N.Y. Medical Care Facilities Finance Agency 392/73 § 9: Special provisions relating to the municipal health facilities improvement program

§ 9. Special provisions relating to the municipal health facilities

improvement program. Notwithstanding any other provisions of law,

general, special or local, or any provision of any charter or ordinance:

1. A municipality is hereby authorized to execute and deliver to the

agency for such consideration as may be determined by the municipality,

the agency and the health and mental hygiene facilities improvement

corporation, but not to exceed the cost of acquisition thereof to the

municipality and the cost of improvements thereon, a lease for a term

not exceeding fifty years or a quit claim deed conveying to the agency

all right, title and interest of such municipality in and to real

property, for the purpose of constructing, reconstructing,

rehabilitating, or improving one or more health facilities pursuant to

this act and the health and mental hygiene facilities improvement act

for subsequent lease or sublease to such municipality, in accordance

with the terms of any agreement entered into pursuant to this act and

the health and mental hygiene facilities improvement act.

2. A municipality is hereby authorized to lease or sublease from the

agency the health facilities acquired, constructed, reconstructed,

rehabilitated or improved pursuant to this act and the facilities

development corporation act in accordance with the terms of any

agreement entered into pursuant to this act and the facilities

development corporation act. At such time as all rentals due or to

become due to the agency pursuant to the terms of any such lease or

sublease have been paid or such lease or sublease is terminated pursuant

to the provisions thereof, the jurisdiction of the agency over the real

property leased or conveyed pursuant to this section, together with the

improvements thereon shall cease and all interest real and personal in

such real property and improvements vested in the agency shall vest in

the municipality with right of re-entry thereon.

3. No real property interest therein shall be acquired by the agency

pursuant to this section unless title thereto shall have been approved

by the attorney general.

4. The attorney general shall pass upon the form and sufficiency and

manner of execution of any deed of conveyance and of any lease or

sublease to which the agency and a municipality are parties, and the

same shall not be effecteive unless approved by him.

5. In the event that the agency shall fail within five years from the

date of a lease or conveyance authorized pursuant to this section to

construct, reconstruct, rehabilitate or improve the health facilities

thereon for which the lease or conveyance was made, as provided for in

any agreement entered into pursuant to this act and the health and

mental hygiene facilities improvement act, or in the event that such

health facilities shall cease to be used for the purposes intended, then

and in either event but subject to the terms of any lease, sublease or

other agreement between the agency and the municipality, such real

property and any health facilities thereon shall revert to the

municipality with right of re-entry thereupon and such lease or deed

shall be made subject to such conditions; provided, however, that as a

condition precedent to the exercise of such right of re-entry the

municipality shall pay to the agency an amount equal to the purchase

price of such real property, the depreciated cost of any health

facilities constructed, reconstructed, rehabilitated or improved, and

all other costs of the agency incident to the acquisition of such real

property and the financing of construction, reconstruction,

rehabilitation or improvement relating to such facilities, all as

provided in the aforesaid lease, sublease or other agreement entered

into with such municipality.

6. In the event that the agency shall determine that any portions of

the real property leased or conveyed pursuant to this section are in

excess of the real property needed to construct, reconstruct,

rehabilitate or improve the facility or facilities thereon for which the

conveyance was made, as provided in any agreement entered into pursuant

to this act and the health and mental hygiene facilities improvement

act, the agency may terminate its lease with respect to such excess

portions of such real property or reconvey such excess portions to the

municipality, provided, however, that the municipality shall pay to the

agency an amount equal to the consideration, if any, paid by the agency

to such municipality allocable to such excess real property and such

other costs of the the agency as are incident to the acquisition of such

excess real property, all as may be approved by such municipality and

the agency. Any monies so paid to the agency shall be used and applied,

subject to the provisions of any contract with noteholders and

bondholders, for the sole purpose of paying costs and expenses of the

agency incident to the financing of the health facilities, to be

constructed, reconstructed, rehabilitated or improved on such other

portions of the real property as shall have been leased or conveyed to

the agency pursuant to this section.

7. The cost of construction, acquisition, reconstruction,

rehabilitation or improvement of health facilities undertaken by the

agency pursuant to this act and the health and mental hygiene facilities

improvement act may include the cost of acquisition of any real property

leased or conveyed to the agency in accordance with this section and the

cost of the original furnishings, equipment, machinery and apparatus

needed to furnish and equip such facilities upon the completion of the

work. The agency shall have power to acquire or lease and to hold real

property required for the construction, acquisition, reconstruction,

rehabilitation or improvement of the health facilities undertaken by the

agency pursuant to this act and the health and mental hygiene facilities

improvement act and to provide the original furnishings, equipment,

machinery and apparatus needed to furnish and equip such facilities upon

the completion of work and to issue its bonds and notes to provide

sufficient funds to pay the cost thereof.

8. A municipality is hereby authorized and empowered, in connection

with any lease, sublease or other agreement with the agency to which

such municipality is a party, and subject to such agreements with third

parties as may then exist, to:

(a) pledge or assign to the agency all or any portion of the revenues

and monies received or to be received by the municipality, which may be

available for the purpose of paying rentals for the use of the health

facilities constructed, acquired, reconstructed, rehabilitated or

improved under such agreement, so that the payment of such rentals may

be fully secured and protected;

(b) use and dispose of such revenues and monies, or any portions

thereof, for the purpose of defraying, in whole or in part (1) the cost

of acquiring any real property for the purpose of constructing,

acquiring, reconstructing, rehabilitating or improving facilities

thereon which may be constructed, acquired, reconstructed, rehabilitated

or improved by the agency pursuant to this act and the health and mental

hygiene facilities improvement act, (2) the cost of financing the

construction, acquisition, reconstruction, rehabilitation or improvement

of such facilities, and (3) the cost of acquiring the original

furnishings, equipment, machinery and apparatus needed to furnish and

equip such facilities upon the completion of the work;

(c) set aside rental reserves and to agree to the maintenance,

regulation and disposition thereof;

(d) agree to limitations on the purposes to which the proceeds of sale

of health facilities notes or health facilities bonds may be applied and

to the pledging of such proceeds to secure the payment of health

facilities notes or health facilities bonds or of any issue thereof;

(e) agree to limitations on the making of additional leases, subleases

or agreements with the agency or with others, and the terms upon which

such additional leases, subleases or agreements may be made;

(f) upon receipt of any notice of assignment by the agency of any such

lease, sublease or other agreement with the agency, or of any of its

rights under such lease, sublease or other agreement, recognize and give

effect to such assignment and to pay the assignee thereof rentals or

other payments then due or which may become due under any such lease,

sublease or other agreement which has been so assigned by the agency;

and

(g) agree to any other matters, of like or different character, which

in any way affect the security or protection of the rental payments

required to be made under the terms of such lease, sublease or other

agreement with the agency.

9. A municipality is hereby authorized and empowered, to enter into a

lease, sublease, license or other operating agreement with any other

person, firm or corporation to operate or to sublease, license or

otherwise arrange for the operation of, the health facilities acquired,

constructed, reconstructed, rehabilitated or improved pursuant to this

act.