1. The Laws of New York
  2. Unconsolidated Laws
  3. Medical Care Facilities Finance Agency 392/73


Section 3 Definitions

Medical Care Facilities Finance Agency 392/73 (MCF)

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.