Increases the authorization of the Dormitory Authority of the State of New York ("DASNY"), as successor to the New York State Medical Care Facilities Finance Agency ("MCFFA") pursuant to the Health Care Financing Consolidation Act of 1995, to issue hospital and nursing home project bonds and notes from $17.4 billion to $18.2 billion.
STATE OF NEW YORK
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7660
2023-2024 Regular Sessions
IN ASSEMBLY
May 31, 2023
___________
Introduced by M. of A. ZEBROWSKI -- read once and referred to the
Committee on Corporations, Authorities and Commissions
AN ACT to amend the New York state medical care facilities finance
agency 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:
1 Section 1. Paragraph (b) of subdivision 1 of section 7 of section 1 of
2 chapter 392 of the laws of 1973, constituting the New York state medical
3 care facilities finance agency act, as amended by chapter 166 of the
4 laws of 2021, is amended to read as follows:
5 (b) The agency shall not issue hospital and nursing home project bonds
6 and hospital and nursing home project notes in an aggregate principal
7 amount exceeding [seventeen] eighteen billion [four] two hundred million
8 dollars, excluding hospital and nursing home project bonds and hospital
9 and nursing home project notes issued to refund outstanding hospital and
10 nursing home projects bonds and hospital and nursing home project notes;
11 provided, however, that upon any such refunding or repayment the total
12 aggregate principal amount of outstanding bonds, notes or other obli-
13 gations may be greater than [seventeen] eighteen billion [four] two
14 hundred million dollars only if the present value of the aggregate debt
15 service of the refunding or repayment bonds, notes or other obligations
16 to be issued shall not exceed the present value of the aggregate debt
17 service of the bonds, notes or other obligations so to be refunded or
18 repaid. For purposes hereof, the present values of the aggregate debt
19 service of the refunding or repayment bonds, notes or other obligations
20 and of the aggregate debt service of the bonds, notes or other obli-
21 gations so refunded or repaid, shall be calculated by utilizing the
22 effective interest rate of the refunding or repayment bonds, notes or
23 other obligations, which shall be that rate arrived at by doubling the
24 semi-annual interest rate (compounded semi-annually) necessary to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11694-01-3
A. 7660 2
1 discount the debt service payments on the refunding or repayment bonds,
2 notes or other obligations from the payment dates thereof to the date of
3 issue of the refunding or repayment bonds, notes or other obligations
4 and to the price bid including estimated accrued interest or proceeds
5 received by the agency including estimated accrued interest from the
6 sale thereof. The agency shall not issue hospital and nursing home
7 project bonds at any time secured by the hospital and nursing home capi-
8 tal reserve fund if upon issuance, the amount in the hospital and nurs-
9 ing home capital reserve fund will be less than the hospital and nursing
10 home capital reserve fund requirement, unless the agency, at the time of
11 issuance of such bonds, shall deposit in such reserve fund from the
12 proceeds of the bonds so to be issued, or otherwise, an amount which
13 together with the amount then in such reserve fund, will be not less
14 than the hospital and nursing home capital reserve fund requirement.
15 § 2. This act shall take effect immediately.
