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SECTION 47-D
Health facilities bonds and notes
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 3
§ 47-d. Health facilities bonds and notes. 1. Definitions. For the
purposes of section forty-seven and this section:

a. "Municipality" 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.

b. "Health facility" means 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 of, and located
in, a municipality.

c. "Health facilities bonds" and "health facilities notes" shall mean
bonds and notes, respectively, issued by the agency pursuant to
subdivision two of this section.

d. "Health facilities improvement program" shall mean a program
undertaken by the agency and the health and mental hygiene facilities
improvement corporation 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 health and mental hygiene
facilities improvement act and this article.

2. Additional powers of the agency. In accordance with any agreement
entered into pursuant to this article and the health and mental hygiene
facilities improvement act: a. The agency shall have powers: (i) to
lease or purchase one or more existing health facilities from a
municipality and cause such facility or facilities to be reconstructed,
rehabilitated or improved by the health and mental hygiene facilities
improvement corporation, created by the health and mental hygiene
facilities improvement act, as its agent or, on any real property leased
or purchased from a municipality to cause one or more health facilities
to be constructed by the health and mental hygiene facilities
improvement corporation as its agent; (ii) to lease or purchase from any
person, firm or corporation real property for the purpose of causing
health facilities to be constructed, reconstructed, rehabilitated or
improved by the health and mental hygiene facilities improvement
corporation as its agent; (iii) to lease or sublease to a municipality
health facilities which have been constructed, acquired, reconstructed,
rehabilitated or improved by the agency pursuant to this article and the
health and mental hygiene facilities improvement act; and (iv) to do all
or any combination of the foregoing.

b. The agency shall have power and is hereby authorized from time to
time to issue negotiable bonds and notes in such principal amount as, in
the opinion of the agency, shall be necessary, after taking into account
other monies which may be available for the purpose, to provide
sufficient funds for the construction, acquisition, reconstruction,
rehabilitation or improvement of health facilities pursuant to this
subdivision two, the payment of interest on health facilities bonds and
health facilities notes issued for such purposes, the establishment of
reserves to secure such bonds and notes, and all other expenditures of
the agency incident to and necessary or convenient for any such
construction, acquisition, reconstruction, rehabilitation or
improvement, provided, however, that the agency shall not issue health
facilities bonds and health facilities notes in an aggregate principal
amount exceeding eight hundred million dollars, excluding health
facilities bonds and health facilities notes issued to refund
outstanding health facilities bonds or health facilities notes.

3. Application of other provisions of article. Except as stated in
section forty-seven, the other provisions of this article shall apply to
health facilities bonds and health facilities notes issued by the agency
pursuant to this section, provided, however, that such bonds and notes,
subject to any agreements with the holders of particular bonds or notes
pledging any specified portions thereof, shall be secured by a pledge to
the payment thereof of (i) rentals paid to the agency with respect to
health facilities financed with the proceeds of such bonds and notes,
and (ii) any other assets, monies or accounts pledged or assigned to the
agency as security for the payment of such rentals, and provided further
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
eleven of section forty-four 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, or (iv) pledge all or any
part of the rentals paid to the agency under leases, subleases or other
agreements for state university facilities and mental hygiene facilities
entered into by the agency in accordance with this article, or (v)
pledge or assign all or any part of any other assets, monies or accounts
pledged or assigned to the agency as security for the payment of rentals
for such state university facilities and mental hygiene facilities.

4. Health facilities income accounts. a. The agency shall create and
establish one or more special accounts (herein referred to as health
facilities income accounts) and shall pay into such accounts any monies
which the agency shall receive in payment of rentals due under one or
more leases or subleases entered into pursuant to subdivision two of
this section and any other monies which the agency shall receive from a
municipality as security for or in payment of such rentals. Such monies
and any other monies paid into such health facilities income accounts,
may, in the discretion of the agency, but subject to agreements with the
holders of health facilities bonds and health facilities notes, be used
by the agency (1) for the repayment of advances, if any, from the state
to the agency in connection with health facilities, and any real
property required therefor, in accordance with the provisions of
repayment agreements related thereto which have been entered into with
the director of the budget, (2) to pay all costs, expenses and charges
of financing the health facilities applicable to such account or
accounts including fees and expenses of trustees and paying agents, (3)
to pay the administrative and other expenses of the agency allocable to
the services performed by the agency in the financing of the
construction, acquisition, reconstruction, rehabilitation or improvement
of health facilities and matters relating thereto, (4) for the payment
of the principal of and interest on health facilities bonds or health
facilities notes issued by the agency when the same shall become due
whether at maturity or by call for redemption and for the payment of any
redemption premium required to be paid where such bonds or notes are
redeemed prior to their stated maturities, and to purchase health
facilities bonds or health facilities notes issued by the agency, or (5)
for such other corporate purposes of the agency relating to the carrying
out of its functions, powers and duties with respect to the financing of
the construction, acquisition, reconstruction, rehabilitation or
improvement of health facilities as the agency in its discretion shall
determine and provide.

b. To assure the continued payment of rentals due under one or more
leases or subleases entered into pursuant to subdivision two of this
section, the agency shall annually, not later than November first in
each year, make and deliver to the appropriate chief fiscal officer of
the municipality a certificate setting forth the amount, if any, due and
not paid for the preceding fiscal year of the agency under such lease or
sublease with such municipality. In the event of the failure or
inability of the municipality to pay over the stated amount to the
agency on or before December first of the same year, the agency shall
forthwith make and deliver to the comptroller of the state of New York,
the director of the budget of the state of New York and the
commissioners of health and social services of the state of New York a
further certificate restating the amount due and not paid, and such
amount shall be paid over to the agency, upon the warrant of the
comptroller on vouchers certified as correct by the commissioner of
health and approved by the commissioner of social services, out of the
next payment of state aid to such municipality pursuant to section three
hundred sixty-eight-a of the social services law or funds appropriated
for the purpose of making payments on behalf of such municipality
pursuant to section three hundred sixty-seven-b of such law. To the
extent any such payments to the agency are made from state aid payments
pursuant to section three hundred sixty-eight-a of such law, the amount
of such payments shall be deducted from the corresponding apportionment
of state aid otherwise credited to such municipality, and the state
shall not be obligated to pay, nor shall such municipality be entitled
to receive, by virtue of such deduction, any additional or increased
apportionment or payment of state aid pursuant to section three hundred
sixty-eight-a of the social services law. To the extent any such
payments to the agency are made from funds appropriated for the purpose
of making payments on behalf of such municipality pursuant to section
three hundred sixty-seven-b of such law, the amount of such payments may
be deducted from any other payments of state assistance to such
municipality under the social services law and the state shall not be
obligated to pay, nor shall the municipality be entitled to receive, by
virtue of such deduction, any additional or increased apportionment or
payment of such state assistance, provided, however, that nothing
contained in this sentence shall be construed to limit, impair, impede,
or otherwise adversely affect in any manner the rights or remedies of
the purchasers and holders and owners of any bonds or notes of the state
or any agency or instrumentality, public benefit corporation or
political subdivision thereof under which such purchasers and holders
and owners have any right of payment of such bonds or notes by recourse
to such state assistance monies.

5. Special provisions. Notwithstanding any other provision of law,
general, special or local, or any provision of any charter or ordinance:

a. A municipality is hereby authorized to execute and deliver to the
agency for such consideration as may be determined by the municipality,
the agency and the health and mental hygiene facilities improvement
corporation, but not to exceed the cost of acquisition thereof to the
municipality and the cost of improvements thereon, a lease for a term
not exceeding fifty years or a quit claim deed conveying to the agency
all right, title and interest of such municipality in and to real
property, for the purpose of constructing, reconstructing,
rehabilitating, or improving one or more health facilities pursuant to
this article and the health and mental hygiene facilities improvement
act for subsequent lease or sublease to such municipality, in accordance
with the terms of any agreement entered into pursuant to this article
and the health and mental hygiene facilities improvement act.

b. A municipality is hereby authorized to lease or sublease from the
agency the health facilities constructed, reconstructed, rehabilitated
or improved pursuant to this article and the health and mental hygiene
facilities improvement act, in accordance with the terms of any
agreement entered into pursuant to this article and such act. At such
time as all rentals due or to become due to the agency pursuant to the
terms of any such lease or sublease have been paid or such lease or
sublease is terminated pursuant to the provisions thereof, the
jurisdiction of the agency over the real property leased or conveyed
pursuant to paragraph a of this subdivision, together with the
improvements thereon shall cease and all interest real and personal in
such real property and improvements vested in the agency shall vest in
the municipality with right of re-entry thereon, provided, however if
such real property were leased or conveyed to the agency by a
municipality which constituted a city social services district which
district was dissolved pursuant to the provisions of chapter
twenty-eight of the laws of nineteen hundred seventy-two, all interest
real and personal in such real property and improvements vested in the
agency shall vest in the municipality which formerly constituted the
city social services district with right of re-entry thereon.

c. No real property or interest therein shall be acquired by the
agency pursuant to this subdivision unless title thereto shall have been
approved by the attorney general.

d. The attorney general shall pass upon the form and sufficiency and
manner of execution of any deed of conveyance and of any lease or
sublease to which the agency and a municipality are parties, and the
same shall not be effective unless approved by him.

e. In the event that the agency shall fail within five years from the
date of a lease or conveyance authorized pursuant to paragraph a of this
subdivision five to construct, reconstruct, rehabilitate or improve the
health facilities thereon for which the lease or conveyance was made, as
provided for in any agreement entered into pursuant to this article and
the health and mental hygiene facilities improvement act, or in the
event that such health facilities shall cease to be used for the
purposes intended, then and in either event but subject to the terms of
any lease, sublease or other agreement between the agency and the
municipality, such real property and any health facilities thereon,
shall revert to the municipality with right of re-entry thereupon and
such lease or deed shall be made subject to such conditions; provided,
however, that as a condition precedent to the exercise of such right of
re-entry the municipality shall pay to the agency an amount equal to the
purchase price of such real property, the depreciated cost of any health
facilities constructed, reconstructed, rehabilitated or improved, and
all other costs of the agency incident to the acquisition of such real
property and the financing of construction, reconstruction,
rehabilitation or improvement relating to such facilities, all as
provided in the aforesaid lease, sublease or other agreement entered
into with such municipality.

f. In the event that the agency shall determine that any portions of
the real property leased or conveyed pursuant to paragraph a of this
subdivision five are in excess of the real property needed to construct,
reconstruct, rehabilitate or improve the facility or facilities thereon
for which the conveyance was made, as provided in any agreement entered
into pursuant to this article and the health and mental hygiene
facilities improvement act, the agency may terminate its lease with
respect to such excess portions of such real property or reconvey such
excess portions to the municipality, provided, however, that the
municipality shall pay to the agency an amount equal to the
consideration, if any, paid by the agency to such municipality allocable
to such excess real property and such other costs of the agency as are
incident to the acquisition of such excess real property, all as may be
approved by such municipality and the agency. Any monies so paid to the
agency shall be used and applied, subject to the provisions of any
contract with noteholders and bondholders, for the sole purpose of
paying costs and expenses of the agency incident to the financing of the
health facilities to be constructed, reconstructed, rehabilitated or
improved on such other portions of the real property as shall have been
leased or conveyed to the agency pursuant to paragraph a of this
subdivision five.

g. The cost of construction, acquisition, reconstruction,
rehabilitation or improvement of health facilities undertaken by the
agency pursuant to this article and the health and mental hygiene
facilities improvement act may include the cost of acquisition of any
real property leased or conveyed to the agency in accordance with
paragraph a of this subdivision five and the cost of the original
furnishings, equipment, machinery and apparatus needed to furnish and
equip such facilities upon the completion of the work. The agency shall
have power to acquire or lease and to hold real property required for
the construction, acquisition, reconstruction, rehabilitation or
improvement of the health facilities undertaken by the agency pursuant
to this article and the health and mental hygiene facilities improvement
act and to provide the original furnishings, equipment, machinery and
apparatus needed to furnish and equip such facilities upon the
completion of work and to issue its bonds and notes to provide
sufficient funds to pay the cost thereof.

h. A municipality is hereby authorized and empowered, in connection
with any lease, sublease or other agreement with the agency to which
such municipality is a party, and subject to such agreements with third
parties as may then exist, to:

(1) pledge or assign to the agency all or any portion of the revenues
and monies received or to be received by the municipality, which may be
available for the purpose of paying rentals for the use of the health
facilities constructed, acquired, reconstructed, rehabilitated or
improved under such agreement, so that the payment of such rentals may
be fully secured and protected;

(2) use and dispose of such revenues and monies, or any portions
thereof, for the purpose of defraying, in whole or in part (a) the cost
of acquiring any real property for the purpose of constructing,
acquiring, reconstructing, rehabilitating or improving facilities
thereon which may be constructed, acquired, reconstructed, rehabilitated
or improved by the agency pursuant to this article and the health and
mental hygiene facilities improvement act, (b) the cost of financing the
construction, acquisition, reconstruction, rehabilitation or improvement
of such facilities, and (c) the cost of acquiring the original
furnishings, equipment, machinery and apparatus needed to furnish and
equip such facilities upon the completion of the work;

(3) set aside rental reserves and to agree to the maintenance,
regulation and disposition thereof;

(4) agree to limitations on the purposes to which the proceeds of sale
of agency notes or bonds may be applied and to the pledging of such
proceeds to secure the payment of agency notes or bonds or of any issued
thereof;

(5) agree to limitations on the making of additional leases, subleases
or agreements with the agency or with others, and the terms upon which
such additional leases, subleases or agreements may be made;

(6) upon receipt of any notice of assignment by the agency of any such
lease, sublease or other agreement with the agency, or of any of its
rights under such lease, sublease or other agreement, recognize and give
effect to such assignment and to pay the assignee thereof rentals or
other payments then due or which may become due under any such lease,
sublease or other agreement which has been so assigned by the agency;
and

(7) agree to any other matters, of like or different character, which
in any way affect the security or protection of the rental payments
required to be made under the terms of such lease, sublease or other
agreement with the agency.