Arizona Laws 11-1441. Honoring outstanding debt obligations of sponsoring county
A. The operating agreement entered into pursuant to this chapter shall require the nonprofit corporation to:
Terms Used In Arizona Laws 11-1441
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- agreement: means an agreement between the sponsoring county and a nonprofit corporation under this chapter for the corporation to assume the health care responsibilities previously performed by the county, including all arrangements and understandings, including a lease agreement, between the county and corporation. See Arizona Laws 11-1401
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bonds: means any bonds, refunding bonds, notes or other debt instrument issued by a nonprofit corporation under this chapter. See Arizona Laws 11-1401
- 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.
- corporation: means a nonprofit corporation that is organized under title 10 and that is qualified or will qualify under section 501(c)(3) of the internal revenue code. See Arizona Laws 11-1401
- County health system: means the health system maintained, owned or operated by the sponsoring county immediately before the transfer date. See Arizona Laws 11-1401
- Health system: means any health care institution and all related real and personal property including, without limitation, all clinics, rehabilitation centers, therapy facilities, outpatient clinics, nursing homes, blood banks, ambulance facilities, extended care facilities, dispensaries, pharmacies, parking facilities, laundry facilities, dormitories, offices and administration buildings, cafeterias and food service facilities, research, laboratory and diagnostic facilities, libraries, information systems and data bases, ambulances, stretcher vans and other medical transportation equipment, education facilities, school-based clinics, equipment, tools, machinery, accounts receivable and other intangible assets, health maintenance organizations, health care services organizations and health insurance plans, including all related reserves, deposits, prepayments, risk pools and similar assets of these organizations and plans, graduate medical and other health care professional educational programs, public health education programs and business operations, in each case maintained, owned or operated for the payment and delivery of medical services, nursing services, home health services, home delivery services, emergency medical services, behavioral health services, long-term care services, health-related services and health screening services, adult day health services, adult foster care services, hospice services, personal care services, respite care services, supervisory care services and medical equipment services. See Arizona Laws 11-1401
- Sponsoring county: means a county that enters into an operating agreement under this chapter. See Arizona Laws 11-1401
- Transfer date: means a date, agreed to by the sponsoring county and a nonprofit corporation, for the lease of any health system assets and the assumption of all or part of the health system liabilities by the corporation. See Arizona Laws 11-1401
1. Honor all covenants and obligations made by the sponsoring county pursuant to Title 35, Chapter 3, Article 7 with respect to the county health system.
2. Assume and perform all covenants, conditions and requirements undertaken by the sponsoring county pursuant to Title 35, Chapter 3, Article 7 with respect to bonds issued to provide monies for the county health system before the transfer date in which the proceeds were used or intended to be used to finance parts of the county health system covered by the operating agreement.
3. Comply with all covenants and conditions against private use, private security interests and private loans contained in the operating agreement or in any proceeding that pertains to issuing the bonds, notes or other obligations of the sponsoring county issued to originally acquire, construct or purchase the health system assets.
B. Notwithstanding any law to the contrary or the articles of incorporation or bylaws of the nonprofit corporation, any action taken by the corporation in violation of those covenants and conditions described in this section is void.