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<section article="gec" article_name="Economic Development" number="10-340" title_number="10" title_name="Statewide Development Resources and Revenue Authorities" subtitle_number="3" subtitle_name="Maryland Health and Higher Educational Facilities Authority">
  <level label="a">
    <text>In this part the following words have the meanings indicated.</text>
  </level>
  <level label="b">
    <text>“Affiliate” means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person.</text>
  </level>
  <level label="c">
    <level label="1">
      <text>“Closure cost” means costs incurred in connection with the closure or delicensing of a hospital.</text>
    </level>
    <level label="2">
      <text>“Closure cost” includes expenses of operating a hospital, payments to employees, employee benefits, fees of consultants, insurance, security services, utilities, legal fees, capital costs, costs of terminating contracts with vendors, suppliers of goods and services and others, debt service, contingencies, and other necessary or appropriate costs and expenses.</text>
    </level>
  </level>
  <level label="d">
    <text>“Control” means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a person through equity interest, membership interest, or contract other than a commercial contract for goods or nonmanagement services, or otherwise, whether or not the power is exercised or sought to be exercised.</text>
  </level>
  <level label="e">
    <text>“Hospital” means an institution defined as a hospital under § 19–301 of the Health – General Article and that is licensed as a hospital by the Secretary of Health under § 19–318 of the Health – General Article.</text>
  </level>
  <level label="f">
    <text>“Program” means the Maryland Hospital Bond Program under this part.</text>
  </level>
  <level label="g">
    <level label="1">
      <text>“Public obligation” means a bond, note, evidence of indebtedness, or other obligation, to repay borrowed money issued by the Authority, the State, a unit, instrumentality, or public corporation of the State, a governmental entity described in § 19–205(a) of the Local Government Article, a county, or a municipal corporation.</text>
    </level>
    <level label="2">
      <text>“Public obligation” does not include an obligation, or portion of an obligation, if:</text>
      <level label="i">
        <text>the principal of and interest on the obligation or the portion of the obligation is:</text>
        <level label="1">
          <text>insured by an effective municipal bond insurance policy; and</text>
        </level>
        <level label="2">
          <text>issued on behalf of a hospital that voluntarily closed in accordance with § 19–120(l) of the Health – General Article; and</text>
        </level>
      </level>
      <level label="ii">
        <text>the proceeds of the obligation or the portion of the obligation are used to finance wholly or partly:</text>
        <level label="1">
          <text>a facility or part of a facility that is used primarily to provide outpatient services at a location other than the hospital; or</text>
        </level>
        <level label="2">
          <text>a facility or part of a facility that is used primarily by physicians who are not employees of the hospital to provide services to nonhospital patients.</text>
        </level>
      </level>
    </level>
  </level>
</section>
