2023 New York Laws › PBA - Public Authorities › Article 10-C - New York Health Care Corporations › Title 5 - Clifton-Fine Health Care Corporation › 3607 - Transfer of Property; Relationship With the Towns; Certain Gifts, Loans and Guarantees by the Towns.

§  3607.  Transfer  of  property; relationship with the towns; certain
gifts, loans and guarantees by the towns. 1. (a) Either town  may  give,
grant,  sell,  convey,  loan,  license  the  use  of,  or  lease  to the
corporation any property (except monies appropriated  by  the  town  and
payable  to  the corporation pursuant to subdivision three and paragraph
(a) of subdivision four of this section) which are useful in  connection
with  the  exercise  by  the corporation of any of its powers under this
title in  order  to  transfer  the  facilities  and  operations  of  the
Clifton-Fine  Hospital to the corporation by agreement between the towns
and the corporation and any subsequent renewal or amendment thereof,  by
local law adopted by a majority of both town boards, notwithstanding any
general, special or local law, ordinance, resolution or charter.
(b)  Any  such  gift,  grant, sale, conveyance, loan, license or lease
shall be upon such terms and conditions, for such consideration, if any,
and for such term or terms of  years,  subject  to  the  rights  of  the
holders  of  any  bonds,  as the corporation and the towns may agree. No
real property of the towns consisting of any health  facility  currently
operated  by  the  Clifton-Fine  Hospital  shall  be  transferred to the
corporation in fee, except under such restrictions regarding  rights  of
first  refusal,  or other rights, to repurchase the property as the town
boards shall approve by act,  and  subject  to  a  restrictive  covenant
prohibiting the corporation from pledging or mortgaging the fee interest
in  the  property.  In  the  event  that  the town gives, grants, sells,
conveys, loans, licenses or leases any facilities  to  the  corporation,
the  towns  may contract with the corporation to lease, borrow, license,
operate, maintain, manage and provide services for such facilities  upon
such  terms  and conditions and for such term or terms of years, subject
to the rights of holders of bonds, as the corporation and the towns  may
agree.    The corporation, in furtherance of any purchase, conveyance or
lease of any property or facility from the towns, may assume the primary
responsibility for the payment of the  principal  and  interest  on  any
bonds or notes issued by the towns for such property or facility.
2.   The   town  may  acquire  by  purchase,  grant,  lease,  gift  or
condemnation pursuant to the eminent domain procedure law, real property
in the name of the towns for any corporate purpose of the corporation.
3. In addition to any other powers granted to it by law and consistent
with the constitution and other provisions of law, the towns  may,  from
time  to  time, appropriate sums of money to defray project costs or any
other costs or expenses of the corporation including operating expenses.
Subject to the rights of bondholders, the towns may determine  if  the
monies  so appropriated shall be subject to repayment by the corporation
to the towns and, in such event, the manner and time or times  for  such
repayment.
4. In addition to the authority granted elsewhere in this title and by
other  applicable  laws,  the corporation and the towns may enter into a
contract or contracts from time to time providing for one or more of the
following:
(a) the  payment  of  sums  appropriated  by  the  towns  pursuant  to
subdivision three of this section;
(b)  the  payment  of  sums  for  health care services provided by the
corporation which could otherwise be provided  directly  by  the  towns,
including services for uncompensated care;
(c)  services  to  be  provided  by  the  towns to or on behalf of the
corporation;
(d) the transfer of employees of  the  towns  to  the  corporation  as
provided in section thirty-six hundred four of this title;
(e)  indemnification  by  the  corporation  to  the  towns  for claims
associated with establishment of and operation of  the  corporation  and
its health facilities;
(f)  the  gift, grant, sale, conveyance, loan, license or lease by the
towns to the corporation of any property (except monies appropriated  by
the  county and payable to the corporation pursuant to subdivision three
and paragraph (a) of this subdivision) or facilities which are useful in
connection with the exercise by the corporation of  any  of  its  powers
under  this  title  not transferred pursuant to the authority granted in
paragraph (a) of subdivision one of this  section,  which  gift,  grant,
sale,  conveyance,  loan, license or lease shall nevertheless be subject
to paragraph (b) of subdivision one of this section; and
(g) such other  matters  as  may  be  appropriate  to  accomplish  the
purposes hereof.
Any such contract or contracts shall be authorized by the towns by act
adopted  by majority vote of the town boards. Such contract or contracts
shall include such terms and conditions, be for such  consideration,  if
any,  and  have  such term or terms of years, as the corporation and the
towns may agree.
5. (a) Notwithstanding any general, special or local  law  or  charter
provisions to the contrary, the towns of Clifton and Fine shall have the
power  and  are  hereby authorized, pursuant to section seven of article
seventeen of the state constitution, to lend money or credit  to  or  in
aid  of  the  corporation  or  any subsidiary thereof for the purpose of
providing health related  facilities  or  hospital  facilities  for  the
prevention,  diagnosis  or  treatment  of  human  disease, pain, injury,
disability,  deformity  or  physical  condition,  and   for   facilities
incidental or appurtenant thereto as may be prescribed by law. The towns
are  hereby  authorized to prescribe such facilities by local law of the
towns. The corporation or any such subsidiary thereof, as a condition to
any such loan  of  money  or  credit,  shall  enter  into  a  regulatory
agreement  with  the  towns  as  to  its charges, profits, dividends and
disposition of its property of  franchises,  which  agreement  shall  be
binding  and  enforceable  by  the  towns insofar as this regulates such
charges, profits, dividends and disposition of property. The  towns  may
elect in such regulatory agreement to refrain from exercising all or any
portion of its authority to so regulate such charges, profits, dividends
and  disposition  of  property  to  the  extent  such  charges, profits,
dividends and disposition of property are regulated by the state or  any
agency  thereof.  The towns shall authorize such regulatory agreement by
local law.
(b) In pursuance of the authority granted herein, the towns shall have
the power and is hereby authorized from time to  time  to  issue  bonds,
notes  or other obligations in such principal amounts as they shall deem
necessary, after taking into account other monies which may be available
for the purposes set forth herein.  Such  bonds,  notes  or  obligations
shall  be  issued  for the purpose of making loans to the corporation or
any subsidiary thereof, paying interest on such bonds,  notes  or  other
obligations,  establishment  of reserves to secure such notes, bonds, or
other obligations, and paying all  other  obligations  and  expenditures
incidental  to and necessary or convenient for the making of such loans.
Such bonds, notes or obligations shall be issued in accordance with  the
applicable  provisions  of  this  chapter  and the local finance law and
applicable local laws.
(c) Any guarantee by the towns made pursuant to the authority  granted
in  this  section shall be authorized by act or acts of the towns in the
same manner as such act or acts authorizing the issuance of bonds of the
towns for the purposes for which such guarantee is undertaken.
(d) The towns shall also be authorized to  enact  laws  governing  the
conditions  under  which such loans, commitments and guarantees shall be
made.
6. For purposes of subdivision four of paragraph a of section 25.00 of
the  local  finance  law,  amounts  to  be derived by the towns from the
corporation, or any subsidiary thereof, shall be included  in  the  term
"other income".
7.  (a) Notwithstanding the provisions of any other state or local law
to the contrary, including, but not limited to, sections six-n and six-j
of the general municipal law, with the  approval  of  the  town  boards,
amounts  deposited  for or on behalf of the Clifton-Fine Hospital in the
liability  and  casualty  and  workers'   compensation   reserve   funds
established  by  the  towns  pursuant  to  said  sections of the general
municipal law, and investment earnings thereon, may be withdrawn by  the
towns  from  such  funds and transferred to the corporation and shall be
used by the corporation for the  purposes  for  which  such  funds  were
established.
(b)  No  amounts shall be withdrawn and transferred to the corporation
pursuant to this subdivision unless prior thereto  the  corporation  has
agreed  in writing to indemnify and hold harmless the towns, and provide
defense, for all claims, cases, proceedings, actions  or  other  matters
against  the towns arising out of the properties, facilities, operations
or employees of the corporation of the  Clifton-Fine  Hospital,  whether
commenced  before  or after the date of transfer of said amounts, and to
provide such other  security  for  this  obligation  as  the  towns  may
reasonably require.