Title 10. Statewide Development Resources and Revenue Authorities — Subtitle 3. Maryland Health and Higher Educational Facilities Authority

financing a project;

acquiring and improving a project; and

placing a project in operation.

a nonprofit hospital as defined under § 19–301 of the Health – General Article that:

a nonprofit related institution as defined under § 19–301 of the Health – General Article that is licensed as a related institution by the Secretary of Health under § 19–318 of the Health – General Article;

a combination of institutions listed in items (i) and (ii) of this paragraph;

except as provided in paragraph (3) of this subsection:

any combination of health care entities listed in item (iv) of this paragraph;

an entity affiliated or associated with an institution listed in items (i) through (v) of this paragraph, if the Authority determines by resolution that the financing of a project for the entity serves the public purpose of that institution; or

a nonprofit health service plan that holds a certificate of authority and provides health insurance policies or contracts in the State in accordance with the Insurance Article.

a nonprofit comprehensive health center that is a medical or health care facility of the University System of Maryland; or

a nonprofit life care or continuing care community that provides self–contained residence facilities for the retired or elderly.

by law or charter:

meets the standards and regulations that the Maryland Higher Education Commission prescribes, and is authorized to issue a certificate, diploma, or degree under Title 12 of the Education Article.

a community college for which a board of community college trustees is established under § 16–101 of the Education Article;

a regional community college established under § 16–202 of the Education Article;

the Baltimore City Community College established under § 16–501 of the Education Article; and

the College of Southern Maryland established under § 16–603 of the Education Article.

“project” means a structure or facility that is required or useful for an educational institution;

“project” includes:

“project” does not include books, fuel, supplies, or other items that customarily result in a current operating charge.

“project” means a structure or facility that is required or useful for the effective operation of a health care institution;

“project” includes:

“project” does not include fuel, supplies, or other items that customarily result in a current operating charge.

people have the fullest opportunity to learn and to develop intellectual capacities;

educational institutions in the State have the appropriate means to assist people in achieving required levels of learning and development of intellectual capacities;

health care institutions in the State have appropriate means to expand and establish hospitals and other related health care facilities; and

educational institutions and health care institutions in the State are able to finance projects at the least cost to their users;

acquire, directly or through a participating institution acting as its agent, by purchase, gift, or devise, any property, franchises, and other interests in land, including submerged land and riparian rights, located in or outside the State, as necessary or convenient to construct, acquire, or operate a project, on terms and at prices the Authority considers reasonable; and

take title to the property in the name of the Authority or the participating institution as its designated agent;

improve or acquire a project in accordance with an agreement between the Authority and the participating institution;

refinance any part of a project; and

refund or repay bonds, mortgages, advances, loans, or other obligations of the participating institution to the Authority, any person, or any unit of federal, State, or local government incurred to finance any part of a project.

allow copies to be made of the minutes and records of the Authority; and

certify records under seal showing that the copies are true copies.

issue bonds for any corporate purpose, including operating expenses;

refund those bonds;

purchase its bonds with any funds available; and

hold, pledge, cancel, or resell bonds.

specifying, determining, prescribing, and approving matters, documents, and procedures that relate to the authorization, sale, security, issuance, delivery, and payment of and for the bonds;

creating security for the bonds;

providing for the administration of bond issues; and

taking other actions it considers appropriate concerning the bonds.

Subject to subparagraph (ii) of this paragraph, the Authority may authorize the Executive Director to take any of the actions described in paragraph (2) of this subsection.

If the Authority authorizes the Executive Director to take any of the actions described in paragraph (2) of this subsection, the Authority shall prescribe limits within which the Executive Director may exercise discretion.

holders of particular bonds pledging any particular revenues or money; and

any participating institution.

serial bonds;

term bonds; or

both in the discretion of the Authority.

the dates of the bonds;

the maturity dates of the bonds;

the interest rates on the bonds;

the time at which the bonds will be payable;

the denominations of the bonds;

whether the bonds will be in a coupon or registered form;

any registration privileges of the bonds;

the manner of execution of the bonds;

the place at which the bonds will be payable; and

any terms of redemption of the bonds.

pledging the following to secure payment of bonds, subject to any existing agreements with bondholders:

the rentals, fees, and other charges, the amounts to be raised in each year, and the use and disposition of the revenues;

setting aside of reserves and sinking funds and their disposition;

limits on the right of the Authority or its agents to restrict and regulate the use of a project;

limits on the purpose to which the proceeds of sale of bonds may be applied;

limits on issuing additional bonds, the terms under which additional bonds may be issued and secured, and refunding outstanding bonds;

the procedure to amend or abrogate the terms of a contract with bondholders and the requirements for consent;

limits on the amount of project revenues to be expended for operating, administrative, or other expenses of the Authority;

the acts or omissions that constitute default by the Authority and the rights and remedies of the bondholders in the event of a default;

the conveyance or mortgaging of a project and its site to secure the bondholders; and

creation and disposition of a collateral fund, instead of conveyance or mortgage, for the purpose of securing the bondholders.

a provision conveying or mortgaging all or a portion of the project; or

a provision creating a collateral account;

the principal of and the interest on the bonds as they become due; and

the redemption or purchase price of bonds retired by call or purchase as specified in the trust agreement.

to pay for project maintenance, repair, and operation;

for reserves; and

for improvements to the project.

The rates, rents, charges, fees, and other revenue or money that the Authority pledges and receives are subject immediately to the lien of the pledge.

Neither physical delivery of the rates, rents, charges, fees, and other revenue or money nor any other act is required to validate the lien.

any regulation adopted under this subtitle; and

the trust agreement securing the bonds.

any redemption premium;

interest accrued or to accrue to the date of redemption, purchase, or maturity of the bonds; and

if considered advisable by the Authority, any part of the cost of acquiring or improving a project.

realizing savings in the effective costs of debt service, directly or through a debt restructuring; or

alleviating a potential or actual default.

In addition to other sources of payment that the Authority determines, refunding bonds may be payable from escrowed bond proceeds and earnings and profits on investments.

Escrowed bond proceeds and earnings and profits on investments used under subparagraph (i) of this paragraph constitute revenues of a project under this subtitle.

to pay the bonds that are to be refunded; or

to pay the costs of acquiring or improving a project.

the principal of and interest on bonds issued to finance the project, including any refunding bonds, have been fully paid and retired; or

adequate provision has been made to fully pay and retire the bonds;

the principal of and interest on the obligation or the portion of the obligation is:

the proceeds of the obligation or the portion of the obligation are used to finance wholly or partly:

the closure of the hospital is in accordance with § 19–120(l) of the Health – General Article; or

the delicensure of the hospital is in accordance with § 19–325 of the Health – General Article;

the Secretary of Health, in consultation with the Maryland Health Care Commission; and

the Authority.

the closure of the hospital is in accordance with § 19–120(l) of the Health – General Article; or

the delicensure of the hospital is in accordance with § 19–325 of the Health – General Article;

the Secretary of Health, in consultation with the Maryland Health Care Commission; and

the Authority; and

the Authority and the Health Services Cost Review Commission when a hospital files a written notice of intent to close under § 19–120(l) of the Health – General Article; and

the Authority when a petition for delicensure of a hospital is filed with the Secretary of Health under § 19–325 of the Health – General Article.

in the public interest; and

not inconsistent with the State health plan or an institution-specific plan that the Maryland Health Care Commission developed; and

the name of each issuer of the public obligation;

the outstanding principal amount of each public obligation;

the due dates for payment or any mandatory redemption or purchase of each public obligation;

the due dates for the payment of interest on each public obligation and the interest rates; and

the documents and information about the public obligation that the Authority or the Health Services Cost Review Commission requests.

the period when the fee will be assessed to provide for the payment of the closure costs or any bond issued to finance the closure costs; or

5 years after the date of closure or delicensure; and

directly to the Authority;

directly to a trustee for the bondholders; or

otherwise as the Authority directs.

the appraisal of an independent professional appraiser; or

the report of an independent consultant.

necessary to protect the interests of holders of public obligations; or

consistent with the public purpose of encouraging and assisting the hospital to close or delicense.

a closed or delicensed hospital; or

a guaranty or collateral securing the payment of a public obligation of a closed or delicensed hospital if the guaranty or collateral was provided by an entity associated with the hospital.