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


Section 6 Bonds and notes of the agency

Medical Care Facilities Finance Agency 392/73 (MCF)

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.