§ 386-b. Financing of peace bridge and transportation capital
projects. 1. Notwithstanding any other provision of law to the
contrary, the authority, the dormitory authority and the urban
development corporation are hereby authorized to issue bonds or notes in
one or more series for the purpose of financing peace bridge projects
and capital costs of state and local highways, parkways, bridges, the
New York state thruway, Indian reservation roads, and facilities, and
transportation infrastructure projects including aviation projects,
non-MTA mass transit projects, and rail service preservation projects,
including work appurtenant and ancillary thereto. The aggregate
principal amount of bonds authorized to be issued pursuant to this
section shall not exceed fifteen billion two hundred forty million six
hundred sixty-nine thousand dollars $15,240,669,000, excluding bonds
issued to fund one or more debt service reserve funds, to pay costs of
issuance of such bonds, and to refund or otherwise repay such bonds or
notes previously issued. Such bonds and notes of the authority, the
dormitory 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, the dormitory authority and the urban
development corporation 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, the dormitory authority and the urban
development corporation in undertaking the financing of such
transportation facilities projects, the director of the budget is hereby
authorized to enter into one or more service contracts with the
authority, the dormitory 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, the dormitory authority and the urban development corporation
agree, so as to annually provide to the authority, the dormitory
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
service contract or any payments made or to be made thereunder may be
assigned and pledged by the authority, the dormitory authority and the
urban development corporation as security for such bonds and notes, as
authorized by this section.