S T A T E   O F   N E W   Y O R K
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                                  4200

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 23, 2011
                               ___________

Introduced  by  Sen. HANNON -- (at request of the Dormitory Authority of
  the State of New York) -- read twice and  ordered  printed,  and  when
  printed to be committed to the Committee on Health

AN ACT to amend the New York state medical care facilities finance agen-
  cy act, in relation to the ability to issue certain bonds and notes

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (b) of subdivision 1 of section 7 of section 1 of
chapter 392 of the laws of 1973, constituting the New York state medical
care facilities finance agency act, as amended by  chapter  238  of  the
laws of 2009, is amended to read as follows:
  (b) The agency shall not issue hospital and nursing home project bonds
and  hospital  and  nursing home project notes in an aggregate principal
amount exceeding fifteen billion EIGHT HUNDRED MILLION dollars,  exclud-
ing  hospital  and  nursing  home project bonds and hospital and nursing
home project notes issued to refund  outstanding  hospital  and  nursing
home  projects  bonds  and  hospital  and  nursing  home  project notes;
provided, however, that upon any such refunding or repayment  the  total
aggregate  principal  amount  of outstanding bonds, notes or other obli-
gations may be  greater  than  fifteen  billion  EIGHT  HUNDRED  MILLION
dollars  only  if the present value of the aggregate debt service of the
refunding or repayment bonds, notes or other obligations  to  be  issued
shall  not exceed the present value of the aggregate debt service of the
bonds, notes or other obligations so  to  be  refunded  or  repaid.  For
purposes hereof, the present values of the aggregate debt service of the
refunding  or  repayment  bonds,  notes  or other obligations and of the
aggregate debt service of the  bonds,  notes  or  other  obligations  so
refunded  or  repaid,  shall  be  calculated  by utilizing the effective
interest rate of the refunding or repayment bonds, notes or other  obli-
gations, which shall be that rate arrived at by doubling the semi-annual
interest  rate (compounded semi-annually) necessary to discount the debt

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09163-01-1
              

S. 4200                             2

service payments on the refunding or repayment  bonds,  notes  or  other
obligations  from  the payment dates thereof to the date of issue of the
refunding or repayment bonds, notes or  other  obligations  and  to  the
price  bid  including estimated accrued interest or proceeds received by
the agency including estimated accrued interest from the  sale  thereof.
The  agency  shall  not issue hospital and nursing home project bonds at
any time secured by the hospital and nursing home capital  reserve  fund
if  upon  issuance,  the amount in the hospital and nursing home capital
reserve fund will be less than the hospital  and  nursing  home  capital
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 hospital and
nursing home capital reserve fund requirement.
  S 2. This act shall take effect immediately.