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This entry was published on 2014-09-22
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SECTION 6
Bonds and notes of the agency
Medical Care Facilities Finance Agency 392/73 (MCF) CHAPTER 392
§ 6. Bonds and notes of the agency. 1. (a) The agency shall have power
and is hereby authorized from time to time to issue its negotiable bonds
and notes in conformity with applicable provisions of the uniform
commercial code in such principal amount as, in the opinion of the
agency, shall be necessary to provide sufficient funds for achieving its
corporate purposes, including the making of mortgage loans, project
loans, or equipment loans, or loans to owners of Hmo projects or Hmo
investment loans and the construction, acquisition, reconstruction,
rehabilitation or improvement of health facilities, the payment of
interest on bonds and notes of the agency, establishment of reserves to
secure such bonds and notes, and all other expenditures of the agency
incident to and necessary or convenient to carry out its corporate
purposes and powers;

(b) The agency shall have power, from time to time, to issue renewal
notes, to issue bonds to pay notes and whenever it deem refunding
expedient, to refund any bonds by the issuance of new bonds, whether the
bonds to be refunded have or have not matured, and to issue bonds partly
to refund bonds then outstanding and partly for any other purpose. The
refunding bonds shall be sold and the proceeds applied to the purchase,
redemption or payment of the bonds to be refunded;

(c) Except as may otherwise be expressly provided by the agency, every
issue if its notes or bonds shall be general obligations of the agency
payable out of any revenues or monies of the agency, subject only to any
agreements with the holders of particular notes or bonds pledging any
particular receipts or revenues.

2. The notes and bonds shall be authorized by resolution of the
members, shall bear such date or dates, and shall mature at such time or
times, in the case of any such note, or any renewals thereof, issued for
achieving its corporate purposes other than the making of mortgage
loans, not exceeding five years, from the date of issue of such original
note, and in the case of any such note, or any renewals thereof, issued
for the purpose of making mortgage loans, not exceeding seven years,
from the date of issue of such original note, and in the case of any
such bond not exceeding fifty years from the date of issue, as such
resolution or resolutions may provide. The notes and bonds shall bear
interest at such rate or rates, be in such denominations, be in such
form, either coupon or registered, carry such registration privileges,
be executed in such manner, be payable in such medium of payment, at
such place or places and be subject to such terms of redemption as such
resolution or resolutions may provide. The notes and bonds of the agency
may be sold by the agency, at public or private sale, at such price or
prices as the agency shall determine. No notes or bonds of the agency
may be sold by the agency at private sale, however, unless such sale and
the terms thereof have been approved in writing by (a) the comptroller,
where such sale is not to the comptroller or, (b) the director of the
budget, where such sale is to the comptroller.

3. Any resolution or resolutions authorizing any notes or bonds or any
issue thereof may contain provisions, which shall be a part of the
contract with the holders thereof, as to:

(a) pledging all or any part of the fees and charges made or received
by the agency, and all or any part of the monies received in payment of
mortgage or project loans and interest thereon, and other monies
received or to be received, to secure the payment of the hospital and
nursing home project bonds or hospital nursing home project notes or of
any issue thereof, subject to such agreement with bondholders or
noteholders as may then exist;

(b) pledging all or any part of the assets of the agency, including
mortgages and obligations securing the same, to secure the payment of
the hospital and nursing home project bonds or hospital and nursing home
project notes, subject to such agreements with bondholders or
noteholders as may then exist, provided that no resolution or
resolutions of the agency authorizing hospital and nursing home project
bonds and hospital and nursing home project notes shall (i) pledge all
or any portion of the rentals paid to the agency with respect to health
facilities financed with the proceeds of health facilities bonds or
health facilities notes, or (ii) pledge any other assets, monies or
accounts pledged to the agency as security for the payment of rentals
with respect to health facilities financed with the proceeds of health
facilities bonds or health facilities notes;

(c) the use and disposition of the gross income from mortgages owned
by the agency and payment of principal of mortgages owned by the agency;

(d) pledging all or any part of the rentals paid to the agency with
respect to health facilities financed with the proceeds of health
facilities bonds or health facilities notes or any other assets, monies
or accounts pledged or assigned to the agency as security for the
payment of such rentals, all subject to any agreement with noteholders
or bondholders as may then exist and provided that no resolution or
resolutions authorizing health facilities bonds and health facilities
notes shall (i) pledge all or any part of the fees and charges made or
received by the agency pursuant to subdivision twelve of section five in
connection with the making of mortgage loans or commitments therefor, or
all or any part of the monies received in payment of such mortgage loans
and interest thereon, or (ii) pledge all or any part of the mortgages of
the agency or obligations securing the same, or (iii) provide as to the
use and disposition of the gross income from mortgages owned by the
agency or as to the payment of principal of mortgages owned by the
agency;

(e) the setting aside of reserves or sinking funds and the regulation
and disposition thereof;

(f) limitations on the purpose to which the proceeds of sale of notes
or bonds may be applied and pledging such proceeds to secure the payment
of the notes or bonds or of any issue thereof;

(g) limitations on the issuance of additional notes or bonds; the
terms upon which additional notes or bonds may be issued and secured;
the refunding of outstanding or other notes or bonds;

(h) the procedure, if any, by which the terms of any contract with
noteholders or bondholders may be amended or abrogated, the amount of
notes or bonds the holders of which must consent thereto, and the manner
in which such consent may be given;

(i) limitations on the amount of monies to be expended by the agency
for operating, administrative or other expenses of the agency;

(j) vesting in a trustee or trustees such property, rights, powers and
duties in trust as the agency may determine, which may include any or
all of the rights, powers and duties of the trustee appointed by the
bondholders pursuant to this act, and limiting or abrogating the right
of the bondholders to appoint a trustee under this act or limiting the
right, powers and duties of such trustee;

(k) any other matters, of like or different character, which in any
way affect the security or protection of the notes or bonds.

(l) pledging all or any part of the fees and charges made or received
by the agency, and all or any part of the monies received pursuant to a
lease, sublease, loan or other financing agreements entered into
pursuant to section nine-a of this act and interest thereon, and other
monies received or to be received, to secure the payment of mental
health services facilities improvement notes or bonds or of any issue
thereof, subject to such agreements with bondholders or noteholders as
may then exist;

(m) pledging all or any part of the assets of the agency, including
lease, sublease, loan or other financing agreements entered into
pursuant to section nine-a of this act, and obligations securing the
same, to secure the payment of mental health services improvement
facilities notes or bonds or of any issue of notes or bonds, subject to
such agreements with noteholders or bondholders as may then exist;

(n) the use and disposition of the gross income from lease, sublease,
loan or other financing agreements entered into pursuant to section
nine-a of this act and payment of principal of lease, sublease, loan or
other financing agreements entered into pursuant to section nine-a of
this act;

(o) pledging or depositing all or any part of the assets of the
agency, including moneys paid to the agency by the comptroller and the
commissioner of taxation and finance of the state of New York pursuant
to the provisions of section ninety-seven-f of the state finance law, to
pay or provide for the refunding of mental hygiene improvement bonds
issued pursuant to section forty-seven-b of the private housing finance
law.

4. It is the intention hereof that any pledge made by the agency shall
be valid and binding from the time when the pledge is made; that the
monies or property so pledged and thereafter received by the agency
shall immediately be subject to the lien of such pledge without any
physical delivery thereof or further act; and that the lien of any such
pledge shall be valid and binding as against all parties having claims
of any kind in tort, contract or otherwise against the agency,
irrespective of whether such parties have notice thereof. Neither the
resolution nor any other instrument by which a pledge is created need be
recorded.

5. Neither the members of the agency nor any person executing the
notes or bonds shall be liable personally on the notes or bonds or be
subject to any personal liability or accountability by reason of the
issuance thereof.

6. The agency, subject to such agreements with noteholders or
bondholders as may then exist, shall have power out of any funds
available therefor to purchase notes or bonds of the agency, which shall
thereupon be cancelled, at a price not exceeding (a) if the notes or
bonds are then redeemable, the redemption price then applicable plus
accrued interest to the next interest payment date thereon, or (b) if
the notes or bonds are not then redeemable, the redemption price
applicable on the first date after such purchase upon which the notes or
bonds become subject to redemption plus accrued interest to such date.

7. The state shall not be liable on notes or bonds of the agency and
such notes and bonds shall not be a debt of the state, and such notes
and bonds shall contain on the face thereof a statement to such effect.