§ 9. Special provisions relating to the municipal health facilities
improvement program. Notwithstanding any other provisions of law,
general, special or local, or any provision of any charter or ordinance:

1. A municipality is hereby authorized to execute and deliver to the
agency for such consideration as may be determined by the municipality,
the agency and the health and mental hygiene facilities improvement
corporation, but not to exceed the cost of acquisition thereof to the
municipality and the cost of improvements thereon, a lease for a term
not exceeding fifty years or a quit claim deed conveying to the agency
all right, title and interest of such municipality in and to real
property, for the purpose of constructing, reconstructing,
rehabilitating, or improving one or more health facilities pursuant to
this act and the health and mental hygiene facilities improvement act
for subsequent lease or sublease to such municipality, in accordance
with the terms of any agreement entered into pursuant to this act and
the health and mental hygiene facilities improvement act.

2. A municipality is hereby authorized to lease or sublease from the
agency the health facilities acquired, constructed, reconstructed,
rehabilitated or improved pursuant to this act and the facilities
development corporation act in accordance with the terms of any
agreement entered into pursuant to this act and the facilities
development corporation act. At such time as all rentals due or to
become due to the agency pursuant to the terms of any such lease or
sublease have been paid or such lease or sublease is terminated pursuant
to the provisions thereof, the jurisdiction of the agency over the real
property leased or conveyed pursuant to this section, together with the
improvements thereon shall cease and all interest real and personal in
such real property and improvements vested in the agency shall vest in
the municipality with right of re-entry thereon.

3. No real property interest therein shall be acquired by the agency
pursuant to this section unless title thereto shall have been approved
by the attorney general.

4. The attorney general shall pass upon the form and sufficiency and
manner of execution of any deed of conveyance and of any lease or
sublease to which the agency and a municipality are parties, and the
same shall not be effecteive unless approved by him.

5. In the event that the agency shall fail within five years from the
date of a lease or conveyance authorized pursuant to this section to
construct, reconstruct, rehabilitate or improve the health facilities
thereon for which the lease or conveyance was made, as provided for in
any agreement entered into pursuant to this act and the health and
mental hygiene facilities improvement act, or in the event that such
health facilities shall cease to be used for the purposes intended, then
and in either event but subject to the terms of any lease, sublease or
other agreement between the agency and the municipality, such real
property and any health facilities thereon shall revert to the
municipality with right of re-entry thereupon and such lease or deed
shall be made subject to such conditions; provided, however, that as a
condition precedent to the exercise of such right of re-entry the
municipality shall pay to the agency an amount equal to the purchase
price of such real property, the depreciated cost of any health
facilities constructed, reconstructed, rehabilitated or improved, and
all other costs of the agency incident to the acquisition of such real
property and the financing of construction, reconstruction,
rehabilitation or improvement relating to such facilities, all as
provided in the aforesaid lease, sublease or other agreement entered
into with such municipality.

6. In the event that the agency shall determine that any portions of
the real property leased or conveyed pursuant to this section are in
excess of the real property needed to construct, reconstruct,
rehabilitate or improve the facility or facilities thereon for which the
conveyance was made, as provided in any agreement entered into pursuant
to this act and the health and mental hygiene facilities improvement
act, the agency may terminate its lease with respect to such excess
portions of such real property or reconvey such excess portions to the
municipality, provided, however, that the municipality shall pay to the
agency an amount equal to the consideration, if any, paid by the agency
to such municipality allocable to such excess real property and such
other costs of the the agency as are incident to the acquisition of such
excess real property, all as may be approved by such municipality and
the agency. Any monies so paid to the agency shall be used and applied,
subject to the provisions of any contract with noteholders and
bondholders, for the sole purpose of paying costs and expenses of the
agency incident to the financing of the health facilities, to be
constructed, reconstructed, rehabilitated or improved on such other
portions of the real property as shall have been leased or conveyed to
the agency pursuant to this section.

7. The cost of construction, acquisition, reconstruction,
rehabilitation or improvement of health facilities undertaken by the
agency pursuant to this act and the health and mental hygiene facilities
improvement act may include the cost of acquisition of any real property
leased or conveyed to the agency in accordance with this section and the
cost of the original furnishings, equipment, machinery and apparatus
needed to furnish and equip such facilities upon the completion of the
work. The agency shall have power to acquire or lease and to hold real
property required for the construction, acquisition, reconstruction,
rehabilitation or improvement of the health facilities undertaken by the
agency pursuant to this act and the health and mental hygiene facilities
improvement act and to provide the original furnishings, equipment,
machinery and apparatus needed to furnish and equip such facilities upon
the completion of work and to issue its bonds and notes to provide
sufficient funds to pay the cost thereof.

8. A municipality is hereby authorized and empowered, in connection
with any lease, sublease or other agreement with the agency to which
such municipality is a party, and subject to such agreements with third
parties as may then exist, to:

(a) pledge or assign to the agency all or any portion of the revenues
and monies received or to be received by the municipality, which may be
available for the purpose of paying rentals for the use of the health
facilities constructed, acquired, reconstructed, rehabilitated or
improved under such agreement, so that the payment of such rentals may
be fully secured and protected;

(b) use and dispose of such revenues and monies, or any portions
thereof, for the purpose of defraying, in whole or in part (1) the cost
of acquiring any real property for the purpose of constructing,
acquiring, reconstructing, rehabilitating or improving facilities
thereon which may be constructed, acquired, reconstructed, rehabilitated
or improved by the agency pursuant to this act and the health and mental
hygiene facilities improvement act, (2) the cost of financing the
construction, acquisition, reconstruction, rehabilitation or improvement
of such facilities, and (3) the cost of acquiring the original
furnishings, equipment, machinery and apparatus needed to furnish and
equip such facilities upon the completion of the work;

(c) set aside rental reserves and to agree to the maintenance,
regulation and disposition thereof;

(d) agree to limitations on the purposes to which the proceeds of sale
of health facilities notes or health facilities bonds may be applied and
to the pledging of such proceeds to secure the payment of health
facilities notes or health facilities bonds or of any issue thereof;

(e) agree to limitations on the making of additional leases, subleases
or agreements with the agency or with others, and the terms upon which
such additional leases, subleases or agreements may be made;

(f) upon receipt of any notice of assignment by the agency of any such
lease, sublease or other agreement with the agency, or of any of its
rights under such lease, sublease or other agreement, recognize and give
effect to such assignment and to pay the assignee thereof rentals or
other payments then due or which may become due under any such lease,
sublease or other agreement which has been so assigned by the agency;
and

(g) agree to any other matters, of like or different character, which
in any way affect the security or protection of the rental payments
required to be made under the terms of such lease, sublease or other
agreement with the agency.

9. A municipality is hereby authorized and empowered, to enter into a
lease, sublease, license or other operating agreement with any other
person, firm or corporation to operate or to sublease, license or
otherwise arrange for the operation of, the health facilities acquired,
constructed, reconstructed, rehabilitated or improved pursuant to this
act.