§ 3607 — Transfer of property; relationship with the towns; certain gifts, loans and guarantees by the towns

§ 3607. Transfer of property; relationship with the towns; certain\ngifts, loans and guarantees by the towns. 1. (a) Either town may give,\ngrant, sell, convey, loan, license the use of, or lease to the\ncorporation any property (except monies appropriated by the town and\npayable to the corporation pursuant to subdivision three and paragraph\n(a) of subdivision four of this section) which are useful in connection\nwith the exercise by the corporation of any of its powers under this\ntitle in order to transfer the facilities and operations of the\nClifton-Fine Hospital to the corporation by agreement between the towns\nand the corporation and any subsequent renewal or amendment thereof, by\nlocal law adopted by a majority of both town boards, notwithstanding any\ngeneral, special or local law, ordinance, resolution or charter.\n (b) Any such gift, grant, sale, conveyance, loan, license or lease\nshall be upon such terms and conditions, for such consideration, if any,\nand for such term or terms of years, subject to the rights of the\nholders of any bonds, as the corporation and the towns may agree. No\nreal property of the towns consisting of any health facility currently\noperated by the Clifton-Fine Hospital shall be transferred to the\ncorporation in fee, except under such restrictions regarding rights of\nfirst refusal, or other rights, to repurchase the property as the town\nboards shall approve by act, and subject to a restrictive covenant\nprohibiting the corporation from pledging or mortgaging the fee interest\nin the property. In the event that the town gives, grants, sells,\nconveys, loans, licenses or leases any facilities to the corporation,\nthe towns may contract with the corporation to lease, borrow, license,\noperate, maintain, manage and provide services for such facilities upon\nsuch terms and conditions and for such term or terms of years, subject\nto the rights of holders of bonds, as the corporation and the towns may\nagree. The corporation, in furtherance of any purchase, conveyance or\nlease of any property or facility from the towns, may assume the primary\nresponsibility for the payment of the principal and interest on any\nbonds or notes issued by the towns for such property or facility.\n 2. The town may acquire by purchase, grant, lease, gift or\ncondemnation pursuant to the eminent domain procedure law, real property\nin the name of the towns for any corporate purpose of the corporation.\n 3. In addition to any other powers granted to it by law and consistent\nwith the constitution and other provisions of law, the towns may, from\ntime to time, appropriate sums of money to defray project costs or any\nother costs or expenses of the corporation including operating expenses.\n Subject to the rights of bondholders, the towns may determine if the\nmonies so appropriated shall be subject to repayment by the corporation\nto the towns and, in such event, the manner and time or times for such\nrepayment.\n 4. In addition to the authority granted elsewhere in this title and by\nother applicable laws, the corporation and the towns may enter into a\ncontract or contracts from time to time providing for one or more of the\nfollowing:\n (a) the payment of sums appropriated by the towns pursuant to\nsubdivision three of this section;\n (b) the payment of sums for health care services provided by the\ncorporation which could otherwise be provided directly by the towns,\nincluding services for uncompensated care;\n (c) services to be provided by the towns to or on behalf of the\ncorporation;\n (d) the transfer of employees of the towns to the corporation as\nprovided in section thirty-six hundred four of this title;\n (e) indemnification by the corporation to the towns for claims\nassociated with establishment of and operation of the corporation and\nits health facilities;\n (f) the gift, grant, sale, conveyance, loan, license or lease by the\ntowns to the corporation of any property (except monies appropriated by\nthe county and payable to the corporation pursuant to subdivision three\nand paragraph (a) of this subdivision) or facilities which are useful in\nconnection with the exercise by the corporation of any of its powers\nunder this title not transferred pursuant to the authority granted in\nparagraph (a) of subdivision one of this section, which gift, grant,\nsale, conveyance, loan, license or lease shall nevertheless be subject\nto paragraph (b) of subdivision one of this section; and\n (g) such other matters as may be appropriate to accomplish the\npurposes hereof.\n Any such contract or contracts shall be authorized by the towns by act\nadopted by majority vote of the town boards. Such contract or contracts\nshall include such terms and conditions, be for such consideration, if\nany, and have such term or terms of years, as the corporation and the\ntowns may agree.\n 5. (a) Notwithstanding any general, special or local law or charter\nprovisions to the contrary, the towns of Clifton and Fine shall have the\npower and are hereby authorized, pursuant to section seven of article\nseventeen of the state constitution, to lend money or credit to or in\naid of the corporation or any subsidiary thereof for the purpose of\nproviding health related facilities or hospital facilities for the\nprevention, diagnosis or treatment of human disease, pain, injury,\ndisability, deformity or physical condition, and for facilities\nincidental or appurtenant thereto as may be prescribed by law. The towns\nare hereby authorized to prescribe such facilities by local law of the\ntowns. The corporation or any such subsidiary thereof, as a condition to\nany such loan of money or credit, shall enter into a regulatory\nagreement with the towns as to its charges, profits, dividends and\ndisposition of its property of franchises, which agreement shall be\nbinding and enforceable by the towns insofar as this regulates such\ncharges, profits, dividends and disposition of property. The towns may\nelect in such regulatory agreement to refrain from exercising all or any\nportion of its authority to so regulate such charges, profits, dividends\nand disposition of property to the extent such charges, profits,\ndividends and disposition of property are regulated by the state or any\nagency thereof. The towns shall authorize such regulatory agreement by\nlocal law.\n (b) In pursuance of the authority granted herein, the towns shall have\nthe power and is hereby authorized from time to time to issue bonds,\nnotes or other obligations in such principal amounts as they shall deem\nnecessary, after taking into account other monies which may be available\nfor the purposes set forth herein. Such bonds, notes or obligations\nshall be issued for the purpose of making loans to the corporation or\nany subsidiary thereof, paying interest on such bonds, notes or other\nobligations, establishment of reserves to secure such notes, bonds, or\nother obligations, and paying all other obligations and expenditures\nincidental to and necessary or convenient for the making of such loans.\nSuch bonds, notes or obligations shall be issued in accordance with the\napplicable provisions of this chapter and the local finance law and\napplicable local laws.\n (c) Any guarantee by the towns made pursuant to the authority granted\nin this section shall be authorized by act or acts of the towns in the\nsame manner as such act or acts authorizing the issuance of bonds of the\ntowns for the purposes for which such guarantee is undertaken.\n (d) The towns shall also be authorized to enact laws governing the\nconditions under which such loans, commitments and guarantees shall be\nmade.\n 6. For purposes of subdivision four of paragraph a of section 25.00 of\nthe local finance law, amounts to be derived by the towns from the\ncorporation, or any subsidiary thereof, shall be included in the term\n"other income".\n 7. (a) Notwithstanding the provisions of any other state or local law\nto the contrary, including, but not limited to, sections six-n and six-j\nof the general municipal law, with the approval of the town boards,\namounts deposited for or on behalf of the Clifton-Fine Hospital in the\nliability and casualty and workers' compensation reserve funds\nestablished by the towns pursuant to said sections of the general\nmunicipal law, and investment earnings thereon, may be withdrawn by the\ntowns from such funds and transferred to the corporation and shall be\nused by the corporation for the purposes for which such funds were\nestablished.\n (b) No amounts shall be withdrawn and transferred to the corporation\npursuant to this subdivision unless prior thereto the corporation has\nagreed in writing to indemnify and hold harmless the towns, and provide\ndefense, for all claims, cases, proceedings, actions or other matters\nagainst the towns arising out of the properties, facilities, operations\nor employees of the corporation of the Clifton-Fine Hospital, whether\ncommenced before or after the date of transfer of said amounts, and to\nprovide such other security for this obligation as the towns may\nreasonably require.\n