Section 8 - Health facilities reserve funds and appropriations1.(a) For the purposes of the issuance by the agency of health facilities bonds, the term "health facilities reserve fund requirement" shall mean, as of any particular date of computation, an amount of money equal to the greatest of the respective amounts, for the then current or any succeeding calendar year, of annual debt service payments of the agency, such annual debt service payments for any calendar year being an amount of money equal to the aggregate of (i) all interest payable during such calendar year on all health facilities bonds of the agency then outstanding on said date of computation, plus (ii) the prinicipal amount of all health facilities bonds of the agency then outstanding on said date of computation which mature during such calendar year, plus (iii) the amount of all sinking fund payments payable during such calendar year with respect to all health facilities bonds of the agency outstanding on said date of computation; and the term "sinking fund payment" shall mean the amount of money specified in the resolution authorizing term bonds as payable into a sinking fund for the amortization of such term bonds. The agency may create and establish one or more additional reserve funds to be known as health facilities reserve funds and may pay into such reserve funds (1) any monies appropriated and made available by the state for the purposes of such funds, (2) any proceeds of sale of health facilities notes or health facilities bonds, to the extent provided in the resolution of the agency authorizing the issuance thereof, and (3) any other monies which may be made available to the agency for the purposes of such funds from any other source or sources. The monies held in or credited to any health facilitiss reserve fund established under this subdivision, except as hereinafter provided, shall be used solely for the payment of the prinicipal of health facilities bonds of the agency secured by such reserve fund, as the same mature, sinking fund payments, the purchase of such health facilities bonds of the agency, and the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity; provided, however, that monies in any such fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such fund to less than the health facilities reserve fund requirement, except for the purpose of paying principal and interest on the health facilities bonds of the agency secured by such reserve fund maturing and becoming due and any sinking fund payments and for the payment of which other monies of the agency are not available. Any income or interest earned by, or increment to, any such health facilities reserve fund due to the investment thereof may be transferred to any other fund or account of the agency to the extent it does not reduce the amount of such health facilities reserve fund below the health facilities reserve fund requirement.(b) The agency shall not issue health facilities bonds and health facilities notes, municipal hospital bonds, municipal hospital notes, municipal nursing home bonds and municipal nursing home notes in an aggregate principal amount exceeding two billion dollars, excluding health facilities bonds and health facilities notes issued to refund outstanding health facilities bonds or health facilities notes. The agency shall not issue health facilities bonds at any time secured by a health facilities reserve fund if upon issuance, the amount in the health facilities reserve fund will be less than the health facilities reserve fund requirement, unless the agency, at the time of issuance of such bonds, shall deposit in such reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which together with the amount then in such reserve fund, will be not less than the health facilities reserve fund requirement.(c) In computing any health facilities reserve fund for the purposes of this section, securities in which all or a portion of such reserve fund shall be invested shall be valued at par if purchased at par, or if purchased at other than par, at amortized value.2.(a) The agency shall create and establish one or more special accounts (herein referred to as health facilities income account) and shall pay into such accounts any monies which the agency shall receive in payment of rentals due under one or more leases or subleases entered into with a municipality pursuant to section five and any other monies which the agency shall receive from a municipality as security for or in payment of such rentals. Such monies and any other monies paid into such health facilities income accounts, may, in the discretion of the agency, but subject to agreements with the holders of health facilities bonds and health facilities notes, be used by the agency (1) for the repayment of advances, if any, from the state to the agency in connection with health facilities, and any real property required therefor, in accordance with the provisions of repayment agreements related thereto which have been entered into with the director of the budget, (2) to pay all costs, expenses and charges of financing the health facil- applicable to such account or accounts including fees and expenses of trustees and paying agents, (3) to pay the administrative and other expenses of the agency allocable to the services performed by the agency in the financing of the construction, acquisition, reconstruction, rehabilitation or improvement of health facilities and matters relating thereto, (4) for the payment of the principal of and interest on health facilities bonds or health facilities notes isued by the agency when the same shall become due whether at maturity or by call for redemption and for the payment of any redemption premium required to be paid where such bonds or notes are redeemed prior to their stated maturities, and any sinking fund payments, and to purchase health facilities bonds or health facilities notes isued by the agency, or (5) for such other corporate purposes of the agency relating to the carrying out of its functions, powers and duties with respect to the financing of the construction, acquisition, reconstruction, rehabilitation or improvement of health facilities as the agency in its discretion shall determine and provide.(b) To assure the continued payment of rentals due under one or more leases or subleases entered into with a municipality pursuant to section five, the agency shall make and deliver to the appropriate chief fiscal officer of the municipality a certificate setting forth the amount, if any, due and not paid to the agency under such lease or sublease with such municipality within five days of the due date. In the event of the failure or inability of the municipality to pay over the stated amount to the agency within ten days of receipt of such certificate, the agency shall forthwith make and deliver to the comptroller of the state of New York, the director of the budget of the state of New York and the commissioner of health of the state of New York a further certificate restating the amount due and not paid, and such amount shall be paid over to the agency, upon the warrant of the comptroller on vouchers certified as correct by the commissioner of health, out of the next payment of state aid to such municipality pursuant to section 368 -a of the social services law or funds appropriated for the purpose of making payment on behalf of such municipality pursuant to section 367-b of such law. To the extent any such payments to the agency are made from state aid payments pursuant to section 368-a of such law, the amount of such payments shall be deducted from the corresponding apportionment of state aid otherwise credited to such municipality, and the state shall not be obligated to pay, nor shall such municipality be entitled to receive, by virtue of such deduction, any additional or increased apportionment or payment of state aid pursuant to section 368 -a of the social services law. To the extent any such payments to the agency are made from funds appropriated for the purpose of making payments on behalf of such municipality pursuant to section 367-b of such law, the amount of such payments may be deducted from any other payments of state assistance to such municipality under the social services law and the state shall not be obligated to pay, nor shall the municipality be entitled to receive, by virtue of such deduction, any additional or increased apportionment or payment of such state assistance, provided, however, that nothing contained in this sentence shall be construed to limit, impair, impede, or otherwise adversely affect in any manner the rights or remedies of the purchasers and holders and owners of any bonds or notes of the state or any agency or instrumentality, public benefit corporation or political subdivision thereof under which such purchasers and holders and owners have any right of payment of such bonds or notes by recourse to such state assistance monies.N.Y. Medical Care Facilities Finance Agency Law § 8