(b) This Part generally applies to payments due and owing by the authority to a person or business in the private sector under a contract it has entered into with the authority on or after May 1, 1988. This Part does not apply to payments due and owing:

1. (1) under the Eminent Domain Procedure Law;
2. (2) as interest allowed on judgments rendered by a court pursuant to any provision of law except section 2880 of the Public Authorities Law;
3. (3) to the Federal government; to any State agency or its instrumentalities; to any duly constituted unit of local government, including but not limited to counties, cities, towns, villages, school districts, special districts or any of their related instrumentalities; to any other public authority or public benefit corporation; or to its employees when acting in, or incidental to, their public employment capacity;
4. (4) if the authority is exercising a legally authorized setoff against all or part of the payment; or
5. (5) if other State or Federal law or rule or regulation specifically requires otherwise.