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A42014 Summary:

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A42014 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           14
 
                               Third Extraordinary Session
 
                   IN ASSEMBLY
 
                                    November 30, 2010
                                       ___________
 
        Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
          once and referred to the Committee on Ways and Means
 
        AN  ACT  to  amend the public authorities law, in relation to the powers
          and duties of the dormitory authority of the state of New  York  rela-
          tive to the establishment of subsidiaries for certain purposes
 

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 1678 of the public authorities law  is  amended  by
     2  adding a new subdivision 25 to read as follows:
     3    25. (a) To form a subsidiary for the purpose of limiting the potential
     4  liability  of  the  authority  when  exercising  the  powers  and duties
     5  conferred upon the  authority  by  article  eight  of  this  chapter  in
     6  connection  with the exercise of remedies by the authority against North
     7  General Hospital, an eligible secured borrower (as  defined  in  chapter
     8  five  hundred  ninety  of  the  laws of two thousand two) located in the
     9  borough of Manhattan, New York that has  defaulted  in  its  obligations

    10  under its loan agreement or mortgage with the authority and for which an
    11  event  of  default  has  been declared by the authority. Such subsidiary
    12  created pursuant to this subdivision may exercise  and  perform  one  or
    13  more of the purposes, powers, duties, functions, rights and responsibil-
    14  ities  of  the  authority  other  than  the issuance of indebtedness, in
    15  connection with real and personal property with  respect  to  which  the
    16  authority  holds  or held a mortgage, security interest or other collat-
    17  eral interest including: (i)  bidding  for,  taking,  holding,  selling,
    18  conveying, assigning or transferring title to such property; (ii) enter-
    19  ing  into  leases, subleases, operating agreements, security agreements,

    20  loan agreements or other encumbrances or  arrangements  with  regard  to
    21  such  property  and acting in a manner consistent with the rights, obli-
    22  gations or responsibilities of the owner of such  property  pursuant  to
    23  such  agreements  or  encumbrances;  (iii)  assuming any indebtedness or
    24  other liabilities secured by such property.   Notwithstanding any  other
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12326-03-0
        A. 14                               2
 
     1  provision  of  law  to the contrary, but in all instances subject to the

     2  provisions of any contract with bondholders, the transfer  of  title  to
     3  such  subsidiary  or  any  other  actions  taken by the authority or the
     4  subsidiary to enforce the authority's rights under the mortgage, securi-
     5  ty  interest or other collateral interest or to protect, acquire, manage
     6  or dispose of the property shall be deemed to be a corporate purpose  of
     7  the  authority  and shall not impair the validity of any bonds, notes or
     8  other obligations of the  authority  to  which  the  mortgage,  security
     9  interest or other collateral interest relates.
    10    (b)  Such  subsidiary  authorized by paragraph (a) of this subdivision
    11  shall be established in the form of  a  public  benefit  corporation  by

    12  executing and filing with the secretary of state a certificate of incor-
    13  poration  which  shall  identify  the authority as the entity organizing
    14  such subsidiary and set forth the name of such subsidiary public benefit
    15  corporation, its duration, the location of its principal office and  its
    16  corporate purposes as provided in this subdivision and which certificate
    17  may  be  amended  from  time to time by the filing of amendments thereto
    18  with the secretary of state.  Such subsidiary shall be  organized  as  a
    19  public  benefit  corporation, shall be a body politic and corporate, and
    20  shall have all the privileges,  immunities,  tax  exemptions  and  other
    21  exemptions of the authority. The members of such subsidiary shall be the

    22  same  as  the members of the authority and the provisions of subdivision
    23  two of section sixteen hundred ninety-one of this  title  shall  in  all
    24  respects apply to such members when acting in such capacity.
    25    (c)  Nothing  in  this  subdivision  shall  be construed to impose any
    26  liabilities, obligations or responsibilities of   such  subsidiary  upon
    27  the  authority and the authority shall have no liability or responsibil-
    28  ity therefor unless the authority expressly agrees to assume the same.
    29    (d) Such subsidiary created pursuant  to  this  subdivision  shall  be
    30  subject  to  any  other  provision of this chapter pertaining to subsid-
    31  iaries of public authorities.
    32    § 2. This act shall take effect immediately.