SENATE BILL NO. 2
AN ACT TO AMEND CHAPTER 90, TITLE 16, DELAWARE CODE, CLARIFYING THE USE OF THE HEALTH FACILITIES SUBSIDY FUND AND AUTHORIZING AN INCREASE IN THE CAPITALIZATION OF THE FUND AND TO AMEND VOLUME 64, CHAPTER 463, LAWS OF DELAWARE, CLARIFYING THE REQUIREMENT FOR THE DEPOSIT OF INTEREST ON LOANS TO THE GENERAL FUND.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-quarters of all members elected to each House thereof concurring therein):
Section I. Amend Section 9002(2), Title 16, Delaware Code, by deleting the period (.) after the word "Chapter" as it appears in said Section and by Inserting in lieu thereof the following:
", or any refinancing of bonds or notes issued by the Delaware Health Facilities Authority for the benefit of a health facility."
Section 2. Amend Section 9007, Title 16, Delaware Code, by deleting the last sentence of said Section in Its entirety and inserting in lieu thereof the following:
"Principal payments of such loans shall be deposited in the Health Facilities Subsidy Fund until the principal in such Fund, to include the accrued earnings credited to principal, as provided in Section 9008 of this Title, has reached the sum of Four Million Dollars ($4,000,000.00). Thereafter, upon certification by the State Treasurer that the Fund has been capitalized pursuant to this Section, future principal repayments of loans from the Health Facility Construction Fund shall be deposited in the State Treasurer's Bond Reversion Account."
Section 3. Amend Chapter 90, Title 16, Delaware Code, by adding a new Section 9009 to read as follows:
"§9009. Eligibility for Early Repayment. If any health facility which has incurred any obligation to the State of Delaware through loans from the Health Facility Construction Fund chooses to accelerate the repayments of all or a portion of its indebtedness to the State, and chooses to finance its accelerated repayment through funds raised by debt (I) issued through the Delaware Health Facilities Authority or (it) any other debt instrument duly obligating the health facility the State is hereby authorized to accept as satisfaction for that obligation an amount equal to all accrued interest, to the date of repayment, plus a principal amount equal to the future principal payments (or the portion thereof to be prepayed) on the Health Facility Construction Loan, discounted to their present value at the net interest cost of the new borrowing. In such cue, the Health Facility shall not be eligible for a subsidy contract on that portion of its borrowing from the Health Facilities Authority or other creditor which is used to prepay its loan or loans from the Health Facility Construction Fund. Such payments of principal and interest shall be credited to the various funds and accounts of the State as specified in Sections 9007 and 9008 of this Chapter."
Section 4. The State Treasurer Is hereby authorized to transfer the amount of accrued interest paid to the State, pursuant to Section 4 of Volume 64, Chapter 463, Laws of Delaware, from the Bond Revision Account to the General Fund of the State.
Section 5. Section 2 of this Act shall take effect July I, 1985. The remaining sections shall take effect pursuant to the provisions of State law.
Approved July 4, 1985