N.Y. MCF Law § 8 — New York Code / Act MCF / Section 8
Health facilities reserve funds and appropriations
Status: in_force

§ 8. Health facilities reserve funds and appropriations. 1. (a) For\nthe purposes of the issuance by the agency of health facilities bonds,\nthe term "health facilities reserve fund requirement" shall mean, as of\nany particular date of computation, an amount of money equal to the\ngreatest of the respective amounts, for the then current or any\nsucceeding calendar year, of annual debt service payments of the agency,\nsuch annual debt service payments for any calendar year being an amount\nof money equal to the aggregate of (i) all interest payable during such\ncalendar year on all health facilities bonds of the agency then\noutstanding on said date of computation, plus (ii) the prinicipal amount\nof all health facilities bonds of the agency then outstanding on said\ndate of computation which mature during such calendar year, plus (iii)\nthe amount of all sinking fund payments payable during such calendar\nyear with respect to all health facilities bonds of the agency\noutstanding on said date of computation; and the term "sinking fund\npayment" shall mean the amount of money specified in the resolution\nauthorizing term bonds as payable into a sinking fund for the\namortization of such term bonds. The agency may create and establish one\nor more additional reserve funds to be known as health facilities\nreserve funds and may pay into such reserve funds (1) any monies\nappropriated and made available by the state for the purposes of such\nfunds, (2) any proceeds of sale of health facilities notes or health\nfacilities bonds, to the extent provided in the resolution of the agency\nauthorizing the issuance thereof, and (3) any other monies which may be\nmade available to the agency for the purposes of such funds from any\nother source or sources. The monies held in or credited to any health\nfacilitiss reserve fund established under this subdivision, except as\nhereinafter provided, shall be used solely for the payment of the\nprinicipal of health facilities bonds of the agency secured by such\nreserve fund, as the same mature, sinking fund payments, the purchase of\nsuch health facilities bonds of the agency, and the payment of any\nredemption premium required to be paid when such bonds are redeemed\nprior to maturity; provided, however, that monies in any such fund shall\nnot be withdrawn therefrom at any time in such amount as would reduce\nthe amount of such fund to less than the health facilities reserve fund\nrequirement, except for the purpose of paying principal and interest on\nthe health facilities bonds of the agency secured by such reserve fund\nmaturing and becoming due and any sinking fund payments and for the\npayment of which other monies of the agency are not available. Any\nincome or interest earned by, or increment to, any such health\nfacilities reserve fund due to the investment thereof may be transferred\nto any other fund or account of the agency to the extent it does not\nreduce the amount of such health facilities reserve fund below the\nhealth facilities reserve fund requirement.\n  (b) The agency shall not issue health facilities bonds and health\nfacilities notes, municipal hospital bonds, municipal hospital notes,\nmunicipal nursing home bonds and municipal nursing home notes in an\naggregate principal amount exceeding two billion dollars, excluding\nhealth facilities bonds and health facilities notes issued to refund\noutstanding health facilities bonds or health facilities notes. The\nagency shall not issue health facilities bonds at any time secured by a\nhealth facilities reserve fund if upon issuance, the amount in the\nhealth facilities reserve fund will be less than the health facilities\nreserve fund requirement, unless the agency, at the time of issuance of\nsuch bonds, shall deposit in such reserve fund from the proceeds of the\nbonds so to be issued, or otherwise, an amount which together with the\namount then in such reserve fund, will be not less than the health\nfacilities reserve fund requirement.\n  (c) In computing any health facilities reserve fund for the purposes\nof this section, securities in which all or a portion of such reserve\nfund shall be invested shall be valued at par if purchased at par, or if\npurchased at other than par, at amortized value.\n  2. (a) The agency shall create and establish one or more special\naccounts (herein referred to as health facilities income account) and\nshall pay into such accounts any monies which the agency shall receive\nin payment of rentals due under one or more leases or subleases entered\ninto with a municipality pursuant to section five and any other monies\nwhich the agency shall receive from a municipality as security for or in\npayment of such rentals. Such monies and any other monies paid into such\nhealth facilities income accounts, may, in the discretion of the agency,\nbut subject to agreements with the holders of health facilities bonds\nand health facilities notes, be used by the agency (1) for the repayment\nof advances, if any, from the state to the agency in connection with\nhealth facilities, and any real property required therefor, in\naccordance with the provisions of repayment agreements related thereto\nwhich have been entered into with the director of the budget, (2) to pay\nall costs, expenses and charges of financing the health facil-\napplicable to such account or accounts including fees and expenses of\ntrustees and paying agents, (3) to pay the administrative and other\nexpenses of the agency allocable to the services performed by the agency\nin the financing of the construction, acquisition, reconstruction,\nrehabilitation or improvement of health facilities and matters relating\nthereto, (4) for the payment of the principal of and interest on health\nfacilities bonds or health facilities notes isued by the agency when the\nsame shall become due whether at maturity or by call for redemption and\nfor the payment of any redemption premium required to be paid where such\nbonds or notes are redeemed prior to their stated maturities, and any\nsinking fund payments, and to purchase health facilities bonds or health\nfacilities notes isued by the agency, or (5) for such other corporate\npurposes of the agency relating to the carrying out of its functions,\npowers and duties with respect to the financing of the construction,\nacquisition, reconstruction, rehabilitation or improvement of health\nfacilities as the agency in its discretion shall determine and provide.\n  (b) To assure the continued payment of rentals due under one or more\nleases or subleases entered into with a municipality pursuant to section\nfive, the agency shall make and deliver to the appropriate chief fiscal\nofficer of the municipality a certificate setting forth the amount, if\nany, due and not paid to the agency under such lease or sublease with\nsuch municipality within five days of the due date. In the event of the\nfailure or inability of the municipality to pay over the stated amount\nto the agency within ten days of receipt of such certificate, the agency\nshall forthwith make and deliver to the comptroller of the state of New\nYork, the director of the budget of the state of New York and the\ncommissioner of health of the state of New York a further certificate\nrestating the amount due and not paid, and such amount shall be paid\nover to the agency, upon the warrant of the comptroller on vouchers\ncertified as correct by the commissioner of health, out of the next\npayment of state aid to such municipality pursuant to section 368-a of\nthe social services law or funds appropriated for the purpose of making\npayment on behalf of such municipality pursuant to section 367-b of such\nlaw. To the extent any such payments to the agency are made from state\naid payments pursuant to section 368-a of such law, the amount of such\npayments shall be deducted from the corresponding apportionment of state\naid otherwise credited to such municipality, and the state shall not be\nobligated to pay, nor shall such municipality be entitled to receive, by\nvirtue of such deduction, any additional or increased apportionment or\npayment of state aid pursuant to section 368-a of the social services\nlaw. To the extent any such payments to the agency are made from funds\nappropriated for the purpose of making payments on behalf of such\nmunicipality pursuant to section 367-b of such law, the amount of such\npayments may be deducted from any other payments of state assistance to\nsuch municipality under the social services law and the state shall not\nbe obligated to pay, nor shall the municipality be entitled to receive,\nby virtue of such deduction, any additional or increased apportionment\nor payment of such state assistance, provided, however, that nothing\ncontained in this sentence shall be construed to limit, impair, impede,\nor otherwise adversely affect in any manner the rights or remedies of\nthe purchasers and holders and owners of any bonds or notes of the state\nor any agency or instrumentality, public benefit corporation or\npolitical subdivision thereof under which such purchasers and holders\nand owners have any right of payment of such bonds or notes by recourse\nto such state assistance monies.\n