§ 7-C — Secured hospital projects reserve funds and appropriations

New York § 7-C

• Jurisdiction: New York
• Law MCF: Medical Care Facilities Finance Agency 392/73

Text

* § 7-c. Secured hospital projects reserve funds and appropriations.\n1. Special hospital project bonds, as defined in paragraph (d-1) of\nsubdivision three of section three of this act, issued to refinance the\nprojects of eligible secured hospital borrowers, as defined in\nsubdivision six-c of section three of this act, shall be secured by (a)\na mortgage lien, (b) funds and accounts established under the bond\nresolution, (c) the secured hospital special debt service reserve fund\nor funds, (d) the secured hospital capital reserve fund or funds, and\n(e) such service contract or contracts entered into in accordance with\nthe provisions of subdivision four of this section.\n 2. (a) The agency shall establish a secured hospital special debt\nservice reserve fund or funds and pay into such fund or funds moneys\nfrom the secured hospital fund up to an amount not to exceed an amount\nnecessary to ensure the repayment of principal and interest due on any\noutstanding indebtedness on special hospital projects bonds, as defined\nin paragraph (d-1) of subdivision three of section three of this act.\n Funds deposited in such secured hospital special debt service reserve\nfund or funds shall be used in the event that an eligible secured\nhospital borrower, as defined in subdivision six-c of section three of\nthis act, fails to make payments in an amount sufficient to pay the\nrequired debt service payments on special hospital project bonds, as\ndefined in paragraph (d-1) of subdivision three of section three of this\nact.\n (b) The agency shall, for the purposes of paragraph (a) of this\nsubdivision and for the support of eligible secured hospital borrowers,\npay into the secured hospital fund currently established and maintained\nby the agency: (i) all funds required to be paid in accordance with the\nprovisions of article twenty-eight of the public health law and\nregulations promulgated in such article; (ii) any mortgage insurance\npremium assessed in an amount fixed at the discretion of the agency,\nupon the issuance of special hospital project bonds, as defined in\nparagraph (d-1) of subdivision three of section three of this act; (iii)\nany income or interest earned on other reserve funds which the agency\nelects to transfer to the secured hospital fund; and (iv) any other\nmoneys which may be made available to the agency from any other source\nor sources. Moneys paid into the secured hospital fund shall, in the\ndiscretion of the agency, but subject to agreements with bondholders, be\nused to fund the special debt service reserve fund or funds at a level\nor levels which minimize the need for use of the capital reserve fund or\nfunds in the event of the failure of an eligible secured hospital\nborrower, as defined in subdivision six-c of section three of this act,\nto make the required debt service payments on special hospital project\nbonds, as defined in paragraph (d-1) of subdivision three of section\nthree of this act.\n (c) Notwithstanding the provisions of paragraphs (a) and (b) of this\nsubdivision, the state hereby expressly reserves the right to modify or\nrepeal the provisions of article twenty-eight of the public health law.\n 3. The agency shall establish a secured hospital capital reserve fund\nor funds which shall be funded at an amount or amounts equal to the\nlesser of either: (a) the maximum amount of principal, sinking fund\npayments and interest due in any succeeding year on outstanding special\nhospital project bonds, as defined in paragraph (d-1) of subdivision\nthree of section three of this act, or (b) the maximum amount to ensure\nthat such bonds will not be considered arbitrage bonds under the\nInternal Revenue Code of 1986, as amended. The capital reserve fund\nshall be funded by the sale of special hospital project bonds, as\ndefined in paragraph (d-1) of subdivision three of section three of this\nact, or from such other funds as may be legally available for such\npurpose, as provided for in the bond resolution or resolutions\nauthorizing the issuance of such bonds.\n 4. (a) Notwithstanding the provisions of any general or special law to\nthe contrary, and subject to the making of annual appropriations\ntherefor by the legislature in order to refinance mortgage loans to\neligible secured hospital borrowers, as defined in subdivision six-c of\nsection three of this act, the director of the budget is authorized in\nany state fiscal year to enter into one or more service contracts, which\nservice contracts shall not exceed the term of the special hospital\nproject bonds, issued for the benefit of the eligible secured hospital\nborrower, upon such terms as the director of the budget and the agency\nagree, so as to provide annually to the agency in the aggregate such\nsum, if any, as necessary to meet the debt service payments due on\noutstanding special hospital project bonds, as defined in paragraph\n(d-1) of subdivision three of section three of this act, in any year if\nthe funds provided for in this section are inadequate.\n (b) Any service contract entered into pursuant to paragraph (a) of\nthis subdivision shall provide (i) that the obligation of the director\nof the budget or of the state to fund or to pay the amounts therein\nprovided for shall not constitute a debt of the state within the meaning\nof any constitutional or statutory provision and shall be deemed\nexecutory only to the extent of moneys available and that no liability\nshall be incurred by the state beyond the moneys available for such\npurpose, and that such obligation is subject to annual appropriation by\nthe legislature; and (ii) that the amounts paid to the agency pursuant\nto any such contract may be used by it solely to pay or to assist in\nfinancing costs of mortgage loans to eligible secured hospital\nborrowers, as defined in subdivision six-c of section three of this act.\n 5. The agency shall not issue special hospital project bonds, as\ndefined in paragraph (d-1) of subdivision three of section three of this\nact, except to refinance mortgage loans for eligible secured hospital\nborrowers as provided in section three of this act.\n * NB Repealed December 31, 2015\n