§ 1680-b. Court facilities and combined occupancy structures. 1. The
authority may enter into a lease, sublease or other agreement with a
participating municipality pursuant to which one or more court
facilities or combined occupancy structures are to be designed,
acquired, constructed, reconstructed, rehabilitated or improved, or a
court facility is to be furnished or equipped, provided that such lease,
sublease or other agreement has been approved by the chief administrator
of the courts. The authority shall not enter into any such lease,
sublease or other agreement unless such lease, sublease or other
agreement provides that (a) the parties thereto shall comply with such
standards and administrative policies relating to court facilities as
may be promulgated pursuant to section twenty-eight of article six of
the constitution and (b) the court facilities or combined occupancy
structures to which such lease, sublease or other agreement related
shall be constructed, reconstructed, rehabilitated, improved, furnished
or equipped substantially in accordance with the plans, specifications
and designs approved by the chief administrator of the courts. Such
lease, sublease or other agreement may contain such other terms and
conditions as the authority may require, including, but not limited to,
provisions relating to the maintenance and operation of the court
facilities, the establishment of reserve funds and the disposition of a
court facility or a combined occupancy structure or the interest of the
authority therein prior to or upon the termination or expiration of such
lease, sublease or other agreement. In connection with court facilities
and combined occupancy structures, the authority is hereby authorized to
issue bonds in an aggregate principal amount not to exceed three billion
dollars; provided, however, that bonds issued or to be issued shall be
excluded from such limitation if such bonds are issued to refund bonds
of the authority issued in connection with court facilities and combined
occupancy structures and 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 to the
issuance thereof. The maturity of such bonds, other than bonds issued to
refund outstanding bonds, shall not exceed the weighted average economic
life, as certified by the office of court administration, of the
facilities in connection with which the bonds are issued, and in any
case not later than the earlier of forty years or the expiration of the
term of any lease, sublease or other agreement relating thereto;
provided that no note, including renewals thereof, shall mature later
than five years after the date of issuance of such note.

2. No bonds may be issued by the authority in connection with a court
facility or combined occupancy structure unless:

(a) the chief administrator of the courts has certified that the court
facility or facilities in connection with which such bonds are to be
issued are consistent with the capital plan approved pursuant to section
sixteen hundred eighty-c of this chapter; and

(b) the lease, sublease or other agreement with the participating
municipality relating to such court facilities provides that the plans,
specifications, designs and cost estimates for the design, construction,
reconstruction, rehabilitation, improvement, furnishing or equipping of
the court facilities in connection with such bonds are to be issued
subject to the approval of the chief administrator of the courts
pursuant to paragraph (u) of subdivision one of section two hundred
twelve of the judiciary law.

3. Notwithstanding the provisions of any general, special or local
law, charter or ordinance to the contrary, a participating municipality
may sell, convey, lease, exchange or otherwise make available to the
authority, for nominal consideration, the title to or an interest in
real property for the purpose of providing court facilities or combined
occupancy structures and may enter into any lease, sublease or other
agreement with the authority in connection with court facilities or
combined occupancy structures without public auction or bidding or
restriction as to the term of such lease, sublease or other agreement,
provided that such sale, conveyance, lease, exchange, or other
disposition to the authority or lease, sublease or other agreement with
the authority is authorized by the board of county supervisors or the
county legislature of a participating municipality which is a county, or
the common council of a participating municipality which is a city other
than the city of New York or, if the participating municipality is the
city of New York, the board of estimate of the city of New York.

4. In the event that a participating municipality fails to pay to the
authority when due all or part of the rentals and other payments payable
pursuant to any lease, sublease or agreement with the authority, the
chairman or another officer of the authority shall certify at the times
provided in this subdivision the amount of rentals and other payments
then due from such participating municipality and unpaid. The state
comptroller, upon receipt of such certificate, shall deduct the amount
of such rentals and other payments as remains unpaid to the authority
first from the aid payable to such participating municipality from the
court facilities incentive aid fund established by section ninety-four
of the state finance law and, then, from the next succeeding payments of
state aid apportioned to such participating municipality, as revenue
sharing, per capita aid, and any other aid pursuant to section
fifty-four of the state finance law and, then, from the next succeeding
payments of state aid for any local governmental administrative costs
that are reimbursable to the participating municipality pursuant to
state law and, then, from the next succeeding payments of state aid from
moneys appropriated pursuant to section six hundred eight of the public
health law and pursuant to section ten-c of the highway law; provided,
however, that the right of the authority to the payment of any amount
deducted by the state comptroller pursuant to this section from per
capita aid apportioned to the city of New York shall be subject and
subordinate to the rights of the city university construction fund
pursuant to section sixty-two hundred seventy-nine of the education law,
the New York city housing development corporation pursuant to section
six hundred fifty-six of the private housing finance law, the trustees
of the police pension fund pursuant to paragraph e of subdivision seven
of section fifty-four of the state finance law, and the municipal
assistance corporation for the city of New York pursuant to section
three thousand thirty-six-a of this chapter and subdivision one of
section ninety-two-e of the state finance law. In order to insure that
the amount of rentals and other payments due and unpaid by a
participating municipality are paid, the authority on or within thirty
days prior to January twenty-fifth, April twenty-fifth, July
twenty-fifth and October twenty-fifth of each year shall certify to the
state comptroller the amount of rentals and other payments then due and
unpaid by each participating municipality pursuant to any lease,
sublease or other agreement. The amount required to be deducted by the
state comptroller pursuant to this subdivision shall be deducted from
such aid, whether or not the state aid from which such deduction is to
be made is then payable to the participating municipality, and thereupon
paid to the authority. The amount of state aid payable to such
participating municipality shall be reduced by the amount deducted by
the state comptroller notwithstanding the amount appropriated and
apportioned by the state to such participating municipality, and the
state shall not be obligated to make and the participating municipality
shall not be entitled to receive any additional apportionment or payment
of such state aid. Nothing shall be construed to create an obligation
upon the state to appropriate moneys, to preclude the state from
reducing the amount of moneys appropriated or level of assistance
provided, or to preclude the state from altering or modifying the manner
in which it provides for or provides assistance.

5. On and after the effective date of this subdivision, when bonds are
issued by the authority pursuant to this section, the authority and the
participating municipality shall agree in any lease, sublease or other
agreement to finance the acquisition, construction, reconstruction or
rehabilitation of a court facility or combined occupancy structure that,
so long as such bonds remain outstanding, the participating municipality
shall retain title to such court facility or combined occupancy
structure free of all liens and encumbrances except as shall be
expressly permitted by such lease, sublease or other agreement.