§ 2438. Bond authorization. (1) The agency shall not issue bonds and
notes in an aggregate principal amount at any one time outstanding
exceeding one billion dollars, excluding tax lien collateralized
securities, special school purpose bonds, special school deficit program
bonds, special program bonds issued to finance the reconstruction,
rehabilitation or renovation of an educational facility pursuant to the
provisions of subdivision (b) of section sixteen of chapter six hundred
five of the laws of two thousand, special program bonds issued to
finance the cost of a project for design, reconstruction or
rehabilitation of a school building pursuant to the provisions of
section fourteen of the city of Syracuse and the board of education of
the city school district of the city of Syracuse cooperative school
reconstruction act, special program bonds issued to finance the cost of
a project for design, construction, reconstruction or rehabilitation of
a school building pursuant to the provisions of section thirteen of the
Yonkers city school district joint schools construction and
modernization act, recovery act bonds, public safety communications
bonds and bonds and notes issued to refund outstanding bonds and notes.

(2) The agency shall not issue special school purpose bonds in an
aggregate principal amount in excess of: for the city of New York, four
hundred thirty-five million dollars; for the city of Buffalo, four
million seven hundred thousand dollars; for the city of Rochester, five
million one hundred thousand dollars; for the city of Syracuse, eight
hundred thousand dollars; and for the city of Yonkers, three hundred
thousand dollars; or the amount of prior year claims that are due and
payable to each such school district of each such special school purpose
municipality pursuant to section thirty-six hundred four of the
education law. Such amount shall exclude bonds issued to fund any debt
service reserve fund, bonds issued to refund such special school purpose
bonds, bonds issued to pay the costs of issuance of such special school
purpose bonds and the amount of bonds that would constitute interest
under the Internal Revenue Code of 1986, as amended. Notwithstanding any
provision of law to the contrary, the special school purpose bonds
issued for the city of New York shall be issued in such principal amount
as will provide funds sufficient to pay interest on such bonds for a
period of at least two years after the date of issuance thereof and such
amount shall be excluded from the limitation contained in this
subdivision.

(3) The agency shall not issue special school deficit program bonds
(a) prior to the time the state comptroller determines the amount of the
accumulated projected deficit of a special school deficit program
district in its general fund at the close of its current fiscal year
ending June thirtieth, two thousand two, including any budget notes and
revenue anticipation notes which may be part of such deficit, as
provided in a chapter of the laws of two thousand two, and (b) in
aggregate principal amount in excess of the lesser of (i) the amount of
such deficit as determined by the state comptroller or (ii) sixteen
million five hundred thousand dollars, excluding bonds to fund any debt
service reserve fund, bonds issued to refund special school deficit
program bonds, bonds issued to pay the costs of issuance of such special
school deficit program bonds and the amount of bonds that would
constitute interest under the Internal Revenue Code of 1986, as amended.

(4) The fixing of the statutory maximum in this section shall not be
construed as constituting a contract between the agency and the holders
of its bonds or notes that additional bonds and notes may not be issued
subsequently by the agency in the event that such statutory maximum
shall subsequently be increased by law.