Relates to the ability to issue certain bonds and notes, the official text

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3224
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2025
                                ___________
 
 Introduced  by  M.  of  A.  BRAUNSTEIN  --  (at request of the Dormitory
   Authority) -- read once and referred to the Committee on Corporations,
   Authorities and Commissions
 
 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 469 of the
 laws of 2023, 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  [eighteen]  TWENTY  billion  [two  hundred  million]
 dollars, excluding 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  [eighteen]  TWENTY billion [two 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.
                                                            LBD06801-01-5
 A. 3224                             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.
   § 2. This act shall take effect immediately.