* § 1689-i. Public school districts; authority financing of projects
under the expanding our children's education and learning (EXCEL)
program. 1. The dormitory authority is authorized to finance EXCEL
projects for those school districts which are eligible to receive an
apportionment for expanding our children's education and learning
(EXCEL) pursuant to subdivision fourteen of section thirty-six hundred
forty-one of the education law.

2. Notwithstanding the provisions of any general or special law to the
contrary, and subject to the making of annual appropriations therefor by
the legislature, in order to assist the dormitory authority in the
financing of such EXCEL projects, the director of the budget is
authorized in any state fiscal year commencing April first, two thousand
six and thereafter to enter into one or more service contracts, none of
which shall exceed thirty years in duration, with the dormitory
authority, upon such terms as the director of the budget and the
dormitory authority agree.

3. Any service contract entered into pursuant to this section or any
payments made or to be made thereunder may be assigned and pledged by
the dormitory authority as security for its bonds, notes, or other
obligations.

4. Any such service contract shall provide that the obligation of the
director of the budget or of the state to fund or to pay the amounts
therein provided for shall not constitute a debt of the state within the
meaning of any constitutional or statutory provision in the event the
dormitory authority assigns or pledges the service contract payments as
security for its bonds, notes, or other obligations and shall be deemed
executory only to the extent moneys are available and that no liability
shall be incurred by the state beyond the moneys available for the
purpose, and that such obligation is subject to annual appropriation by
the legislature.

5. Any service contract or contracts entered into pursuant to this
section shall provide for state commitments to provide annually to the
dormitory authority a sum or sums, upon such terms and conditions as
shall be deemed appropriate by the director of the budget, to fund the
principal, interest, or other related expenses required for any bonds,
notes, or other obligations.

6. The commissioner of education shall certify, from time to time, to
the dormitory authority, the comptroller, the director of the division
of the budget, the chair of the senate finance committee and the chair
of the assembly ways and means committee each school district for which
he or she has determined an aid apportionment for authority financing of
an EXCEL project pursuant to subdivision fourteen of section thirty-six
hundred forty-one of the education law. Such certification, which shall
be made within thirty days after such determination or as soon
thereafter as is practicable, shall identify the amount of aid
apportionment which has been approved for such school district and shall
estimate the date or dates when such project will be undertaken.

7. On or before November fifteenth of each year and again on or after
February fifteenth of each year, the dormitory authority shall submit,
and thereafter may resubmit, to the director of the division of the
budget, the state comptroller, the commissioner of education, the chair
of the senate finance committee and the chair of the assembly ways and
means committee a report setting forth the estimated amounts, if any, of
all annual payments required to be appropriated to the dormitory
authority pursuant to such service contracts between the dormitory
authority and the director of the division of the budget pursuant to
this section.

8. To obtain funds for the purposes of this section, the authority
shall have power from time to time, to issue negotiable bonds or notes
of the authority. Unless the context shall clearly indicate otherwise,
whenever the words "bond" or "bonds" are used in this section, such
words shall include a note or notes of the authority.

9. The dormitory authority shall not issue any bonds or notes in an
amount in excess of two billion six hundred million dollars for the
purposes of this section, excluding a principal amount of bonds or notes
issued to fund one or more debt service reserve funds, to pay for the
costs of issuance of such bonds, and bonds or notes issued to refund or
otherwise repay such bonds, and bonds or notes previously issued. Except
for the 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 or notes.

10. In computing for the purposes of this subdivision, the aggregate
amount of indebtedness evidenced by bonds and notes of the dormitory
authority issued pursuant to this section, there shall be excluded the
amount of such indebtedness represented by such bonds or notes issued to
refund or otherwise repay bonds or notes, provided that the amount so
excluded under this clause may exceed the principal amount of such bonds
or notes that were issued to refund or otherwise repay only if the
present value of the aggregate debt service on the refunding or
repayment bonds or notes shall not have at the time of their issuance
exceeded the present value of the aggregate debt service of the bonds or
notes they were issued to refund or repay, such present value in each
case being calculated by using the effective interest rate of the
refunding or repayment bonds or notes, 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 or
repayment bonds or notes from the payment date thereof to the date of
issue of the refunding or repayment bonds or notes and to the price bid
therefor, or to the proceeds received by the dormitory authority from
the sale thereof, in each case including estimated accrued interest.

11. The state of New York hereby covenants with the purchasers,
holders and owners from time to time of the bonds of the authority
issued pursuant to this section that it will not repeal, revoke,
rescind, modify or amend the provisions of this section which relate to
the making of annual service contract payments to the authority with
respect to such bonds as to limit, impair or impede the rights and
remedies granted to bondholders under this title or otherwise diminish
the security pledged to such purchasers, holders and owners or
significantly impair the prospect of payment of any such bond.

* NB There are 2 § 1689-i's