<?xml version='1.0' encoding='utf-8'?>
<section article="gec" article_name="Economic Development" number="10-350" 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>On the date of closure or delicensure of a hospital for which a financing plan is developed under § 10–348 of this subtitle, the Health Services Cost Review Commission shall assess a fee on all hospitals, as provided in § 19–223 of the Health – General Article, sufficient to:</text>
    <level label="1">
      <text>pay the principal and interest on any bonds that the Authority issues under § 10–349 of this subtitle to finance public obligations;</text>
    </level>
    <level label="2">
      <text>pay the closure costs or the principal and interest on bonds that the Authority issues under § 10–349 of this subtitle to finance any closure costs;</text>
    </level>
    <level label="3">
      <text>maintain a reserve required by the trust agreement;</text>
    </level>
    <level label="4">
      <text>pay any required financing fees or charges; and</text>
    </level>
    <level label="5">
      <text>maintain reserves that the Authority considers appropriate to provide the amounts described in paragraphs (1) through (4) of this subsection if a hospital defaults in paying the fees.</text>
    </level>
  </level>
  <level label="b">
    <text>The fee assessed each hospital shall be:</text>
    <level label="1">
      <text>the product of the total fees required to be assessed multiplied by the ratio of the actual gross patient revenue of the hospital to the total gross patient revenue of all hospitals; and</text>
    </level>
    <level label="2">
      <text>determined as of the date the Authority determines after consulting with the Health Services Cost Review Commission.</text>
    </level>
  </level>
  <level label="c">
    <level label="1">
      <text>As the Authority directs, each hospital shall pay the fee:</text>
      <level label="i">
        <text>directly to the Authority;</text>
      </level>
      <level label="ii">
        <text>directly to a trustee for the bondholders; or</text>
      </level>
      <level label="iii">
        <text>otherwise as the Authority directs.</text>
      </level>
    </level>
    <level label="2">
      <text>The fee shall be assessed at any time necessary to meet the payment requirements of this section.</text>
    </level>
  </level>
  <level label="d">
    <text>The fee assessed is not subject to supervision or regulation by a unit of the State.</text>
  </level>
  <level label="e">
    <level label="1">
      <text>A pledge of the fee to a bond issued under this part or to any other public obligation immediately subjects the fee to the lien of the pledge without a physical delivery or further act.</text>
    </level>
    <level label="2">
      <text>Whether or not the parties have notice, the lien of the pledge is valid and binding against all parties having claims in tort, contract, or otherwise against the Authority or a closed or delicensed hospital.</text>
    </level>
  </level>
  <level label="f">
    <text>If the Health Services Cost Review Commission terminates by law, the Secretary of Health shall impose the fee under this section.</text>
  </level>
</section>
