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S08648 Summary:

S08648 Actions:

S08648 Committee Votes:

S08648 Floor Votes:

S08648 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8648
 
                    IN SENATE
 
                                      May 10, 2018
                                       ___________
 
        Introduced  by Sen. HANNON -- (at request of the Dormitory Authority) --
          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:
 
     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  facilities finance agency act, as amended by chapter 516 of the laws  of
     4  2011, 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 [fifteen] sixteen billion [eight] six  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  [fifteen]  sixteen  billion  [eight]  six
    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
    25  discount the debt service payments on the refunding or repayment  bonds,
    26  notes or other obligations from the payment dates thereof to the date of
    27  issue  of  the  refunding or repayment bonds, notes or other obligations
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14331-01-8
        S. 8648                             2
 
     1  and to the price bid including estimated accrued  interest  or  proceeds
     2  received  by  the  agency  including estimated accrued interest from the
     3  sale thereof. The agency shall  not  issue  hospital  and  nursing  home
     4  project bonds at any time secured by the hospital and nursing home capi-
     5  tal  reserve fund if upon issuance, the amount in the hospital and nurs-
     6  ing home capital reserve fund will be less than the hospital and nursing
     7  home capital reserve fund requirement, unless the agency, at the time of
     8  issuance of such bonds, shall deposit in  such  reserve  fund  from  the
     9  proceeds  of  the  bonds  so to be issued, or otherwise, an amount which
    10  together with the amount then in such reserve fund,  will  be  not  less
    11  than the hospital and nursing home capital reserve fund requirement.
    12    § 2. This act shall take effect immediately.