NY-HHC New York City health and hospitals corporation act 1016/69 Law NY

Section 1. Short title. This act may be cited as the "New York city

health and hospitals corporation act".

Declaration of policy and statement of purposes. It is hereby

found, declared and determined that the provision and delivery of

comprehensive care and treatment of the ill and infirm, both physical

and mental, are of vital and paramount concern and essential to the

protection and promotion of the health, safety and welfare of the

inhabitants of the state of New York and the city of New York.

There are serious shortages in the number of personnel adequately

trained and qualified to provide the quality care and treatment needed.

A myriad of complex and often deleterious constraints and restrictions

place a harmful burden on the delivery of such care and treatment.

Technological advances have been such that portions of the health and

medical services now delivered by the city are not as advanced as they

should be. A system permitting legal, financial and managerial

flexibility is required for the provision and delivery of high quality,

dignified and comprehensive care and treatment for the ill and infirm,

particularly to those who can least afford such services.

It is further found, declared and determined that hospitals and other

health facilities of the city are of vital and paramount concern and

essential in providing comprehensive care and treatment for the ill and

infirm, both physical and mental, and are thus vital to the protection

and the promotion of the health, welfare and safety of the people of the

state of New York and the city of New York.

There are inadequate general and specialized health care facilities

including but not limited to nursing homes and related laboratories and

ambulatory care clinics and centers and diagnostic treatment centers.

The inadequacy and shortage of health facilities derives from such

factors among others as the rapid technological changes and advances

taking place in the medical field. These changes and advances have

created the need for substantial structural and functional changes in

existing facilities. Many of the health facilities of the city are

overcrowded. Buildings are deteriorating and many suffer harm as a

result of piecemeal and uncoordinated additions. The facilities

available for education, research and development are inadequate to meet

the demands of the medical field. Procedures inherent in the

administration of health and medical services as heretofore established

obstruct and impair efficient operation of health and medical resources.

It is found, declared and determined that in order to accomplish the

purposes herein recited, to provide the needed health and medical

services and health facilities, a public benefit corporation, to be

known as the New York City health and hospital corporation, should be

created to provide such health and medical services and health

facilities and to otherwise carry out such purposes; that the creation

and operation of the New York city health and hospitals corporation, as

hereinafter provided, is in all respects for the benefit of the people

of the state of New York and of the city of New York, and is a state,

city and public purpose; and that the exercise by such corporation of

the functions, powers and duties as hereinafter provided constitutes the

performance of an essential public and governmental function.

Definitions. As used or referred to in this act, unless a

different meaning clearly appears from the text:

1. "Administrator" or "Health service administrator" shall mean the

administrator of health services of the city of New York.

2. "Administration" shall mean the health services administration of

the city of New York.

3. "Board" shall mean the board of directors of the corporation as

such board is constituted pursuant to section four of this act.

4. "Bonds" and "notes" shall mean bonds and notes respectively,

authorized and issued by the corporation pursuant to this act.

5. "City" shall mean the city of New York.

6. "Comptroller" shall mean the comptroller of the city of New York.

7. "Construction" shall mean site acquisition, planning, design,

erection, building, alteration, reconstruction, renovation, improvement,

extension, enlargement, replacement or modification and the inspection

or modification thereof.

8. "Corporation" shall mean the public benefit corporation created by

section four of this act.

9. "Corporation counsel" shall mean the corporation counsel of the

city of New York.

10. "Council" shall mean the agency or body designated as the health

planning agency pursuant to article twenty-nine of the public health law

or public law 89-749 and which is authorized to approve construction of

health facilities in the city of New York.

11. "Director of management and budget" shall mean the director of

management and budget of the city of New York.

12. "Health facility" shall mean a building, structure or unit or any

improvement to real property, including all necessary and usual

attendant and related equipment, facilities or fixtures, or any part or

parts thereof, or any combination or combinations thereof, including,

but not limited to, a general hospital, psychiatric hospital,

tuberculosis hospital, ambulatory clinic or center, chronic disease

hospital, nursing home, extended-care facility, dispensary or laboratory

or any other related facility, or any combination of the foregoing,

constructed, acquired or otherwise provided by or for the use of the

corporation or the city in providing health and medical services to the

public.

13. "Health and medical services" shall mean items or services

provided by or under the supervision of a physician or other person

trained or licensed to render health care necessary for the prevention,

care, diagnosis or treatment of human disease, pain, injury, deformity

or other physical or mental condition including, but not limited to,

pre-admission, out-patient, in-patient and post-discharge care, home

care, physicians' care, nursing care, medical care provided by interns

or residents-in-training and other paramedical care, ambulance service,

bed and board, drugs, biologicals, supplies, appliances, equipment,

laboratory services and x-ray, radium and radio-active-isotope therapy.

14. "Mayor" shall mean the mayor of the city of New York.

15. "Real property" shall mean lands, structures, franchises and

interests in land, waters, lands under water, riparian rights and air

rights, and any and all things and rights usually included within the

said term and includes not only fees simple absolute but also any and

all lesser interests such as easements, rights-of-way, uses, leases,

licenses and all other incorporeal hereditaments and every estate,

interest or right, legal or equitable, including terms for years and

liens thereon by way of judgments, mortgages, or otherwise.

16. "Reimbursement allowance" shall mean any money paid by any

government, or any agency or subdivision thereof or by a social services

district or by any private institution or organization or person

including, but not limited to, payments authorized by and made pursuant

to the federal social security act and the state social services law, to

the corporation for the costs of health and medical services furnished

to beneficiaries thereof provided by the corporation directly or through

agreement with the city.

17. "State" shall mean the state of New York.

18. "Subsidiary corporation" shall mean a corporation created pursuant

to subdivision twenty of section five of this act.

19. "Non-profit hospital" shall mean an organization authorized by law

to provide health and medical services, organized exclusively for

charitable purposes on a non-profit basis, which does not devote more

than an insubstantial part of its total activities to activities not in

furtherance of its charitable purposes, does not participate or

intervene (including publishing or distributing statements), directly or

indirectly, in any political campaign on behalf of or in opposition to

any candidate for public office, and no substantial part of the

activities of which is devoted to attempting to influence legislation by

propaganda or otherwise and no part of the net earnings of which inures

to the benefit of a private shareholder or individual.

New York city health and hospitals corporation. 1. A corporation,

to be known as the "New York city health and hospitals corporation," is

hereby created. Such corporation shall be a body corporate and politic

constituting a public benefit corporation. It shall be administered by a

board of directors consisting of sixteen members, constituted as

follows: five directors shall be the administrator, the commissioner

appointed by the mayor as chief administrative officer of the health

functions of the administration, the director of community mental health

services of the administration, the administrator of human resources of

the city, and the deputy mayor-city administrator of the city, or their

successors, all serving ex-officio; ten directors shall be appointed by

the mayor, five of whom shall be designated by the city council of the

city of New York; and the remaining director shall be the chief

executive officer of the corporation. Such chief executive officer shall

be chosen by the aforementioned fifteen directors from persons other

than themselves and shall serve at the pleasure of the board. The terms

of the ten directors first appointed by the mayor, other than those

serving ex-officio shall be as follows:

Two shall serve for terms of one year each, one of whom shall have

been designated by the city council;

Two shall serve for terms of two years each, one of whom shall have

been designated by the city council;

Two shall serve for terms of three years each, one of whom shall have

been designated by the city council;

Two shall serve for terms of four years each, one of whom shall have

been designated by the city council;

Two shall serve for terms of five years each, one of whom shall have

been designated by the city council;

thereafter their successors shall serve for terms of five years each.

The mayor shall fill any vacancy which may occur by reason of death,

resignation or otherwise in a manner consistent with the original

appointment. Directors may be removed by the mayor for cause, but not

without an opportunity to be heard.

2. The administrator of health services of the city shall be chairman

of the board of directors. He shall preside over all meetings of the

board and shall have such other duties as the directors may direct. The

vice-chairman, who shall be elected by the directors from among

themselves, shall preside over meetings of the board in the absence of

the chairman and shall have such other duties as the board may direct.

3. The powers of the corporation shall be vested in and exercised by

the board of directors at a meeting duly held at a time fixed by any

by-law adopted by the board, or at any duly adjourned meeting of such

meeting or at any meeting held upon reasonable notice to all of the

directors, or upon written waiver thereof, and a majority of the whole

number of directors shall constitute a quorum; provided, that neither

the business nor the powers of the corporation shall be transacted or

exercised except pursuant to the favorable vote of at least a majority

of the directors present at a meeting at which a quorum is in

attendance. The board may delegate to one or more of the directors,

officers, agents or employees of the corporation such powers and duties

as it may deem proper. For the purposes of this subdivision three,

"whole number" shall mean the total number of directors that the board

would have were there no vacancy in the office of a director.

4. The directors shall not be entitled to compensation for their

service but shall be reimbursed for actual and necessary expenses

incurred by them in the performance of their official duties. The

directors may engage in private employment or in a profession or

business, unless otherwise prohibited from doing so by virtue of holding

another public office, subject to the provisions of article eighteen of

the general municipal law. For the purposes of such article eighteen,

the corporation shall be a "municipality" and a director shall be a

"municipal officer".

5. The board shall hold an annual meeting.

6. Except as otherwise permitted or required by any federal or state

law, rule or regulation, the corporation shall receive direct payments,

including payments made by a social services district under title eleven

of article five of the social services law, and the New York state

medical assistance plan adopted thereunder, and other reimbursement

allowances whether as a "provider of services" in accordance with

federal law or otherwise, for the provision by the corporation of the

health and medical services for which such payments are made or by

reason of ownership by the corporation of a health facility rendering

the health and medical services for which such payments are made. For

the purpose of such title eleven, the corporation shall be an

"institution" supplying "medical assistance".

7. The fiscal year of the corporation shall be the same as that of the

city.

8. Notwithstanding any inconsistent provisions of this or any other

general, special or local law, no officer or employee of the state, or

of any civil division thereof, or of any public corporation, as defined

in the general corporation law, shall be deemed to have forfeited his

office or employment or any benefits provided under the retirement and

social security law or under any public retirement system maintained by

the state or by any of the civil divisions thereof by reason of being a

director, officer, employee or agent of the corporation.

9. The corporation shall keep each of its facilities and installations

open to inspection at all times by duly authorized representatives of

the board of social services of the state, the comptroller of the state,

the department of health of the state, the mayor, the director of

management and budget, the comptroller, the administration and such

other federal, state or city departments or agencies authorized by law

to so inspect; and each shall be provided access to all of the records,

reports, books, papers and accounts of the corporation and its

facilities and installations other than privileged medical matter.

10. The corporation shall hold annual public meetings, at least one in

each of the five boroughs, after due public notice, for purposes of

informing the public of the programs and plans of the corporation.

11. The corporation shall establish a community advisory board for

each of its hospitals to consider and advise the corporation and the

hospital upon matters concerning the development of any plans or

programs of the corporation, and may establish rules and regulations

with respect to such boards. The members of such advisory boards shall

be representatives of the community served by the hospital.

Notwithstanding any inconsistent provision of law, general, special or

local, no officer or employee of the state or of any civil division

thereof, shall be deemed to have forfeited or shall forfeit his office

or employment by reason of his acceptance of membership on such

community advisory board. No member of such board shall receive

compensation or allowance for services rendered on such board, except,

however, that members of community advisory boards may be reimbursed for

necessary expenses up to and including twenty-five dollars during a

calendar month by submitting a personal summary voucher.

For the purposes of sections one hundred seventy-five (a) and

one hundred seventy-five (b) of the state finance law, the corporation

shall be deemed to be a political subdivision.

General powers of the corporation. The corporation shall have the

following powers in addition to those specifically conferred elsewhere

in this act:

1. To sue and be sued;

2. To have a seal and to alter the same at its pleasure;

3. To adopt, alter, amend or repeal by-laws or rules or regulations

for the organization, management, and regulation of its affairs;

4. To borrow money and to issue negotiable notes, bonds or other

evidences of indebtedness and to provide for the rights of the holders

thereof in accordance with the provisions of this act; provided,

however, that the corporation shall not issue bonds, notes or other

evidences of indebtedness for the construction of a health facility

without the prior approval of the mayor and, in the case of major

construction, without first submitting to the mayor a written statement

of the chairman of the board stating that the corporation has consulted

with the New York State housing finance agency and the New York State

health and mental hygiene facilities improvement corporation with

respect to such major construction.

5. To make and to execute contracts and leases and all other

agreements or instruments necessary or convenient for the exercise of

its powers and the fulfillment of its corporate purposes;

6. To acquire, by purchase, gift, devise, lease or sublease, and to

accept jurisdiction over and to hold and own, and dispose of by sale,

lease or sublease, real or personal property, including but not limited

to a health facility, or any interest therein for its corporate

purposes; provided, however, that no health facility or other real

property acquired or constructed by the corporation shall be sold,

leased or otherwise transferred by the corporation without public

hearing by the corporation after twenty days public notice and without

the consent of the board of estimate of the city;

7. To operate, manage, superintend, and control any health facility

under its jurisdiction and to repair, maintain and otherwise keep up any

such health facility; and to establish and collect fees, rentals or

other charges, including reimbursement allowances, for the sale, lease

or sublease of any such health facility, subject to the terms and

conditions of any contract, lease, sublease or other agreement with the

city;

8. To provide health and medical services for the public directly or

by agreement or lease with any person, firm or private or public

corporation or association, through and in the health facilities of the

corporation and to make rules and regulations governing admissions and

health and medical services; and to establish and collect fees and other

charges, including reimbursement allowances, for the provision of such

health and medical services; and to provide and maintain continuous

resident physician and intern medical services; and to sponsor and

conduct research, educational and training programs;

9. To provide, maintain and operate an ambulance service to bring

patients to or remove them from any health facility of the corporation,

and to adopt a schedule of appropriate charges and to provide for the

collection thereof;

10. To determine, in accordance with standards established by the

administration, the conditions under which a physician may be extended

the privilege of practicing within a health facility under the

jurisdiction of the corporation, and to promulgate reasonable rules and

regulations for the conduct of all persons, physicians and nurses within

any such facility;

11. To employ officers, executives, management personnel, and such

other employees who formulate or participate in the formulation of the

plans, policies, aims, standards, or who administer, manage or operate

the corporation and its hospitals or health facilities, or who assist

and act in a confidential capacity to persons who are responsible for

the formulation, determination and effectuation of management policies

concerning personnel or labor relations, or who determine the number of,

and appointment and removal of, employees of the corporation, fix their

qualifications and prescribe their duties and other terms of employment.

All such personnel shall be excluded from collective bargaining

representation.

12. To employ such other employees as may be necessary and except as

otherwise provided herein to promulgate rules and regulations relating

to the creation of classes of positions, position classifications, title

structure, class specifications, examinations, appointments, promotions,

voluntary demotions, transfers, re-instatement, procedures relating to

abolition or reduction in positions, to determine the number of and to

appoint, remove and discipline employees, to prescribe their duties, fix

their qualifications, salaries, wages, fringe benefits, hours, work

schedules, assignments and re-assignments, leaves of absence, annual

leave, other time and leave rules and other terms of employment.

13. To prepare, or cause to be prepared, plans, specifications,

designs and estimates of costs for the construction and equipment of

health facilities; provided, however, that such plans, specifications,

designs and estimates of cost shall, to the extent required by law, be

subject to the approval of the council prior to the implementation

thereof;

14. To construct and equip, or by contract cause to be constructed and

equipped, health facilities, subject to the approval of the council;

15. To apply for and/or to receive and accept any gifts or grants of

money, property or services or other aid, including any reimbursement

allowance, offered or made available to it by any person, government or

agency whatever, for use by the corporation in carrying out its

corporate purposes and in the exercise of its powers; and to negotiate

for the same upon such conditions as the corporation may determine to be

necessary, convenient or desirable; and to comply, subject to the

provisions of this act, with the terms of any such gifts, grants or

other aid;

16. To invest any funds held in reserves or sinking funds, or any

funds not required for immediate use or disbursement, at the discretion

of the corporation, in obligations of the city, state or federal

government or obligations the principal and interest of which are

guaranteed by the city, state or federal government;

17. To procure insurance, or obtain indemnification, against any loss

in connection with the assets of the corporation or any liability in

connection with the activities of the corporation, such insurance or

indemnification to be procured or obtained in such amounts, and from

such sources, as the corporation deems to be appropriate;

18. To cooperate with any organization, public or private, including

the health and mental hygiene facilities improvement corporation as

established by an act entitled the health and mental hygiene facilities

improvement act, and the New York state housing finance agency, the

objects of which are similar to the purposes of the corporation;

19. To use agents, employees and facilities of the city, subject to

such limitations as may be prescribed by collective bargaining

agreement, and subject to the consent of the mayor;

20. (a) To exercise and perform all or part of its purposes, powers,

duties, functions or activities through one or more wholly-owned

subsidiary public benefit corporations subject to limitations provided

herein. The board of the corporation by resolution may direct any of the

directors, officers or employees of the corporation to organize any such

subsidiary corporation as a public benefit corporation by executing and

filing with the secretary of state a certificate of incorporation, which

may be amended from time to time by filing with the secretary of state,

and which shall set forth the name of such public benefit corporation,

its duration, the location of its principal offices and any or all of

the powers and purposes of such corporation, provided, however, that no

such subsidiary corporations shall be established for the purpose of

operating a health facility or the delivery of direct patient care

without the prior approval of the mayor and, except in the case of the

Harlem Hospital Center or the new Harlem Hospital Center, until at least

two years shall have elapsed from the effective date of this act.

(b) No subsidiary corporation shall have the power to engage in

collective bargaining or negotiate with any organization representing

any of its employees, or to enter into collective bargaining agreements

with any such organization. Each such subsidiary corporation shall

operate under personnel administration policies, practices, procedures

and programs, and terms and conditions of employment of the corporation,

including those agreed to in collective bargaining and determined by the

comptroller of the city pursuant to section two hundred twenty of the

labor law.

(c) Each such subsidiary corporation and any of its properties,

functions and activities shall have all of the privileges, immunities,

tax exemptions and other exemptions of the corporation and of the

corporation's properties, functions and activities except, however, no

such subsidiary corporation shall issue bonds and notes or form

subsidiary corporations. Each such subsidiary corporation shall be

subject to suit in accordance with the provisions of section twenty of

this act. Any state, city, commission, agency, officer, department,

division or person is authorized to cooperate with and enter into such

agreements with a subsidiary corporation subject to the provisions of

this act and to any agreement entered into pursuant thereto; provided,

however, that each such subsidiary corporation shall be subject to any

restrictions, approvals, and limitations to which the corporation may be

subject;

* 20-a. To establish employment goals in accordance with the program

established pursuant to section 3502 of the New York city charter,

including but not limited to employment goals established pursuant to

paragraph 7 of subdivision a and the corresponding best efforts

provisions set forth in subdivision d of such section; provided,

however, that where a provision of such section requires action by the

director of the office of community hiring and workforce development,

such action shall not be taken by the director of the office of

community hiring and workforce development but shall be taken by a duly

appointed designee of the corporation; and

* NB Effective May 15, 2024

* NB Repealed May 15, 2029

21. To do any and all things necessary, convenient or desirable to

carry out its corporate purposes, and for the exercise of the powers

given to it in this act.

Relationship to the city; agreements concerning health

facilities. 1. (a) The city shall on or before the first day of July

nineteen hundred seventy enter into an agreement or agreements with the

corporation, pursuant to this section and section seven herein, whereby

the corporation shall operate the hospitals then being operated by the

city for the treatment of acute and chronic diseases, and for the fiscal

year of the city commencing on the first day of July nineteen hundred

seventy and thereafter the city shall include in its expense budget an

appropriation of tax levy for the services provided by the corporation

and pay the corporation an amount which shall not be less than one

hundred seventy-five million dollars; provided, however, that for the

fiscal year beginning July first, nineteen hundred seventy-two and

thereafter the amount shall be adjusted annually to take account of

increases in the cost of health care as reflected in increases in the

average rates of reimbursement set by the state pursuant to section

twenty-one hundred seven of the public health law for health and

hospital services in New York City, and changes in the volume of

services rendered by the corporation and required by the city for which

no reimbursement from third-party sources is available. The corporation

shall submit a program budget to the city, in time for inclusion in the

mayor's executive budget, detailing the anticipated expenditure of the

tax levy funds appropriated by the city for the coming fiscal year.

The provisions of subdivision three of paragraph a of section 135.00

of the local finance law shall not apply to a contract entered into

pursuant to this section.

1. (b) Within a reasonable time thereafter the city shall enter into a

similar agreement or agreements for the remaining personal health and

medical facilities then operated by the city.

2. (a) The corporation shall have the power to enter into contracts,

leases, sub-leases or other agreements permitting the city to purchase,

lease, sub-lease or otherwise acquire or use any health facility by or

under the jurisdiction of the corporation; and to permit the city to

construct or add health facilities or improvements upon or to such

health facility.

(b) The city shall be empowered to purchase, lease, sub-lease or

otherwise acquire or contract for the use of and use any health facility

held by or under the jurisdiction of the corporation, or to construct or

add health facilities or improvements upon or to such a health facility,

in accordance with the terms of any contract, lease, sub-lease or other

agreement entered into pursuant to the terms of this act.

3. Any contract, lease, sub-lease or other agreement between the city

and the corporation for the purchase, lease, sub-lease, use, operation

or construction and equipment of a health facility, as authorized by

this act, shall

(a) set forth any health facility to be constructed and equipped, used

or operated;

(b) provide that the corporation shall apply for and receive all

reimbursement allowances or other moneys available to the corporation

from any source for the provision of health and medical services for

which such reimbursement allowances or other moneys are available,

through or in the facilities of the corporation, and that such

reimbursement allowances or other moneys shall be collected and received

by the corporation directly from any such source, and used by the

corporation for the purposes herein recited;

(c) provide that whenever the city requires the corporation to provide

health and medical services to persons in the city, the city shall pay

the corporation for the cost of such services as are actually rendered,

such cost to be determined by agreement between the city and the

corporation; provided, however, that such payments shall only be made by

the city to the extent that no reimbursement allowances or other

payments are paid to the corporation from any other government or other

sources for the payment of such costs; and

(d) provide that the health and medical services provided by or

through any such health facility shall be available to the public upon

the terms and conditions set forth in such contract, lease, sub-lease or

other agreement.

4. (a) Any such contract, lease, sub-lease or other agreement between

the city and the corporation that requires the corporation to construct

and equip, or causes to be constructed or equipped, a health facility

shall provide that the city shall be required to pay the total estimated

cost of such construction and equipment to the corporation at such times

and in such amounts as determined and requested by the corporation, any

such payment to be made by the city upon the delivery to the comptroller

of the corporation of a certificate requesting such payment.

(b) For the purpose of this subdivision four, the cost of construction

and equipment shall include, but not be limited to, the cost of any

plans, specifications, drawings or designs prepared for the purposes of

the health facility concerned.

5. Any such contract, lease, sub-lease or other agreement between the

city and the corporation may contain provisions, in addition to any

required by the provisions of this act, as to:

(a) pledging or assigning any part of moneys and revenues, including

reimbursement allowances, derived by the city, or the corporation, to

secure payments required by such contract, lease, sub-lease or other

agreement;

(b) limitations on the purposes to which the proceeds of the sale of

the bonds and notes of the corporation may be applied and as to the

pledging of such proceeds to secure the payment of bonds and notes of

the corporation or of any issued thereby, subject to any agreement with

the holders of bonds or notes of the corporation;

(c) setting aside reserves and creating special funds and the

regulation and disposition thereof;

(d) procedures, if any, by which such contract, lease, sub-lease or

other agreement may be amended, the amount of bonds or notes or other

obligations the holders of which must consent thereto, and the manner in

which such consent may be given;

(e) defining the acts or omissions to act which shall constitute a

default in the obligations and duties of the city or corporation and

providing for the rights and remedies of the corporation and the holders

of its bonds, notes or other obligations in the event of such default;

(f) any other matters, of like or different character, which may be

deemed necessary or desirable by the corporation for the proper

effectuation of its corporate purposes or for the security or protection

of the holders of its bonds, notes, or other obligations.

6. The city shall not be required to make any payment to the

corporation, nor shall any charge, claim or liability exist or arise

against the city for any such payment, in excess of amounts appropriated

or otherwise authorized by the city therefor. Payments due or to become

due by the city pursuant to any contract, lease, sub-lease or other

agreement with the corporation shall not constitute outstanding

indebtedness of the city for the purposes of paragraph three of

subdivision (a) of section 135.00 of the local fianance law.

7. The corporation shall exercise its powers to provide and deliver

health and medical services to the public in accordance with policies

and plans of the administration with respect to the provision and

delivery of such services and the corporation shall have the power to

adopt and implement rules and regulations not inconsistent with such

policies and plans of the administration. For its part, the

administration shall assist and cooperate with the corporation with

respect to such matters.

Conveyance of property by the city to the corporation;

acquisition of property by the city. 1. The city, acting by the board of

estimate thereof, may, by deed, lease or other instrument convey, lease

or otherwise dispose of any real or personal property or any interest

therein owned or held by the city, without public letting or auction, to

the corporation for its corporate purposes, for so long as it shall be

in existence notwithstanding the provisions of any law respecting the

inalienability of real property by the city, and such conveyance may

reserve to the city such rights as shall not restrict the corporation in

carrying out its corporate purposes.

2. The city may acquire, in the name of the city, by purchase or

condemnation in the manner provided by law for the acquisition of real

property by the city, real property in the city for the purposes of the

corporation or for the widening of existing roads, streets, avenues or

highways or for new roads, streets, avenues or highways connecting with

a health facility constructed or otherwise acquired by the corporation,

or partly for such purposes and partly for other city purposes. For said

purposes, the city may close roads, streets, avenues or highways as may

be necessary; provided, however, that no state highway or way shall be

closed without the consent of the state commissioner of transportation.

3. Subject to the approval of the board of estimate of the city,

contracts may be entered into between the corporation and the city

providing for the property to be acquired by the city and so conveyed,

the roads, streets, avenues, or highways to be closed by the city, and

the amounts, terms and conditions of payments, if any, to be made by the

corporation. Any such contract between the city and the corporation may

be pledged by the corporation to secure its bonds, notes or other

obligations and may not be modified thereafter except as provided by the

terms of the pledge.

4. If the corporation determines that the use and occupancy of any

real property is no longer required for its corporate purposes and

powers, then if such real property was acquired at the cost and expense

of the city, the corporation shall, subject to the provisions of section

five, paragraph six, have power to surrender its use and occupancy to

the city. The corporation shall, subject to the provisions of section

five, paragraph six, have power to sell, lease or otherwise dispose of

said real property at public or private sale or as part of a contract,

lease or other agreement entered into under the terms of this act and to

use the proceeds derived from the sale, lease or other disposition

thereof for its corporate purposes.

Relationship with the New York state and the housing finance

agency health and mental hygiene facilities improvement corporation.

Notwithstanding any provision of this act to the contrary:

(a) The city shall not sell, assign, transfer or sublet to the

corporation any health facility, as defined in section three of the

health and mental hygiene facilities improvement act, located at or

related to or constituting a hospital, as defined in article

twenty-eight of the public health law, if such health facility is

subject to any lease, sublease or other agreement between the city and

the New York state housing finance agency, provided however, nothing

herein shall prohibit the licensing or other operating agreement for the

health facility so long as the city does not surrender possession

thereof and that the city continues to remain liable and obligated to

observe and perform each and every covenant, agreement, obligation and

undertaking required to be observed and performed by the city pursuant

to the provisions of any lease, sublease or other agreement between the

city and the New York state housing finance agency.

(b) The corporation is authorized to sell or lease to the agency any

real property for the purpose of causing health facilities to be

constructed, reconstructed, rehabilitated or improved by the health and

mental hygiene facilities improvement corporation and the New York state

housing finance agency pursuant to a lease, sublease or other agreement

between the city and the New York state housing finance agency as

provided in the health and mental hygiene facilities improvement act and

article three of the private housing finance law.

Contracts. 1. Any contract let by the corporation for the

construction of a health facility shall be publicly let to the lowest

responsible bidder in the manner provided by, and in conformity with,

the provisions of article five-a of the general municipal law, except

that where the cost of such a contract does not exceed ten thousand

dollars such contract may be entered into without public letting;

provided, however, that if the corporation determines that in a special

case or cases it would not be in the public interest to comply with the

terms of this section and the board of estimate of the city, by

resolution, rule or regulation adopted by the vote of two-thirds of the

whole number of votes authorized to be cast by all of the members of the

board of estimate, concurs in such determination, then such a contract

may be entered into by the corporation without public letting as

authorized by the said resolution, rules or regulations. Notwithstanding

the provisions of this subdivision one, if the corporation determines

that circumstances exist whereby it would be detrimental to or

impracticable for the corporation to comply with the public letting

requirements of this section concerning a change order then such a

change order may be let by the corporation without public letting. For

the purposes of article five-a of the general municipal law, the

corporation shall be deemed to be a "political subdivision".

2. The corporation may make rules and regulations governing the

qualifications of bidders entering into such a contract where the cost

of such a contract exceeds twenty-five thousand dollars. The bidding may

be restricted to those who shall have qualified prior to the receipt of

bids according to standards fixed by the corporation; provided, however,

that notice or notices for the submission of qualifications shall be

published in the official publication of the city and in an appropriate

trade journal published in the city, or if no such trade journal exists,

in a newspaper with a general circulation in the city, at least once,

not less than ten days prior to the date fixed for the filing of

qualifications.

3. The corporation, in its discretion, may assign the separate

contracts awarded pursuant to section one hundred one of the general

municipal law to the general contractor for supervision. Each contract

for the construction of a health facility may include a provision that

the architect who designed the facility, or the architect or engineer

retained or employed specifically for the purpose of supervision, shall

supervise the work to be performed through to completion and shall see

to it that the materials furnished and the work performed are in

accordance with the drawings, plans, specifications and contracts

therefor.

4. All bids received for the letting of any contract pursuant to this

section shall be submitted to the corporation and shall be publicly

opened and read by the corporation. Nothing in this section shall be

construed to limit the power of the corporation to do any construction

by or through its own officers, agents or employees.

5. (a) In addition to any other bond or bonds that may be required by

law for the completion of a health facility, or in the absence of any

such requirement, the corporation shall require, prior to the approval

of any contract or agreement providing for the construction of a health

facility, that the general contractor furnish a bond guaranteeing prompt

payment of moneys due to all persons furnishing labor or materials to or

for the general contractor or to his subcontractors in the prosecution

of the entire work provided for in such agreement. A copy of such

payment bond shall be filed in the offices of the corporation and shall

be open to public inspection.

(b) Every person who has furnished labor or material, to or for the

general contractor or to a sub-contractor in the prosecution of the work

provided for in the contract or other agreement of the corporation with

the general contractor and who has not been paid in full therefor before

the expiration of a period of ninety days after the day on which the

last of the labor was performed or material was furnished by him for

which the claim is made, shall have the right to sue on such payment

bond in his own name for the amount, or the balance thereof, unpaid at

the time of commencement of the action; provided, however, that a person

having a direct contractual relationship with a sub-contractor of the

general contractor furnishing the payment bond but no contractual

relationship express or implied with such general contractor shall not

have a right of action upon the bond unless he shall have given written

notice to such general contractor within ninety days from the date on

which the last of the labor was performed or the last of the material

was furnished, for which his claim is made, stating with substantial

accuracy the amount claimed and the name of the party to whom the

material was furnished or for whom the labor was performed. The notice

shall be served by delivering the same personally to the general

contractor or by mailing the same by registered mail, postage pre-paid,

in an envelope addressed to the general contractor at any place where he

maintains an office or conducts his business or at his residence.

6. Any contracts for design, construction, services and materials

entered into by the corporation pursuant to this act shall be deemed

state contracts within the meaning of that term as set forth in article

fifteen-A of the executive law, and the corporation shall be deemed, for

the purposes of this act, a contracting agency as that term is used in

article fifteen-A of the executive law.

* 7. The corporation shall have the authority to use the same measures

to enhance mentoring opportunities for small businesses as are available

to the city of New York pursuant to section thirteen hundred nine of the

New York city charter. Upon the written consent of the corporation, the

corporation shall be subject to the rules and the goal authorized under

subdivision g of section thirteen hundred nine of such charter with

respect to a mentoring program established pursuant to this subdivision,

provided that after execution of such written consent, a duly authorized

officer of the corporation and the city, acting by the mayor, may enter

into a memorandum of understanding relating to mentoring opportunities

authorized under this subdivision.

* NB Effective February 22, 2024

Personnel administration; collective bargaining; pension and

retirement benefits; article fourteen civil service law; paragraph two

hundred twenty labor law; personnel review board. 1. The corporation

shall, upon ten days written notice appropriately posted in the health

facilities, promulgate rules and regulations consistent with civil

service law with respect to policies, practices, procedures relating to

position classifications, title structure, class specifications,

examinations, appointments, promotions, voluntary demotions, transfers,

re-instatements, procedures relating to abolition or reduction in

positions, for personnel employed by the corporation pursuant to section

five, subdivision twelve of this act, subject to the following

exception. The New York city health and hospitals corporation shall

employ peace officers appointed pursuant to this subdivision to perform

the patrol, investigation, and maintenance of the peace duties of

special officer, senior special officer and hospital security officer;

provided however that nothing in this subdivision shall prohibit

managerial, supervisory, or state licensed or certified professional

employees of the corporation from performing these duties where they are

incidental to their usual duties, or shall prohibit police officers

employed by the city of New York from performing these duties.

Until the corporation adopts by-laws, rules and regulations relating

to personnel administration the corporation shall administer its

personnel pursuant to the civil service law, the rules and regulations,

time and leave rules classification and compensation schedules, class

specifications and personnel orders of the New York city department of

personnel and civil service commission, and all other applicable

provisions of local or general laws relating to civil service personnel.

2. (a) Every employee who was an employee of the administration, or

any constituent agency or department thereof, shall be automatically

appointed and transferred to the corporation in the same or equivalent

classification and position he held at the time of such transfer and for

such purposes the corporation shall be deemed the successor to the city

as a public employer of such employee. All officers or employees

transferred to the corporation who had civil service status at the time

of such transfer shall retain such status for the purpose of transfer,

reassignment or promotion to any position in a city department or

agency.

(b) (i) It is hereby found that the continued, uninterrupted, adequate

and efficient administration of health and medical services is necessary

for the general welfare of the people of the city of New York. It is

further found that with respect to certain services provided for the

corporation by the voluntary hospitals and medical schools in the

municipal hospitals of the city of New York, such administration

properly requires that employees performing those services be employed

by the corporation. For the continued performance of those services

assumed by the corporation, the continued employment of personnel

possessing ability, skill, experience and knowledge is essential. A

requirement of competitive examination for the appointment of any such

employee to the corporation would seriously interrupt the continuous

provision of health and medical services and is thus impractical. It is

thereby declared to be in the public interest that because of their

knowledge, training, experience and efficiency, those employees of the

voluntary hospitals and medical schools be continued in the employment

of the corporation without competitive examination, and shall be

afforded permanent competitive status.

(ii) Notwithstanding any provision to the contrary contained in any

general, special or local law, those employees of the voluntary

hospitals and medical schools in the city of New York performing

services which are assumed by the corporation shall be transferred to

and continued in employment by the corporation in similar or

corresponding positions, which shall have been classified by the

corporation in accordance with the provisions of subdivision one of this

section. Such employees shall continue to hold their positions without

further examination and shall have all the rights and privileges of the

jurisdictional class to which such positions may be allocated; provided,

however, that after such transfer of functions and activities to the

corporation all new positions thereafter created and vacancies occurring

in positions already established shall be filled in accordance with the

provisions of subdivision one of this section.

3. The corporation shall recognize the certified employee

organizations and bargaining units of such employees, and the

corporation shall assume and be bound by all existing collective

bargaining agreements with such employee organizations. All existing

terms and conditions of employment of the corporation shall remain in

effect until modified or changed in accordance with the procedures

provided herein.

4. Any officer or employee of the corporation who heretofore acquired

or shall hereafter acquire such position status by transfer and who at

the time of such transfer was a member of the New York city employees'

retirement system shall, with respect to such retirement system,

continue to have the rights, privileges, obligations and status which

would have applied to him if he had continued to hold the office or

position which entitled him to such membership prior to such transfer.

Employment by the corporation shall constitute city-service for the

purposes of title B of chapter three of the administrative code of the

city.

5. The corporation, its officers and employees, shall be subject to

article fourteen of the civil service law and for all such purposes the

corporation shall be deemed "public employees", provided, however, that

chapter fifty-four of the New York City Charter and Administrative Code

and Executive Order No. 52 dated September 29, 1967, promulgated by the

mayor of the city of New York, shall apply in all respects to the

corporation, its officers and employees except that paragraph seven and

paragraph eight of said executive order shall not be applicable to the

corporation, its officers and employees. Except as otherwise provided in

collective bargaining agreements the corporation shall establish general

and special grievances procedures which shall provide for final and

binding arbitration of grievances as defined in chapter fifty-four of

the administrative code of the city of New York. All general and special

grievance procedures shall be reviewed by the personnel review board

established under the terms of this act.

6. Any employee of the corporation shall be authorized to institute a

proceeding against the corporation in accordance with the provisions of

article seventy-eight of the civil practice law and rules, and for the

purposes hereof the corporation shall be deemed an administrative body

or agency within the meaning of the said article seventy-eight.

7. Nothing herein contained shall supersede, impair or diminish the

rights of any officer or employee of the corporation under or pursuant

to section two hundred twenty of the labor law, and for the purposes

hereof the fiscal officer of the corporation shall be the comptroller of

the city of New York.

8. (a) For a period of five years after the creation of the

corporation, the corporation shall, in its by-laws, provide for the

creation of a personnel review board, consisting of three members who

shall be appointed for annual terms as follows: one member designated by

the corporation; one member designated by the municipal labor committee

established pursuant to section 1173-9.0 of the New York city

administrative code, and one member, who shall be the chairman,

designated by the other two members of the personnel review board. After

the aforesaid period of five years, all vacancies in the personnel

review board shall be filled by appointment by the mayor. The chairman

of the personnel review board shall receive a per diem fee of not less

than one hundred fifty dollars and the other two members shall each

receive a per diem fee of not less than one hundred twenty-five dollars,

when actually rendering services, in addition to actual and necessary

expenses incurred in the performance of their duties.

(b) Except for matters which are subject to collective bargaining

agreement, the personnel review board shall have the right to review, at

the instance of any aggrieved employee of the corporation or any

certified employee organization respresenting such employee, any by-law,

rule or regulation promulgated pursuant to subdivision one of this

section nine or any action of the corporation related thereto and upon

such review to direct the corporation to take or refrain from such

action as the personnel review board shall deem proper except, however,

nothing contained in this section nine shall abridge the right of the

corporation to exercise any managerial prerogatives which were reserved

by the city in section five-c of the aforesaid mayor executive order

number fifty-two.

The personnel review board shall, when requested by the board of

directors, conduct any special reviews, studies, investigations or

analyses of the administration of personnel in the corporation.

Officers and employees not to be interested in transactions. It

shall be a misdemeanor for a director of the corporation or an officer,

agent, executive or other employee retained, employed or appointed by

the corporation to be in any manner or way interested, directly or

indirectly, as principal, surety or otherwise, in a contract, the

expense or consideration whereof is payable out of funds of the

corporation.

Moneys of the corporation. 1. Any moneys of the corporation,

from whatever source derived, shall, except as otherwise provided in

this act, be deposited as soon as practicable in banks or trust

companies organized under the laws of the state or national banking

association doing business in the city designated by the board. The said

moneys of the corporation shall be paid out on checks signed by the

chairman of the board or by such other person or persons as the board

shall authorize. All deposits of such moneys shall, if required by the

board, be secured by obligations of the United States or of the state or

of the city of a market value equal at all times to the amount of the

deposits and all banks and trust companies are authorized to give such

security for such deposits.

2. Subject to the terms of any contract, lease or other agreement

undertaken by the corporation, any such moneys of the corporation not

required for immediate use may, at the discretion of the board, be

invested by the corporation in obligations of the United States, the

state or the city or in obligations the principal and interest of which

are guaranteed by the United States, the state or the city.

3. The comptroller, or his legally authorized representative, is

hereby authorized to and shall examine annually the accounts and books

of the corporation including its receipts, disbursements, contracts,

reserves, sinking funds, investments and any other matters relating to

its financial operation and standing.

Issuance of bonds and notes by the corporation. 1. Subject to

the provisions of section thirteen, the corporation shall have the power

and is hereby authorized, from time to time, to issue negotiable bonds

and notes in such aggregate principal amounts as shall, in the opinion

of the corporation, be necessary together with such other moneys or

funds as may be available to the corporation, to provide funds

sufficient to enable the corporation to carry out its corporate

purposes, including site acquisition, construction, maintenance and

repair of health facilities, the payment of interest on and amortization

of, or payment of such bonds and notes, the establishment of reserves or

sinking funds to secure such bonds and notes, and all other expenditures

of the corporation incident to and necessary or desirable for the

carrying out of its corporate purposes and the exercise of its powers.

Except as may otherwise be expressly provided by the corporation, every

issue of its bonds and notes shall be general obligations of the

corporation payable out of any revenues or moneys of the corporation,

subject only to any agreements with the holders of particular bonds or

notes pledging any particular revenues or moneys. Whether or not the

bonds or notes are of such form and character as to be negotiable

instruments under the provisions of article eight of the uniform

commercial code, the bonds and notes shall be and are hereby made

negotiable instruments within the meaning of and for all the purposes of

article eight of the uniform commercial code, subject only to the

provisions of the bonds or notes for registration.

2. The corporation shall have the power and is hereby authorized, from

time to time, to issue renewal notes, and to refund any bonds by the

issuance of new bonds, whether the bonds to be refunded have or have not

matured, and to issue bonds to pay notes or partly to refund bonds then

outstanding and partly for any of its corporate purposes.

3. The said bonds and notes shall be authorized by resolution or

resolutions of the board, and shall be dated and shall mature as such

resolution or resolutions may provide, except that no note or any

renewal thereof shall mature more than five years after the date of

issue of the original note and no bond shall mature more than forty

years from the date of its issue. Bonds and notes shall bear interest at

such rate or rates, be in such denominations, be in such form, either

coupon or registered, carry such registration privileges, be executed in

such manner, be payable in such medium of payment, at such place or

places, and be subject to such terms of redemption as such resolution or

resolutions may provide. Bonds and notes may be sold by the corporation

at public or private sale at such price or prices as the corporation

shall determine; provided, however, that no such bonds or notes may be

sold at a private sale unless the sale and the terms thereof have been

approved by the comptroller in writing.

4. Any resolution or resolutions authorizing any bonds or notes may

contain provisions, which shall be a part of the contract or contracts

with the holders thereof, as to

(a) pledging all or any part of the moneys or revenues or other assets

of the corporation to secure the payment of such bonds or notes,

including, but not limited to, fees, rentals and charges for the use of

a health facility and the proceeds of any grant in aid of the

corporation received from any public or private source and contracts

authorized by section seven of this act;

(b) the setting aside of reserves or sinking funds and the regulation

or disposition thereof;

(c) limitations on the purposes to which the proceeds of the sale of

any issue of bonds or notes then or thereafter to be issued may be

applied and pledging such proceeds to secure the payment of the bonds or

notes or any issue thereof;

(d) limitations on the issuance of additional bonds or notes; the

terms upon which such additional bonds or notes may be issued and

secured; the refunding of outstanding or other bonds or notes;

(e) the procedures, if any, by which the terms of any contract with

the holders of bonds or notes may be extended or abrogated, the amount

of bonds or notes the holders of which must consent thereto and the

manner in which such consent may be given;

(f) the creation of special funds into which any moneys or revenues of

the corporation may be deposited;

(g) limitations on the amounts that the corporation may expend for

administrative or other expenses thereof;

(h) vesting in a trustee or trustees such properties, rights, powers

and duties in trust as the corporation may determine which may include

any or all of the rights, powers and duties of the trustees appointed by

the holders of the bonds or notes pursuant to section seventeen of this

act and limiting or abrogating the right of the holders of the bonds or

notes to appoint a trustee under such section or limiting the rights,

duties and powers of such trustee;

(i) defining the acts or omissions to act which shall constitute a

default in the obligations and duties of the corporation to the holders

of the bonds or notes and providing for the rights and remedies of the

holders of the bonds or notes in the event of such default, including as

a matter of right the appointment of a receiver; providing, however,

that such rights and remedies shall not be inconsistent with the general

laws of the state and the other provisions of this act;

(j) any other matters, of like or different character, which in any

way affect the security or protection of the holders of the bonds or

notes.

5. Any pledge of revenues, moneys or property made by the corporation

shall be valid and binding from the time when the pledge is made; the

revenues, moneys or property so pledged and thereafter received by the

corporation shall immediately be subject to the lien of such pledge

without any physical delivery thereof or further act, and the lien of

any such pledge shall be valid and binding as against all parties having

claims of any kind in tort, contract or otherwise against the

corporation irrespective of whether such parties have notice thereof.

Neither the resolution or resolutions nor any other instrument by which

a pledge is created need be recorded.

6. Neither the directors of the corporation nor any other person

executing such bonds or notes shall be subject to any personal liability

or accountability by reason of the issuance thereof.

7. The corporation, subject to such agreements with the holders of

bonds or notes as may then exist, shall have the powers out of any funds

available therefor to purchase any bonds or notes issued by it at a

price not exceeding the redemption price thereof which price shall be

(a) if the bonds or notes are then redeemable, the redemption price

then applicable plus accrued interest to the next interest payment date

thereon, or

(b) if the bonds or notes are not then redeemable, the redemption

price applicable on the first date after such purchase upon which the

bonds or notes become subject to redemption plus accrued interest to

such date. All bonds or notes so purchased shall be cancelled.

Reserve fund. 1. The corporation shall create and establish a

special fund (herein referred to as the capital reserve fund), and shall

pay into such capital reserve fund

(a) any moneys appropriated and made available by the state or city

for the purpose of such capital reserve fund,

(b) any proceeds of sale of bonds or notes to the extent provided in

the resolution or resolutions of the corporation authorizing the

issuance thereof, and

(c) any other moneys which may be made available to the corporation

for the purpose of such capital reserve fund from any other source or

sources. All moneys held in the capital reserve fund, except as

hereinafter provided, shall be used solely for the payment of the

principal of bonds of the corporation, the payment of interest on such

bonds, or the payment of any redemption premium required to be paid when

such bonds are redeemed prior to maturity; provided, however, that

moneys in such capital reserve fund shall not be withdrawn therefrom at

any time in such amount as would reduce the amount of such fund to less

than the maximum amount of principal and interest maturing and becoming

due in any succeeding fiscal year of the corporation on all bonds of the

corporation then outstanding, except for the purpose of paying principal

of and interest on such bonds of the corporation maturing and becoming

due and for the payment of which other moneys of the corporation are not

available. Any income or interest earned by, or increment to, the

capital reserve fund due to the investment thereof may be transferred to

other funds or accounts to the extent it does not reduce the amount of

the capital reserve fund below the maximum amount of principal and

interest maturing and become due in any such succeeding fiscal year on

all bonds of the corporation then outstanding.

2. The corporation shall not issue bonds at any time if the maximum

amount of principal and interest maturing and becoming due in a

succeeding fiscal year of the corporation on such bonds then to be

issued and on all other bonds of the corporation then outstanding will

exceed the amount of the capital reserve fund at the time of issuance

unless the corporation, at the time of issuance of such bonds, shall

deposit in the capital reserve fund from the proceeds of the bonds so to

be issued, or otherwise, an amount which, together with the amount then

in such fund, will not be less than the maximum amount of principal and

interest maturing and becoming due in any such succeeding fiscal year on

such bonds then to be issued and on all other bonds of the corporation

then outstanding.

3. For the purposes of computing the amount of the capital reserve

fund, any securities in which any portion of such fund is invested shall

be valued at the par value thereof or at the cost thereof to the

corporation if such cost was less than said par value.

4. In order to assure the continued operation and solvency of the

corporation for the carrying out of its public purposes as provided in

this act, provision is made in subdivision one of this section for the

accumulation in the capital reserve fund of an amount equal to the

maximum amount of principal and interest maturing and becoming due in

any succeeding fiscal year of the corporation on all bonds of the

corporation then outstanding. In order further to assure such

maintenance of the capital reserve fund, the chairman of the corporation

shall annually request from the city to be paid over to the corporation,

for deposit in the capital reserve fund, such sum, if any, as shall be

certified by the chairman of the corporation to the mayor as necessary

to restore the capital reserve fund to an amount equal to the maximum

amount of principal and interest maturing and becoming due in any

succeeding fiscal year of the corporation on all of the bonds of the

corporation then outstanding; provided, however, that such sum shall

have been first appropriated by the city or shall otherwise have been

made lawfully available for such purpose. The chairman of the

corporation shall, on or before the fifteenth day of February in each

year, make and deliver to the mayor his certificate stating the amount,

if any, needed to restore the capital reserve fund to the amount

aforesaid and the amount so stated, if any, shall be paid to the

corporation by the city. Notwithstanding any of the provisions of this

act, in the event of the failure or inability of the city to pay over

the stated amount to the corporation on or before the first day of

August of the same year, the chairman of the corporation shall then

forthwith make and deliver to the comptroller and to the director of

management and budget a further certificate restating the amount so

required and such amount shall then be paid over to the corporation,

upon the warrant of the comptroller on vouchers certified as correct by

the director of management and budget, out of the general fund of the

city.

Agreement of the state. The state of New York does pledge to and

agree with the holders of any and all bonds and notes of the corporation

that the state will not limit or alter the rights hereby vested in the

corporation to fulfill the terms of any agreements made with the said

holders, or in any way impair the rights and remedies of such holders

until the bonds and notes, together with the interest thereon, interest

on any unpaid installments of interest, and all costs and expenses in

connection with any action or proceeding by or on behalf of such

holders, are fully met and discharged. The corporation is authorized to

include this pledge and agreement of the state in any agreement with the

holders of such bonds or notes.

State and city not liable on bonds and notes. The bonds, notes

or other obligations of the corporation shall not be a debt of either

the state of New York or of the city of New York, and neither the state

nor the city shall be liable thereon, nor shall they be payable out of

any funds other than those of the corporation.

City's right to require redemption of bonds. Notwithstanding and

in addition to any provisions for the redemption of bonds which may be

contained in any contract with the holders of the bonds, the city may,

upon furnishing sufficient funds therefor, require the corporation to

redeem, prior to maturity, as a whole, any issue of bonds on any

interest payment date not less than twenty years after the date of the

bonds of such issue at one hundred five per centum of their face value

and accrued interest or at such lower redemption price as may be

provided in the bonds in case of the redemption thereof as a whole on

the redemption date. Notice of such redemption shall be published in at

least two newspapers published and circulating in the city of New York

at least twice, the first publication to be at least thirty days before

the date of redemption.

Remedies of holders of bonds and notes. 1. In the event that the

corporation shall default in the payment of the principal of or interest

on any issue of bonds or notes after the same shall become due, whether

at maturity or upon call for redemption, and such default shall continue

for a period of thirty days, or in the event that the corporation shall

fail or refuse to comply with the provisions of this title, or shall

default in any agreement made with the holders of any issue of the bonds

or notes, the holders of twenty-five per centum in aggregate principal

amount of the bonds or notes of such issue then outstanding, by

instrument or instruments filed in the office of the city clerk of the

city and approved or acknowledged in the same manner as a deed to be

recorded, may appoint a trustee to represent the holders of such bonds

or notes for the purposes herein provided.

2. Such trustee may, and upon written request of the holders of

twenty-five per centum in principal amount of such bonds or notes then

outstanding shall, in his or its own name:

(a) by suit, action or special proceedings enforce all rights of the

holders of the bonds or notes, including the right to require the

corporation to carry out any agreements with such holders and to perform

its duties under this title;

(b) bring suit upon such bonds or notes;

(c) by action or suit, require the corporation to account as if it

were the trustee of an express trust for the holders of such bonds or

notes;

(d) by action or suit, enjoin any acts or things which may be unlawful

or in violation of the rights of the holders of such bonds or notes;

(e) declare all such bonds or notes due and payable, and if all

defaults shall be made good, then, with the consent of the holders of

twenty-five per centum of the principal amount of such bonds or notes

then outstanding, annul such declaration and its consequences.

3. The supreme court shall have jurisdiction of any suit, action or

proceedings by the trustee on behalf of such holders of bonds or notes.

The venue of any such suit, action or proceeding shall be laid in the

county of New York.

4. Before declaring the principal of bonds or notes due and payable,

the trustee shall first give thirty days' notice in writing to the

corporation.

5. Any such trustee, whether or not all bonds or notes have been

declared due and payable, shall be entitled as of right to the

appointment of a receiver who may enter and take possession of a health

facility or any part or parts thereof and maintain and repair the same

and collect and receive all fees, rentals and charges or other revenues

thereafter arising therefrom in the same manner as the corporation

itself might do and shall deposit all such moneys in a separate account

and apply the same in such manner as the court shall direct. In any

suit, action or proceeding by the trustee, the fees, including counsel

fees, and expenses of the trustee and of the receiver, if any, shall

constitute taxable disbursements and all costs and disbursements allowed

by the court shall be a first charge on any rentals, charges or other

revenues derived from a health facility.

6. Such trustee shall in addition to the foregoing have and possess

all the powers necessary or appropriate for the exercise of any function

specifically set forth herein or incident to the general representation

of the holders of such bonds or notes in the enforcement and protection

of their rights.

Assistance to the corporation. The state or city shall be

empowered to make grants of money or property to the corporation for the

purpose of enabling it to carry out its corporate purposes and for the

exercise of its powers, including, but not limited to, deposits to the

capital reserve fund to assist the corporation in maintaining the said

capital reserve fund in the amounts required by section thirteen.

Nothing in this section shall be interpreted as implying that in the

absence thereof the state or city would not be empowered to make such

grants to the corporation.

Exemption from taxation. 1. The moneys and property of the

corporation and any property under its jurisdiction, control or

supervision, and all of its activities and operations shall be exempt

from taxation.

2. The state of New York covenants with the purchasers of and with all

subsequent holders and transferees of bonds and notes issued by the

corporation pursuant to this act, in consideration of the acceptance of

and payment for the said bonds and notes, that the said bonds and notes

and the income therefrom, and all moneys, funds and revenue pledged to

pay or secure the payment of such bonds and notes shall at all time be

free from taxation, except for estate and gift taxes and taxes on

transfers.

Actions by and against the corporation. 1. In every action

against the corporation for damages for injuries to real or personal

property, or for the destruction thereof, or for personal injuries or

death, the complaint shall contain an allegation that at least thirty

days have elapsed since the demand, claim or claims upon which such

action is founded were presented to a director or officer of the

corporation and that the corporation has neglected or refused to make an

adjustment or payment thereof for thirty days after such presentment, or

if the demand, claim or claims upon which such action is founded was

presented to a director or officer of the corporation by service upon

the secretary of state pursuant to section fifty-three of the general

municipal law, that at least forty days have elapsed since such service

was made, and that the corporation has neglected or refused to make an

adjustment or payment thereof for forty days after such presentment.

2. Except in an action for wrongful death, an action against the

corporation for damages for injuries to real or personal property, or

for the destruction thereof, or for personal injuries, alleged to have

been sustained, shall not be commenced more than one year and ninety

days after the cause of action thereof shall have accrued, nor unless a

notice of intention to commence such action and of the time when and the

place where the tort occurred and the injuries or damage, were

sustained, together with a verified statement showing in detail the

property alleged to have been damaged or destroyed and the value

thereof, or the personal injuries alleged to have been sustained and by

whom, shall have been filed with a director or officer of the

corporation within ninety days after such cause of action shall have

accrued. All the provisions of section fifty-e of the general municipal

law shall apply to such notice. The corporation may require any claimant

hereunder to be examined as provided in section fifty-h of the general

municipal law, and all the provisions of such section shall apply to

such examinations. An action against the corporation for wrongful death

shall be commenced in accordance with the notice of claim and time

limitation provisions of title eleven of article nine of the public

authorities law.

3. All actions against the corporation of whatever nature shall be

brought in the city of New York, in the county within the city in which

the cause of action arose, or if it arose outside of the city, in the

county of New York.

4. The corporation may require any person presenting for settlement an

account or claim for any cause against the corporation, except as to

examination on claims as set forth in subdivision two of this section,

to be sworn before an officer, counsel or an attorney of the

corporation, touching such account or claim, and when so sworn, to

answer orally as to any facts relative to the adjustment of such account

or claim. The corporation may settle or adjust all claims in favor of or

against the corporation, and all accounts in which the corporation is

concerned as debtor or creditor; but in adjusting and settling such

claims, it shall, as far as practicable, be governed by the rules of law

and principles of equity which prevail in courts of justice.

5. Except as hereinafter provided in this subdivision, the rate of

interest to be paid by the corporation upon any judgment or accrued

claim against the corporation shall not exceed three per centum per

annum. The rate of interest to be paid upon any judgment or accrued

claim against the corporation arising out of an action to recover

damages for wrongful death shall not exceed six per centum per annum.

6. The corporation shall be an "agency" for the purposes of section

fifty-k of the general municipal law and its officers and employees

shall be entitled to legal representation and indemnification pursuant

to the provisions of and subject to the conditions, procedures and

limitations contained in such section, except that any judgment or

settlement pursuant to this section shall be payable from the monies of

the corporation.

Bonds and notes as legal investments. The bonds and notes of the

corporation are hereby made securities in which all public officers and

bodies of this state and all municipalities and municipal subdivisions,

all insurance companies and associations, and other persons carrying on

an insurance business, all banks, bankers, trust companies, savings

banks and savings associations, including savings and loan associations,

building and loan associations, investment companies and other persons

carrying on a banking business, all administrators, guardians,

executors, trustees and other fiduciaries, and all other persons

whatsoever who are now or may hereafter be authorized to invest in bonds

or in other obligations of the state, may properly and legally invest

funds, including capital, in their control or belonging to them.

Annual and special reports. 1. Within one hundred twenty days

after the end of the fiscal year of the corporation, the directors

thereof shall submit to the mayor, the comptroller, the city council of

the city of New York and the state comptroller a complete and detailed

report setting forth:

(a) its operations and accomplishments during such fiscal year;

(b) its receipts and expenditures during such fiscal year in

accordance with categories or classifications established by the

corporation for its own operating and capital outlay purposes;

(c) its assets and liabilities at the end of such fiscal year

including a schedule of its bonds, notes or other obligations and the

status of reserves, depreciation, special, sinking or other funds;

(d) details of health facilities being planned or in the process of

being constructed or otherwise acquired and health facilities that have

been constructed or acquired;

(e) the performance of the corporation in completing construction by

designated completion dates and within cost estimates;

(f) the names, addresses and qualifications of architects, engineers

or other consultants retained by the corporation and a statement of any

amounts paid or to be paid to such persons for their services;

(g) the details of any leases or sales or other dispositions of health

facilities including the fees, rental and charges received or to be

received therefrom;

(h) such other information relating to the operations of the

corporation as shall be deemed pertinent by the directors, the mayor,

the comptroller, the city council of the city of New York or the state

comptroller.

2. The chairman of the corporation, on behalf of the directors

thereof, on or before December first of each year, shall prepare and

submit to the mayor, a complete and detailed special report setting

forth:

(a) an itemized budget of the expected receipts and expenditures of

the corporation during the next fiscal year; and

(b) information as to the issuance or payment, or provision therefor,

of bonds, notes and other obligations of the corporation during such

next fiscal year.

Act not affected if in part unconstitutional or ineffective. If

any section, subdivision, paragraph, sentence, clause or provision of

this act shall be unconstitutional or ineffective, in whole or in part,

to the extent that it is not unconstitutional or ineffective it shall be

vaild and effective and no other section, subdivision, paragraph,

sentence, clause or provision shall on account thereof be deemed invalid

or ineffective.

Inconsistent provisions of other laws superseded. Insofar as the

provisions of this act are inconsistent with the provisions of any other

law, general, special or local, the provisions of this act shall be

controlling, provided, however, that nothing therein shall be deemed to

prevent the city from constructing a health facility by the issuance of

bonds or notes or other obligations pursuant to the local finance law,

or from owning, holding, operating or using a health facility or from

providing health and medical services.

Termination of the corporation. The corporation and its

corporate existence shall continue until terminated by law; provided,

however, that no such law shall take effect so long as the corporation

shall have bonds, notes or other obligations outstanding. Upon

termination of the existence of the corporation all of its rights,

property, assets and funds shall thereupon vest in and be possessed by

the city.