N.Y. MCF Law § 3 — New York Code / Act MCF / Section 3
Definitions
Status: in_force

§ 3. Definitions. As used in this article, unless a different meaning\nclearly appears from the context:\n  1. "Agency" shall mean the corporate governmental agency created by\nsection four of this act.\n  2. "Amortized value" means, when used with respect to securities\npurchased at a premium above or a discount below par, the value as of\nany given date obtained by dividing the total amount of the premium or\ndiscount at which such securities were purchased by the number of days\nremaining to maturity on such securities at the time of such purchase\nand by multiplying the amount so calculated by the number of days having\npassed since the date of such purchase; and (a) in the case of\nsecurities purchased at a premium, by deducting the product thus\nobtained from the purchase price, and (b) in the case of securities\npurchased at a discount, by adding the product thus obtained to the\npurchase price.\n  3. "Bonds" and "notes" shall mean bonds and notes, respectively,\nissued by the agency pursuant to this act.\n  (a) "Hospital and nursing home project bonds" and "hospital and\nnursing home project notes" shall mean bonds and notes, respectively,\nissued by the agency for the purpose of making loans to hospital\ncorporations and non-profit medical corporations constituting eligible\nborrowers or nursing home companies.\n  (b) "Health facilities bonds" and "health facilities notes" shall mean\nbonds and notes, respectively, issued by the agency for the purpose of\nfinancing the construction, acquisition, reconstruction, rehabilitation\nor improvement of health facilities for municipalities pursuant to this\nact and the health and mental hygiene facilities improvement act.\n  (c) "Municipal hospital and municipal nursing home project bonds" and\n"municipal hospital and municipal nursing home project notes" shall mean\nbonds and notes, respectively, issued by the agency for the purpose of\nmaking mortgage loans to municipal hospitals or municipal nursing homes.\n  * (d) "Special hospital project bonds" shall mean bonds issued\npursuant to section seven-a of this act for the purpose of making\nmortgage loans to eligible secured hospital borrowers.\n  * NB Expired December 31, 2015\n  4. "Commissioner" shall mean the New York state commissioner of\nhealth.\n  5. "Department" shall mean the New York state department of health.\n  6. "Eligible borrower" shall mean a non-profit hospital corporation\norganized under the laws of this state, or a non-profit medical\ncorporation organized under and governed by article forty-four of the\npublic health law, which has entered into a regulatory agreement in\naccordance with the provisions of section twenty-eight hundred\nseventy-three of the public health law.\n  6-a. "Federally-aided mortgage loan" means a loan secured by a\nmortgage lien on the real property of a project or on a leasehold on\nsuch real property, provided that the term of such leasehold is not less\nthan twenty-five percent longer than the term of the mortgage, and the\npersonal property attached to or used in connection with the\nconstruction, acquisition, reconstruction, refinancing, rehabilitation,\nimprovement, management or operation of the project, made by the agency\nto a municipal hospital, municipal nursing home, not-for-profit hospital\ncorporation, not-for-profit corporation providing a residential health\ncare facility or not-for-profit medical corporation organized pursuant\nto article 44 of the public health law, which loan is insured by the\nfederal government. This subdivision does not limit the agency from\nconsenting to the modification of any instrument executed in connection\nwith a federally-aided mortgage loan, provided that the modification\ndoes not materially reduce the value of the security for the\nfederally-aided mortgage loan. A leasehold under this subdivision shall\nconform to standards adopted by the agency, with the approval of the\ndivision of the budget, that adequately protect the interests of the\nagency, the state, and creditors.\n  * (6-b) "Eligible secured hospital borrower" shall mean a\nnot-for-profit hospital corporation organized under the laws of this\nstate, which has been designated by the commissioner of health and the\nNew York state public health council as a needed facility eligible to\nreceive distributions from the reimbursement pools established pursuant\nto paragraph (c) of subdivision nine of section twenty-eight hundred\nseven-a of the public health law, or any successor pool or pools\nestablished to serve a substantially similar purpose to such pools.\n  * NB Expired December 31, 2015\n  7. "Facilities development corporation" shall mean the corporation\ncreated pursuant to the facilities development corporation act.\n  8. "Health facility" shall mean a building, a unit within a building,\na laboratory, a classroom, a housing unit, a dining hall, an activities\ncenter, a library, or any structure on or improvement to real property\nof any kind or description, including fixtures and equipment which are\nan integral part of any such building, unit, structure or improvement, a\nwalkway, a roadway or a parking lot, and improvements and connections,\nfor water, sewer, gas, electrical, telephone, heating, air conditioning\nand other utility services, or a combination of any of the foregoing,\nwhether for patient care and treatment of staff, staff family or service\nuse, located at or related to or constituting a hospital, as defined in\nsection 2801 of the public health law.\n  9. "Health facilities improvement program" shall mean a program\nundertaken by the agency and, if the agency elects, with the facilities\ndevelopment corporation acting as its agent, for the purpose of\nconstructing, acquiring, reconstructing, rehabilitating or improving\nhealth facilities or causing such facilities to be constructed,\nacquired, reconstructed, rehabilitated or improved pursuant to the\nfacilities development improvement act, if applicable, and this act.\n  * 10. "Hospital project" shall mean a specific work or improvement or\nthe refinancing of existing indebtedness which constitutes a lien or\nencumbrance upon the real property or assets of the eligible borrower or\neligible secured hospital borrower whether or not such refinancing is\nrelated to the construction, acquisition or rehabilitation of a\nspecified work or improvement undertaken by a non-profit hospital\ncorporation or a non-profit medical corporation, constituting an\neligible borrower or eligible secured hospital borrower in accordance\nwith the provisions of article twenty-eight-B of the public health law.\nThe term "hospital project" as used in this subdivision shall also mean\na separate work or improvement owned and operated by an eligible\nborrower to provide such services, functions, capabilities and\nfacilities as may be convenient or desirable for the operation of\nhospital or other such facility.\n  * NB Expired December 31, 2015\n  10. "Hospital project" shall mean a specific work or improvement or\nthe refinancing of existing indebtedness which constitutes a lien or\nencumbrance upon the real property or assets of the eligible borrower\nwhether or not such refinancing is related to the construction,\nacquisition or rehabilitation of a specified work or improvement\nundertaken by a non-profit hospital corporation or a non-profit medical\ncorporation, constituting an eligible borrower in accordance with the\nprovisions of article twenty-eight-B of the public health law.\n  * 11. "Hospital project cost" shall mean the sum total of all costs\nincurred by a non-profit hospital corporation or a non-profit medical\ncorporation, constituting an eligible borrower or eligible secured\nhospital borrower undertaking a project as approved by the commissioner\nin accordance with the provisions of article twenty-eight-B of the\npublic health law. In the case of eligible secured hospital borrowers,\nhospital project costs shall include all costs relating to the\nrefinancing of existing indebtedness attributable to unmet bad debt and\ncharity losses.\n  * NB Expired December 31, 2015\n  11. "Hospital project cost" shall mean the sum total of all costs\nincurred by a non-profit hospital corporation or a non-profit medical\ncorporation, constituting an eligible borrower undertaking a project as\napproved by the commissioner in accordance with the provisions of\narticle twenty-eight-B of the public health law.\n  * 12. "Mortgage loan" shall mean a loan made by the agency to an\neligible borrower or eligible secured hospital borrower in an amount not\nto exceed the total hospital project costs and secured by a first\nmortgage lien on the real property of which the hospital project\nconsists or on a leasehold on such real property, provided that the term\nof such leasehold is not less than twenty-five percent longer than the\nterm of the mortgage, and the personal property attached to or used in\nconnection with the construction, acquisition, reconstruction,\nrehabilitation, improvement or operation of the hospital project. Such\nloan may be further secured by such a lien upon other real property\nowned by or on a leasehold on real property of the eligible borrower or\neligible secured hospital borrower. Notwithstanding the foregoing\nprovisions of this subdivision or any other provisions of this act to\nthe contrary, any personal property may be excluded from the lien of the\nmortgage provided (a) the commissioner of health finds that such\nproperty is not essential for the rendition of required hospital\nservices as such term is defined in article twenty-eight of the public\nhealth law, and (b) the agency consents to such exclusion.\n  The term "mortgage loan" shall also mean and include a loan made by\nthe agency to a limited-profit nursing home company in an amount not to\nexceed ninety-five percentum of the nursing home project cost, or to a\nnon-profit nursing home company in an amount not to exceed the total\nnursing home project cost, and secured by a first mortgage lien on the\nreal property of which the nursing home project consists or on a\nleasehold on such real property provided that the term of such leasehold\nis not less than twenty-five percent longer than the term of the\nmortgage, and the personal property attached to or used in connection\nwith the construction, acquisition, reconstruction, rehabilitation,\nimprovement or operation of the nursing home project. Notwithstanding\nthe foregoing provisions of this subdivision or any other provision of\nthis article to the contrary, any personal property may be excluded from\nthe lien of the mortgage provided (a) the commissioner finds that such\nproperty is not essential for the nursing home project as such term is\ndefined in article twenty-eight-A of the public health law, and (b) the\nagency consents to such exclusion. A leasehold under this subdivision\nshall conform to standards adopted by the agency, with the approval of\nthe division of the budget, that adequately protect the interests of the\nagency, the state and creditors.\n  * NB Expired December 31, 2015\n  12. "Mortgage loan" shall mean a loan made by the agency to an\neligible borrower in an amount not to exceed the total hospital project\ncost and secured by a first mortgage lien on the real property of which\nthe hospital project consists and the personal property attached to or\nused in connection with the construction, acquisition, reconstruction,\nrehabilitation, improvement or operation of the hospital project. Such\nloan may be further secured by such a lien upon other real property\nowned by the eligible borrower. Notwithstanding the foregoing provisions\nof this subdivision or any other provisions of this act to the contrary,\nany personal property may be excluded from the lien of the mortgage\nprovided (a) the commissioner of health finds that such property is not\nessential for the rendition of required hospital services as such term\nis defined in article twenty-eight of the public health law, and (b) the\nagency consents to such exclusion.\n  The term "mortgage loan" shall also mean and include a loan made by\nthe agency to a limited-profit nursing home company in an amount not to\nexceed ninety-five percentum of the nursing home project cost, or to a\nnon-profit nursing home company in an amount not to exceed the total\nnursing home project cost, and secured by a first mortgage lien on the\nreal property of which the nursing home project consists and the\npersonal property attached to or used in connection with the\nconstruction, acquisition, reconstruction, rehabilitation, improvement\nor operation of the nursing home project. Notwithstanding the foregoing\nprovisions of this subdivision or any other provision of this article to\nthe contrary, any personal property may be excluded from the lien of the\nmortgage provided (a) the commissioner finds that such property is not\nessential for the nursing home project as such term is defined in\narticle twenty-eight-A of the public health law, and (b) the agency\nconsents to such exclusion.\n  13. "Nursing home company" shall mean a nursing home company as\ndefined in article twenty-eight-A of the public health law.\n  (a) A "limited-profit nursing home company" shall mean a company\nincorporated pursuant to the provisions of article twenty-eight-A of the\npublic health law and business corporation law.\n  (b) A "non-profit nursing home company" shall mean a company\nincorporated pursuant to the provisions of article twenty-eight-A of the\npublic health law and the not-for-profit corporation law.\n  14. "Nursing home project" shall mean a specific work or improvement\nundertaken by a nursing home company in accordance with the provisions\nof article twenty-eight-A of the public health law.\n  15. "Nursing home project cost" shall mean the sum total of all costs\nincurred by a nursing home company undertaking a project as approved by\nthe commissioner in accordance with the provisions of article\ntwenty-eight-A of the public health law.\n  16. "Municipality" for the purposes of the health facilities\nimprovement program and federally-aided mortgage loans to municipal\nhospitals and municipal nursing homes means a county, city or town\nconstituting a social services district as defined in sections two,\nsixty-one, seventy-five and seventy-five-a of the social services law,\nor any two or more of the foregoing which are acting jointly to provide\na health facility or health facilities, municipal hospitals or municipal\nnursing homes.\n  17. "Bond reserve insurance fund" shall mean the fund created by\nsection nineteen of this act.\n  * 18. "Equipment loan" shall mean a loan made by the agency to a\nnon-profit hospital corporation, a county hospital, a municipal\nhospital, a New York state department of health facility, a state\nuniversity of New York health care facility or a non-profit corporation\nproviding a residential health care facility, for the purpose of\nfinancing or refinancing the acquisition through purchase or lease of\nequipment, including construction and rehabilitation related to the\ninstallation of such equipment, and shall also include intellectual\nproperty or other intangible property, including information technology\nand software, that is eligible for tax-exempt financing under the United\nStates internal revenue code.\n  The term "equipment loan" shall also mean the financing of equipment\nacquisitions by the purchase, lease or sublease of equipment by the\nagency and the lease or sublease of such equipment to a non-profit\nhospital corporation, a county hospital, a municipal hospital, a\nhospital under the jurisdiction of the state university of New York, or\na non-profit corporation providing a residential health care facility\nfor the purpose of providing for the acquisition of such equipment and\nfor the construction and rehabilitation related to the installation\nthereof and shall also include intellectual property or other intangible\nproperty, including information technology and software, that is\neligible for tax-exempt financing under the United States internal\nrevenue code.\n  * NB There are 3 sub 18's\n  * 18. "Municipal hospital" or "municipal nursing home" shall mean a\nhospital or nursing home of, and located in, a municipality.\n  * There are 3 sub 18's\n  * 18. "Hmo investment loan" shall mean a loan made by the agency to a\nlending institution for the purpose of financing a loan by the lending\ninstitution to the owner of an Hmo project. Such investment loan shall\nbe evidenced by a note or other evidence of indebtedness constituting a\ngeneral obligation of the lending institution and shall be secured to\nthe satisfaction of the agency. Such investment loan shall not exceed\none hundred percent of the cost of development of the Hmo project\napproved by the agency.\n  * There are 3 sub 18's\n  19. "Lending institution" shall mean any bank, trust company, national\nbank, state or federal mutual savings bank, state or federal savings and\nloan association, or state or federal credit union, insurance company,\npension fund or retirement system of any corporation or association, or\nany other entity which is owned or controlled by any one or more of the\nabove, provided the same is supervised by or responsible to any agency\nof the federal government, the state or any department thereof.\n  20. "Hmo project" shall mean a specific work or improvement, whether\nor not to effectuate all or any part of a plan, and includes lands,\nbuildings, improvements, fixtures and personal property constructed,\nacquired or reconstructed, refinanced, rehabilitated, improved, managed,\nowned or operated by a non-profit corporation for the purpose of\nconducting the activities of a health maintenance organization. "Hmo\nproject" shall also mean the refinancing of existing indebtedness which\nconstitutes a lien or other encumbrance upon the real property or assets\nof the non-profit corporation conducting the activities of a health\nmaintenance organization, whether or not such refinancing is related to\nthe construction, acquisition or rehabilitation of a specified work or\nimprovement. "Hmo project" shall also mean the financing or refinancing\nthrough purchase or lease of equipment, including construction and\nrehabilitation related to the installation of such equipment, whether or\nnot the financing or refinancing of said equipment is related to the\nconstruction, acquisition or rehabilitation of a specified work or im-\nprovement. An Hmo project may be undertaken by:\n  (a) A health maintenance organization holding a valid certificate of\nauthority issued pursuant to article forty-four of the public health\nlaw;\n  (b) A health maintenance organization operating under the provisions\nof article IX-C of the insurance law; and\n  (c) By a non-profit corporation which operates a facility which\npossesses a valid operating certificate under article twenty-eight of\nthe public health law and which has entered into a contract with a\nhealth maintenance organization operating under the provisions of\narticle forty-four of the public health law or article IX-C of the\ninsurance law to provide health care services to persons enrolled in the\nhealth maintenance organization, provided the commissioner has\ndetermined that the facility will be used principally as the medical\ngroup facility component of a group model health maintenance\norganization and the commissioner has approved the construction of the\nfacility pursuant to section twenty-eight hundred two of the public\nhealth law.\n  21. "Non-profit housing and health facility" shall mean a specific\nwork or improvement, whether or not to effectuate all or any part of a\nplan acquired, owned, constructed, rehabilitated, improved, managed or\noperated by a non-profit company and consisting of five or more\nresidential units, and at the election of the agency such additional\nhealth or health related facilities as the agency may approve; and\nincluding the lands, buildings and improvements acquired, owned,\nconstructed, managed or operated to provide such units, and health or\nhealth related facilities and such incidental and appurtenant\ncommercial, recreation, cultural, communal, dining, parking, day care or\nresidential child care, senior citizen and community facilities as may\nbe approved by the agency. As used in connection with the term\nnon-profit housing and health facility, the term residential unit shall\nrefer to units suitable for residential use or accommodations included\nwithin the term housing as defined in subdivision nine of section twelve\nof the private housing finance law, and the term non-profit company\nshall mean a company incorporated pursuant to the provisions of the\nnot-for-profit corporation law for the purpose of providing housing for\nstaff members, employees, students or users of a hospital, health, or\nhealth related facility and their immediate families or for the purpose\nof providing a hospital, health, or health related facility.\n  23. "Loan" when made to either an eligible borrower or nursing home\ncompany, shall mean either a mortgage loan or a project loan, each as\ndefined in this act.\n  24. "Project loan" shall mean a loan made by the agency to an eligible\nborrower or nursing home company in an amount not to exceed the total\nhospital project cost or total nursing home project cost, respectively.\nSuch loans shall be secured in a manner acceptable to the agency and\nsuch security may consist of a mortgage on real property and\nimprovements or other security acceptable to the agency; provided\nhowever, that a project loan shall not include any loan made by the\nagency to an eligible borrower or nursing home company that constitutes\na mortgage loan as defined in this act. Project loans shall only be made\nin accordance with guidelines adopted by the board of the dormitory\nauthority, as successor to the agency.\n