N.Y. Private Housing Finance Law § 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. (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. (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. (3) set aside rental reserves and to agree to the maintenance, regulation and disposition thereof;
4. (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. (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. (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. (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.