§ 67-c. Authorization for consolidated service contract refundings. 1.
In addition to the authorizations for state-supported debt specified in
any other provision of law, the issuers of state-supported debt may also
issue bonds and notes to refund or otherwise repay previously issued
state-supported debt.

(a) The aggregate amount of indebtedness evidenced by bonds and notes
of the authorized issuer hereinafter issued pursuant to this section,
including as is authorized in any other provision of law, shall exclude
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 section may exceed the principal amount of
such bonds or notes that were refunded or otherwise repaid only if the
present value of the aggregate debt service on the refunding 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 authorized issuer from the
sale thereof.

(b) Notwithstanding any other provision of law to the contrary, and
subject to the limitations of paragraph (a) of this subdivision, issuers
of state-supported debt may also refund or otherwise repay bonds or
notes of any other issuers of state-supported debt where the payment of
debt service and related expenses of both such refunding and refunded
bonds and notes are subject to appropriation and not otherwise secured
by a dedication of specific revenues.

(i) In order to assist the issuer of such refunding bonds, the
director of the budget is authorized to enter into one or more service
contracts or other agreements, none of which shall exceed the lesser of
thirty years in duration or the final maturity of the bonds to be
refunded, with the issuer of such refunding bonds, upon such terms and
conditions as the director of the budget and the issuer shall agree.

(ii) Any service contract or other agreements entered into pursuant to
subparagraph (i) of this paragraph or any payments made or to be made
thereunder may be assigned and pledged by the issuer as security for its
bonds, notes, or other obligations.

(iii) Any such service contract or other agreements 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 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 such purpose, and that such obligation is
subject to annual appropriation by the legislature.

(iv) Any service contract or other agreements entered into pursuant to
subparagraph (i) of this paragraph shall provide for state commitments
to provide annually to the issuer a sum or sums, upon such terms and
conditions as shall be deemed appropriate by the director of the budget
and the authorized issuer, to fund the principal, interest, and other
related expenses required for any bonds, notes, or other obligations.

(v) In addition to the foregoing, the authorized issuers of the bonds
to be so refunded shall be authorized to enter into such agreements with
the director of the budget and/or the authorized issuer of the refunding
bonds and related parties to take or cause to be taken any such actions
necessary to effectuate the purposes of such refunding issue.

(vi) Nothing contained in this subdivision, shall be construed to
limit the abilities of the director of the budget and the authorized
issuers of state-supported debt to perform their respective obligations
on existing service contracts or other agreements entered into prior to
April first, two thousand seven.

(vii) If an authorized issuer issues an amount of refunding bonds for
an authorized purpose of another authorized issuer which would otherwise
require the approval of the public authorities control board, then such
amount of refunding bonds shall be subject to the approval of the public
authorities control board pursuant to the provisions of section
fifty-one of the public authorities law.

2. Refundings conducted pursuant to this section shall not be financed
pursuant to article five-C of this chapter.