NY S07387

Authorizes eligible secured hospital borrowers (not-for-profit hospitals with outstanding special hospital project bonds) to refinance mortgage loans that were originally financed with special hospital project bond proceeds.

Requires refinancing applications to be approved by the hospital's board and the state Commissioner of Health, with evidence demonstrating the refinancing sustains or improves the hospital's financial condition, including net present value savings of at least 2 percent of refunded bond par amount.

Prohibits hospitals from claiming additional Medicaid reimbursement for interest payments on refinanced indebtedness through a written undertaking to the Department of Health.

Establishes secured hospital special debt service reserve funds and capital reserve funds to secure special hospital project bonds and provide resources if eligible hospitals fail to make debt service payments.

Authorizes the Director of the Budget to enter into service contracts (subject to annual legislative appropriations) to provide funds for debt service payments on special hospital project bonds if other fund sources are inadequate, with provisions that such obligations do not constitute state debt.

Extends the expiration date of Chapter 934 of the Laws of 1985 from March 1, 1998 to December 31, 2015, and applies the extension only to hospitals that received acknowledgment of their financing application by September 1, 1997.