NY S68014

Amends Public Authorities Law Section 1678 to authorize the Dormitory Authority of the State of New York to form a subsidiary to limit its potential liability when exercising remedies against North General Hospital, a Manhattan-based eligible secured borrower that has defaulted on its loan or mortgage obligations with the Authority.

Permits the subsidiary to exercise powers including bidding for, taking, holding, selling, or transferring title to mortgaged or collateralized property; entering into leases and operating agreements; and assuming related indebtedness or liabilities, but prohibits issuance of indebtedness by the subsidiary.

Requires the subsidiary to be established as a public benefit corporation with a certificate of incorporation filed with the Secretary of State, conferring the same privileges, immunities, and tax exemptions as the Authority.

Specifies that the subsidiary's members shall be identical to the Authority's members, with governance provisions from Public Authorities Law Section 1691 applying to members in their subsidiary capacity.

Provides that the Authority assumes no liability or responsibility for the subsidiary's obligations unless expressly agreed to in writing, and the subsidiary remains subject to all other Public Authorities Law provisions governing public authority subsidiaries.