§ 131A-8. Operation of health care facilities; loan agreements; agreements of sale or lease; conveyance of interest in health care facilities. - North Carolina Statutes

§131A‑8.  Operation of health care facilities; loan agreements; agreementsof sale or lease; conveyance of interest in health care facilities.

All health care facilitiesshall be operated to serve and benefit the public and there shall be nodiscrimination against any person based on race, creed, color or nationalorigin.

The Commission may sell orlease any health care facilities to a public or nonprofit agency for operationand maintenance or lend money to any public or nonprofit agency in such manneras shall effectuate the purposes of this Chapter, under a loan agreement or anagreement of sale or lease in form and substance not inconsistent herewith. Anysuch loan agreement or agreement of sale or lease may include provisions that:

(1)        The public or nonprofitagency shall, at its own expense, operate, repair and maintain the health carefacilities covered by such agreement;

(2)        The purchase pricepayments to be made under the agreement of sale, the rent payable under theagreement of lease or the loan repayments under the loan agreement shall in theaggregate be not less than an amount sufficient to pay all of the interest,principal and any redemption premium on the bonds or notes issued by theCommission to pay the cost of the health care facilities sold or leasedthereunder or to make the loan with respect thereto;

(3)        The public ornonprofit agency shall pay all other costs incurred by the Commission inconnection with the providing of the health care facilities covered by any suchagreement, except such costs as may be paid out of the proceeds of bonds ornotes or otherwise, including, but without limitation, insurance costs, thecost of administering the resolution authorizing the issuance of, or any trustagreement securing, such bonds or notes and the fees and expenses of trustees,paying agents, attorneys, consultants and others;

(4)        The loan agreementor the agreement of sale or lease shall terminate not earlier than the date onwhich all such bonds and all other obligations incurred by the Commission inconnection with the health care facilities covered by any such agreement shallbe retired or provision for such retirement shall be made; and

(5)        The obligation ofthe public or nonprofit agency to make loan repayments or purchase pricepayments or to pay rent shall not be subject to cancellation, termination orabatement by the public or nonprofit agency until the bonds have been retiredor provision has been made for such retirement.

All obligations payable by apublic agency under a loan agreement or an agreement of sale or lease,including the obligation to make loan repayments or purchase price payments orto pay rent and to pay the costs of operating, repairing and maintaining healthcare facilities, shall be payable solely from the revenues of the health carefacilities being purchased or leased or with respect to which a loan is made orother health care facilities of the health care facilities of the public agencyor from any federally guaranteed security and moneys received therefrom and shallnot be payable from or charged upon any funds of the public agency other thanthe revenues pledged to such payment; provided, however, that nothing hereinshall restrict the power of any county, city, town or other politicalsubdivision of the State or any hospital district created pursuant to Article13C of Chapter 131 of the General Statutes to submit to its qualified voters ahealth care facility maintenance tax under Article 13B of said Chapter 131 forthe purposes of financing the cost of operation, equipment and maintenance ofany health care facility financed for any public agency under this Chapter andall health care facilities authorized to be financed under this Chapter andleased to public agencies are hereby declared to be included within thedefinition "hospital facility" as used in said Article 13B.

Where the Commission hasacquired a possessory or ownership interest in any health care facilities whichit has undertaken on behalf of a public or nonprofit agency it shall promptlyconvey, without the payment of any consideration, all its right, title andinterest in such health care facilities to such public or nonprofit agency uponthe retirement or provision for the retirement of all bonds or notes issued andobligations incurred by the Commission in connection with such health carefacilities. (1975, c. 766, s. 1; 1979, c. 54, s. 9.)