§ 5-C — Terms and conditions regarding alternative indebtedness

§ 5-c. Terms and conditions regarding alternative indebtedness. The\nagency may require such terms and conditions regarding indebtedness\nincurred or assumed from a lender other than the agency or guaranteed by\nan eligible borrower or nursing home company as it deems appropriate\nincluding qualifications and approval of the lender, approval of the\npurpose of the indebtedness, time or rate of amortization of principal,\nand time or rate of payment of interest; provided, however, that the\ninterest of the lender created as a result of such indebtedness as to\npriority of lien with respect to a mortgage loan may only be on a parity\nwith or subordinate to that of the agency in proportion to the amount of\nthe loan secured. Such a borrower may so incur, assume or guarantee\nindebtedness from a lender other than the agency, or incur, assume or\nguarantee indebtedness from the agency under a separate bond resolution\nupon such terms and conditions provided for in the applicable agreement\nwith bondholders and noteholders and with the consent of the agency\nwhere such lender is other than the agency. This section applies only\nwhere the agency has issued its bonds to make a mortgage loan or a\nproject loan to a hospital to which the agency is authorized to make a\nloan pursuant to this act and the bonds and notes are not secured\npursuant to paragraph (a) of subdivision one of section seven of this\nact.\n