N.Y. Public Health Law § 4664: Asset reserves

§ 4664. Asset reserves. An operator shall maintain reserve liabilities

and supporting assets in an amount for the purposes set forth in a

regulation issued by the commissioner. Liquid assets shall be maintained

for the following reserve liabilities:

1. Fifteen percent of the projected annual operating expenses of the

facility, exclusive of depreciation.

2. A provider shall notify the commissioner in writing at least ten

days prior to reducing the amount of funds available to satisfy the

applicable liquid reserve requirement. A provider shall not expend more

than one-half of the required balance each calendar year.

3. A provider may use funds in an endowment fund or escrow account,

including an escrow account established by or pursuant to a mortgage

loan, bond, indenture or other long-term financing, to satisfy the

reserve requirements of this section, if the funds are available to make

payments when operating funds are insufficient for these purposes.