however,
  that in contracting any such debt the privilege of  paying  all  or  any
  part  of  such debt prior to the date on which the same shall be due may
  be reserved to the state. In no case shall such bonds or portion thereof
  be issued for a period longer than the probable  life  of  the  work  or
  purpose,  or  part thereof, to which the proceeds of the bonds are to be
  applied, as provided by section sixty-one of the state finance law. Such
  bonds, or the portion thereof  at  any  time  sold,  shall  be  of  such
  denominations,  subject  to  the  foregoing  provisions,  as  the  state
  comptroller may determine.
    3. The bonds shall be sold in such lot or lots, from time to time,  as
  may  be  required  for  the  work or purpose for which the creation of a
  state debt or debts shall have been authorized and appropriations  shall
  have  been  made  by  law,  but  not  in  excess of the aggregate amount
  authorized for such purpose.
    4. Such bonds shall be sold at not less than par to the highest bidder
  not less than four nor more than fifteen days, Sundays excepted, after a
  notice of such sale  has  been  published  at  least  once  in  a  daily
  newspaper  published  in  Albany  and in a daily newspaper published and
  circulating in New York city, which shall state the terms of  the  sale.
  The  comptroller  may  not change the terms of the sale unless notice of
  such change is published in such newspapers at least one  day  prior  to
  the  date  of  the  sale  as  set  forth in the original notice of sale.
  Advertisements shall contain a provision to the effect  that  the  state
  comptroller,  in  his  discretion,  may  reject  any or all bids made in
  pursuance of such advertisements, and in the event  of  such  rejection,
  the  state comptroller is authorized to readvertise for bids in the form
  and manner above described as many times as, in  his  judgment,  may  be
  necessary to effect a satisfactory sale.
    5.  The  proceeds  of  bonds sold pursuant to this section or of notes
  issued in anticipation thereof shall be paid into  the  state  treasury,
  and  shall constitute a fund for higher educational purposes to be known
  as "the higher education bond fund" and shall be available only  to  the
  extent  of appropriations pursuant to section nineteen, article seven of
  the constitution.