§ 45. NY-SUNY 2020. 1. Notwithstanding the provisions of any other law
to the contrary, the urban development corporation of the state of New
York is hereby authorized to issue bonds or notes in one or more series
for the purpose of funding project costs for the implementation of a
NY-SUNY and NY-CUNY 2020 challenge grant program subject to the approval
of a NY-SUNY and NY-CUNY 2020 plan or plans by the governor and either
the chancellor of the state university of New York or the chancellor of
the city university of New York, as applicable. The aggregate principal
amount of bonds authorized to be issued pursuant to this section shall
not exceed $660,000,000, 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 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 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 law, rule, or regulation to the contrary,
the comptroller is hereby authorized and directed to deposit to the
credit of the capital projects fund, reimbursement from the proceeds of
notes or bonds issued by the urban development corporation of the state
of New York for capital disbursements associated with such project
costs.

3. Notwithstanding any other provision of law to the contrary, in
order to assist the urban development corporation in undertaking the
financing for project costs for the NY-SUNY 2020 challenge grant
program, the director of the budget is hereby authorized to enter into
one or more service contracts with the corporation, none of which shall
exceed thirty years in duration, upon such terms and conditions as the
director of the budget and the corporation agree, so as to annually
provide to the 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
to the corporation as security for its bonds and notes, as authorized by
this section.