1680-N - Acquisition of state buildings and other facilities.

§  1680-n.  Acquisition  of  state  buildings and other facilities. 1.  Notwithstanding the provisions of any other law  to  the  contrary,  the  authority and the urban development corporation are hereby authorized to  issue  bonds  or  notes in one or more series for the purpose of funding  project  costs  for  the  acquisition  of  state  buildings  and   other  facilities.  The  aggregate  principal  amount of bonds authorized to be  issued pursuant to this section  shall  not  exceed  one  hundred  forty  million dollars, excluding bonds issued to fund one or more debt service  reserve  funds,  to  pay  costs  of issuance of such bonds, and bonds or  notes issued to refund or otherwise repay such bonds or notes previously  issued. Such bonds and notes of the authority and the urban  development  corporation shall not be a debt of the state, and the state shall not be  liable  thereon,  nor  shall they be payable out of any funds other than  those  appropriated  by  the  state  to  the  authority  and  the  urban  development  corporation  for  principal, interest, and related expenses  pursuant to a service contract and such bonds and notes shall contain on  the face thereof a statement to such  effect.  Except  for  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.    2. Notwithstanding any other provision of  law  to  the  contrary,  in  order  to  assist the authority and the urban development corporation in  undertaking the financing of the  acquisition  of  state  buildings  and  other  facilities,  the  director  of the budget is hereby authorized to  enter into one or more service contracts  with  the  authority  and  the  urban  development  corporation,  none  of which shall exceed twenty-two  years in duration, upon such terms and conditions as the director of the  budget and the authority and the urban development corporation agree, so  as to annually provide  to  the  authority  and  the  urban  development  corporation,  in  the  aggregate,  a  sum  not  to exceed the principal,  interest, and related expenses required for such bonds  and  notes.  Any  service  contract  entered  into  pursuant to this section shall provide  that the obligation of the state to  pay  the  amount  therein  provided  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 of  monies  available  and  that  no  liability  shall  be  incurred  by  the  state  beyond  the monies available for such purpose,  subject to annual appropriation by the legislature. Any such contract or  any payments made or to be made thereunder may be assigned  and  pledged  by  the  authority and the urban development corporation as security for  its bonds and notes, as authorized by this section.