§ 15-1951. Financing of improvements.

1. For defraying the costs of all proceedings, surveys, studies and
construction projects authorized by any section of title 19 of this
article, the department may raise funds pursuant to the Local Finance
Law. Such funds may not be borrowed unless the proceedings authorizing
such expenditures have become final.

2. In addition the department is authorized in the name of the
district to apply for, receive and expend funds or services which may be
granted or contributed for the purpose by the federal government or
other public authorities or by private persons or organizations.
Obligations issued for such purpose shall not be construed in any event
as obligations or indebtedness of the state, and neither the state, the
department or any member thereof personally shall be obligated to pay
the principal or interest therefor. Bonds issued for such purpose shall
be lawful investments for savings banks, trust companies, executors and
trustees and for any of the funds of the state which by law may be
invested.

3. The proceeds of such bonds shall be deposited in a national or
state bank or trust company either in Albany or in one of the counties
in which such improvement is made, to be designated by the Comptroller.
Before any such deposit is made, the Comptroller shall require from the
depository security for the repayment of the same to the department upon
demand of the moneys so deposited in the manner provided in section 106
of the State Finance Law.