§ 67-c. Authorization for consolidated service contract refundings. 1.\nIn addition to the authorizations for state-supported debt specified in\nany other provision of law, the issuers of state-supported debt may also\nissue bonds and notes to refund or otherwise repay previously issued\nstate-supported debt.\n (a) The aggregate amount of indebtedness evidenced by bonds and notes\nof the authorized issuer hereinafter issued pursuant to this section,\nincluding as is authorized in any other provision of law, shall exclude\nthe amount of such indebtedness represented by such bonds or notes\nissued to refund or otherwise repay bonds or notes; provided that the\namount so excluded under this section may exceed the principal amount of\nsuch bonds or notes that were refunded or otherwise repaid only if the\npresent value of the aggregate debt service on the refunding bonds or\nnotes shall not have at the time of their issuance exceeded the present\nvalue of the aggregate debt service of the bonds or notes they were\nissued to refund or repay, such present value in each case being\ncalculated by using the effective interest rate of the refunding or\nrepayment bonds or notes, which shall be that rate arrived at by\ndoubling the semi-annual interest rate (compounded semi-annually)\nnecessary to discount the debt service payments on the refunding or\nrepayment bonds or notes from the payment date thereof to the date of\nissue of the refunding or repayment bonds or notes and to the price bid\ntherefor, or to the proceeds received by the authorized issuer from the\nsale thereof.\n (b) Notwithstanding any other provision of law to the contrary, and\nsubject to the limitations of paragraph (a) of this subdivision, issuers\nof state-supported debt may also refund or otherwise repay bonds or\nnotes of any other issuers of state-supported debt where the payment of\ndebt service and related expenses of both such refunding and refunded\nbonds and notes are subject to appropriation and not otherwise secured\nby a dedication of specific revenues.\n (i) In order to assist the issuer of such refunding bonds, the\ndirector of the budget is authorized to enter into one or more service\ncontracts or other agreements, none of which shall exceed the lesser of\nthirty years in duration or the final maturity of the bonds to be\nrefunded, with the issuer of such refunding bonds, upon such terms and\nconditions as the director of the budget and the issuer shall agree.\n (ii) Any service contract or other agreements entered into pursuant to\nsubparagraph (i) of this paragraph or any payments made or to be made\nthereunder may be assigned and pledged by the issuer as security for its\nbonds, notes, or other obligations.\n (iii) Any such service contract or other agreements shall provide that\nthe obligation of the director of the budget or of the state to fund or\nto pay the amounts therein provided for shall not constitute a debt of\nthe state within the meaning of any constitutional or statutory\nprovision and shall be deemed executory only to the extent moneys are\navailable and that no liability shall be incurred by the state beyond\nthe moneys available for such purpose, and that such obligation is\nsubject to annual appropriation by the legislature.\n (iv) Any service contract or other agreements entered into pursuant to\nsubparagraph (i) of this paragraph shall provide for state commitments\nto provide annually to the issuer a sum or sums, upon such terms and\nconditions as shall be deemed appropriate by the director of the budget\nand the authorized issuer, to fund the principal, interest, and other\nrelated expenses required for any bonds, notes, or other obligations.\n (v) In addition to the foregoing, the authorized issuers of the bonds\nto be so refunded shall be authorized to enter into such agreements with\nthe director of the budget and/or the authorized issuer of the refunding\nbonds and related parties to take or cause to be taken any s
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