§ 143.10 Contract liabilities; guarantees of certain hospital indebtedness; procedure for ascertaining the amount of such liabilities. The amount of the liability of a municipality arising from a guarantee authorized by law pursuant to section seven of article seventeen of the state constitution of the principal of and interest on indebtedness contracted by an eligible corporation or association for the purpose of providing hospital or other facilities for the prevention, diagnosis or treatment of human disease, pain, injury, disability, deformity or physical condition, and for facilities incidental or appurtenant thereto, shall be deemed indebtedness in the amount of the face value of the principal thereof remaining unpaid. If only the interest is guaranteed, then the amount of the liability arising therefrom shall be indebtedness in the amount of the commuted value of the total interest guaranteed and remaining unpaid, calculated on the basis of an annual interest rate of five per centum.

Terms Used In N.Y. Local Finance Law 143.10

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
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