Relates to the ability of the New York state medical care facilities finance agency to issue certain bonds and notes

Higher bond cap for New York hospitals, nursing homes

The law raises the total cap on hospital and nursing home project bonds from $20 billion to $21.8 billion. Bonds issued only to refund existing hospital or nursing home debt do not count toward the $21.8 billion cap. The agency can go over $21.8 billion only for refundings when the present value of the new debt service is no more than the present value of the old debt service. The present value test uses the refunding bonds’ effective interest rate (double the semiannual discount rate) and includes accrued interest and proceeds. The agency cannot issue bonds backed by the capital reserve fund if that would drop the fund below its required level; it must deposit enough at issuance to meet the requirement.