§ 1680-m. Cultural education 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
construction and rehabilitation associated with the cultural education
facilities, including but not limited to acquisition costs and other
state costs associated with such capital projects, and the St. Regis
Mohawk elementary school. The aggregate principal amount of bonds
authorized to be issued pursuant to this section shall not exceed
seventy-nine 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 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 for construction and rehabilitation associated
with the cultural education facilities, including but not limited to
acquisition costs and other state costs associated with such capital
projects, and the St. Regis Mohawk elementary school, 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 thirty 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.