§ 47-a. State university construction bonds and notes. 1. Definitions. For the purposes of section forty-seven and of this section:

a. "State university facility" shall mean a classroom, lecture hall, library, laboratory or other academic building, or any structure on or improvement to real property of any kind or description, including fixtures and equipment which are an integral part of any such building, structure or improvement, a walkway or roadway, and improvements and connections for water, sewer, gas, electrical, telephone, heating, air conditioning and other utility services at a state-operated institution or statutory or contract college under the jurisdiction of the state university of New York, and shall include a housing unit or any emergency temporary housing, with necessary and usual attendant and related facilities and equipment, for the use of students, faculty and staff, and their families, at such an institution or statutory or contract college.

b. "State university construction bonds" and "state university construction notes" shall mean bonds and notes respectively, issued by the agency pursuant to subdivision two of this section.

2. Additional powers of the agency.

a. The agency shall have power to cause state university facilities to be constructed, acquired, reconstructed, rehabilitated or improved on any real property leased or made available by the state university of New York, or any state-operated institution or statutory or contract college under the jurisdiction of the state university of New York, under an agreement with the state university construction fund created by section three hundred seventy-one of the education law and in connection therewith may authorize the state university construction fund to act as its agent for the purpose of constructing, acquiring, reconstructing, rehabilitating or improving such state university facilities.

b. The agency shall have power and is hereby authorized from time to time to issue negotiable bonds and notes in conformity with applicable provisions of the uniform commercial code in such principal amount as, in the opinion of the agency, shall be necessary, after taking into account other monies which may be available for the purpose, to provide sufficient funds for the construction, acquisition, reconstruction, rehabilitation or improvement of state university facilities pursuant to the preceding paragraph of this subdivision, the payment of interest on state university construction bonds and state university construction notes issued for such purposes, the establishment of reserves to secure such bonds and notes, and all other expenditures of the agency incident to and necessary or convenient for any such construction, acquisition, reconstruction, rehabilitation or improvement; provided, however, that the agency shall not issue state university construction bonds and state university construction notes in an aggregate principal amount exceeding three billion dollars, excluding state university construction bonds and state university construction notes issued to refund outstanding state university construction bonds or state university construction notes. In no event, however, shall the agency issue state university construction bonds or state university construction notes after August first, nineteen hundred eighty-eight, except state university construction bonds or state university construction notes issued to refund outstanding state university construction bonds or state university construction notes; provided, however, that only state university construction bonds to be issued to refund state university construction bonds may be issued after August first, nineteen hundred eighty-eight. Such bonds shall be excluded from such limitation as to the aggregate principal amount of state university construction bonds and state university construction notes if the present value of the aggregate debt service on the refunding bonds does not exceed the present value of the aggregate debt service on the bonds refunded thereby. For purposes hereof, the present value of the aggregate debt service of the refunding bonds and the aggregate debt service of the bonds refunded, shall be calculated by utilizing the true interest cost of the refunding bonds, 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 bonds from the payment dates thereof to the date of issue of the refunding bonds to the purchase price of the refunding bonds, including interest accrued thereon prior the issuance thereof.

3. Application of other provisions of article. Except as stated in section forty-seven, the other provisions of this article shall apply to state university construction bonds and state university construction notes issued by the agency pursuant to this section, provided, however, that such bonds and notes, subject to any agreements with the holders of particular bonds or notes pledging any specified portions thereof, shall be secured by a pledge to the payment thereof of (i) rentals paid to the agency with respect to state university facilities financed with the proceeds of such bonds and notes, and (ii) any other assets, monies or accounts pledged or assigned to the agency as security for the payment of such rentals, and provided further that no resolution or resolutions authorizing state university construction bonds and state university construction notes shall (i) pledge all or any part of the fees and charges made or received by the agency pursuant to subdivision eleven of section forty-four in connection with the making of mortgage loans or commitments therefor, or all or any part of the monies received in payment of such mortgage loans and interest thereon, or (ii) pledge all or any part of the mortgages of the agency or obligations securing the same, or (iii) provide as to the use and disposition of the gross income from mortgages owned by the agency or as to the payment of principal of mortgages owned by the agency, or (iv) pledge all or any part of the rentals paid to the agency under leases, subleases or other agreements for health facilities or mental hygiene facilities entered into by the agency in accordance with this article, or (v) pledge or assign all or any part of any other assets, monies or accounts pledged or assigned to the agency as security for the payment of rentals for such health facilities or mental hygiene facilities.

4. Repayment fund. The agency shall create and establish a special fund (herein referred to as state university repayment fund) and shall pay into such fund any monies which the agency shall receive in payment of rentals due under one or more lease agreements referred to in subdivision three of this section. Such monies and any other monies paid into the state university repayment fund may, in the discretion of the agency but subject to agreements with the holders of state university construction bonds and state university construction notes, be used by the agency (a) for the repayment of advances, if any, from the state to the agency in connection with state university facilities in accordance with the provisions of repayment agreements between the agency and the director of the budget, (b) to pay all costs, expenses and charges of financing the construction, acquisition, reconstruction, rehabilitation or improvement of state university facilities on any real property leased or made available to the agency by the state university of New York, including fees and expenses of trustees and paying agents and the reasonable costs of services performed by the commissioner of housing and division of housing in respect thereof, and (c) for the payment of the principal of and interest on state university construction bonds or state university construction notes issued by the agency when the same shall become due whether at maturity or on call for redemption and for the payment of any redemption premium required to be paid where such bonds or notes are redeemed prior to their stated maturities, and to purchase state university construction bonds or state university construction notes issued by the agency.