Chapter 1016 of the laws of 1969
  NEW YORK CITY HEALTH AND HOSPITALS CORPORATION ACT
Section 1.   Short title.
        2.   Declaration of policy and statement of purposes.
        3.   Definitions.
        4.   New York city health and hospitals corporation.
        4-a.
        5.   General powers of the corporation.
        6.   Relationship  to  the  city;  agreements  concerning health
                 facilities.
        7.   Conveyance of property by  the  city  to  the  corporation;
                 acquisition of property by the city.
        7-a. Relationship  with  the  New  York  state  and  the housing
                 finance agency health  and  mental  hygiene  facilities
                 improvement corporation.
        8.   Contracts.
        9.   Personnel  administration;  collective  bargaining; pension
                 and retirement benefits; article fourteen civil service
                 law; paragraph two hundred twenty labor law;  personnel
                 review board.
        10.  Officers   and   employees   not   to   be   interested  in
                 transactions.
        11.  Moneys of the corporation.
        12.  Issuance of bonds and notes by the corporation.
        13.  Reserve fund.
        14.  Agreement of the state.
        15.  State and city not liable on bonds and notes.
        16.  City's right to require redemption of bonds.
        17.  Remedies of holders of bonds and notes.
        18.  Assistance to the corporation.
        19.  Exemption from taxation.
        20.  Actions by and against the corporation.
        21.  Bonds and notes as legal investments.
        22.  Annual and special reports.
        23.  Act  not  affected   if   in   part   unconstitutional   or
                 ineffective.
        24.  Inconsistent provisions of other laws superseded.
        25.  Termination of the corporation.
  Section  1.  Short  title. This act may be cited as the "New York city
health and hospitals corporation act".
   2. Declaration of policy and statement of  purposes.  It  is  hereby
found,  declared  and  determined  that  the  provision  and delivery of
comprehensive care and treatment of the ill and  infirm,  both  physical
and  mental,  are  of  vital  and paramount concern and essential to the
protection and promotion of  the  health,  safety  and  welfare  of  the
inhabitants of the state of New York and the city of New York.
  There  are  serious  shortages  in  the number of personnel adequately
trained and qualified to provide the quality care and treatment  needed.
A  myriad  of complex and often deleterious constraints and restrictions
place a harmful burden on the  delivery  of  such  care  and  treatment.
Technological  advances  have  been such that portions of the health and
medical services now delivered by the city are not as advanced  as  they
should   be.   A  system  permitting  legal,  financial  and  managerial
flexibility is required for the provision and delivery of high  quality,
dignified  and  comprehensive care and treatment for the ill and infirm,
particularly to those who can least afford such services.
  It is further found, declared and determined that hospitals and  other
health  facilities  of  the  city are of vital and paramount concern and

essential in providing comprehensive care and treatment for the ill  and
infirm,  both  physical and mental, and are thus vital to the protection
and the promotion of the health, welfare and safety of the people of the
state of New York and the city of New York.
  There  are  inadequate  general and specialized health care facilities
including but not limited to nursing homes and related laboratories  and
ambulatory  care  clinics  and centers and diagnostic treatment centers.
The inadequacy and shortage  of  health  facilities  derives  from  such
factors  among  others  as  the rapid technological changes and advances
taking place in the medical  field.  These  changes  and  advances  have
created  the  need  for substantial structural and functional changes in
existing facilities. Many of the  health  facilities  of  the  city  are
overcrowded.  Buildings  are  deteriorating  and  many  suffer harm as a
result  of  piecemeal  and  uncoordinated  additions.   The   facilities
available for education, research and development are inadequate to meet
the   demands   of   the  medical  field.  Procedures  inherent  in  the
administration of health and medical services as heretofore  established
obstruct and impair efficient operation of health and medical resources.
  It  is  found, declared and determined that in order to accomplish the
purposes herein recited,  to  provide  the  needed  health  and  medical
services  and  health  facilities,  a  public benefit corporation, to be
known as the New York City health and hospital  corporation,  should  be
created   to  provide  such  health  and  medical  services  and  health
facilities and to otherwise carry out such purposes; that  the  creation
and  operation of the New York city health and hospitals corporation, as
hereinafter provided, is in all respects for the benefit of  the  people
of  the  state  of New York and of the city of New York, and is a state,
city and public purpose; and that the exercise by  such  corporation  of
the functions, powers and duties as hereinafter provided constitutes the
performance of an essential public and governmental function.
    3.  Definitions.  As  used  or  referred  to  in this act, unless a
different meaning clearly appears from the text:
  1. "Administrator" or "Health service administrator"  shall  mean  the
administrator of health services of the city of New York.
  2.  "Administration"  shall mean the health services administration of
the city of New York.
  3. "Board" shall mean the board of directors  of  the  corporation  as
such board is constituted pursuant to section four of this act.
  4.  "Bonds"  and  "notes"  shall  mean  bonds  and notes respectively,
authorized and issued by the corporation pursuant to this act.
  5. "City" shall mean the city of New York.
  6. "Comptroller" shall mean the comptroller of the city of New York.
  7. "Construction"  shall  mean  site  acquisition,  planning,  design,
erection, building, alteration, reconstruction, renovation, improvement,
extension,  enlargement,  replacement or modification and the inspection
or modification thereof.
  8. "Corporation" shall mean the public benefit corporation created  by
section four of this act.
  9.  "Corporation  counsel"  shall  mean the corporation counsel of the
city of New York.
  10. "Council" shall mean the agency or body designated as  the  health
planning agency pursuant to article twenty-nine of the public health law
or  public law 89-749 and which is authorized to approve construction of
health facilities in the city of New York.
  11. "Director of management and budget" shall  mean  the  director  of
management and budget of the city of New York.
  12.  "Health facility" shall mean a building, structure or unit or any
improvement  to  real  property,  including  all  necessary  and   usual

attendant  and related equipment, facilities or fixtures, or any part or
parts thereof, or any combination or  combinations  thereof,  including,
but   not   limited   to,  a  general  hospital,  psychiatric  hospital,
tuberculosis  hospital,  ambulatory  clinic  or  center, chronic disease
hospital, nursing home, extended-care facility, dispensary or laboratory
or any other related facility, or  any  combination  of  the  foregoing,
constructed,  acquired  or  otherwise  provided by or for the use of the
corporation or the city in providing health and medical services to  the
public.
  13.  "Health  and  medical  services"  shall  mean  items  or services
provided by or under the supervision of  a  physician  or  other  person
trained  or licensed to render health care necessary for the prevention,
care, diagnosis or treatment of human disease, pain,  injury,  deformity
or  other  physical  or  mental condition including, but not limited to,
pre-admission, out-patient, in-patient  and  post-discharge  care,  home
care,  physicians'  care, nursing care, medical care provided by interns
or residents-in-training and other paramedical care, ambulance  service,
bed  and  board,  drugs,  biologicals,  supplies, appliances, equipment,
laboratory services and x-ray, radium and radio-active-isotope therapy.
  14. "Mayor" shall mean the mayor of the city of New York.
  15. "Real property"  shall  mean  lands,  structures,  franchises  and
interests  in  land,  waters, lands under water, riparian rights and air
rights, and any and all things and rights usually  included  within  the
said  term  and  includes not only fees simple absolute but also any and
all lesser interests such as  easements,  rights-of-way,  uses,  leases,
licenses  and  all  other  incorporeal  hereditaments  and every estate,
interest or right, legal or equitable, including  terms  for  years  and
liens thereon by way of judgments, mortgages, or otherwise.
  16.  "Reimbursement  allowance"  shall  mean  any  money  paid  by any
government, or any agency or subdivision thereof or by a social services
district or  by  any  private  institution  or  organization  or  person
including,  but not limited to, payments authorized by and made pursuant
to the federal social security act and the state social services law, to
the corporation for the costs of health and medical  services  furnished
to beneficiaries thereof provided by the corporation directly or through
agreement with the city.
  17. "State" shall mean the state of New York.
  18. "Subsidiary corporation" shall mean a corporation created pursuant
to subdivision twenty of section five of this act.
  19. "Non-profit hospital" shall mean an organization authorized by law
to  provide  health  and  medical  services,  organized  exclusively for
charitable purposes on a non-profit basis, which does  not  devote  more
than  an insubstantial part of its total activities to activities not in
furtherance  of  its  charitable  purposes,  does  not  participate   or
intervene (including publishing or distributing statements), directly or
indirectly,  in  any political campaign on behalf of or in opposition to
any candidate  for  public  office,  and  no  substantial  part  of  the
activities of which is devoted to attempting to influence legislation by
propaganda  or otherwise and no part of the net earnings of which inures
to the benefit of a private shareholder or individual.
   4. New York city health and hospitals corporation. 1. A corporation,
to be known as the "New York city health and hospitals corporation,"  is
hereby  created.  Such corporation shall be a body corporate and politic
constituting a public benefit corporation. It shall be administered by a
board  of  directors  consisting  of  sixteen  members,  constituted  as
follows:  five  directors  shall  be the administrator, the commissioner
appointed by the mayor as chief administrative  officer  of  the  health
functions of the administration, the director of community mental health

services  of the administration, the administrator of human resources of
the city, and the deputy mayor-city administrator of the city, or  their
successors,  all serving ex-officio; ten directors shall be appointed by
the  mayor,  five of whom shall be designated by the city council of the
city of New  York;  and  the  remaining  director  shall  be  the  chief
executive officer of the corporation. Such chief executive officer shall
be  chosen  by  the  aforementioned fifteen directors from persons other
than themselves and shall serve at the pleasure of the board. The  terms
of  the  ten  directors  first  appointed by the mayor, other than those
serving ex-officio shall be as follows:
  Two shall serve for terms of one year each, one  of  whom  shall  have
been designated by the city council;
  Two  shall  serve  for terms of two years each, one of whom shall have
been designated by the city council;
  Two shall serve for terms of three years each, one of whom shall  have
been designated by the city council;
  Two  shall  serve for terms of four years each, one of whom shall have
been designated by the city council;
  Two shall serve for terms of five years each, one of whom  shall  have
been designated by the city council;
thereafter  their  successors  shall serve for terms of five years each.
The mayor shall fill any vacancy which may occur  by  reason  of  death,
resignation  or  otherwise  in  a  manner  consistent  with the original
appointment. Directors may be removed by the mayor for  cause,  but  not
without an opportunity to be heard.
  2.  The administrator of health services of the city shall be chairman
of the board of directors. He shall preside over  all  meetings  of  the
board  and shall have such other duties as the directors may direct. The
vice-chairman,  who  shall  be  elected  by  the  directors  from  among
themselves,  shall  preside over meetings of the board in the absence of
the chairman and shall have such other duties as the board may direct.
  3. The powers of the corporation shall be vested in and  exercised  by
the  board  of  directors  at a meeting duly held at a time fixed by any
by-law adopted by the board, or at any duly adjourned  meeting  of  such
meeting  or  at  any  meeting  held upon reasonable notice to all of the
directors, or upon written waiver thereof, and a majority of  the  whole
number  of  directors  shall constitute a quorum; provided, that neither
the business nor the powers of the corporation shall  be  transacted  or
exercised  except  pursuant to the favorable vote of at least a majority
of the  directors  present  at  a  meeting  at  which  a  quorum  is  in
attendance.  The  board  may  delegate  to one or more of the directors,
officers, agents or employees of the corporation such powers and  duties
as  it  may  deem  proper.  For  the purposes of this subdivision three,
"whole number" shall mean the total number of directors that  the  board
would have were there no vacancy in the office of a director.
  4.  The  directors  shall  not  be  entitled to compensation for their
service but shall  be  reimbursed  for  actual  and  necessary  expenses
incurred  by  them  in  the  performance  of  their official duties. The
directors may engage  in  private  employment  or  in  a  profession  or
business, unless otherwise prohibited from doing so by virtue of holding
another  public office, subject to the provisions of article eighteen of
the general municipal law. For the purposes of  such  article  eighteen,
the  corporation  shall  be  a  "municipality" and a director shall be a
"municipal officer".
  5. The board shall hold an annual meeting.
  6. Except as otherwise permitted or required by any federal  or  state
law,  rule or regulation, the corporation shall receive direct payments,
including payments made by a social services district under title eleven

of article five of the social services  law,  and  the  New  York  state
medical  assistance  plan  adopted  thereunder,  and other reimbursement
allowances whether as  a  "provider  of  services"  in  accordance  with
federal  law  or  otherwise, for the provision by the corporation of the
health and medical services for which  such  payments  are  made  or  by
reason  of  ownership  by the corporation of a health facility rendering
the health and medical services for which such payments  are  made.  For
the   purpose  of  such  title  eleven,  the  corporation  shall  be  an
"institution" supplying "medical assistance".
  7. The fiscal year of the corporation shall be the same as that of the
city.
  8. Notwithstanding any inconsistent provisions of this  or  any  other
general,  special  or local law, no officer or employee of the state, or
of any civil division thereof, or of any public corporation, as  defined
in  the  general  corporation law, shall be deemed to have forfeited his
office or employment or any benefits provided under the  retirement  and
social  security law or under any public retirement system maintained by
the state or by any of the civil divisions thereof by reason of being  a
director, officer, employee or agent of the corporation.
  9. The corporation shall keep each of its facilities and installations
open  to  inspection  at all times by duly authorized representatives of
the board of social services of the state, the comptroller of the state,
the department of health of  the  state,  the  mayor,  the  director  of
management  and  budget,  the  comptroller,  the administration and such
other federal, state or city departments or agencies authorized  by  law
to  so inspect; and each shall be provided access to all of the records,
reports,  books,  papers  and  accounts  of  the  corporation  and   its
facilities and installations other than privileged medical matter.
  10. The corporation shall hold annual public meetings, at least one in
each  of  the  five  boroughs,  after due public notice, for purposes of
informing the public of the programs and plans of the corporation.
  11. The corporation shall establish a  community  advisory  board  for
each  of  its  hospitals  to consider and advise the corporation and the
hospital upon  matters  concerning  the  development  of  any  plans  or
programs  of  the  corporation,  and may establish rules and regulations
with respect to such boards. The members of such advisory  boards  shall
be   representatives   of   the   community   served  by  the  hospital.
Notwithstanding any inconsistent provision of law, general,  special  or
local,  no  officer  or  employee  of the state or of any civil division
thereof, shall be deemed to have forfeited or shall forfeit  his  office
or  employment  by  reason  of  his  acceptance  of  membership  on such
community advisory board.    No  member  of  such  board  shall  receive
compensation  or  allowance for services rendered on such board, except,
however, that members of community advisory boards may be reimbursed for
necessary expenses up to and  including  twenty-five  dollars  during  a
calendar month by submitting a personal summary voucher.
    4-a.  For the purposes of sections one hundred seventy-five (a) and
one hundred seventy-five (b) of the state finance law,  the  corporation
shall be deemed to be a political subdivision.
   5. General powers of the corporation. The corporation shall have the
following  powers  in addition to those specifically conferred elsewhere
in this act:
  1. To sue and be sued;
  2. To have a seal and to alter the same at its pleasure;
  3. To adopt, alter, amend or repeal by-laws or  rules  or  regulations
for the organization, management, and regulation of its affairs;
  4.  To  borrow  money  and  to  issue negotiable notes, bonds or other
evidences of indebtedness and to provide for the rights of  the  holders

thereof  in  accordance  with  the  provisions  of  this  act; provided,
however, that the corporation shall not  issue  bonds,  notes  or  other
evidences  of  indebtedness  for  the  construction of a health facility
without  the  prior  approval  of  the  mayor  and, in the case of major
construction, without first submitting to the mayor a written  statement
of  the chairman of the board stating that the corporation has consulted
with the New York State housing finance agency and the  New  York  State
health  and  mental  hygiene  facilities  improvement  corporation  with
respect to such major construction.
  5. To  make  and  to  execute  contracts  and  leases  and  all  other
agreements  or  instruments  necessary or convenient for the exercise of
its powers and the fulfillment of its corporate purposes;
  6. To acquire, by purchase, gift, devise, lease or  sublease,  and  to
accept  jurisdiction  over  and to hold and own, and dispose of by sale,
lease or sublease, real or personal property, including but not  limited
to  a  health  facility,  or  any  interest  therein  for  its corporate
purposes; provided, however, that  no  health  facility  or  other  real
property  acquired  or  constructed  by  the  corporation shall be sold,
leased or  otherwise  transferred  by  the  corporation  without  public
hearing  by  the corporation after twenty days public notice and without
the consent of the board of estimate of the city;
  7. To operate, manage, superintend, and control  any  health  facility
under its jurisdiction and to repair, maintain and otherwise keep up any
such  health  facility;  and  to  establish and collect fees, rentals or
other charges, including reimbursement allowances, for the  sale,  lease
or  sublease  of  any  such  health  facility,  subject to the terms and
conditions of any contract, lease, sublease or other agreement with  the
city;
  8.  To  provide health and medical services for the public directly or
by agreement or lease  with  any  person,  firm  or  private  or  public
corporation  or association, through and in the health facilities of the
corporation and to make rules and regulations governing  admissions  and
health and medical services; and to establish and collect fees and other
charges,  including  reimbursement allowances, for the provision of such
health and medical services; and  to  provide  and  maintain  continuous
resident  physician  and  intern  medical  services;  and to sponsor and
conduct research, educational and training programs;
  9. To provide, maintain and operate  an  ambulance  service  to  bring
patients  to or remove them from any health facility of the corporation,
and to adopt a schedule of appropriate charges and to  provide  for  the
collection thereof;
  10.  To  determine,  in  accordance  with standards established by the
administration, the conditions under which a physician may  be  extended
the   privilege  of  practicing  within  a  health  facility  under  the
jurisdiction of the corporation, and to promulgate reasonable rules  and
regulations for the conduct of all persons, physicians and nurses within
any such facility;
  11.  To  employ  officers,  executives, management personnel, and such
other employees who formulate or participate in the formulation  of  the
plans,  policies,  aims, standards, or who administer, manage or operate
the corporation and its hospitals or health facilities,  or  who  assist
and  act  in  a confidential capacity to persons who are responsible for
the formulation, determination and effectuation of  management  policies
concerning personnel or labor relations, or who determine the number of,
and  appointment and removal of, employees of the corporation, fix their
qualifications and prescribe their duties and other terms of employment.
  All such  personnel  shall  be  excluded  from  collective  bargaining
representation.

  12.  To  employ such other employees as may be necessary and except as
otherwise provided herein to promulgate rules and  regulations  relating
to the creation of classes of positions, position classifications, title
structure, class specifications, examinations, appointments, promotions,
voluntary  demotions,  transfers, re-instatement, procedures relating to
abolition or reduction in positions, to determine the number of  and  to
appoint, remove and discipline employees, to prescribe their duties, fix
their  qualifications,  salaries,  wages,  fringe  benefits, hours, work
schedules, assignments and re-assignments,  leaves  of  absence,  annual
leave, other time and leave rules and other terms of employment.
  13.  To  prepare,  or  cause  to  be  prepared, plans, specifications,
designs and estimates of costs for the  construction  and  equipment  of
health  facilities;  provided, however, that such plans, specifications,
designs and estimates of cost shall, to the extent required by  law,  be
subject  to  the  approval  of  the  council prior to the implementation
thereof;
  14. To construct and equip, or by contract cause to be constructed and
equipped, health facilities, subject to the approval of the council;
  15. To apply for and/or to receive and accept any gifts or  grants  of
money,  property  or  services or other aid, including any reimbursement
allowance, offered or made available to it by any person, government  or
agency  whatever,  for  use  by  the  corporation  in  carrying  out its
corporate purposes and in the exercise of its powers; and  to  negotiate
for the same upon such conditions as the corporation may determine to be
necessary,  convenient  or  desirable;  and  to  comply,  subject to the
provisions of this act, with the terms of  any  such  gifts,  grants  or
other aid;
  16.  To  invest  any  funds  held in reserves or sinking funds, or any
funds not required for immediate use or disbursement, at the  discretion
of  the  corporation,  in  obligations  of  the  city,  state or federal
government or obligations  the  principal  and  interest  of  which  are
guaranteed by the city, state or federal government;
  17.  To procure insurance, or obtain indemnification, against any loss
in connection with the assets of the corporation  or  any  liability  in
connection  with  the  activities  of the corporation, such insurance or
indemnification to be procured or obtained in  such  amounts,  and  from
such sources, as the corporation deems to be appropriate;
  18.  To  cooperate with any organization, public or private, including
the health and mental  hygiene  facilities  improvement  corporation  as
established  by an act entitled the health and mental hygiene facilities
improvement act, and the New York  state  housing  finance  agency,  the
objects of which are similar to the purposes of the corporation;
  19.  To  use  agents, employees and facilities of the city, subject to
such  limitations  as  may  be  prescribed  by   collective   bargaining
agreement, and subject to the consent of the mayor;
  20.  (a)  To exercise and perform all or part of its purposes, powers,
duties,  functions  or  activities  through  one  or  more  wholly-owned
subsidiary  public  benefit corporations subject to limitations provided
herein. The board of the corporation by resolution may direct any of the
directors, officers or employees of the corporation to organize any such
subsidiary corporation as a public benefit corporation by executing  and
filing with the secretary of state a certificate of incorporation, which
may  be amended from time to time by filing with the secretary of state,
and which shall set forth the name of such public  benefit  corporation,
its  duration,  the  location of its principal offices and any or all of
the powers and purposes of such corporation, provided, however, that  no
such  subsidiary  corporations  shall  be established for the purpose of
operating a health facility or  the  delivery  of  direct  patient  care

without  the  prior approval of the mayor and, except in the case of the
Harlem Hospital Center or the new Harlem Hospital Center, until at least
two years shall have elapsed from the effective date of this act.  (b)  No  subsidiary  corporation  shall  have  the  power to engage in
collective bargaining or negotiate with  any  organization  representing
any  of its employees, or to enter into collective bargaining agreements
with any such  organization.  Each  such  subsidiary  corporation  shall
operate  under  personnel administration policies, practices, procedures
and programs, and terms and conditions of employment of the corporation,
including those agreed to in collective bargaining and determined by the
comptroller of the city pursuant to section two hundred  twenty  of  the
labor law.  (c)  Each  such  subsidiary  corporation  and  any  of its properties,
functions and activities shall have all of the  privileges,  immunities,
tax  exemptions  and  other  exemptions  of  the  corporation and of the
corporation's properties, functions and activities except,  however,  no
such  subsidiary  corporation  shall  issue  bonds  and  notes  or  form
subsidiary corporations.  Each  such  subsidiary  corporation  shall  be
subject  to  suit in accordance with the provisions of section twenty of
this act. Any state,  city,  commission,  agency,  officer,  department,
division  or  person is authorized to cooperate with and enter into such
agreements with a subsidiary corporation subject to  the  provisions  of
this  act  and to any agreement entered into pursuant thereto; provided,
however, that each such subsidiary corporation shall be subject  to  any
restrictions, approvals, and limitations to which the corporation may be
subject;
  21.  To  do  any  and all things necessary, convenient or desirable to
carry out its corporate purposes, and for the  exercise  of  the  powers
given to it in this act.
     6.   Relationship   to  the  city;  agreements  concerning  health
facilities.  1. (a) The city shall on or before the first  day  of  July
nineteen  hundred seventy enter into an agreement or agreements with the
corporation, pursuant to this section and section seven herein,  whereby
the  corporation  shall operate the hospitals then being operated by the
city for the treatment of acute and chronic diseases, and for the fiscal
year of the city commencing on the first day of  July  nineteen  hundred
seventy  and  thereafter the city shall include in its expense budget an
appropriation of tax levy for the services provided by  the  corporation
and  pay  the  corporation  an  amount  which shall not be less than one
hundred seventy-five million dollars; provided, however,  that  for  the
fiscal  year  beginning  July  first,  nineteen  hundred seventy-two and
thereafter the amount shall be adjusted  annually  to  take  account  of
increases  in  the  cost of health care as reflected in increases in the
average rates of reimbursement set by  the  state  pursuant  to  section
twenty-one  hundred  seven  of  the  public  health  law  for health and
hospital services in New  York  City,  and  changes  in  the  volume  of
services  rendered by the corporation and required by the city for which
no reimbursement from third-party sources is available. The  corporation
shall  submit a program budget to the city, in time for inclusion in the
mayor's executive budget, detailing the anticipated expenditure  of  the
tax levy funds appropriated by the city for the coming fiscal year.
  The  provisions  of subdivision three of paragraph a of section 135.00
of the local finance law shall not apply  to  a  contract  entered  into
pursuant to this section.
  1. (b) Within a reasonable time thereafter the city shall enter into a
similar  agreement  or  agreements for the remaining personal health and
medical facilities then operated by the city.

  2. (a) The corporation shall have the power to enter  into  contracts,
leases,  sub-leases or other agreements permitting the city to purchase,
lease, sub-lease or otherwise acquire or use any health facility  by  or
under  the  jurisdiction  of  the corporation; and to permit the city to
construct  or  add  health  facilities  or  improvements upon or to such
health facility.  (b) The city shall be  empowered  to  purchase,  lease,  sub-lease  or
otherwise acquire or contract for the use of and use any health facility
held by or under the jurisdiction of the corporation, or to construct or
add health facilities or improvements upon or to such a health facility,
in  accordance with the terms of any contract, lease, sub-lease or other
agreement entered into pursuant to the terms of this act.
  3. Any contract, lease, sub-lease or other agreement between the  city
and  the  corporation for the purchase, lease, sub-lease, use, operation
or construction and equipment of a health  facility,  as  authorized  by
this act, shall  (a) set forth any health facility to be constructed and equipped, used
or operated;  (b)  provide  that  the  corporation  shall  apply for and receive all
reimbursement allowances or other moneys available  to  the  corporation
from  any  source  for  the provision of health and medical services for
which such reimbursement  allowances  or  other  moneys  are  available,
through  or  in  the  facilities  of  the  corporation,  and  that  such
reimbursement allowances or other moneys shall be collected and received
by the corporation directly from  any  such  source,  and  used  by  the
corporation for the purposes herein recited;  (c) provide that whenever the city requires the corporation to provide
health  and  medical services to persons in the city, the city shall pay
the corporation for the cost of such services as are actually  rendered,
such  cost  to  be  determined  by  agreement  between  the city and the
corporation; provided, however, that such payments shall only be made by
the city to  the  extent  that  no  reimbursement  allowances  or  other
payments  are paid to the corporation from any other government or other
sources for the payment of such costs; and  (d) provide that the  health  and  medical  services  provided  by  or
through  any  such health facility shall be available to the public upon
the terms and conditions set forth in such contract, lease, sub-lease or
other agreement.
  4. (a) Any such contract, lease, sub-lease or other agreement  between
the  city and the corporation that requires the corporation to construct
and equip, or causes to be constructed or equipped,  a  health  facility
shall provide that the city shall be required to pay the total estimated
cost of such construction and equipment to the corporation at such times
and  in such amounts as determined and requested by the corporation, any
such payment to be made by the city upon the delivery to the comptroller
of the corporation of a certificate requesting such payment.  (b) For the purpose of this subdivision four, the cost of construction
and equipment shall include, but not be limited  to,  the  cost  of  any
plans,  specifications, drawings or designs prepared for the purposes of
the health facility concerned.
  5. Any such contract, lease, sub-lease or other agreement between  the
city  and  the  corporation  may  contain provisions, in addition to any
required by the provisions of this act, as to:  (a) pledging or assigning any part of moneys and  revenues,  including
reimbursement  allowances,  derived  by the city, or the corporation, to
secure payments required by such contract,  lease,  sub-lease  or  other
agreement;  (b)  limitations  on the purposes to which the proceeds of the sale of
the bonds and notes of the corporation may be  applied  and  as  to  the
pledging  of  such  proceeds to secure the payment of bonds and notes of
the corporation or of any issued thereby, subject to any agreement  with
the holders of bonds or notes of the corporation;  (c)  setting  aside  reserves  and  creating  special  funds  and  the
regulation and disposition thereof;  (d) procedures, if any, by which such contract,  lease,  sub-lease  or
other  agreement  may  be amended, the amount of bonds or notes or other
obligations the holders of which must consent thereto, and the manner in
which such consent may be given;  (e) defining the acts or omissions to act  which  shall  constitute  a
default  in  the  obligations  and duties of the city or corporation and
providing for the rights and remedies of the corporation and the holders
of its bonds, notes or other obligations in the event of such default;  (f) any other matters, of like or different character,  which  may  be
deemed  necessary  or  desirable  by  the  corporation  for  the  proper
effectuation of its corporate purposes or for the security or protection
of the holders of its bonds, notes, or other obligations.
  6. The city  shall  not  be  required  to  make  any  payment  to  the
corporation,  nor  shall  any  charge, claim or liability exist or arise
against the city for any such payment, in excess of amounts appropriated
or otherwise authorized by the city therefor. Payments due or to  become
due  by  the  city  pursuant  to any contract, lease, sub-lease or other
agreement  with  the  corporation  shall  not   constitute   outstanding
indebtedness  of  the  city  for  the  purposes  of  paragraph  three of
subdivision (a) of section 135.00 of the local fianance law.
  7. The corporation shall exercise its powers to  provide  and  deliver
health  and  medical  services to the public in accordance with policies
and plans of the  administration  with  respect  to  the  provision  and
delivery  of  such  services and the corporation shall have the power to
adopt and implement rules and regulations  not  inconsistent  with  such
policies   and   plans   of   the  administration.  For  its  part,  the
administration shall assist and  cooperate  with  the  corporation  with
respect to such matters.
     7.  Conveyance  of  property  by  the  city  to  the  corporation;
acquisition of property by the city. 1. The city, acting by the board of
estimate thereof, may, by deed, lease or other instrument convey,  lease
or  otherwise  dispose  of any real or personal property or any interest
therein owned or held by the city, without public letting or auction, to
the corporation for its corporate purposes, for so long as it  shall  be
in  existence  notwithstanding  the provisions of any law respecting the
inalienability of real property by the city,  and  such  conveyance  may
reserve to the city such rights as shall not restrict the corporation in
carrying out its corporate purposes.
  2.  The  city  may  acquire,  in  the name of the city, by purchase or
condemnation in the manner provided by law for the acquisition  of  real
property  by the city, real property in the city for the purposes of the
corporation or for the widening of existing roads, streets,  avenues  or
highways  or for new roads, streets, avenues or highways connecting with
a health facility constructed or otherwise acquired by the  corporation,
or partly for such purposes and partly for other city purposes. For said
purposes,  the city may close roads, streets, avenues or highways as may
be necessary; provided, however, that no state highway or way  shall  be
closed without the consent of the state commissioner of transportation.
  3.  Subject  to  the  approval  of  the board of estimate of the city,
contracts may be entered into  between  the  corporation  and  the  city
providing  for  the property to be acquired by the city and so conveyed,

the roads, streets, avenues, or highways to be closed by the  city,  and
the amounts, terms and conditions of payments, if any, to be made by the
corporation.  Any such contract between the city and the corporation may
be  pledged  by  the  corporation  to  secure  its bonds, notes or other
obligations and may not be modified thereafter except as provided by the
terms of the pledge.
  4. If the corporation determines that the use  and  occupancy  of  any
real  property  is  no  longer  required  for its corporate purposes and
powers, then if such real property was acquired at the cost and  expense
of the city, the corporation shall, subject to the provisions of section
five,  paragraph  six,  have power to surrender its use and occupancy to
the city. The corporation shall, subject to the  provisions  of  section
five,  paragraph  six, have power to sell, lease or otherwise dispose of
said real property at public or private sale or as part of  a  contract,
lease or other agreement entered into under the terms of this act and to
use  the  proceeds  derived  from  the  sale, lease or other disposition
thereof for its corporate purposes.
   7-a. Relationship with the New York state and  the  housing  finance
agency health and mental hygiene facilities improvement corporation.
  Notwithstanding any provision of this act to the contrary:  (a)  The  city  shall  not  sell,  assign,  transfer  or sublet to the
corporation any health facility, as defined  in  section  three  of  the
health  and  mental  hygiene  facilities  improvement act, located at or
related  to  or  constituting  a  hospital,  as   defined   in   article
twenty-eight  of  the  public  health  law,  if  such health facility is
subject to any lease, sublease or other agreement between the  city  and
the  New  York  state  housing finance agency, provided however, nothing
herein shall prohibit the licensing or other operating agreement for the
health facility so long  as  the  city  does  not  surrender  possession
thereof  and  that  the city continues to remain liable and obligated to
observe and perform each and every covenant, agreement,  obligation  and
undertaking  required  to be observed and performed by the city pursuant
to the provisions of any lease, sublease or other agreement between  the
city and the New York state housing finance agency.  (b)  The  corporation is authorized to sell or lease to the agency any
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 and the New York state
housing finance agency pursuant to a lease, sublease or other  agreement
between  the  city  and  the  New  York  state housing finance agency as
provided in the health and mental hygiene facilities improvement act and
article three of the private housing finance law.
   8. Contracts. 1.  Any  contract  let  by  the  corporation  for  the
construction  of  a  health facility shall be publicly let to the lowest
responsible bidder in the manner provided by, and  in  conformity  with,
the  provisions  of  article five-a of the general municipal law, except
that where the cost of such a contract  does  not  exceed  ten  thousand
dollars  such  contract  may  be  entered  into  without public letting;
provided, however, that if the corporation determines that in a  special
case  or cases it would not be in the public interest to comply with the
terms of this section  and  the  board  of  estimate  of  the  city,  by
resolution,  rule or regulation adopted by the vote of two-thirds of the
whole number of votes authorized to be cast by all of the members of the
board of estimate, concurs in such determination, then such  a  contract
may  be  entered  into  by  the  corporation  without  public letting as
authorized by the said resolution, rules or regulations. Notwithstanding
the provisions of this subdivision one, if  the  corporation  determines
that   circumstances  exist  whereby  it  would  be  detrimental  to  or

impracticable for the corporation to  comply  with  the  public  letting
requirements  of  this  section  concerning  a  change order then such a
change order may be let by the corporation without public  letting.  For
the  purposes  of  article  five-a  of  the  general  municipal law, the
corporation shall be deemed to be a "political subdivision".
  2. The corporation  may  make  rules  and  regulations  governing  the
qualifications  of  bidders entering into such a contract where the cost
of such a contract exceeds twenty-five thousand dollars. The bidding may
be restricted to those who shall have qualified prior to the receipt  of
bids according to standards fixed by the corporation; provided, however,
that  notice  or  notices  for the submission of qualifications shall be
published in the official publication of the city and in an  appropriate
trade journal published in the city, or if no such trade journal exists,
in  a  newspaper  with a general circulation in the city, at least once,
not less than ten days prior  to  the  date  fixed  for  the  filing  of
qualifications.
  3.  The  corporation,  in  its  discretion,  may  assign  the separate
contracts awarded pursuant to section one hundred  one  of  the  general
municipal  law  to the general contractor for supervision. Each contract
for the construction of a health facility may include a  provision  that
the  architect  who  designed the facility, or the architect or engineer
retained or employed specifically for the purpose of supervision,  shall
supervise  the  work to be performed through to completion and shall see
to it that the  materials  furnished  and  the  work  performed  are  in
accordance  with  the  drawings,  plans,  specifications  and  contracts
therefor.
  4. All bids received for the letting of any contract pursuant to  this
section  shall  be  submitted  to  the corporation and shall be publicly
opened and read by the corporation. Nothing in  this  section  shall  be
construed  to  limit the power of the corporation to do any construction
by or through its own officers, agents or employees.
  5. (a) In addition to any other bond or bonds that may be required  by
law  for  the  completion of a health facility, or in the absence of any
such requirement, the corporation shall require, prior to  the  approval
of  any contract or agreement providing for the construction of a health
facility, that the general contractor furnish a bond guaranteeing prompt
payment of moneys due to all persons furnishing labor or materials to or
for the general contractor or to his subcontractors in  the  prosecution
of  the  entire  work  provided  for  in  such agreement. A copy of such
payment bond shall be filed in the offices of the corporation and  shall
be open to public inspection.  (b)  Every  person  who has furnished labor or material, to or for the
general contractor or to a sub-contractor in the prosecution of the work
provided for in the contract or other agreement of the corporation  with
the general contractor and who has not been paid in full therefor before
the  expiration  of  a  period of ninety days after the day on which the
last of the labor was performed or material was  furnished  by  him  for
which  the  claim  is  made, shall have the right to sue on such payment
bond in his own name for the amount, or the balance thereof,  unpaid  at
the time of commencement of the action; provided, however, that a person
having  a  direct  contractual relationship with a sub-contractor of the
general contractor  furnishing  the  payment  bond  but  no  contractual
relationship  express  or implied with such general contractor shall not
have a right of action upon the bond unless he shall have given  written
notice  to  such  general contractor within ninety days from the date on
which the last of the labor was performed or the last  of  the  material
was  furnished,  for  which  his claim is made, stating with substantial
accuracy the amount claimed and the  name  of  the  party  to  whom  the

material  was  furnished or for whom the labor was performed. The notice
shall be served  by  delivering  the  same  personally  to  the  general
contractor  or by mailing the same by registered mail, postage pre-paid,
in an envelope addressed to the general contractor at any place where he
maintains an office or conducts his business or at his residence.
  6.  Any  contracts  for  design,  construction, services and materials
entered into by the corporation pursuant to this  act  shall  be  deemed
state  contracts within the meaning of that term as set forth in article
fifteen-A of the executive law, and the corporation shall be deemed, for
the purposes of this act, a contracting agency as that term is  used  in
article fifteen-A of the executive law.
    9.  Personnel  administration;  collective  bargaining; pension and
retirement benefits; article fourteen civil service law;  paragraph  two
hundred  twenty  labor  law; personnel review board. 1.  The corporation
shall, upon ten days written notice appropriately posted in  the  health
facilities,  promulgate  rules  and  regulations  consistent  with civil
service law with respect to policies, practices, procedures relating  to
position   classifications,   title   structure,  class  specifications,
examinations, appointments, promotions, voluntary demotions,  transfers,
re-instatements,  procedures  relating  to  abolition  or  reduction  in
positions, for personnel employed by the corporation pursuant to section
five,  subdivision  twelve  of  this  act,  subject  to  the   following
exception.  The  New  York  city  health and hospitals corporation shall
employ peace officers appointed pursuant to this subdivision to  perform
the  patrol,  investigation,  and  maintenance  of  the  peace duties of
special officer, senior special officer and hospital  security  officer;
provided  however  that  nothing  in  this  subdivision  shall  prohibit
managerial, supervisory, or state  licensed  or  certified  professional
employees of the corporation from performing these duties where they are
incidental  to  their  usual  duties,  or shall prohibit police officers
employed by the city of New York from performing these duties.
  Until the corporation adopts by-laws, rules and  regulations  relating
to   personnel  administration  the  corporation  shall  administer  its
personnel pursuant to the civil service law, the rules and  regulations,
time  and  leave  rules classification and compensation schedules, class
specifications and personnel orders of the New York city  department  of
personnel  and  civil  service  commission,  and  all  other  applicable
provisions of local or general laws relating to civil service personnel.
  2. (a) Every employee who was an employee of  the  administration,  or
any  constituent  agency  or  department thereof, shall be automatically
appointed and transferred to the corporation in the same  or  equivalent
classification and position he held at the time of such transfer and for
such  purposes the corporation shall be deemed the successor to the city
as a public  employer  of  such  employee.  All  officers  or  employees
transferred  to the corporation who had civil service status at the time
of such transfer shall retain such status for the purpose  of  transfer,
reassignment  or  promotion  to  any  position  in  a city department or
agency.  (b) (i) It is hereby found that the continued, uninterrupted, adequate
and efficient administration of health and medical services is necessary
for the general welfare of the people of the city of  New  York.  It  is
further  found  that  with  respect to certain services provided for the
corporation by the  voluntary  hospitals  and  medical  schools  in  the
municipal  hospitals  of  the  city  of  New  York,  such administration
properly requires that employees performing those services  be  employed
by  the  corporation.  For  the  continued performance of those services
assumed by  the  corporation,  the  continued  employment  of  personnel
possessing  ability,  skill,  experience  and  knowledge is essential. A

requirement of competitive examination for the appointment of  any  such
employee  to  the  corporation  would seriously interrupt the continuous
provision of health and medical services and is thus impractical. It  is
thereby  declared  to  be  in  the public interest that because of their
knowledge, training, experience and efficiency, those employees  of  the
voluntary  hospitals  and medical schools be continued in the employment
of  the  corporation  without  competitive  examination,  and  shall  be
afforded permanent competitive status.  (ii)  Notwithstanding  any  provision to the contrary contained in any
general,  special  or  local  law,  those  employees  of  the  voluntary
hospitals  and  medical  schools  in  the  city  of  New York performing
services which are assumed by the corporation shall  be  transferred  to
and   continued   in   employment  by  the  corporation  in  similar  or
corresponding  positions,  which  shall  have  been  classified  by  the
corporation in accordance with the provisions of subdivision one of this
section.  Such  employees shall continue to hold their positions without
further examination and shall have all the rights and privileges of  the
jurisdictional class to which such positions may be allocated; provided,
however,  that  after  such  transfer of functions and activities to the
corporation all new positions thereafter created and vacancies occurring
in positions already established shall be filled in accordance with  the
provisions of subdivision one of this section.
  3.   The   corporation   shall   recognize   the   certified  employee
organizations  and  bargaining  units  of  such   employees,   and   the
corporation  shall  assume  and  be  bound  by  all  existing collective
bargaining agreements with such  employee  organizations.  All  existing
terms  and  conditions  of employment of the corporation shall remain in
effect until modified or  changed  in  accordance  with  the  procedures
provided herein.
  4.  Any officer or employee of the corporation who heretofore acquired
or shall hereafter acquire such position status by transfer and  who  at
the  time  of such transfer was a member of the New York city employees'
retirement  system  shall,  with  respect  to  such  retirement  system,
continue  to  have  the rights, privileges, obligations and status which
would have applied to him if he had continued  to  hold  the  office  or
position  which  entitled him to such membership prior to such transfer.
Employment by the corporation  shall  constitute  city-service  for  the
purposes  of  title B of chapter three of the administrative code of the
city.
  5. The corporation, its officers and employees, shall  be  subject  to
article  fourteen of the civil service law and for all such purposes the
corporation shall be deemed "public employees", provided, however,  that
chapter  fifty-four of the New York City Charter and Administrative Code
and Executive Order No. 52 dated September 29, 1967, promulgated by  the
mayor  of  the  city  of  New  York,  shall apply in all respects to the
corporation, its officers and employees except that paragraph seven  and
paragraph  eight  of said executive order shall not be applicable to the
corporation, its officers and employees. Except as otherwise provided in
collective bargaining agreements the corporation shall establish general
and special grievances procedures which  shall  provide  for  final  and
binding  arbitration  of  grievances as defined in chapter fifty-four of
the administrative code of the city of New York. All general and special
grievance procedures shall be reviewed by  the  personnel  review  board
established under the terms of this act.
  6.  Any employee of the corporation shall be authorized to institute a
proceeding against the corporation in accordance with the provisions  of
article  seventy-eight  of the civil practice law and rules, and for the

purposes hereof the corporation shall be deemed an  administrative  body
or agency within the meaning of the said article seventy-eight.
  7.  Nothing  herein  contained shall supersede, impair or diminish the
rights of any officer or employee of the corporation under  or  pursuant
to  section  two  hundred  twenty of the labor law, and for the purposes
hereof the fiscal officer of the corporation shall be the comptroller of
the city of New York.
  8. (a)  For  a  period  of  five  years  after  the  creation  of  the
corporation,  the  corporation  shall,  in  its by-laws, provide for the
creation of a personnel review board, consisting of  three  members  who
shall be appointed for annual terms as follows: one member designated by
the  corporation; one member designated by the municipal labor committee
established  pursuant  to  section  1173-9.0  of  the  New   York   city
administrative  code,  and  one  member,  who  shall  be  the  chairman,
designated by the other two members of the personnel review board. After
the aforesaid period of five  years,  all  vacancies  in  the  personnel
review  board  shall be filled by appointment by the mayor. The chairman
of the personnel review board shall receive a per diem fee of  not  less
than  one  hundred  fifty  dollars  and the other two members shall each
receive a per diem fee of not less than one hundred twenty-five dollars,
when actually rendering services, in addition to  actual  and  necessary
expenses incurred in the performance of their duties.  (b)  Except  for  matters  which  are subject to collective bargaining
agreement, the personnel review board shall have the right to review, at
the instance of  any  aggrieved  employee  of  the  corporation  or  any
certified employee organization respresenting such employee, any by-law,
rule  or  regulation  promulgated  pursuant  to  subdivision one of this
section nine or any action of the corporation related thereto  and  upon
such  review  to  direct  the  corporation  to take or refrain from such
action as the personnel review board shall deem proper except,  however,
nothing  contained  in  this section nine shall abridge the right of the
corporation to exercise any managerial prerogatives which were  reserved
by  the  city  in  section five-c of the aforesaid mayor executive order
number fifty-two.
  The personnel review board shall,  when  requested  by  the  board  of
directors,  conduct  any  special  reviews,  studies,  investigations or
analyses of the administration of personnel in the corporation.
   10. Officers and employees not to be interested in transactions.  It
shall  be a misdemeanor for a director of the corporation or an officer,
agent, executive or other employee retained, employed  or  appointed  by
the  corporation  to  be  in  any  manner or way interested, directly or
indirectly, as principal,  surety  or  otherwise,  in  a  contract,  the
expense  or  consideration  whereof  is  payable  out  of  funds  of the
corporation.
   11. Moneys of the corporation. 1. Any  moneys  of  the  corporation,
from  whatever  source  derived,  shall, except as otherwise provided in
this act, be  deposited  as  soon  as  practicable  in  banks  or  trust
companies  organized  under  the  laws  of the state or national banking
association doing business in the city designated by the board. The said
moneys of the corporation shall be paid out  on  checks  signed  by  the
chairman  of  the  board or by such other person or persons as the board
shall authorize. All deposits of such moneys shall, if required  by  the
board, be secured by obligations of the United States or of the state or
of  the  city  of a market value equal at all times to the amount of the
deposits and all banks and trust companies are authorized to  give  such
security for such deposits.
  2.  Subject  to  the  terms  of any contract, lease or other agreement
undertaken by the corporation, any such moneys of  the  corporation  not

required  for  immediate  use  may,  at  the discretion of the board, be
invested by the corporation in obligations of  the  United  States,  the
state  or the city or in obligations the principal and interest of which
are guaranteed by the United States, the state or the city.
  3.  The  comptroller,  or  his  legally  authorized representative, is
hereby authorized to and shall examine annually the accounts  and  books
of  the  corporation  including  its receipts, disbursements, contracts,
reserves, sinking funds, investments and any other matters  relating  to
its financial operation and standing.
    12.  Issuance  of bonds and notes by the corporation. 1. Subject to
the provisions of section thirteen, the corporation shall have the power
and is hereby authorized, from time to time, to issue  negotiable  bonds
and  notes  in such aggregate principal amounts as shall, in the opinion
of the corporation, be necessary together  with  such  other  moneys  or
funds  as  may  be  available  to  the  corporation,  to  provide  funds
sufficient  to  enable  the  corporation  to  carry  out  its  corporate
purposes,  including  site  acquisition,  construction,  maintenance and
repair of health facilities, the payment of interest on and amortization
of, or payment of such bonds and notes, the establishment of reserves or
sinking funds to secure such bonds and notes, and all other expenditures
of the corporation incident  to  and  necessary  or  desirable  for  the
carrying  out  of its corporate purposes and the exercise of its powers.
Except as may otherwise be expressly provided by the corporation,  every
issue  of  its  bonds  and  notes  shall  be  general obligations of the
corporation payable out of any revenues or moneys  of  the  corporation,
subject  only  to any agreements with the holders of particular bonds or
notes pledging any particular revenues or moneys.  Whether  or  not  the
bonds  or  notes  are  of  such  form  and character as to be negotiable
instruments under  the  provisions  of  article  eight  of  the  uniform
commercial  code,  the  bonds  and  notes  shall  be and are hereby made
negotiable instruments within the meaning of and for all the purposes of
article eight of the  uniform  commercial  code,  subject  only  to  the
provisions of the bonds or notes for registration.
  2. The corporation shall have the power and is hereby authorized, from
time  to  time,  to  issue renewal notes, and 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 to pay notes or partly to refund bonds  then
outstanding and partly for any of its corporate purposes.
  3.  The  said  bonds  and  notes  shall be authorized by resolution or
resolutions of the board, and shall be dated and shall  mature  as  such
resolution  or  resolutions  may  provide,  except  that  no note or any
renewal thereof shall mature more than five  years  after  the  date  of
issue  of  the  original  note  and no bond shall mature more than forty
years from the date of its issue. Bonds and notes 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. Bonds and notes may be sold by the  corporation
at  public  or  private  sale at such price or prices as the corporation
shall determine; provided, however, that no such bonds or notes  may  be
sold  at  a private sale unless the sale and the terms thereof have been
approved by the comptroller in writing.
  4. Any resolution or resolutions authorizing any bonds  or  notes  may
contain  provisions,  which shall be a part of the contract or contracts
with the holders thereof, as to  (a) pledging all or any part of the moneys or revenues or other assets
of the corporation to  secure  the  payment  of  such  bonds  or  notes,

including,  but not limited to, fees, rentals and charges for the use of
a health  facility  and  the  proceeds  of  any  grant  in  aid  of  the
corporation  received  from  any  public or private source and contracts
authorized by section seven of this act;  (b)  the setting aside of reserves or sinking funds and the regulation
or disposition thereof;  (c) limitations on the purposes to which the proceeds of the  sale  of
any  issue  of  bonds  or  notes  then or thereafter to be issued may be
applied and pledging such proceeds to secure the payment of the bonds or
notes or any issue thereof;  (d) limitations on the issuance of  additional  bonds  or  notes;  the
terms  upon  which  such  additional  bonds  or  notes may be issued and
secured; the refunding of outstanding or other bonds or notes;  (e) the procedures, if any, by which the terms of  any  contract  with
the  holders  of bonds or notes may be extended or abrogated, the amount
of bonds or notes the holders of which  must  consent  thereto  and  the
manner in which such consent may be given;  (f) the creation of special funds into which any moneys or revenues of
the corporation may be deposited;  (g)  limitations  on  the  amounts that the corporation may expend for
administrative or other expenses thereof;  (h) vesting in a trustee or trustees such properties,  rights,  powers
and  duties  in trust as the corporation may determine which may include
any or all of the rights, powers and duties of the trustees appointed by
the holders of the bonds or notes pursuant to section seventeen of  this
act  and limiting or abrogating the right of the holders of the bonds or
notes to appoint a trustee under such section or  limiting  the  rights,
duties and powers of such trustee;  (i)  defining  the  acts  or omissions to act which shall constitute a
default in the obligations and duties of the corporation to the  holders
of  the  bonds or notes and providing for the rights and remedies of the
holders of the bonds or notes in the event of such default, including as
a matter of right the appointment of  a  receiver;  providing,  however,
that such rights and remedies shall not be inconsistent with the general
laws of the state and the other provisions of this act;  (j)  any  other  matters, of like or different character, which in any
way affect the security or protection of the holders  of  the  bonds  or
notes.
  5.  Any pledge of revenues, moneys or property made by the corporation
shall be valid and binding from the time when the pledge  is  made;  the
revenues,  moneys  or property so pledged and thereafter received by the
corporation shall immediately be subject to  the  lien  of  such  pledge
without  any  physical  delivery thereof or further act, and 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
corporation  irrespective  of  whether such parties have notice thereof.
Neither the resolution or resolutions nor any other instrument by  which
a pledge is created need be recorded.
  6.  Neither  the  directors  of  the  corporation nor any other person
executing such bonds or notes shall be subject to any personal liability
or accountability by reason of the issuance thereof.
  7. The corporation, subject to such agreements  with  the  holders  of
bonds or notes as may then exist, shall have the powers out of any funds
available  therefor  to  purchase  any  bonds or notes issued by it at a
price not exceeding the redemption price thereof which price shall be  (a) if the bonds or notes are then redeemable,  the  redemption  price
then  applicable plus accrued interest to the next interest payment date
thereon, or  (b) if the bonds or notes are  not  then  redeemable,  the  redemption
price  applicable  on  the first date after such purchase upon which the
bonds or notes become subject to redemption  plus  accrued  interest  to
such date.  All bonds or notes so purchased shall be cancelled.
    13.  Reserve  fund. 1. The corporation shall create and establish a
special fund (herein referred to as the capital reserve fund), and shall
pay into such capital reserve fund  (a) any moneys appropriated and made available by the  state  or  city
for the purpose of such capital reserve fund,  (b)  any  proceeds of sale of bonds or notes to the extent provided in
the  resolution  or  resolutions  of  the  corporation  authorizing  the
issuance thereof, and  (c)  any  other  moneys which may be made available to the corporation
for the purpose of such capital reserve fund from any  other  source  or
sources.  All  moneys  held  in  the  capital  reserve  fund,  except as
hereinafter provided, shall be  used  solely  for  the  payment  of  the
principal  of  bonds of the corporation, the payment of interest on such
bonds, or the payment of any redemption premium required to be paid when
such bonds are redeemed  prior  to  maturity;  provided,  however,  that
moneys  in such capital reserve fund shall not be withdrawn therefrom at
any time in such amount as would reduce the amount of such fund to  less
than  the maximum amount of principal and interest maturing and becoming
due in any succeeding fiscal year of the corporation on all bonds of the
corporation then outstanding, except for the purpose of paying principal
of and interest on such bonds of the corporation maturing  and  becoming
due and for the payment of which other moneys of the corporation are not
available.  Any  income  or  interest  earned  by,  or increment to, the
capital reserve fund due to the investment thereof may be transferred to
other funds or accounts to the extent it does not reduce the  amount  of
the  capital  reserve  fund  below  the  maximum amount of principal and
interest maturing and become due in any such succeeding fiscal  year  on
all bonds of the corporation then outstanding.
  2.  The  corporation  shall not issue bonds at any time if the maximum
amount of  principal  and  interest  maturing  and  becoming  due  in  a
succeeding  fiscal  year  of  the  corporation  on such bonds then to be
issued and on all other bonds of the corporation then  outstanding  will
exceed  the  amount  of the capital reserve fund at the time of issuance
unless the corporation, at the time of issuance  of  such  bonds,  shall
deposit in the capital reserve fund from the proceeds of the bonds so to
be  issued, or otherwise, an amount which, together with the amount then
in such fund, will not be less than the maximum amount of principal  and
interest maturing and becoming due in any such succeeding fiscal year on
such  bonds  then to be issued and on all other bonds of the corporation
then outstanding.
  3. For the purposes of computing the amount  of  the  capital  reserve
fund, any securities in which any portion of such fund is invested shall
be  valued  at  the  par  value  thereof  or  at the cost thereof to the
corporation if such cost was less than said par value.
  4. In order to assure the continued  operation  and  solvency  of  the
corporation  for  the carrying out of its public purposes as provided in
this act, provision is made in subdivision one of this section  for  the
accumulation  in  the  capital  reserve  fund  of an amount equal to the
maximum amount of principal and interest maturing and  becoming  due  in
any  succeeding  fiscal  year  of  the  corporation  on all bonds of the
corporation  then  outstanding.  In  order  further   to   assure   such
maintenance of the capital reserve fund, the chairman of the corporation
shall annually request from the city to be paid over to the corporation,
for  deposit  in the capital reserve fund, such sum, if any, as shall be

certified by the chairman of the corporation to the mayor  as  necessary
to  restore  the  capital reserve fund to an amount equal to the maximum
amount of principal and  interest  maturing  and  becoming  due  in  any
succeeding  fiscal  year  of  the corporation on all of the bonds of the
corporation then outstanding; provided, however,  that  such  sum  shall
have  been  first  appropriated by the city or shall otherwise have been
made  lawfully  available  for  such  purpose.  The  chairman   of   the
corporation  shall,  on  or before the fifteenth day of February in each
year, make and deliver to the mayor his certificate stating the  amount,
if  any,  needed  to  restore  the  capital  reserve  fund to the amount
aforesaid and the amount so  stated,  if  any,  shall  be  paid  to  the
corporation  by  the city. Notwithstanding any of the provisions of this
act, in the event of the failure or inability of the city  to  pay  over
the  stated  amount  to  the  corporation  on or before the first day of
August of the same year, the chairman  of  the  corporation  shall  then
forthwith  make  and  deliver  to the comptroller and to the director of
management and budget a further  certificate  restating  the  amount  so
required  and  such  amount  shall then be paid over to the corporation,
upon the warrant of the comptroller on vouchers certified as correct  by
the  director  of  management and budget, out of the general fund of the
city.
   14. Agreement of the state. The state of New York does pledge to and
agree with the holders of any and all bonds and notes of the corporation
that the state will not limit or alter the rights hereby vested  in  the
corporation  to  fulfill  the terms of any agreements made with the said
holders, or in any way impair the rights and remedies  of  such  holders
until  the bonds and notes, together with the interest thereon, interest
on any unpaid installments of interest, and all costs  and  expenses  in
connection  with  any  action  or  proceeding  by  or  on behalf of such
holders, are fully met and discharged. The corporation is authorized  to
include this pledge and agreement of the state in any agreement with the
holders of such bonds or notes.
    15.  State and city not liable on bonds and notes. The bonds, notes
or other obligations of the corporation shall not be a  debt  of  either
the  state of New York or of the city of New York, and neither the state
nor the city shall be liable thereon, nor shall they be payable  out  of
any funds other than those of the corporation.
   16. City's right to require redemption of bonds. Notwithstanding and
in  addition  to any provisions for the redemption of bonds which may be
contained in any contract with the holders of the bonds, the  city  may,
upon  furnishing  sufficient  funds therefor, require the corporation to
redeem, prior to maturity, as  a  whole,  any  issue  of  bonds  on  any
interest  payment  date not less than twenty years after the date of the
bonds of such issue at one hundred five per centum of their  face  value
and  accrued  interest  or  at  such  lower  redemption  price as may be
provided in the bonds in case of the redemption thereof as  a  whole  on
the  redemption date. Notice of such redemption shall be published in at
least two newspapers published and circulating in the city of  New  York
at  least twice, the first publication to be at least thirty days before
the date of redemption.
   17. Remedies of holders of bonds and notes. 1. In the event that the
corporation shall default in the payment of the principal of or interest
on any issue of bonds or notes after the same shall become due,  whether
at maturity or upon call for redemption, and such default shall continue
for  a period of thirty days, or in the event that the corporation shall
fail or refuse to comply with the provisions of  this  title,  or  shall
default in any agreement made with the holders of any issue of the bonds
or  notes,  the holders of twenty-five per centum in aggregate principal

amount of the  bonds  or  notes  of  such  issue  then  outstanding,  by
instrument  or  instruments filed in the office of the city clerk of the
city and approved or acknowledged in the same manner as  a  deed  to  be
recorded,  may  appoint a trustee to represent the holders of such bonds
or notes for the purposes herein provided.
  2. Such trustee may, and  upon  written  request  of  the  holders  of
twenty-five  per  centum in principal amount of such bonds or notes then
outstanding shall, in his or its own name:  (a) by suit, action or special proceedings enforce all rights  of  the
holders  of  the  bonds  or  notes,  including  the right to require the
corporation to carry out any agreements with such holders and to perform
its duties under this title;  (b) bring suit upon such bonds or notes;  (c) by action or suit, require the corporation to  account  as  if  it
were  the  trustee  of an express trust for the holders of such bonds or
notes;  (d) by action or suit, enjoin any acts or things which may be unlawful
or in violation of the rights of the holders of such bonds or notes;  (e) declare all such bonds or  notes  due  and  payable,  and  if  all
defaults  shall  be  made good, then, with the consent of the holders of
twenty-five per centum of the principal amount of such  bonds  or  notes
then outstanding, annul such declaration and its consequences.
  3.  The  supreme  court shall have jurisdiction of any suit, action or
proceedings by the trustee on behalf of such holders of bonds or  notes.
The  venue  of  any such suit, action or proceeding shall be laid in the
county of New York.
  4. Before declaring the principal of bonds or notes due  and  payable,
the  trustee  shall  first  give  thirty  days' notice in writing to the
corporation.
  5. Any such trustee, whether or not  all  bonds  or  notes  have  been
declared  due  and  payable,  shall  be  entitled  as  of  right  to the
appointment of a receiver who may enter and take possession of a  health
facility  or  any part or parts thereof and maintain and repair the same
and collect and receive all fees, rentals and charges or other  revenues
thereafter  arising  therefrom  in  the  same  manner as the corporation
itself might do and shall deposit all such moneys in a separate  account
and  apply  the  same  in  such manner as the court shall direct. In any
suit, action or proceeding by the trustee, the fees,  including  counsel
fees,  and  expenses  of  the trustee and of the receiver, if any, shall
constitute taxable disbursements and all costs and disbursements allowed
by the court shall be a first charge on any rentals,  charges  or  other
revenues derived from a health facility.
  6.  Such  trustee  shall in addition to the foregoing have and possess
all the powers necessary or appropriate for the exercise of any function
specifically set forth herein or incident to the general  representation
of  the holders of such bonds or notes in the enforcement and protection
of their rights.
   18. Assistance to the  corporation.  The  state  or  city  shall  be
empowered to make grants of money or property to the corporation for the
purpose  of  enabling it to carry out its corporate purposes and for the
exercise of its powers, including, but not limited to, deposits  to  the
capital  reserve  fund to assist the corporation in maintaining the said
capital reserve fund  in  the  amounts  required  by  section  thirteen.
Nothing  in  this  section  shall be interpreted as implying that in the
absence thereof the state or city would not be empowered  to  make  such
grants to the corporation.
    19.  Exemption  from  taxation.  1.  The moneys and property of the
corporation  and  any  property  under  its  jurisdiction,  control   or

supervision,  and  all  of its activities and operations shall be exempt
from taxation.
  2. The state of New York covenants with the purchasers of and with all
subsequent  holders  and  transferees  of  bonds and notes issued by the
corporation pursuant to this act, in consideration of the acceptance  of
and  payment for the said bonds and notes, that the said bonds and notes
and the income therefrom, and all moneys, funds and revenue  pledged  to
pay  or  secure the payment of such bonds and notes shall at all time be
free from taxation, except for  estate  and  gift  taxes  and  taxes  on
transfers.
    20.  Actions  by  and  against  the corporation. 1. In every action
against the corporation for damages for injuries  to  real  or  personal
property,  or  for  the destruction thereof, or for personal injuries or
death, the complaint shall contain an allegation that  at  least  thirty
days  have  elapsed  since  the  demand, claim or claims upon which such
action is founded were  presented  to  a  director  or  officer  of  the
corporation and that the corporation has neglected or refused to make an
adjustment or payment thereof for thirty days after such presentment, or
if  the  demand,  claim  or claims upon which such action is founded was
presented to a director or officer of the corporation  by  service  upon
the  secretary  of  state pursuant to section fifty-three of the general
municipal law, that at least forty days have elapsed since such  service
was  made,  and that the corporation has neglected or refused to make an
adjustment or payment thereof for forty days after such presentment.
  2. Except in an action for  wrongful  death,  an  action  against  the
corporation  for  damages  for injuries to real or personal property, or
for the destruction thereof, or for personal injuries, alleged  to  have
been  sustained,  shall  not  be commenced more than one year and ninety
days after the cause of action thereof shall have accrued, nor unless  a
notice of intention to commence such action and of the time when and the
place  where  the  tort  occurred  and  the  injuries  or  damage,  were
sustained, together with a verified  statement  showing  in  detail  the
property  alleged  to  have  been  damaged  or  destroyed  and the value
thereof, or the personal injuries alleged to have been sustained and  by
whom,  shall  have  been  filed  with  a  director  or  officer  of  the
corporation within ninety days after such cause  of  action  shall  have
accrued.  All the provisions of section fifty-e of the general municipal
law shall apply to such notice. The corporation may require any claimant
hereunder to be examined as provided in section fifty-h of  the  general
municipal  law,  and  all  the provisions of such section shall apply to
such examinations. An action against the corporation for wrongful  death
shall  be  commenced  in  accordance  with  the notice of claim and time
limitation provisions of title eleven of  article  nine  of  the  public
authorities law.
  3.  All  actions  against  the corporation of whatever nature shall be
brought in the city of New York, in the county within the city in  which
the  cause  of  action arose, or if it arose outside of the city, in the
county of New York.
  4. The corporation may require any person presenting for settlement an
account or claim for any cause against the  corporation,  except  as  to
examination  on  claims as set forth in subdivision two of this section,
to  be  sworn  before  an  officer,  counsel  or  an  attorney  of   the
corporation,  touching  such  account  or  claim,  and when so sworn, to
answer orally as to any facts relative to the adjustment of such account
or claim. The corporation may settle or adjust all claims in favor of or
against the corporation, and all accounts in which  the  corporation  is
concerned  as  debtor  or  creditor;  but in adjusting and settling such

claims, it shall, as far as practicable, be governed by the rules of law
and principles of equity which prevail in courts of justice.
  5.  Except  as  hereinafter  provided in this subdivision, the rate of
interest to be paid by the corporation  upon  any  judgment  or  accrued
claim  against  the  corporation  shall  not exceed three per centum per
annum. The rate of interest to be paid  upon  any  judgment  or  accrued
claim  against  the  corporation  arising  out  of  an action to recover
damages for wrongful death shall not exceed six per centum per annum.
  6. The corporation shall be an "agency" for the  purposes  of  section
fifty-k  of  the  general  municipal  law and its officers and employees
shall be entitled to legal representation and  indemnification  pursuant
to  the  provisions  of  and  subject  to the conditions, procedures and
limitations contained in such  section,  except  that  any  judgment  or
settlement  pursuant to this section shall be payable from the monies of
the corporation.
   21. Bonds and notes as legal investments. The bonds and notes of the
corporation are hereby made securities in which all public officers  and
bodies  of this state and all municipalities and municipal subdivisions,
all insurance companies and associations, and other persons carrying  on
an  insurance  business,  all  banks,  bankers, trust companies, savings
banks and savings associations, including savings and loan associations,
building and loan associations, investment companies and  other  persons
carrying   on   a   banking  business,  all  administrators,  guardians,
executors,  trustees  and  other  fiduciaries,  and  all  other  persons
whatsoever who are now or may hereafter be authorized to invest in bonds
or  in  other  obligations of the state, may properly and legally invest
funds, including capital, in their control or belonging to them.
   22. Annual and special reports. 1. Within one  hundred  twenty  days
after  the  end  of  the  fiscal  year of the corporation, the directors
thereof shall submit to the mayor, the comptroller, the city council  of
the  city  of New York and the state comptroller a complete and detailed
report setting forth:  (a) its operations and accomplishments during such fiscal year;  (b)  its  receipts  and  expenditures  during  such  fiscal  year   in
accordance   with  categories  or  classifications  established  by  the
corporation for its own operating and capital outlay purposes;  (c) its assets  and  liabilities  at  the  end  of  such  fiscal  year
including  a  schedule  of its bonds, notes or other obligations and the
status of reserves, depreciation, special, sinking or other funds;  (d) details of health facilities being planned or in  the  process  of
being  constructed or otherwise acquired and health facilities that have
been constructed or acquired;  (e) the performance of the corporation in completing  construction  by
designated completion dates and within cost estimates;  (f)  the  names, addresses and qualifications of architects, engineers
or other consultants retained by the corporation and a statement of  any
amounts paid or to be paid to such persons for their services;  (g) the details of any leases or sales or other dispositions of health
facilities  including  the  fees,  rental  and charges received or to be
received therefrom;  (h)  such  other  information  relating  to  the  operations  of   the
corporation  as  shall  be deemed pertinent by the directors, the mayor,
the comptroller, the city council of the city of New York or  the  state
comptroller.
  2.  The  chairman  of  the  corporation,  on  behalf  of the directors
thereof, on or before December first of each  year,  shall  prepare  and
submit  to  the  mayor,  a  complete and detailed special report setting
forth:  (a) an itemized budget of the expected receipts  and  expenditures  of
the corporation during the next fiscal year; and  (b)  information as to the issuance or payment, or provision therefor,
of bonds, notes and other obligations of  the  corporation  during  such
next fiscal year.
    23. Act not affected if in part unconstitutional or ineffective. If
any section, subdivision, paragraph, sentence, clause  or  provision  of
this  act shall be unconstitutional or ineffective, in whole or in part,
to the extent that it is not unconstitutional or ineffective it shall be
vaild and  effective  and  no  other  section,  subdivision,  paragraph,
sentence, clause or provision shall on account thereof be deemed invalid
or ineffective.
   24. Inconsistent provisions of other laws superseded. Insofar as the
provisions of this act are inconsistent with the provisions of any other
law,  general,  special  or  local,  the provisions of this act shall be
controlling, provided, however, that nothing therein shall be deemed  to
prevent  the city from constructing a health facility by the issuance of
bonds or notes or other obligations pursuant to the local  finance  law,
or  from  owning,  holding, operating or using a health facility or from
providing health and medical services.
    25.  Termination  of  the  corporation.  The  corporation  and  its
corporate  existence  shall  continue until terminated by law; provided,
however, that no such law shall take effect so long as  the  corporation
shall   have   bonds,  notes  or  other  obligations  outstanding.  Upon
termination of the existence of  the  corporation  all  of  its  rights,
property,  assets  and funds shall thereupon vest in and be possessed by
the city.