2023 New York Laws › PBH - Public Health › Article 28-B - Hospital Mortgage Loan Construction › 2878 - Supervision.

§  2878.  Supervision. 1. The commissioner may from time to time make,
alter, amend and repeal  rules  and  regulations  for  the  supervision,
examination,  regulation  and  audit  of  an  eligible  borrower and for
carrying into effect the provisions and purposes of  this  article,  and
each  eligible  borrower shall submit an annual report of its operations
to the commissioner and the agency who may examine and audit  the  books
and records of the eligible borrower at any time.
2.  The  commissioner and the department of health shall have power to
act for and in behalf of the agency in servicing the hospital  loans  of
the  agency,  and  to  perform such functions and services in connection
with the making, servicing and collection of  such  loans  as  shall  be
requested by the agency.
3.  (a)  The  commissioner and the department may, with respect to any
hospital project of which the agency has acquired the fee or  otherwise,
enter  into an agreement with said agency subject to the approval of the
director of the budget, for the department, as provided in paragraph (b)
of this subdivision, to operate the said project in a manner  consistent
with  the purposes of this article.  In such event, the commissioner, on
behalf of the department, shall have the  power  to  use  any  available
funds to pay all operating expenses and to comply with all the terms and
provisions  of the mortgage, if any, as though the mortgage had not been
foreclosed, or any other applicable agreement and  to  comply  with  the
provisions of this article.
(b)  Subject  to the provisions of the agreement with said agency, the
commissioner may contract with any person, firm or corporation which  he
deems  qualified  to operate and manage such project and to perform such
duties and functions as he may deem necessary.
4. Whenever the commissioner shall be of the opinion that an  eligible
borrower  is  failing  or  omitting,  or  is about to fail or omit to do
anything required of it by law or by order of the  commissioner  and  is
doing or is about to do anything, or permitting anything, or is about to
permit anything to be done, contrary to or in violation of law or of any
order of the commissioner, or which is improvident or prejudicial to the
interest  of  the  public,  the  lienholders,  the  shareholders, or the
occupants, the commissioner may, in addition to such other  remedies  as
may  be available, commence an action or proceeding in the supreme court
of the state of New York in  the  name  of  the  commissioner,  for  the
purpose  of  having such violations or threatened violations stopped and
prevented, and in such action or proceeding, the  court  may  appoint  a
temporary or permanent receiver or both. Such action or proceeding shall
be  commenced by a petition to the supreme court, alleging the violation
complained of and praying for appropriate relief. It shall thereupon  be
the  duty  of  the  court to specify the time, not exceeding twenty days
after service of a copy of  the  petition,  within  which  the  eligible
borrowers complained of must answer the petition. In case of any default
or  after  answer the court shall immediately inquire into the facts and
circumstances in such manner as the court shall direct in  the  interest
of  substantial  justice  without  other or formal pleading.  Such other
persons or corporations as it shall  seem  to  the  court  necessary  or
proper  to  join  as  parties  in  order  to  make its order or judgment
effective, may be joined as parties. The  final  judgment  in  any  such
action  or  proceeding  shall either dismiss the action or proceeding or
direct that an order or an injunction, or both, issue,  or  provide  for
the  appointment  of  a receiver as prayed for in the petition, or grant
such other relief as the court may deem appropriate.