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.
New York Legal Code