NY Pub Health L § 2874 (2021)
2021 New York Laws PBH - Public Health Article 28-B - Hospital Mortgage Loan Construction 2874 - Loans.

§  2874.  Loans. 1. Any eligible borrower may, subject to the approval   of the commissioner, borrow funds from  the  agency  and  the  repayment   thereof  may  be secured by bond or note and mortgage or other agreement   which shall contain such terms and conditions as may be deemed necessary   or desirable by the agency or required  by  any  agreement  between  the   agency  and  the  holders of its notes and bonds, including the right to   assignment of rates and charges and entry into  possession  in  case  of   default,  but the operation of such project, in the event of such entry,   shall be subject to regulations promulgated by the commissioner.2. The agency may make contracts to make loans to an eligible borrower   in an amount not to exceed the total project cost. Any such  loan  which   constitutes  a  mortgage  loan  as defined in the New York state medical   care facilities finance agency act shall be secured by a first  mortgage   lien  upon  all  the real property and improvements of which the project   consists  and  upon  all  personal  property  attached  to  or  used  in   connection  with the operation of the project. In the case of a mortgage   loan in an amount greater than ninety per centum of  the  total  project   cost,  the  commissioner  may,  in  his discretion, require satisfactory   independent guarantees that the loan will be  repaid  according  to  the   terms  of  the  bond  or note and mortgage of the eligible borrower. Any   mortgage loan may be further secured by such  a  lien  upon  other  real   property  owned  by the eligible borrower. Notwithstanding the foregoing   provisions of this subdivision or any other provision of this article to   the contrary, any personal property may be excluded from the lien of the   mortgage securing such a mortgage loan, provided  (a)  the  commissioner   finds  that such property is not essential for the rendition of required   hospital services as such term is defined  in  article  twenty-eight  of   this chapter, and (b) the agency consents to such exclusion.3.  In  connection with assistance grants which are made by the state,   federal government or a municipality to reimburse the eligible  borrower   for  project  costs  which  have been paid for by such eligible borrower   from the proceeds of a loan or such other funds which are  legally  made   available to the eligible borrower, the eligible borrower shall hold and   apply  such assistance grants in accordance with the requirements of the   commissioner and the agency.4. Any inconsistent provision of law to the contrary  notwithstanding,   mortgages  of  an  eligible  borrower  shall be exempt from the mortgage   recording taxes imposed by article eleven of the tax law.5. The dormitory authority of the state of New York and the  New  York   state  urban development corporation are each hereby authorized to issue   bonds in one or more series pursuant to article 5-C or  article  5-F  of   the  state  finance law for the purpose of refunding outstanding secured   hospital project bonds, as defined in  subdivision  three-a  of  section   twenty-eight  hundred seventy-two of this article, and to finance one or   more related debt service reserve funds and to  pay  costs  of  issuance   attributable to such refunding bonds.