§ 3607. Transfer of property; relationship with the towns; certain
gifts, loans and guarantees by the towns. 1. (a) Either town may give,
grant, sell, convey, loan, license the use of, or lease to the
corporation any property (except monies appropriated by the town and
payable to the corporation pursuant to subdivision three and paragraph
(a) of subdivision four of this section) which are useful in connection
with the exercise by the corporation of any of its powers under this
title in order to transfer the facilities and operations of the
Clifton-Fine Hospital to the corporation by agreement between the towns
and the corporation and any subsequent renewal or amendment thereof, by
local law adopted by a majority of both town boards, notwithstanding any
general, special or local law, ordinance, resolution or charter.

(b) Any such gift, grant, sale, conveyance, loan, license or lease
shall be upon such terms and conditions, for such consideration, if any,
and for such term or terms of years, subject to the rights of the
holders of any bonds, as the corporation and the towns may agree. No
real property of the towns consisting of any health facility currently
operated by the Clifton-Fine Hospital shall be transferred to the
corporation in fee, except under such restrictions regarding rights of
first refusal, or other rights, to repurchase the property as the town
boards shall approve by act, and subject to a restrictive covenant
prohibiting the corporation from pledging or mortgaging the fee interest
in the property. In the event that the town gives, grants, sells,
conveys, loans, licenses or leases any facilities to the corporation,
the towns may contract with the corporation to lease, borrow, license,
operate, maintain, manage and provide services for such facilities upon
such terms and conditions and for such term or terms of years, subject
to the rights of holders of bonds, as the corporation and the towns may
agree. The corporation, in furtherance of any purchase, conveyance or
lease of any property or facility from the towns, may assume the primary
responsibility for the payment of the principal and interest on any
bonds or notes issued by the towns for such property or facility.

2. The town may acquire by purchase, grant, lease, gift or
condemnation pursuant to the eminent domain procedure law, real property
in the name of the towns for any corporate purpose of the corporation.

3. In addition to any other powers granted to it by law and consistent
with the constitution and other provisions of law, the towns may, from
time to time, appropriate sums of money to defray project costs or any
other costs or expenses of the corporation including operating expenses.

Subject to the rights of bondholders, the towns may determine if the
monies so appropriated shall be subject to repayment by the corporation
to the towns and, in such event, the manner and time or times for such
repayment.

4. In addition to the authority granted elsewhere in this title and by
other applicable laws, the corporation and the towns may enter into a
contract or contracts from time to time providing for one or more of the
following:

(a) the payment of sums appropriated by the towns pursuant to
subdivision three of this section;

(b) the payment of sums for health care services provided by the
corporation which could otherwise be provided directly by the towns,
including services for uncompensated care;

(c) services to be provided by the towns to or on behalf of the
corporation;

(d) the transfer of employees of the towns to the corporation as
provided in section thirty-six hundred four of this title;

(e) indemnification by the corporation to the towns for claims
associated with establishment of and operation of the corporation and
its health facilities;

(f) the gift, grant, sale, conveyance, loan, license or lease by the
towns to the corporation of any property (except monies appropriated by
the county and payable to the corporation pursuant to subdivision three
and paragraph (a) of this subdivision) or facilities which are useful in
connection with the exercise by the corporation of any of its powers
under this title not transferred pursuant to the authority granted in
paragraph (a) of subdivision one of this section, which gift, grant,
sale, conveyance, loan, license or lease shall nevertheless be subject
to paragraph (b) of subdivision one of this section; and

(g) such other matters as may be appropriate to accomplish the
purposes hereof.

Any such contract or contracts shall be authorized by the towns by act
adopted by majority vote of the town boards. Such contract or contracts
shall include such terms and conditions, be for such consideration, if
any, and have such term or terms of years, as the corporation and the
towns may agree.

5. (a) Notwithstanding any general, special or local law or charter
provisions to the contrary, the towns of Clifton and Fine shall have the
power and are hereby authorized, pursuant to section seven of article
seventeen of the state constitution, to lend money or credit to or in
aid of the corporation or any subsidiary thereof for the purpose of
providing health related facilities or hospital facilities for the
prevention, diagnosis or treatment of human disease, pain, injury,
disability, deformity or physical condition, and for facilities
incidental or appurtenant thereto as may be prescribed by law. The towns
are hereby authorized to prescribe such facilities by local law of the
towns. The corporation or any such subsidiary thereof, as a condition to
any such loan of money or credit, shall enter into a regulatory
agreement with the towns as to its charges, profits, dividends and
disposition of its property of franchises, which agreement shall be
binding and enforceable by the towns insofar as this regulates such
charges, profits, dividends and disposition of property. The towns may
elect in such regulatory agreement to refrain from exercising all or any
portion of its authority to so regulate such charges, profits, dividends
and disposition of property to the extent such charges, profits,
dividends and disposition of property are regulated by the state or any
agency thereof. The towns shall authorize such regulatory agreement by
local law.

(b) In pursuance of the authority granted herein, the towns shall have
the power and is hereby authorized from time to time to issue bonds,
notes or other obligations in such principal amounts as they shall deem
necessary, after taking into account other monies which may be available
for the purposes set forth herein. Such bonds, notes or obligations
shall be issued for the purpose of making loans to the corporation or
any subsidiary thereof, paying interest on such bonds, notes or other
obligations, establishment of reserves to secure such notes, bonds, or
other obligations, and paying all other obligations and expenditures
incidental to and necessary or convenient for the making of such loans.
Such bonds, notes or obligations shall be issued in accordance with the
applicable provisions of this chapter and the local finance law and
applicable local laws.

(c) Any guarantee by the towns made pursuant to the authority granted
in this section shall be authorized by act or acts of the towns in the
same manner as such act or acts authorizing the issuance of bonds of the
towns for the purposes for which such guarantee is undertaken.

(d) The towns shall also be authorized to enact laws governing the
conditions under which such loans, commitments and guarantees shall be
made.

6. For purposes of subdivision four of paragraph a of section 25.00 of
the local finance law, amounts to be derived by the towns from the
corporation, or any subsidiary thereof, shall be included in the term
"other income".

7. (a) Notwithstanding the provisions of any other state or local law
to the contrary, including, but not limited to, sections six-n and six-j
of the general municipal law, with the approval of the town boards,
amounts deposited for or on behalf of the Clifton-Fine Hospital in the
liability and casualty and workers' compensation reserve funds
established by the towns pursuant to said sections of the general
municipal law, and investment earnings thereon, may be withdrawn by the
towns from such funds and transferred to the corporation and shall be
used by the corporation for the purposes for which such funds were
established.

(b) No amounts shall be withdrawn and transferred to the corporation
pursuant to this subdivision unless prior thereto the corporation has
agreed in writing to indemnify and hold harmless the towns, and provide
defense, for all claims, cases, proceedings, actions or other matters
against the towns arising out of the properties, facilities, operations
or employees of the corporation of the Clifton-Fine Hospital, whether
commenced before or after the date of transfer of said amounts, and to
provide such other security for this obligation as the towns may
reasonably require.