Legislation

Search OpenLegislation Statutes
This entry was published on 2017-01-13
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 3
Definitions
Medical Care Facilities Finance Agency 392/73 (MCF) CHAPTER 392
§ 3. Definitions. As used in this article, unless a different meaning
clearly appears from the context:

1. "Agency" shall mean the corporate governmental agency created by
section four of this act.

2. "Amortized value" means, when used with respect to securities
purchased at a premium above or a discount below par, the value as of
any given date obtained by dividing the total amount of the premium or
discount at which such securities were purchased by the number of days
remaining to maturity on such securities at the time of such purchase
and by multiplying the amount so calculated by the number of days having
passed since the date of such purchase; and (a) in the case of
securities purchased at a premium, by deducting the product thus
obtained from the purchase price, and (b) in the case of securities
purchased at a discount, by adding the product thus obtained to the
purchase price.

3. "Bonds" and "notes" shall mean bonds and notes, respectively,
issued by the agency pursuant to this act.

(a) "Hospital and nursing home project bonds" and "hospital and
nursing home project notes" shall mean bonds and notes, respectively,
issued by the agency for the purpose of making loans to hospital
corporations and non-profit medical corporations constituting eligible
borrowers or nursing home companies.

(b) "Health facilities bonds" and "health facilities notes" shall mean
bonds and notes, respectively, issued by the agency for the purpose of
financing the construction, acquisition, reconstruction, rehabilitation
or improvement of health facilities for municipalities pursuant to this
act and the health and mental hygiene facilities improvement act.

(c) "Municipal hospital and municipal nursing home project bonds" and
"municipal hospital and municipal nursing home project notes" shall mean
bonds and notes, respectively, issued by the agency for the purpose of
making mortgage loans to municipal hospitals or municipal nursing homes.

* (d) "Special hospital project bonds" shall mean bonds issued
pursuant to section seven-a of this act for the purpose of making
mortgage loans to eligible secured hospital borrowers.

* NB Expired December 31, 2015

4. "Commissioner" shall mean the New York state commissioner of
health.

5. "Department" shall mean the New York state department of health.

6. "Eligible borrower" shall mean a non-profit hospital corporation
organized under the laws of this state, or a non-profit medical
corporation organized under and governed by article forty-four of the
public health law, which has entered into a regulatory agreement in
accordance with the provisions of section twenty-eight hundred
seventy-three of the public health law.

6-a. "Federally-aided mortgage loan" means a loan secured by a
mortgage lien on the real property of a project or on a leasehold on
such real property, provided that the term of such leasehold is not less
than twenty-five percent longer than the term of the mortgage, and the
personal property attached to or used in connection with the
construction, acquisition, reconstruction, refinancing, rehabilitation,
improvement, management or operation of the project, made by the agency
to a municipal hospital, municipal nursing home, not-for-profit hospital
corporation, not-for-profit corporation providing a residential health
care facility or not-for-profit medical corporation organized pursuant
to article 44 of the public health law, which loan is insured by the
federal government. This subdivision does not limit the agency from
consenting to the modification of any instrument executed in connection
with a federally-aided mortgage loan, provided that the modification
does not materially reduce the value of the security for the
federally-aided mortgage loan. A leasehold under this subdivision shall
conform to standards adopted by the agency, with the approval of the
division of the budget, that adequately protect the interests of the
agency, the state, and creditors.

* (6-b) "Eligible secured hospital borrower" shall mean a
not-for-profit hospital corporation organized under the laws of this
state, which has been designated by the commissioner of health and the
New York state public health council as a needed facility eligible to
receive distributions from the reimbursement pools established pursuant
to paragraph (c) of subdivision nine of section twenty-eight hundred
seven-a of the public health law, or any successor pool or pools
established to serve a substantially similar purpose to such pools.

* NB Expired December 31, 2015

7. "Facilities development corporation" shall mean the corporation
created pursuant to the facilities development corporation act.

8. "Health facility" shall mean a building, a unit within a building,
a laboratory, a classroom, a housing unit, a dining hall, an activities
center, a library, 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, unit, structure or improvement, a
walkway, a roadway or a parking lot, and improvements and connections,
for water, sewer, gas, electrical, telephone, heating, air conditioning
and other utility services, or a combination of any of the foregoing,
whether for patient care and treatment of staff, staff family or service
use, located at or related to or constituting a hospital, as defined in
section 2801 of the public health law.

9. "Health facilities improvement program" shall mean a program
undertaken by the agency and, if the agency elects, with the facilities
development corporation acting as its agent, for the purpose of
constructing, acquiring, reconstructing, rehabilitating or improving
health facilities or causing such facilities to be constructed,
acquired, reconstructed, rehabilitated or improved pursuant to the
facilities development improvement act, if applicable, and this act.

* 10. "Hospital project" shall mean a specific work or improvement or
the refinancing of existing indebtedness which constitutes a lien or
encumbrance upon the real property or assets of the eligible borrower or
eligible secured hospital borrower 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 or eligible secured hospital borrower in accordance
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
facilities as may be convenient or desirable for the operation of
hospital or other such facility.

* NB Expired December 31, 2015

10. "Hospital project" shall mean a specific work or improvement or
the refinancing of existing indebtedness which constitutes a lien or
encumbrance upon the real property or assets of the eligible borrower
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 accordance with the
provisions of article twenty-eight-B of the public health law.

* 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 or eligible secured
hospital borrower undertaking a project as approved by the commissioner
in accordance with the provisions of article twenty-eight-B of the
public health law. In the case of eligible secured hospital borrowers,
hospital project costs shall include all costs relating to the
refinancing of existing indebtedness attributable to unmet bad debt and
charity losses.

* NB Expired December 31, 2015

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
article twenty-eight-B of the public health law.

* 12. "Mortgage loan" shall mean a loan made by the agency to an
eligible borrower or eligible secured hospital borrower in an amount not
to exceed the total hospital project costs and secured by a first
mortgage lien on the real property of which the hospital project
consists or on a leasehold on such real property, provided that the term
of such leasehold is not less than twenty-five percent longer than the
term of the mortgage, and the personal property attached to or used in
connection with the construction, acquisition, reconstruction,
rehabilitation, improvement or operation of the hospital project. Such
loan may be further secured by such a lien upon other real property
owned by or on a leasehold on real property of the eligible borrower or
eligible secured hospital 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 essential 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 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 or on a
leasehold on such real property provided that the term of such leasehold
is not less than twenty-five percent longer than the term of the
mortgage, 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 article twenty-eight-A of the public health law, and (b) the
agency consents to such exclusion. A leasehold under this subdivision
shall conform to standards adopted by the agency, with the approval of
the division of the budget, that adequately protect the interests of the
agency, the state and creditors.

* NB Expired December 31, 2015

12. "Mortgage loan" shall mean a loan made by the agency to an
eligible 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,
rehabilitation, 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
essential 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 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
article twenty-eight-A of the public health law, and (b) the agency
consents to such exclusion.

13. "Nursing home company" shall mean a nursing home company as
defined in article twenty-eight-A of the public health law.

(a) A "limited-profit nursing home company" shall mean a company
incorporated pursuant to the provisions of article twenty-eight-A of the
public health law and business corporation law.

(b) A "non-profit nursing home company" shall mean a company
incorporated pursuant to the provisions of article twenty-eight-A of the
public health law and the not-for-profit corporation law.

14. "Nursing home project" shall mean a specific work or improvement
undertaken by a nursing home company in accordance with the provisions
of article twenty-eight-A of the public health law.

15. "Nursing home project cost" shall mean the sum total of all costs
incurred by a nursing home company undertaking a project as approved by
the commissioner in accordance with the provisions of article
twenty-eight-A of the public health law.

16. "Municipality" for the purposes of the health facilities
improvement program and federally-aided mortgage loans to municipal
hospitals and municipal nursing homes means a county, city or town
constituting a social services district as defined in sections two,
sixty-one, seventy-five and seventy-five-a of the social services law,
or any two or more of the foregoing which are acting jointly to provide
a health facility or health facilities, municipal hospitals or municipal
nursing homes.

17. "Bond reserve insurance fund" shall mean the fund created by
section nineteen of this act.

* 18. "Equipment loan" shall mean a loan made by the agency to a
non-profit hospital corporation, a county hospital, a municipal
hospital, a New York state department of health facility, a state
university of New York health care facility or a non-profit corporation
providing a residential health care facility, for the purpose of
financing or refinancing the acquisition through purchase or lease of
equipment, including construction and rehabilitation related to the
installation of such equipment, and shall also include intellectual
property or other intangible property, including information technology
and software, that is eligible for tax-exempt financing under the United
States internal revenue code.

The term "equipment loan" shall also mean the financing of equipment
acquisitions by the purchase, lease or sublease of equipment by the
agency and the lease or sublease of such equipment to a non-profit
hospital corporation, a county hospital, a municipal hospital, a
hospital under the jurisdiction of the state university of New York, or
a non-profit corporation providing a residential health care facility
for the purpose of providing for the acquisition of such equipment and
for the construction and rehabilitation related to the installation
thereof and shall also include intellectual property or other intangible
property, including information technology and software, that is
eligible for tax-exempt financing under the United States internal
revenue code.

* NB There are 3 sub 18's

* 18. "Municipal hospital" or "municipal nursing home" shall mean a
hospital or nursing home of, and located in, a municipality.

* There are 3 sub 18's

* 18. "Hmo investment loan" shall mean a loan made by the agency to a
lending institution for the purpose of financing a loan by the lending
institution to the owner of an Hmo project. Such investment loan shall
be evidenced by a note or other evidence of indebtedness constituting a
general obligation of the lending institution and shall be secured to
the satisfaction of the agency. Such investment loan shall not exceed
one hundred percent of the cost of development of the Hmo project
approved by the agency.

* There are 3 sub 18's

19. "Lending institution" shall mean any bank, trust company, national
bank, state or federal mutual savings bank, state or federal savings and
loan association, or state or federal credit union, insurance company,
pension fund or retirement system of any corporation or association, or
any other entity which is owned or controlled by any one or more of the
above, provided the same is supervised by or responsible to any agency
of the federal government, the state or any department thereof.

20. "Hmo project" shall mean a specific work or improvement, whether
or not to effectuate all or any part of a plan, and includes lands,
buildings, improvements, fixtures and personal property constructed,
acquired or reconstructed, refinanced, rehabilitated, improved, managed,
owned or operated by a non-profit corporation for the purpose of
conducting the activities of a health maintenance organization. "Hmo
project" shall also mean the refinancing of existing indebtedness which
constitutes a lien or other encumbrance upon the real property or assets
of the non-profit corporation conducting the activities of a health
maintenance organization, whether or not such refinancing is related to
the construction, acquisition or rehabilitation of a specified work or
improvement. "Hmo project" shall also mean the financing or refinancing
through purchase or lease of equipment, including construction and
rehabilitation related to the installation of such equipment, whether or
not the financing or refinancing of said equipment is related to the
construction, acquisition or rehabilitation of a specified work or im-
provement. An Hmo project may be undertaken by:

(a) A health maintenance organization holding a valid certificate of
authority issued pursuant to article forty-four of the public health
law;

(b) A health maintenance organization operating under the provisions
of article IX-C of the insurance law; and

(c) By a non-profit corporation which operates a facility which
possesses a valid operating certificate under article twenty-eight of
the public health law and which has entered into a contract with a
health maintenance organization operating under the provisions of
article forty-four of the public health law or article IX-C of the
insurance law to provide health care services to persons enrolled in the
health maintenance organization, provided the commissioner has
determined that the facility will be used principally as the medical
group facility component of a group model health maintenance
organization and the commissioner has approved the construction of the
facility pursuant to section twenty-eight hundred two of the public
health law.

21. "Non-profit housing and health facility" shall mean a specific
work or improvement, whether or not to effectuate all or any part of a
plan acquired, owned, constructed, rehabilitated, improved, managed or
operated by a non-profit company and consisting of five or more
residential units, and at the election of the agency such additional
health or health related facilities as the agency may approve; and
including the lands, buildings and improvements acquired, owned,
constructed, managed or operated to provide such units, and health or
health related facilities and such incidental and appurtenant
commercial, recreation, cultural, communal, dining, parking, day care or
residential child care, senior citizen and community facilities as may
be approved by the agency. As used in connection with the term
non-profit housing and health facility, the term residential unit shall
refer to units suitable for residential use or accommodations included
within the term housing as defined in subdivision nine of section twelve
of the private housing finance law, and the term non-profit company
shall mean a company incorporated pursuant to the provisions of the
not-for-profit corporation law for the purpose of providing housing for
staff members, employees, students or users of a hospital, health, or
health related facility and their immediate families or for the purpose
of providing a hospital, health, or health related facility.

23. "Loan" when made to either an eligible borrower or nursing home
company, shall mean either a mortgage loan or a project loan, each as
defined in this act.

24. "Project loan" shall mean a loan made by the agency to an eligible
borrower or nursing home company in an amount not to exceed the total
hospital project cost or total nursing home project cost, respectively.
Such loans shall be secured in a manner acceptable to the agency and
such security may consist of a mortgage on real property and
improvements or other security acceptable to the agency; provided
however, that a project loan shall not include any loan made by the
agency to an eligible borrower or nursing home company that constitutes
a mortgage loan as defined in this act. Project loans shall only be made
in accordance with guidelines adopted by the board of the dormitory
authority, as successor to the agency.