N.Y. Medical Care Facilities Finance Agency 392/73 § 8: Health facilities reserve funds and appropriations

§ 8. Health facilities reserve funds and appropriations. 1. (a) For

the purposes of the issuance by the agency of health facilities bonds,

the term "health facilities reserve fund requirement" shall mean, as of

any particular date of computation, an amount of money equal to the

greatest of the respective amounts, for the then current or any

succeeding calendar year, of annual debt service payments of the agency,

such annual debt service payments for any calendar year being an amount

of money equal to the aggregate of (i) all interest payable during such

calendar year on all health facilities bonds of the agency then

outstanding on said date of computation, plus (ii) the prinicipal amount

of all health facilities bonds of the agency then outstanding on said

date of computation which mature during such calendar year, plus (iii)

the amount of all sinking fund payments payable during such calendar

year with respect to all health facilities bonds of the agency

outstanding on said date of computation; and the term "sinking fund

payment" shall mean the amount of money specified in the resolution

authorizing term bonds as payable into a sinking fund for the

amortization of such term bonds. The agency may create and establish one

or more additional reserve funds to be known as health facilities

reserve funds and may pay into such reserve funds (1) any monies

appropriated and made available by the state for the purposes of such

funds, (2) any proceeds of sale of health facilities notes or health

facilities bonds, to the extent provided in the resolution of the agency

authorizing the issuance thereof, and (3) any other monies which may be

made available to the agency for the purposes of such funds from any

other source or sources. The monies held in or credited to any health

facilitiss reserve fund established under this subdivision, except as

hereinafter provided, shall be used solely for the payment of the

prinicipal of health facilities bonds of the agency secured by such

reserve fund, as the same mature, sinking fund payments, the purchase of

such health facilities bonds of the agency, and the payment of any

redemption premium required to be paid when such bonds are redeemed

prior to maturity; provided, however, that monies in any such fund shall

not be withdrawn therefrom at any time in such amount as would reduce

the amount of such fund to less than the health facilities reserve fund

requirement, except for the purpose of paying principal and interest on

the health facilities bonds of the agency secured by such reserve fund

maturing and becoming due and any sinking fund payments and for the

payment of which other monies of the agency are not available. Any

income or interest earned by, or increment to, any such health

facilities reserve fund due to the investment thereof may be transferred

to any other fund or account of the agency to the extent it does not

reduce the amount of such health facilities reserve fund below the

health facilities reserve fund requirement.

(b) The agency shall not issue health facilities bonds and health

facilities notes, municipal hospital bonds, municipal hospital notes,

municipal nursing home bonds and municipal nursing home notes in an

aggregate principal amount exceeding two billion dollars, excluding

health facilities bonds and health facilities notes issued to refund

outstanding health facilities bonds or health facilities notes. The

agency shall not issue health facilities bonds at any time secured by a

health facilities reserve fund if upon issuance, the amount in the

health facilities reserve fund will be less than the health facilities

reserve fund requirement, unless the agency, at the time of issuance of

such bonds, shall deposit in such reserve fund from the proceeds of the

bonds so to be issued, or otherwise, an amount which together with the

amount then in such reserve fund, will be not less than the health

facilities reserve fund requirement.

(c) In computing any health facilities reserve fund for the purposes

of this section, securities in which all or a portion of such reserve

fund shall be invested shall be valued at par if purchased at par, or if

purchased at other than par, at amortized value.

2. (a) The agency shall create and establish one or more special

accounts (herein referred to as health facilities income account) and

shall pay into such accounts any monies which the agency shall receive

in payment of rentals due under one or more leases or subleases entered

into with a municipality pursuant to section five and any other monies

which the agency shall receive from a municipality as security for or in

payment of such rentals. Such monies and any other monies paid into such

health facilities income accounts, may, in the discretion of the agency,

but subject to agreements with the holders of health facilities bonds

and health facilities notes, be used by the agency (1) for the repayment

of advances, if any, from the state to the agency in connection with

health facilities, and any real property required therefor, in

accordance with the provisions of repayment agreements related thereto

which have been entered into with the director of the budget, (2) to pay

all costs, expenses and charges of financing the health facil-

applicable to such account or accounts including fees and expenses of

trustees and paying agents, (3) to pay the administrative and other

expenses of the agency allocable to the services performed by the agency

in the financing of the construction, acquisition, reconstruction,

rehabilitation or improvement of health facilities and matters relating

thereto, (4) for the payment of the principal of and interest on health

facilities bonds or health facilities notes isued by the agency when the

same shall become due whether at maturity or by call for redemption and

for the payment of any redemption premium required to be paid where such

bonds or notes are redeemed prior to their stated maturities, and any

sinking fund payments, and to purchase health facilities bonds or health

facilities notes isued by the agency, or (5) for such other corporate

purposes of the agency relating to the carrying out of its functions,

powers and duties with respect to the financing of the construction,

acquisition, reconstruction, rehabilitation or improvement of health

facilities as the agency in its discretion shall determine and provide.

(b) To assure the continued payment of rentals due under one or more

leases or subleases entered into with a municipality pursuant to section

five, the agency shall make and deliver to the appropriate chief fiscal

officer of the municipality a certificate setting forth the amount, if

any, due and not paid to the agency under such lease or sublease with

such municipality within five days of the due date. In the event of the

failure or inability of the municipality to pay over the stated amount

to the agency within ten days of receipt of such certificate, the agency

shall forthwith make and deliver to the comptroller of the state of New

York, the director of the budget of the state of New York and the

commissioner of health of the state of New York a further certificate

restating the amount due and not paid, and such amount shall be paid

over to the agency, upon the warrant of the comptroller on vouchers

certified as correct by the commissioner of health, out of the next

payment of state aid to such municipality pursuant to section 368-a of

the social services law or funds appropriated for the purpose of making

payment on behalf of such municipality pursuant to section 367-b of such

law. To the extent any such payments to the agency are made from state

aid payments pursuant to section 368-a of such law, the amount of such

payments shall be deducted from the corresponding apportionment of state

aid otherwise credited to such municipality, and the state shall not be

obligated to pay, nor shall such municipality be entitled to receive, by

virtue of such deduction, any additional or increased apportionment or

payment of state aid pursuant to section 368-a of the social services

law. To the extent any such payments to the agency are made from funds

appropriated for the purpose of making payments on behalf of such

municipality pursuant to section 367-b of such law, the amount of such

payments may be deducted from any other payments of state assistance to

such municipality under the social services law and the state shall not

be obligated to pay, nor shall the municipality be entitled to receive,

by virtue of such deduction, any additional or increased apportionment

or payment of such state assistance, provided, however, that nothing

contained in this sentence shall be construed to limit, impair, impede,

or otherwise adversely affect in any manner the rights or remedies of

the purchasers and holders and owners of any bonds or notes of the state

or any agency or instrumentality, public benefit corporation or

political subdivision thereof under which such purchasers and holders

and owners have any right of payment of such bonds or notes by recourse

to such state assistance monies.