2023 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.