Chap. 186.—An ACT to declare the necessity of creating public bodies corporate
and politic to be known as hospital authorities to engage in hospital construc-
tion, maintenance and operation, to provide for the creation of such hospital
authorities; to define the powers and duties of hospital authorities, and to pro-
vide for the exercise of such powers, including acquiring property by pur-
chase, gift or eminent domain, and borrowing money, issuing revenue and
credit bonds and other obligations, and giving security therefor; and to confer
rights upon and provide remedies for obligees of hospital authorities. [S B 149]

Approved March 15, 1946

Be it enacted by the General Assembly of Virginia, as follows:

1. Section 1. Short title—This act may be referred to as the
Hospital Authorities Law.

Section 2. Finding and declaration of necessity—It is hereby
declared that conditions resulting from the concentration of population
of various cities and towns of the State require the construction, main-
tenance and operation of adequate hospital facilities for the care of the
public health and for the control and treatment of epidemics, for the
care of the indigent and for the public welfare; that in various cities
of the State there is a lack of adequate hospital facilities available to
the inhabitants thereof and that consequently many persons including
persons of low income are forced to do without adequate medical and
hospital care and accommodations; that these conditions cause an in-
crease in and spread of disease and crime and constitute a menace to
the health, safety, morals and welfare of the State and impair economic
values ; that the aforesaid conditions also exist in certain areas surround-
ing such cities; that these conditions cannot be remedied by the ordinary
operations of private enterprise; that the providing of adequate hospital
and medical care are public uses and purposes for which public money
may be spent and private property acquired ; that it is in the public inter-
est that adequate hospital and medical facilities and care be provided in
such concentrated centers of population in order to care for and protect
the health and public welfare; and the necessity in the public interest for
the provisions hereinafter enacted is hereby declared as a matter of
legislative determination.
Section 3. Definitions. — The following terms, wherever used
or referred to in this act, shall have the following respective meanings,
unless a different meaning clearly appears from the context:

(1) “Authority” or “hospital authority” means a public body and
a body corporate and politic organized in accordance with the provisions
of this act for the purposes, with the powers and subject to the restric-
tions hereinafter set forth.

(2) “City” means any city in the Commonwealth. “The City”
means the particular city for which a particular hospital authority is
created.

(3) “Council” means the council, or other body charged with
governing the city.

(4) “City clerk” and “mayor” means the clerk of the council and
mayor, respectively, of the city or the officers thereof charged with the
duties customarily imposed on the clerk and mayor respectively.

(5) “Commissioner” means one of the members of an authority
appointed in accordance with the provisions of this act.

(6) “Government” includes the State and Federal Governments
and any subdivision, agency or instrumentality, corporate or otherwise,
of either of them.

(7) “State” means the Commonwealth of Virginia.

(8) “Federal Government” includes the United States of America,
the Federal Emergency Administration of Public Works or any agency,
instrumentality, corporate or otherwise, of the United States of America.

(9) “Hospital project” includes all real and personal property,
buildings and improvements, offices, and community facilities acquired
or constructed or to be acquired or constructed pursuant to a single
plan or undertaking to provide adequate hospital facilities and medical
care for concentrated centers of population, including persons of low
income. The term “hospital project’? may also be applied to the planning
of the buildings and improvements, the acquisition of property, the
construction, reconstruction, alteration and repair of the improvements
and all other work in connection therewith.

(10) “Bonds” shall mean any bonds, interim certificates, notes.
debentures, or other obligations of the authority issued pursuant to
this act.

(11) “Trust indenture” includes instruments pledging the reve-
nues of real or personal properties but not conveying such properties
or conferring a right to foreclose and cause a sale thereof.

(12) “Contract” means any agreement of an authority with or for
the benefit of an obligee whether contained in a resolution, trust inden-
ture, mortgage, lease, bond or other instrument.

(13) “Real property” includes lands, lands under water, struc-
tures, and any and all easements, franchises and incorporeal heredita-
ments and every estate and right therein, legal and equitable, including
terms for years and liens by way of judgments, mortgages or otherwise.

(14) “Obligee of the authority” or “obligee” includes any bond-
holder, trustee or trustees for any bondholders, any lessor demising
property to the authority used in connection with a hospital project or
any assignee or assignees of such lessor’s interest or any part thereof,
and the United States of America when it is a party to any contract
with the authority.

Section 4. Creation of hospital authorities——In each city there is
hereby created a political subdivision of the Commonwealth, with such
public and corporate powers as are set forth in this act, to be known
as the ‘hospital authority” of the city; provided, however, that such
authority shall not transact any business or exercise its powers here-
under until or unless the council of the city, by proper resolution shall
declare at any time hereafter that there is need for an authority to func-
tion 1m such city. The determination as to whether or not there is such
need for an authority to function (1) may be made by the governing
body on its own motion or (2) may be made by the governing body
upon the filing of a petition signed by one hundred freeholders of the
city, asserting that there is need for an authority to function in such
city, and requesting that the council so declare.

The council may adopt a resolution declaring that there is need
for a hospital authority in the city, if it shall find (1) that there is a
lack of adequate hospital facilities and medical accommodations from
the operations of private enterprises in the city and surrounding area
or (2) that the public health and welfare, including the health and wel-
tare of persons of low income in the city and surrounding area require
the construction, maintenance or operations of public hospital facilities
for the inhabitants thereof. |

In any suit, action or proceeding involving the validity or enforce-
ment of or relating to any contract of the authority, the authority shall
be conclusively deemed to have become established and authorized to
transact business and exercise its powers hereunder upon proof of the
adoption of a resolution of the governing body declaring the need for
the authority. Such resolution or resolutions shall be deemed sufficient
if it declares that there is such need for an authority and finds in sub-
Stantially the foregoing terms (no further detail being necessary) that
either or both of the above enumerated conditions exist in the city. A
copy of such resolution duly certified by the clerk shall be admissible in
evidence in any suit, action or proceeding.

Section 5. Appointment, qualifications, and tenure of commis-
sioners.—An authority shall consist of nine commissioners appointed
by the mayor and he shall designate the first chairman. At least six
of said commissioners shall be residents of the city; three of said com-
missioners may be residents of any adjacent county or counties. No
practicing physician nor any officer or employee of the city shall be
eligible for appointment.

One-third of the commissioners who are first appointed shall be
designated by the mayor to serve for terms of two years, one-third to
serve for terms of four years, and one-third to serve for terms of six
years, respectively, from the date of their appointment. Thereafter, the
term of office shall be six years. No person shall be appointed to succeed
himself following three successive terms in office. A commissioner shall
hold office until his successor has been appointed and has qualified.

Vacancies shall be filled for the unexpired term. In the event of a va-
cancy or vacancies in the membership of the board by expiration of term
of office or otherwise, the remaining members of the board shall submit
to the mayor nominations for appointments. The mayor may success-
ively require any number of additional nominations, and shall have
power to appoint any person so nominated. All such vacancies shall
be filled from such nominations. A majority of the commissioners shall
constitute a quorum. The mayor may file with the city clerk a certificate
of the appointment or reappointment of any commissioner and such
certificate shall be conclusive evidence of the due and proper appoint-
ment of such commissioners. A commissioner shall receive no com-
pensation for his services but he shall be entitled to the necessary ex-
penses including traveling expenses incurred in the discharge of his
duties.

When the office of the first chairman of the authority becomes vacant,
the authority shall select a chairman from among its members. An
authority shall select from among its members a vice chairman, and
it may employ a secretary, technical experts, and such other officers,
agents and employees, permanent and temporary, as it may require,
and shall determine their qualifications, duties and compensation. An
authority may employ its own counsel and legal staff. An authority may
delegate to one or more of its agents or employees such powers or duties
as it may deem proper.

In the event that the authority and the trustees, directors or mana-
gers of any non-profit or charitable hospital in a city should thereafter
agree upon and consummate a transaction whereby the non-profit or
charitable hospital should thereafter be included within the hospital
project or projects of the authority, then the number of commissioners
of such authority shall be increased from nine to twelve and the three
additional commissioners shall be appointed by the mayor from nomi-
nations of the commissioners then in office, and the terms of the three
additional commissioners shall be arranged by the mayor in making
such appointments as follows:

The term of one additional commissioner shall run and expire
with the terms of the one-third of the commissioners then in office
whose terms first thereafter expire, the term of the second additional
commissioner shall run and expire with the terms of the one-third of
the commissioners then in office whose terms next expire, and the term
of the third additional commissioner shall run and expire with the terms
of the one-third of the commissioners then in office whose terms last ex-
pire; provided, however, that the initial term of any such additional com-
missioner shall not be less than two years, and if at the time of appoint-
ment of the additional commissioner the next expiration date of the
terms of the one-third of the commissioners then in office is less than
two years, the term of the additional commissioner which, except for
this, proviso, would expire in less than two years, shall, at such expira-
tion date, automatically be extended to run and expire with the terms
of the other commissioners appointed to serve for the term following
such expiration date.
Section 6. Duty of the authority and commissioners of the auth-
ority——The authority and its commissioners shall be under a statutory
duty to comply or to cause compliance strictly with all provisions of
this act and the laws of the State and in addition thereto, with each
and every term, provisions and covenant in any contract of the auth-
ority on its part to be kept or performed.

_ Section 7. Interested commissioners or employees.——No commis-
sioner or employee of an authority shall acquire any interest direct or
indirect in any hospital project or in any property included or planned
to be included in any project, nor shall he have any interest direct or
indirect in any contract or proposed contract for materials or services.
to be furnished or used in connection with any hospital project. If any
commassioner or employee of any authority owns or controls an interest
direct or indirect in any property included or planned to be included
in any hospital project, he shall immediately disclose the same in writ-
ing to the authority and such disclosure shall be entered upon the min-
utes of the authority. Failure to so disclose such interest shall constitute
misconduct in office.

Section 8. Removal of commissioners.—The mayor may remove
a commissioner for inefficiency or neglect of duty or misconduct in
office, but only after the commissioner shall have been given a copy
of the charges against him (which may be made by the mayor) at least
ten days prior to the hearing thereon and had an opportunity to be
heard in person or by counsel.

Any obligee of the authority may file with the mayor written charges.
that the authority is violating wilfully any law of the State or any term,
provision or covenant in any contract to which the authority is a party.
The mayor shall give each of the commissioners a copy of such charges
at least ten days prior to the hearing thereon and an opportunity to be
heard in person or by counsel and shall within fifteen days after receipt
of such charges remove any commissioners of the authority who shall
have been found to have acquiesced in any such wilful violation.

If, after due and diligent search, a commissioner to whom charges
are required to be delivered hereunder cannot be found within the city
where the authority is located, such charges shall be deemed served upon
the commissioner if mailed to him at his last known address as same
appears upon the records of the authority.

A commissioner shall be deemed to have acquiesced in a wilful
violation by the authority of a law of this State or of any term, provi-
sion or covenant contained in the contract to which the authority is a
party, if, before a hearing is held on charges against him, he shall not
have filed a written statement with the authority of his objections to.
or lack of participation in, such violation.

In the event of the removal of any commissioner, the mayor shall
file.in the office of the city clerk a record of the proceedings together
with the charges made against the commissioners and the findings
thereon. Any commissioner, thus removed may, within ten davs after
the mayor’s action, appeal to the corporation or hustings court of the
city and the decision of said court shall be final.
Section 9. Powers of authority——-An authority shall constitute
a public body and a body corporate and politic, exercising public powers,
and having all the powers necessary or convenient to carry out and
effectuate the purposes and provisions of this act; including the follow-
ing powers in addition to others herein granted:

To investigate into hospital, medical and health conditions and
into the means and methods of improving such conditions ; to determine
where inadequate hospital and medical facilities exist; to study and
make recommendations concerning the plan of any city in relation to
the problem of providing adequate hospital, medical and nursing facili-
ties, and the providing of adequate hospital, medical and nursing facili-
ties for the inhabitants of such city and surrounding area, including
persons of low income in such city and area; to prepare, carry out and
operate hospital projects ; to provide and operate outpatient departments,
maternity clinics and any other clinics customarily operated in hospitals
In metropolitan centers, to provide teaching and instruction programs
and schools for medical students, internes, physicians and nurses; to
provide and maintain continuous resident physician and interne medical
services; to appoint an administrator, a superintendent or matron, and
necessary assistants, and any and all other employees deemed necessary
or advisable and fix their compensation, and to remove such appointees ;
to adopt by-laws for the conduct of its business; to adopt necessary rules
and regulations for the government of the authority and its employees ;
to enter into contracts for necessary supplies, equipment or services
incident to the operation of its business; to appoint such committees or
subcommittees as it shall deem advisable, and fix their duties and re-
sponsibilities, and to do all things necessary in connection with the con-
struction, repair, reconstruction, management, supervision, control and
operation of its business, including but not limited to the hospitals and
all departments thereof; to accept donations of money, personal prop-
erty or real estate for the benefit of the authority and take title thereto
from any person, firm, corporation or society desiring to make such
donations; to determine and regulate the conditions under which the
privilege of practicing within any hospital operated by the authority
may be available to physicians, and to promulgate reasonable rules and
regulations governing the conduct of physicians and nurses while on
duty in said hospital; to establish and maintain a training school for
nurses; to make rules and regulations governing the admission of pa-
tients to, and the care, conduct, and treatment of patients in, the hospi-
tal; to determine whether patients presented to the hospital for treatment
are subjects for charity and to fix the compensation to be paid by pa-
tients other than those unable to assist themselves; to maintain and
operate isolation wards for the care and treatment of mental, contagious
or other similar diseases; to provide for the construction, reconstruc-
tion, improvement, alteration or repair of any hospital project or any
part thereof; to take over by purchase, lease or otherwise any hospital
project located within its boundaries undertaken by any government,
or by any city; to act as agent for the Federal Government in connec-
tion with the acquisition, construction, operation and management ot
a hospital project, or any part thereof; to arrange with any city or with
a government for the furnishing, planning, replanning, installing, opening
or closing of streets, roads, roadways, alleys, sidewalks, or other places
or facilities for the acquisition by such city, municipality, or a govern-
ment of property, options or property rights or for the furnishing of
property or services in connection with a project; to arrange with the
State, its subdivision and agencies, and any county, city or town of the
State, to the extent that it is within the scope of each of their respective
functions, (1) to cause the services customarily provided by each of
them to be rendered for the benefit of such hospital authority and (2)
to provide and maintain parks and sewage, water and other facilities
adjacent to or in connection with hospital projects and to lease or rent
any of the dwellings or other accommodations or any of the lands, build-
ings, structures or facilities embraced in any hospital project and to
establish and revise the rents or charges therefor; to purchase, lease,
obtain options upon, acquire by gift, grant, bequest, devise, or other-
wise any property real or personal or any interest therein from any
person, firm, corporation, city, county, town or government; to acquire
by eminent domain any real property, including improvements and fix-
tures thereon (subject, however, to the provisions of section ten hereof) :
to sell, exchange, transfer, or assign, any property real or personal or
any interest therein to any person, firm, corporation, city, county, town
or government; to own, hold, clear and improve property; to insure
or provide for the insurance of the property or operations of the auth-
ority against such risks as the authority may deem advisable; to borrow
money upon its bonds, notes, debentures, or other evidences of indebted-
ness and to secure the same by pledges of its revenues in the manner
and to the extent hereinafter provided; in connection with any loan
by a government, to agree to limitations upon the exercise of any pow-
ers conferred upon the authority by this act; to invest any funds held
in reserve or sinking funds, or any funds not required for immediate
disbursement, in property or securities in which trustees, guardians,
executors, administrators, and others acting in a fiduciary capacity may
legally invest funds subject to their control; to sue and be sued; to have
a seal and to alter the same at pleasure; to have perpetual succession; to
make and execute contracts and other instruments necessary or con-
venient to the exercise of the powers of the authority; to make and
from time to time amend and repeal by-laws, rules and regulations not
Inconsistent with this act, to carry into effect the powers and purposes
of the authority. In addition to all of the other powers herein conferred
upon it, an authority may do all things necessary and convenient to
carry out the powers expressly given in this act. .

Section 10. Eminent domain.—The authority shall have the right
to acquire by eminent domain any real property, including fixtures
and improvements, which it may deem necessary to carry out the pur-
poses of this act after the adoption by it of a resolution declaring that
the acquisition of the property described therein is in the public interest
and necessary for public use. The authority may exercise the power of
eminent domain pursuant to the provisions of any applicable statutory
provisions now in force or hereafter enacted for the exercise of the power
of eminent domain by cities.

Property already devoted to a public use may be acquired, pro-
vided, that no property belonging to any city, town or county or to any
government or to any religious or charitable corporation may be ac-
quired without its consent.

Section 11. Zoning and building laws.—All hospital projects of
an authority shall be subject to the planning, zoning, sanitary and build-
ing laws, ordinances and regulations applicable to the locality in which
the hospital project is situated.

Section 12. Types of bonds.—The authority shall have power
and is hereby authorized from time to time in its discretion to issue
for the purpose only of constructing, furnishing and equipping new
buildings or additions to existing buildings:

(1) Bonds on which the principal and interest are payable ex-
clusively from the income and revenues of the project constructed, fur-
nished and equipped with the proceeds of such bonds or with such pro-
ceeds together with the proceeds of a grant from the Federal Govern-
ment to aid in financing, furnishing or equipment thereof, provided, how-
ever, that the credit of the authority shall not be pledged to the payment
of such bonds, but such bonds shall be payable only (and the bonds
shall so state on their face) from the revenues of the designated hospi-
tal project or projects, and if the authority so determines, shall be ad-
ditionally secured by a trust indenture pledging such revenues from
such designated hospital project or projects.

Neither the commissioners of the authority nor any person exe-
cuting the bonds shall be liable personally on the bonds by reason of the
issuance thereof.

The bonds and other obligations of the authority (and such bonds
and obligations shall so state on their face) shall not be a debt of any
city or municipality in which the authority is located or of the State.
and neither the State nor any such city or municipality shall be hable
thereon, nor in any event shall they be payable out of any funds or
properties other than those of the authority. The bonds shall not con-
stitute an indebtedness within the meaning of any constitutional or
statutory debt limitation of the laws of the State. Bonds may be issued
under this act notwithstanding any debt or other limitation prescribed
in any statute.

Section 13. Form and sale of bonds.—The bonds of the authority
shall be authorized by its resolution and shall be issued in one or more
series and shall bear such date or dates, mature at such time or times.
not exceeding sixty vears from their respective dates, bear interest at
such rate or rates, not exceeding six per centum (6%) per annum
payable semi-annually, be in such denominations (which may be made
interchangeable) be in such form, either coupon or registered, carry
such registration privileges, be executed in such manner, be payable in
such medium of payment, at such place or places, and be subject to such
terms of redemption (with or without premium) as such resolution
or its trust indenture may provide.
The bonds may be sold at public or private sale at such price or
prices as the authority shall determine provided that the interest cost to
maturity of the money received for any issue of said bonds shall not ex-
ceed six per centum (6%) per annum. Pending the authorization, prepa-
ration, execution or delivery of definitive bonds, the authority may issue
interim certificates, or other temporary obligations, to the purchaser of
such bonds. Such interim certificates, or other temporary obligations,
shall be in such form, contain such terms, conditions and provisions, bear
such date or dates, and evidence such agreements, relating to their dis-
charge or payment or the delivery of definitive bonds as the authority
may by resolution or trust indenture determine.

In case any of the officers whose signatures appear on any bonds
Or coupons shall cease to be such officers before the delivery of such
bonds, such signatures shall, nevertheless, be valid and sufficient for
a purposes, the same as if they had remained in office until such de-
ivery.

The authority shall have the power out of any funds available
thereof to purchase any bonds issued by it at a price not more than the
principal amount thereof and the accrued interest; provided, however,
that bonds payable exclusively from the revenues of a designated proj-
ect or projects shall be purchased only out of any such revenues avail-
able therefor. All bonds so purchased shall be canceled. This paragraph
shall not apply to the redemption of bonds.

Any provision of any law to the contrary notwithstanding, any
bonds, interim certificates, or other obligations issued pursuant to this
act shall be fully negotiable.

Section 14. Provisions of bonds and trust indentures—lIn connec-
tion with the issuance of bonds or the incurring of any obligation under
a lease and in order to secure the payment of such bonds or obligations,
the authority shall have power:

(1) To pledge by resolution, trust indenture (subject to the limi-
tations herein imposed), or other contract, all or any part of its rents,
fees, or revenues.

(2) To covenant to impose and maintain such schedule of fees
and charges as will produce funds sufficient to pay operating costs
and debt service.

(3) To covenant with respect to limitations on its right to sell,
lease or otherwise dispose of any hospital project or any part thereof,
or with respect to limitations on its right to undertake additional hos-
pital projects.

(4) To covenant against pledging all or any part of its rents,
fees and revenues to which its right then exists or the right to which
may thereafter come into existence or against permitting or suffering
any lien thereon.

(5) To provide for the release of rents, fees, and revenues from
anv pledge and to reserve rights and powers in, or the right to dispose
of property, the rents, fees and revenues from which are subject to a
pledge.

(6) To covenant as to the bonds to be issued pursuant to any
resolution, trust indenture, or other instrument and as to the issuance
of such bonds in escrow or otherwise, and as to the use and disposition
of the proceeds thereof.

(7) To covenant as to what other, or additional debt, may be
incurred by it.

(8) To provide for the terms, form, registration, exchange, execu-
tion and authentication of bonds.

(9) To provide for the replacement of lost, destroyed, or muti-
lated bonds.

(10) To covenant as to the use of any or all of its property, real
or personal.

(11) To create or to authorize the creation of special funds in
which there shall be segregated (a) the proceeds of any loan or grant;
(b) all of the rents, fees and revenues of any hospital project or pro)-
ects or parts thereof; (c) any moneys held for the payment of the costs
of operation and maintenance of any such hospital projects or as a re-
serve for the meeting of contingencies in the operation and maintenance
thereof; (d) any moneys held for the payment of the principal and
interest on its bonds or the sums due under its leases or as a reserve for
such payments; and (e) any moneys held for any other reserve or con-
tingencies; and to covenant as to the use and disposal of the moneys
held in such funds.

(12) To redeem the bonds, and to covenant for their redemption
and to provide the terms and conditions thereof.

(13) To covenant against extending the time for the payment
of its bonds or interest thereon, directly or indirectly, by any means
or in any manner.

(14) To prescribe the procedure, if any, by which the terms of
any contract with bondholders may be amended or abrogated, the
amount of bonds the holders of which must consent thereto and the
manner in which such consent may be given.

(15) To covenant as to the maintenance of its property, the re-
placement thereof, the insurance to be carried thereon and the use and
disposition of insurance moneys.

(16) To vest in an obligee of the authority the right, in the event
of the failure of the authority to observe or perform any covenant on
its part to be kept or performed, to cure any such default and to advance
any moneys necessary for such purpose, and the moneys so advanced
may be made an additional obligation of the authority with such interest,
security and priority as may be provided in any trust indenture, lease or
contract of the authority with reference thereto.

(17) To covenant and prescribe as to the events of default and
terms and conditions upon which any or all of its bonds shall become
or may be declared due before maturity and as to the terms and con-
ditions upon which such declaration and its consequences may be waived.

(18) To covenant as to the rights, liabilities, powers and duties
arising upon the breach by it of any covenant, condition, or obligation.

(19) To covenant to surrender possession of all or any part of any
hospital project or projects the revenues from which has been pledged
for the purpose of constructing, furnishing, and equipping new build-
ings or additions to existing buildings as provided for in this act upon
the happenings of any event of default (as defined in the contract) and
to vest in an obligee the right without judicial proceeding to take pos-
session and to use, operate, manage and control such hospital projects
or any part thereof, and to collect and receive all rents, fees and reve-
nues arising therefrom in the same manner as the authority itself might
do and to dispose of the moneys collected in accordance with the agree-
ment of the authority with such obligee.

(20) To vest in a trustee or trustees the right to enforce any cove-
nant made to secure, to pay, or in relation to the bonds, to provide for
the powers and duties of such trustee or trustees, to limit liabilities
thereof and to provide the terms and conditions upon which the trustee
or trustees or the holders of bonds or any proportion of them may en-
force any such covenant.

(21) To make covenants other than in addition to the covenants
herein expressly authorized, of like or different character.

(22) To execute all instruments necessary or convenient in the ex-
ercise of the powers herein granted or in the performance of its covenants
or duties, which may contain such covenants and provisions, in addition
to those above specified, as the government of any purchaser of the
bonds of the authority may reasonably require.

(23) To make such covenants and to do any and all such acts
and things as may be necessary or convenient or desirable in order to
secure its bonds, or in the absolute discretion of the authority tend to
make the bonds more marketable; notwithstanding that such covenants,
acts or things may not be enumerated herein; it being the intention here-
of to give the authority power to do all things in the issuance of bonds,
in the provisions for their security that are not inconsistent with the
Constitution of the State and no consent or approval of any judge or
court shall be required thereof; and provided that the authority may
not pledge the revenue from any project excepting one newly construc-
ted, furnished and equipped in whole or in part with funds derived or
to be derived from the sale of bonds secured by such pledge.

Section 15. Remedies of an obligee of authority—An obligee of
the authority shall have the right in addition to all other rights which
may be conferred on such obligee subject only to any contractual re-
strictions binding upon such obligee:

(1) By mandamus, suit, action or proceeding in law or equity
(all of which may be joined in one action) to compel the authority, and
the commissioners, officers, agents or employees thereof to perform each
and every term, provision and covenant contained in any contract of
the authority, and to require the carrying out of any or all covenants
and agreements of the authority and the fulfillment of all duties imposed
upon the authority by this act.

(2) By suit, action or proceeding in equity to enjoin any acts
or things which may be unlawful, or the violation of any of the rights
vi such obligee of the authority.
Section 16. Additional remedies conferrable by trust indenture.—
Any authority shall have power by its trust indenture, lease or other
contract to confer upon any obligee holding or representing a specified
amount in bonds, lease or other obligations the right upon the happen-
ing of an “event of default” as defined in such instrument:

(1) By suit, action or proceeding in any court of competent juris-
diction to obtain the appointment of a receiver of any hospital project of
the authority or any part or parts thereof, constructed, equipped and fur-
nished in whole or in part from funds derived or to be derived in whole
or in part from the sale of bonds secured by the pledge of the revenues
from such property. If such receiver be appointed, he may enter and
take possession of such hospital project or any part or parts thereof and
operate and maintain same, and collect and receive all fees, rents, reve-
nues, or other charges thereafter arising therefrom in the same manner
as the authority itself might do and shall keep such moneys in a sep-
arate account or accounts and apply the same in accordance with the
obligations of the authority as the court shall direct.

(2) By suit, action or proceeding in any court of competent juris-
diction to require the authority and the commissioners thereof to ac-
count as if it and they were the trustees of any express trust.

Section 17. Remedies cumulative.—All the rights and remedies
hereinabove conferred shall be cumulative and shall be subject to sale
by the foreclosure of a mortgage, trust indenture, or any other instru-
ment thereon, or relating any contract with the authority.

Section 18. Limitations on remedies of obligee—No interest of
the authority in any property, real or personal, shall be subject to sale
by foreclosure of a mortgage, trust indenture, or any other instrument
thereon, or relating thereto, either through judicial proceedings or the
exercise of a power of sale contained in such instrument. All property
of the authority shall be exempt from levy and sale by virtue of an exe-
cution, and no execution or other judicial process shall issue against
the same. No judgment against the authority shall be a charge or lien
upon its property, real or personal.

Section 19. Contracts with Federal Government.—In addition to
the powers conferred upon the authority by other provisions of this act,
the authority is empowered to borrow money and accept grants from
the Federal Government for or in aid of the construction of any hospital
project when such authority is authorized by this act to undertake, to
take over any land acquired by the Federal Government for the con-
struction of a hospital project, to take over or lease or manage anv hos-
pital project constructed or owned by the Federal Government, and to
these ends, to enter into such contracts, trust indentures, leases, or other
agreements that the Federal Government shall have the right to super-
vise and approve the construction, maintenance and operation of such
hospital project. It is the purpose and intent of this act to authorize every
authority to do any and all things necessary to secure the financial aid
and the cooperation of the Federal Government in the construction.
maintenance and operation of any hospital project which the authority
is empowered by this act to undertake.
Section 20. Security for funds deposited by authorities—The auth-
ority may by resolution provide that (1) all moneys deposited by it
shall be secured by obligations of the United States or of the State or
a market value equal at all times to the amount of such deposits or (2)
by any securities in which trustees, guardians, executors, administrators
and others acting in a fiduciary capacity may legally invest funds within
their control or (3) by an undertaking with such sureties as shall be
approved by the authority faithfully to keep and pay over upon the order
of the authority any such deposits and agreed interest thereon, and all
banks and trust companies are authorized to give any such security
for such deposits.

Section 21. Reports——The authority shall at least once a year file
with the mayor of the city an audit report by a certified public acountant
of its activities for the preceding year, and shall make any recommenda-
tions with reference to any additional legislation or other action that
may be necessary in order to carry out the purposes of this act.

Section 22. Appropriations by city—The council of any city in
which the authority is located may make appropriations for the im-
provement, maintenance or operation of any public hospital or hospital
project constructed, maintained, or operated by or to be constructed,
maintained or operated by an authority.

Section 23. Conveyance, lease or transfers of property by a city
Or municipality to an authority—Any city in order to provide for the
construction, reconstruction, improvement, repair or management of
any hospital or hospital project, or in order to accomplish any of the
purposes of this act may, with or without consideration or for a nominal
consideration, lease, sell, convey or otherwise transfer to an authority,
within such city, any real, personal or mixed property including, but
not limited to, any existing hospital or hospital project as a going con-
cern or otherwise, and including the assignment and transfer of any
part of or all money, choses in action and other assets used or held for
the use of such hospital or hospital project, and in connection with any
such transaction the authority involved may accept such lease, transfer,
assignment and conveyance and bind itself to the performance and ob-
servation of any agreements and conditions attached thereto.

Section 24. Severability—If any one or more sections, clauses,
sentences, or parts of this act shall for any reason be questioned im any
court, and shall be adjudged unconstitutional or invalid, such judgment
shall not affect, impair or invalidate the remaining provisions thereof
but shall be confined in its operation to the specific provisions to be
held unconstitutional or invalid, and the inapplicability or invalidity
of any section, clause or provision of this act in any one or more in-
stances or circumstances shall not be taken to affect or prejudice in any
Way its applicability or validity in any other instance.

Section 25. Act controlling.—In so far as the provisions of this
act are inconsistent with the provisions of any other law, the provisions
of this act shall be controlling, provided that nothing in this act shall
prevent any municipality from establishing, equipping. and operating
a hospital or hospitals or improving or extending existing hospitals and
hospital facilities under the provisions of its charter or any general law
other than this act.