Section 126. Establishment of public general hospitals

The governing board
  of any county, town, city or village may by  resolution  determine  that
  there  shall  be  in said county, town, city or village a public general
  hospital for the care and treatment of the sick and in  any  county  not
  having  a tuberculosis hospital established under sections forty-five to
  forty-nine-e, both inclusive, of the county  law,  said  public  general
  hospital  may  include  a  pavilion  or  other provision for the care of
  tuberculosis patients. In any city in which  a  board  of  estimate  and
  apportionment  or  other board is required to approve appropriations for
  public purposes, the resolution of the governing board  to  establish  a
  public  general  hospital  shall  be  effective only after the necessary
  appropriation for lands and buildings for such public  general  hospital
  shall  have been approved by said board of estimate and apportionment or
  other board, in the same manner and by the same  vote  by  which  it  is
  required  by  law  to  approve other appropriations for public purposes.
  When the governing board of any county, town, city or village shall have
  voted to establish a public general hospital, such governing board shall
  have the following powers:
    1. To purchase and lease real property therefor, or acquire such  real
  property and easements therein by condemnation proceedings in the manner
  prescribed   in  the  condemnation  law,  in  any  locality  within  the
  jurisdiction of such governing board.
    2. To cause to be assessed, levied and collected such sums of money as
  shall have been approved as hereinabove provided for suitable lands  and
  buildings, and as it shall deem necessary for equipment and improvements
  for  said  hospital,  and for the maintenance thereof, and for all other
  necessary expenditures therefor; or such  governing  board  may  finance
  expenditures for the erection of such hospital and for the purchase of a
  site  therefor  pursuant to the provisions of the local finance law, and
  may transfer such moneys  so  appropriated  to  the  treasurer  of  such
  hospital,  subject  to  such  regulations  as  to  audit thereof by such
  governing board as it may deem proper when such board of  managers  have
  appointed a treasurer as hereinafter provided for.
    3.  To  accept and hold in trust for the county, town, city or village
  of which it is the governing board, any grant or devise of land, or  any
  gift  or bequest of money or other personal property, or any donation to
  be applied, principal or income,  or  both,  for  the  benefit  of  said
  hospital, and apply the same in accordance with the terms of the gift.
    4.  Such  governing  board may also adopt a resolution authorizing the
  board of managers of such hospital to elect a treasurer,  who  shall  be
  bonded,  and  who  shall  establish an account in a bank or banks in the
  name of such hospital and deposit in such account all money received  or
  collected  by  such  hospital and pay therefrom all bills, accounts, and
  salaries and wages, when approved by  the  board  of  managers  of  such
  hospital,  within  the  budget  limits,  by  resolution  subject to such
  regulations as the governing board may deem proper;  provided,  however,
  that  the  proceeds, inclusive of premiums, from the sale of bonds, bond
  anticipation notes, capital notes or budget notes shall be deposited  in
  a  special  account in a bank or trust company located and authorized to
  do business in this state, shall not be commingled with other funds, and
  shall be expended  only  for  the  object  or  purpose  for  which  such
  obligations were issued.