S. 5562--A 2
personal property, acquired, constructed, rehabilitated, owned and oper-
ated by an eligible borrower pursuant to this article, to provide hospi-
tal or other facilities for the prevention, diagnosis or treatment of
human disease, pain, injury, disability, deformity or physical condi-
tion, and for facilities incidental or appurtenant thereto. "Project"
and "Hospital project" shall also mean the refinancing of existing
indebtedness which constitutes a lien or other encumbrance upon the real
property or assets of the eligible borrower whether or not such refi-
nancing is related to the construction, acquisition or rehabilitation of
a specific work or improvement. The term "project" or "hospital project"
as used in this subdivision shall also mean a separate work or improve-
ment, including lands, buildings, fixtures and personal property related
thereto owned and operated by an eligible borrower to provide such
services, functions, capabilities and facilities as may be convenient or
[deisrable] DESIRABLE for the operation of a hospital or other such
facility. THE TERM "PROJECT" OR "HOSPITAL PROJECT", IN THE CASE OF A
SUPPLEMENTAL MORTGAGE LOAN AS DEFINED IN SUBDIVISION TWELVE-A OF SECTION
THREE OF SECTION ONE OF CHAPTER THREE HUNDRED NINETY-TWO OF THE LAWS OF
NINETEEN HUNDRED SEVENTY-THREE, SHALL ALSO MEAN, IN AN AMOUNT OF EIGHTY
MILLION DOLLARS, FOR ANY PURPOSE APPROVED BY THE COMMISSIONER PURSUANT
TO SECTION TWENTY-EIGHT HUNDRED SEVENTY-FOUR-B OF THIS ARTICLE, INCLUD-
ING BUT NOT LIMITED TO PAYMENTS OF AMOUNTS OUTSTANDING ON EXISTING MORT-
GAGE LOANS, REPAYMENT OF RESTRUCTURING LOANS, PAYMENT OF OPERATING COSTS
ASSOCIATED WITH EXPANSION OF CAPACITY TO ADDRESS HOSPITAL CLOSURES,
REFINANCING OF CAPITAL EXPENSES INITIALLY FUNDED FROM OPERATIONS,
PAYMENT OF ARREARS TO EMPLOYEE BENEFIT FUNDS, PAYMENT TOWARD PROFES-
SIONAL LIABILITY PREMIUMS OR UNFUNDED PROFESSIONAL LIABILITIES, PAYMENT
OF ACCUMULATED HISTORIC BAD DEBT AND CHARITY CARE LOSSES, PURCHASE OF AN
ELIGIBLE SECURED HOSPITAL BORROWER'S OUTSTANDING SPECIAL HOSPITAL
PROJECT BONDS, OR PURCHASE OF ANCILLARY FACILITIES FINANCED BY OTHER
DEBT OF THE ELIGIBLE SECURED HOSPITAL BORROWER OR A RELATED ENTITY.
S 3. The public health law is amended by adding a new section 2874-b
to read as follows:
S 2874-B. REFINANCING MORTGAGE LOANS AND MAKING SUPPLEMENTAL MORTGAGE
LOANS TO ELIGIBLE SECURED HOSPITAL BORROWERS. ELIGIBLE SECURED HOSPITAL
BORROWERS, AS DEFINED IN SUBDIVISION THREE-B OF SECTION TWENTY-EIGHT
HUNDRED SEVENTY-TWO OF THIS ARTICLE, SHALL BE AUTHORIZED TO REFINANCE
ANY MORTGAGE LOAN FINANCED WITH THE PROCEEDS OF SPECIAL HOSPITAL PROJECT
BONDS, WHICH LOANS ARE OUTSTANDING AS OF THE EFFECTIVE DATE OF THIS
SECTION AND TO FINANCE SUPPLEMENTAL MORTGAGE LOANS, AS DEFINED IN SUBDI-
VISION TWELVE-A OF SECTION THREE OF SECTION ONE OF CHAPTER THREE HUNDRED
NINETY-TWO OF THE LAWS OF NINETEEN HUNDRED SEVENTY-THREE. A MORTGAGE
LOAN TO AN ELIGIBLE SECURED HOSPITAL BORROWER, AS DEFINED IN SUBDIVISION
THREE-B OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-TWO OF THIS ARTICLE, OR
SUPPLEMENTAL MORTGAGE LOAN, AS DEFINED IN SUBDIVISION TWELVE-A OF
SECTION THREE OF SECTION ONE OF CHAPTER THREE HUNDRED NINETY-TWO OF THE
LAWS OF NINETEEN HUNDRED SEVENTY-THREE, MADE BY THE MEDICAL CARE FACILI-
TIES FINANCE AGENCY, AND ANY SUCCESSOR THERETO, MAY BE FINANCED OR REFI-
NANCED FOR A TERM NOT LONGER THAN THE TERM APPROVED BY THE COMMISSIONER
PURSUANT TO THIS SECTION OR IF THE BONDS ISSUED TO FINANCE SUCH MORTGAGE
LOAN OR SUPPLEMENTAL MORTGAGE LOAN ARE ISSUED AS TAX-EXEMPT BONDS, SUCH
SHORTER TERM AS IS NECESSARY TO ASSURE THAT THE INTEREST ON BONDS ISSUED
TO FINANCE OR REFINANCE THE MORTGAGE LOAN WILL BE EXCLUDABLE FROM THE
GROSS INCOME OF THE HOLDERS THEREOF FOR FEDERAL TAX PURPOSES, PROVIDED
THAT IN NO EVENT SHALL THE TERM OF SUCH REFINANCING LOAN EXCEED THIRTY
YEARS FROM THE DATE OF THE ISSUANCE OF THE REFUNDING BONDS AND SHALL
S. 5562--A 3
INCLUDE ALL COSTS ASSOCIATED WITH THE FINANCING OR REFINANCING OF
INDEBTEDNESS. ALL FINANCING OR REFINANCING APPLICATIONS BY ELIGIBLE
SECURED HOSPITAL BORROWERS SHALL BE APPROVED BY THE ELIGIBLE SECURED
HOSPITAL BORROWER'S BOARD AND THE COMMISSIONER. SUCH FINANCING OR REFI-
NANCING APPLICATIONS SHALL INCLUDE ANALYTICAL EVIDENCE SUFFICIENT TO
DEMONSTRATE THAT THE PROPOSED FINANCING OR REFINANCING IS BEING UNDER-
TAKEN FOR SOUND BUSINESS PURPOSES AND IN FURTHERANCE OF MAINTAINING OR
IMPROVING THE FINANCIAL CONDITION OF THE HOSPITAL. SUCH EVIDENCE MAY
INCLUDE BUT IS NOT LIMITED TO: PRESENT VALUE ANALYSIS OF DEBT SERVICE
PAYMENTS, INCLUDING WHERE APPLICABLE, PRESENT VALUE ANALYSIS THAT SEGRE-
GATES DEBT SERVICE PAYMENTS BETWEEN PRINCIPAL AND INTEREST COMPONENTS;
FINANCIAL PRO FORMAS THAT PROJECT THE BORROWER'S REVENUES, EXPENSES AND
FINANCIAL POSITION FOR A PERIOD DETERMINED BY THE COMMISSIONER; OR ANY
OTHER ANALYSIS OR INFORMATION THE COMMISSIONER DEEMS NECESSARY TO EVALU-
ATE THE APPLICATION AND TO ASSESS THE FINANCIAL ABILITY OF THE ELIGIBLE
SECURED HOSPITAL BORROWER TO REPAY THE MORTGAGE LOAN OR SUPPLEMENTAL
MORTGAGE LOAN ACCORDING TO ITS TERMS. AS A CONDITION OF SUCH PRIOR
APPROVAL, THE COMMISSIONER SHALL APPROVE THE PRINCIPAL AMOUNT OF THE
FINANCING OR REFINANCING LOAN IN THE AMOUNT PROVIDED IN SECTION TWELVE-A
OF SECTION THREE OF SECTION ONE OF CHAPTER THREE HUNDRED NINETY-TWO OF
THE LAWS OF NINETEEN HUNDRED SEVENTY-THREE, AS AMENDED, PROVIDED THAT
SUCH AMOUNT MAY BE REDUCED ONLY TO THE EXTENT THAT GRANT FUNDING IS MADE
AVAILABLE TO THE ELIGIBLE SECURED HOSPITAL BORROWERS THROUGH HEAL NY OR
OTHER PROGRAMS TO FINANCE EMERGENCY ROOM OR OTHER MAJOR CAPITAL PROJECTS
OR OTHER USES PERMITTED UNDER THIS SECTION, AS PROPOSED BY THE ELIGIBLE
HOSPITAL BORROWER, AND THE MAXIMUM TERM THEREOF, AND SHALL REQUIRE THE
ELIGIBLE SECURED HOSPITAL BORROWER TO GIVE THE DEPARTMENT A WRITTEN
UNDERTAKING, ACCEPTABLE TO THE COMMISSIONER, THAT IT WILL NOT CLAIM
ADDITIONAL REIMBURSEMENT UNDER THE MEDICAL ASSISTANCE PROGRAM AS ESTAB-
LISHED UNDER TITLE ELEVEN OF ARTICLE FIVE OF THE SOCIAL SERVICES LAW DUE
TO INTEREST PAYMENTS ON REFINANCING INDEBTEDNESS. ANY SUCH ADDITIONAL
INTEREST PAYMENTS ON REFINANCED INDEBTEDNESS COVERED BY SUCH WRITTEN
UNDERTAKING SHALL NOT BE CONSIDERED AS ALLOWABLE COSTS UNDER THE MEDICAL
ASSISTANCE PROGRAM AND SHALL NOT BE INCLUDED IN REIMBURSEMENT RATES OF
PAYMENT UNDER ARTICLE TWENTY-EIGHT OF THIS CHAPTER. THE FOREGOING SHALL
NOT PRECLUDE THE REIMBURSEMENT OF CAPITAL COSTS ATTRIBUTABLE TO A
PROJECT FINANCED BY MEANS OF A SUPPLEMENTAL MORTGAGE LOAN, AS DEFINED IN
SUBDIVISION TWELVE-A OF SECTION THREE OF SECTION ONE OF CHAPTER THREE
HUNDRED NINETY-TWO OF THE LAWS OF NINETEEN HUNDRED SEVENTY-THREE, WHICH
SHALL BE REIMBURSED IN A MANNER CONSISTENT WITH THE REIMBURSEMENT OF
OTHER CAPITAL COSTS.
S 4. Subdivision 3 of section 3 of section 1 of chapter 392 of the
laws of 1973, constituting the New York state medical care facilities
finance agency act, is amended by adding a new paragraph (d-1) to read
as follows:
(D-1) "SPECIAL HOSPITAL PROJECT BONDS" SHALL MEAN TAXABLE OR TAX-EX-
EMPT BONDS ISSUED PURSUANT TO SECTION SEVEN-C OF THIS ACT FOR THE
PURPOSE OF REFINANCING OUTSTANDING MORTGAGE LOANS OR FINANCING SUPPLE-
MENTAL MORTGAGE LOANS OF ELIGIBLE SECURED HOSPITAL BORROWERS, AS DEFINED
IN SUBDIVISION SIX-C OF THIS SECTION, PURSUANT TO THIS ACT.
S 5. Section 3 of section 1 of chapter 392 of the laws of 1973,
constituting the New York state medical care facilities finance agency
act, is amended by adding a new subdivision 6-c to read as follows:
6-C. "ELIGIBLE SECURED HOSPITAL BORROWER" SHALL MEAN A NOT-FOR-PROFIT
HOSPITAL CORPORATION ORGANIZED UNDER THE LAWS OF THIS STATE, WHICH HAS
FINANCED OR REFINANCED A PROJECT OR PROJECTS PURSUANT TO FORMER SECTION
S. 5562--A 4
SEVEN-A OF THIS ACT, AND FOR WHICH SPECIAL HOSPITAL PROJECT BONDS, AS
DEFINED IN FORMER PARAGRAPH (D) OF SUBDIVISION THREE OF THIS SECTION,
REMAIN OUTSTANDING AND SHALL ALSO INCLUDE, FOR THE PURPOSES OF MAKING
SUPPLEMENTAL MORTGAGE LOANS AS DEFINED IN SUBDIVISION TWELVE-A OF THIS
SECTION, BROOKDALE HOSPITAL MEDICAL CENTER AND JAMAICA HOSPITAL.
S 6. Subdivision 10 of section 3 of section 1 of chapter 392 of the
laws of 1973, constituting the New York state medical care facilities
finance agency act, as amended by chapter 803 of the laws of 1984, is
amended to read as follows:
10. "Hospital project" shall mean a specific work or improvement
INCLUDING HOSPITAL PROJECT COSTS FINANCED WITH THE PROCEEDS OF A SUPPLE-
MENTAL MORTGAGE LOAN or the refinancing of existing indebtedness which
constitutes a lien or encumbrance upon the real property or assets of
the eligible borrower, OR THE REFINANCING OF EXISTING INDEBTEDNESS OF AN
ELIGIBLE SECURED HOSPITAL BORROWER, AS DEFINED IN SUBDIVISION SIX-C OF
THIS SECTION, FOR WHICH SPECIAL HOSPITAL PROJECT BONDS, AS DEFINED IN
FORMER PARAGRAPH (D) OF SUBDIVISION THREE OF THIS SECTION, REMAIN
OUTSTANDING whether or not such refinancing is related to the
construction, acquisition or rehabilitation of a specified work or
improvement undertaken by a non-profit hospital corporation or a non-
profit medical corporation, constituting an eligible borrower in accord-
ance with the provisions of article twenty-eight-B of the public health
law. THE TERM "HOSPITAL PROJECT" AS USED IN THIS SUBDIVISION SHALL ALSO
MEAN A SEPARATE WORK OR IMPROVEMENT OWNED AND OPERATED BY AN ELIGIBLE
BORROWER TO PROVIDE SUCH SERVICES, FUNCTIONS, CAPABILITIES AND FACILI-
TIES AS MAY BE CONVENIENT OR DESIRABLE FOR THE OPERATION OF A HOSPITAL
OR OTHER SUCH FACILITY INCLUDING HOSPITAL PROJECTS, AS DEFINED IN SUBDI-
VISION FOUR OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-TWO OF THE PUBLIC
HEALTH LAW.
S 7. Subdivision 11 of section 3 of section 1 of chapter 392 of the
laws of 1973, constituting the New York state medical care facilities
finance agency act, is amended to read as follows:
11. "Hospital project cost" shall mean the sum total of all costs
incurred by a non-profit hospital corporation or a non-profit medical
corporation, constituting an eligible borrower undertaking a project as
approved by the commissioner in accordance with the provisions of arti-
cle twenty-eight-B of the public health law, OR, IN THE CASE OF ELIGIBLE
SECURED HOSPITAL BORROWERS, ALL COSTS INCURRED IN CONNECTION WITH THE
REFINANCING OF EXISTING INDEBTEDNESS OR AUTHORIZED TO BE FINANCED UNDER
A SUPPLEMENTAL MORTGAGE LOAN AS APPROVED BY THE COMMISSIONER PURSUANT TO
SECTION TWENTY-EIGHT HUNDRED SEVENTY-FOUR-B OF THE PUBLIC HEALTH LAW.
S 8. Subdivision 12 of section 3 of section 1 of chapter 392 of the
laws of 1973, constituting the New York state medical care facilities
finance agency act, as amended by chapter 156 of the laws of 1974, is
amended to read as follows:
12. "Mortgage loan" shall mean a loan made by the agency to an eligi-
ble borrower in an amount not to exceed the total hospital project cost
and secured by a first mortgage lien on the real property of which the
hospital project consists and the personal property attached to or used
in connection with the construction, acquisition, reconstruction, reha-
bilitation, improvement or operation of the hospital project. Such loan
may be further secured by such a lien upon other real property owned by
the eligible borrower. Notwithstanding the foregoing provisions of this
subdivision or any other provisions of this act to the contrary, any
personal property may be excluded from the lien of the mortgage provided
(a) the commissioner [of health] finds that such property is not essen-
S. 5562--A 5
tial for the rendition of required hospital services as such term is
defined in article twenty-eight of the public health law, and (b) the
agency consents to such exclusion.
The term "mortgage loan" shall also mean and include a loan made by
the agency to a limited-profit nursing home company in an amount not to
exceed ninety-five [percentum] PER CENTUM of the nursing home project
cost, or to a non-profit nursing home company in an amount not to exceed
the total nursing home project cost, and secured by a first mortgage
lien on the real property of which the nursing home project consists and
the personal property attached to or used in connection with the
construction, acquisition, reconstruction, rehabilitation, improvement
or operation of the nursing home project. Notwithstanding the foregoing
provisions of this subdivision or any other provision of this article to
the contrary, any personal property may be excluded from the lien of the
mortgage provided (a) the commissioner finds that such property is not
essential for the nursing home project as such term is defined in arti-
cle twenty-eight-A of the public health law, and (b) the agency consents
to such exclusion.
THE TERM "MORTGAGE LOAN" SHALL ALSO MEAN AND INCLUDE A LOAN MADE TO AN
ELIGIBLE SECURED HOSPITAL BORROWER, AS DEFINED IN SUBDIVISION SIX-C OF
THIS SECTION, TO REFINANCE OUTSTANDING INDEBTEDNESS PURSUANT TO THIS
ACT.
S 9. Section 3 of section 1 of chapter 392 of the laws of 1973,
constituting the New York state medical care facilities finance agency
act, is amended by adding a new subdivision 12-a to read as follows:
12-A. "SUPPLEMENTAL MORTGAGE LOAN" SHALL MEAN A MORTGAGE LOAN MADE TO
AN ELIGIBLE SECURED HOSPITAL BORROWER, AS DEFINED IN SUBDIVISION SIX-C
OF THIS SECTION, AFTER THE THIRTY-FIRST DAY OF MARCH, TWO THOUSAND NINE
IN AN AMOUNT OF EIGHTY MILLION DOLLARS FOR BROOKDALE HOSPITAL MEDICAL
CENTER AND IN AN AMOUNT OF EIGHTY MILLION DOLLARS FOR JAMAICA HOSPITAL
FOR THE PAYMENT OF HOSPITAL PROJECT COSTS APPROVED BY THE COMMISSIONER
PURSUANT TO SECTION TWENTY-EIGHT HUNDRED SEVENTY-FOUR-B OF THE PUBLIC
HEALTH LAW.
S 10. Section 5 of section 1 of chapter 392 of the laws of 1973,
constituting the New York state medical care facilities finance agency
act, is amended by adding a new subdivision 10-d to read as follows:
10-D. TO MAKE MORTGAGE LOANS, SUPPLEMENTAL MORTGAGE LOANS AND PROJECT
LOANS TO NON-PROFIT HOSPITAL CORPORATIONS AND NON-PROFIT MEDICAL CORPO-
RATIONS CONSTITUTING ELIGIBLE SECURED HOSPITAL BORROWERS, AS DEFINED IN
SUBDIVISION SIX-C OF SECTION THREE OF THIS ACT, AND TO UNDERTAKE COMMIT-
MENTS TO MAKE ANY SUCH MORTGAGE LOANS, SUPPLEMENTAL MORTGAGE LOANS AND
PROJECT LOANS;
S 11. Section 1 of chapter 392 of the laws of 1973, constituting the
New York state medical care facilities finance agency act, is amended by
adding a new section 7-c to read as follows:
S 7-C. SECURED HOSPITAL PROJECTS RESERVE FUNDS AND APPROPRIATIONS. 1.
SPECIAL HOSPITAL PROJECT BONDS, AS DEFINED IN PARAGRAPH (D-1) OF SUBDI-
VISION THREE OF SECTION THREE OF THIS ACT, ISSUED TO REFINANCE THE
PROJECTS OF ELIGIBLE SECURED HOSPITAL BORROWERS, AS DEFINED IN SUBDIVI-
SION SIX-C OF SECTION THREE OF THIS ACT, SHALL BE SECURED BY (A) A MORT-
GAGE LIEN, (B) FUNDS AND ACCOUNTS ESTABLISHED UNDER THE BOND RESOLUTION,
(C) THE SECURED HOSPITAL SPECIAL DEBT SERVICE RESERVE FUND OR FUNDS, (D)
THE SECURED HOSPITAL CAPITAL RESERVE FUND OR FUNDS, AND (E) SUCH SERVICE
CONTRACT OR CONTRACTS ENTERED INTO IN ACCORDANCE WITH THE PROVISIONS OF
SUBDIVISION FOUR OF THIS SECTION.
S. 5562--A 6
2. (A) THE AGENCY SHALL ESTABLISH A SECURED HOSPITAL SPECIAL DEBT
SERVICE RESERVE FUND OR FUNDS AND PAY INTO SUCH FUND OR FUNDS MONEYS
FROM THE SECURED HOSPITAL FUND UP TO AN AMOUNT NOT TO EXCEED AN AMOUNT
NECESSARY TO ENSURE THE REPAYMENT OF PRINCIPAL AND INTEREST DUE ON ANY
OUTSTANDING INDEBTEDNESS ON SPECIAL HOSPITAL PROJECTS BONDS, AS DEFINED
IN PARAGRAPH (D-1) OF SUBDIVISION THREE OF SECTION THREE OF THIS ACT.
FUNDS DEPOSITED IN SUCH SECURED HOSPITAL SPECIAL DEBT SERVICE RESERVE
FUND OR FUNDS SHALL BE USED IN THE EVENT THAT AN ELIGIBLE SECURED HOSPI-
TAL BORROWER, AS DEFINED IN SUBDIVISION SIX-C OF SECTION THREE OF THIS
ACT, FAILS TO MAKE PAYMENTS IN AN AMOUNT SUFFICIENT TO PAY THE REQUIRED
DEBT SERVICE PAYMENTS ON SPECIAL HOSPITAL PROJECT BONDS, AS DEFINED IN
PARAGRAPH (D-1) OF SUBDIVISION THREE OF SECTION THREE OF THIS ACT.
(B) THE AGENCY SHALL, FOR THE PURPOSES OF PARAGRAPH (A) OF THIS SUBDI-
VISION AND FOR THE SUPPORT OF ELIGIBLE SECURED HOSPITAL BORROWERS, PAY
INTO THE SECURED HOSPITAL FUND CURRENTLY ESTABLISHED AND MAINTAINED BY
THE AGENCY: (I) ALL FUNDS REQUIRED TO BE PAID IN ACCORDANCE WITH THE
PROVISIONS OF ARTICLE TWENTY-EIGHT OF THE PUBLIC HEALTH LAW AND REGU-
LATIONS PROMULGATED IN SUCH ARTICLE; (II) ANY MORTGAGE INSURANCE PREMIUM
ASSESSED IN AN AMOUNT FIXED AT THE DISCRETION OF THE AGENCY, UPON THE
ISSUANCE OF SPECIAL HOSPITAL PROJECT BONDS, AS DEFINED IN PARAGRAPH
(D-1) OF SUBDIVISION THREE OF SECTION THREE OF THIS ACT; (III) ANY
INCOME OR INTEREST EARNED ON OTHER RESERVE FUNDS WHICH THE AGENCY ELECTS
TO TRANSFER TO THE SECURED HOSPITAL FUND; AND (IV) ANY OTHER MONEYS
WHICH MAY BE MADE AVAILABLE TO THE AGENCY FROM ANY OTHER SOURCE OR
SOURCES. MONEYS PAID INTO THE SECURED HOSPITAL FUND SHALL, IN THE
DISCRETION OF THE AGENCY, BUT SUBJECT TO AGREEMENTS WITH BONDHOLDERS, BE
USED TO FUND THE SPECIAL DEBT SERVICE RESERVE FUND OR FUNDS AT A LEVEL
OR LEVELS WHICH MINIMIZE THE NEED FOR USE OF THE CAPITAL RESERVE FUND OR
FUNDS IN THE EVENT OF THE FAILURE OF AN ELIGIBLE SECURED HOSPITAL
BORROWER, AS DEFINED IN SUBDIVISION SIX-C OF SECTION THREE OF THIS ACT,
TO MAKE THE REQUIRED DEBT SERVICE PAYMENTS ON SPECIAL HOSPITAL PROJECT
BONDS, AS DEFINED IN PARAGRAPH (D-1) OF SUBDIVISION THREE OF SECTION
THREE OF THIS ACT.
(C) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (A) AND (B) OF THIS
SUBDIVISION, THE STATE HEREBY EXPRESSLY RESERVES THE RIGHT TO MODIFY OR
REPEAL THE PROVISIONS OF ARTICLE TWENTY-EIGHT OF THE PUBLIC HEALTH LAW.
3. THE AGENCY SHALL ESTABLISH A SECURED HOSPITAL CAPITAL RESERVE FUND
OR FUNDS WHICH SHALL BE FUNDED AT AN AMOUNT OR AMOUNTS EQUAL TO THE
LESSER OF EITHER: (A) THE MAXIMUM AMOUNT OF PRINCIPAL, SINKING FUND
PAYMENTS AND INTEREST DUE IN ANY SUCCEEDING YEAR ON OUTSTANDING SPECIAL
HOSPITAL PROJECT BONDS, AS DEFINED IN PARAGRAPH (D-1) OF SUBDIVISION
THREE OF SECTION THREE OF THIS ACT, OR (B) THE MAXIMUM AMOUNT TO ENSURE
THAT SUCH BONDS WILL NOT BE CONSIDERED ARBITRAGE BONDS UNDER THE INTER-
NAL REVENUE CODE OF 1986, AS AMENDED. THE CAPITAL RESERVE FUND SHALL BE
FUNDED BY THE SALE OF SPECIAL HOSPITAL PROJECT BONDS, AS DEFINED IN
PARAGRAPH (D-1) OF SUBDIVISION THREE OF SECTION THREE OF THIS ACT, OR
FROM SUCH OTHER FUNDS AS MAY BE LEGALLY AVAILABLE FOR SUCH PURPOSE, AS
PROVIDED FOR IN THE BOND RESOLUTION OR RESOLUTIONS AUTHORIZING THE ISSU-
ANCE OF SUCH BONDS.
4. (A) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL OR SPECIAL LAW TO
THE CONTRARY, AND SUBJECT TO THE MAKING OF ANNUAL APPROPRIATIONS THERE-
FOR BY THE LEGISLATURE IN ORDER TO REFINANCE MORTGAGE LOANS OR MAKE
SUPPLEMENTAL MORTGAGE LOANS TO ELIGIBLE SECURED HOSPITAL BORROWERS, AS
DEFINED IN SUBDIVISION SIX-C OF SECTION THREE OF THIS ACT, THE DIRECTOR
OF THE BUDGET IS AUTHORIZED IN ANY STATE FISCAL YEAR TO ENTER INTO ONE
OR MORE SERVICE CONTRACTS, WHICH SERVICE CONTRACTS SHALL NOT EXCEED THE
S. 5562--A 7
TERM OF THE SPECIAL HOSPITAL PROJECT BONDS, ISSUED FOR THE BENEFIT OF
THE ELIGIBLE SECURED HOSPITAL BORROWER, UPON SUCH TERMS AS THE DIRECTOR
OF THE BUDGET AND THE AGENCY AGREE, SO AS TO PROVIDE ANNUALLY TO THE
AGENCY IN THE AGGREGATE SUCH SUM, IF ANY, AS NECESSARY TO MEET THE DEBT
SERVICE PAYMENTS DUE ON OUTSTANDING SPECIAL HOSPITAL PROJECT BONDS, AS
DEFINED IN PARAGRAPH (D-1) OF SUBDIVISION THREE OF SECTION THREE OF THIS
ACT, IN ANY YEAR IF THE FUNDS PROVIDED FOR IN THIS SECTION ARE INADE-
QUATE.
(B) ANY SERVICE CONTRACT ENTERED INTO PURSUANT TO PARAGRAPH (A) OF
THIS SUBDIVISION SHALL PROVIDE (I) THAT THE OBLIGATION OF THE DIRECTOR
OF THE BUDGET OR OF THE STATE TO FUND OR TO PAY THE AMOUNTS THEREIN
PROVIDED FOR SHALL NOT CONSTITUTE A DEBT OF THE STATE WITHIN THE MEANING
OF ANY CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED EXECU-
TORY ONLY TO THE EXTENT OF MONEYS AVAILABLE AND THAT NO LIABILITY SHALL
BE INCURRED BY THE STATE BEYOND THE MONEYS AVAILABLE FOR SUCH PURPOSE,
AND THAT SUCH OBLIGATION IS SUBJECT TO ANNUAL APPROPRIATION BY THE
LEGISLATURE; AND (II) THAT THE AMOUNTS PAID TO THE AGENCY PURSUANT TO
ANY SUCH CONTRACT MAY BE USED BY IT SOLELY TO PAY OR TO ASSIST IN
FINANCING COSTS OF MORTGAGE LOANS TO ELIGIBLE SECURED HOSPITAL BORROW-
ERS, AS DEFINED IN SUBDIVISION SIX-C OF SECTION THREE OF THIS ACT.
5. THE AGENCY SHALL NOT ISSUE SPECIAL HOSPITAL PROJECT BONDS, AS
DEFINED IN PARAGRAPH (D-1) OF SUBDIVISION THREE OF SECTION THREE OF THIS
ACT, EXCEPT TO REFINANCE MORTGAGE LOANS OR FINANCE SUPPLEMENTAL MORTGAGE
LOANS FOR ELIGIBLE SECURED HOSPITAL BORROWERS AS PROVIDED IN SECTION
THREE OF THIS ACT.
S 12. Notwithstanding any other provision of this act: (i) reimburse-
ment for interest on any indebtedness hereunder to be paid by the
medical assistance program established under title 11 of article 5 of
the social services law shall be subject to the availability of federal
financial participation; and (ii) the refinancing of a mortgage loan
pursuant to this act shall not alter, affect or change the component of
medical assistance reimbursement applicable to the depreciation of any
asset or assets.
S 13. The expiration and repeal of sections one through ten of this
act shall not affect or impair any bonds or notes issued, or any loan
made to any borrower, pursuant to the provisions of this act prior to
the expiration of these sections.
S 14. This act shall take effect immediately; provided that sections
one through ten of this act shall expire and be deemed repealed March
31, 2012; provided further, that the secured hospital fund established
by paragraph b of subdivision 2 of section 7-b of the New York state
medical care facilities finance agency act shall not be affected by such
repeal and shall continue in existence.
