§ 2862 — Supervision and regulation

§ 2862. Supervision and regulation. 1. The commissioner may from time\nto time make, alter, amend and repeal rules and regulations for the\nsupervision, examination, regulation and audit of nursing home companies\nand for carrying into effect the provisions and purposes of this\narticle, and each company shall submit an annual report of its\noperations to the commissioner and the New York state housing finance\nagency or the New York state medical care facilities finance agency, as\nthe case may be, who may examine and audit the books and records of the\ncompany at any time.\n 2. The commissioner and the department of health shall have power to\nact for and in behalf of the New York state housing finance agency or\nthe New York state medical care facilities finance agency, as the case\nmay be, in servicing the nursing home mortgage loans of such agency, and\nto perform such functions and services in connection with the making,\nservicing and collection of such loans as shall be requested by such\nagency.\n 3. (a) The commissioner and the department may, with respect to any\nnursing home project of which the New York state housing finance agency\nor the New York state medical care facilities finance agency, as the\ncase may be, has acquired the fee or otherwise, enter into an agreement\nwith said agency subject to the approval of the director of the budget,\nfor the department, as provided in paragraph (b) of this subdivision, to\noperate the said project in a manner consistent with the purposes of\nthis article. In such event, the commissioner, on behalf of the\ndepartment, shall have the power to use any available funds to pay all\noperating expenses and to comply with all the terms and provisions of\nthe mortgage, if any, as though the mortgage had not been foreclosed, or\nany other applicable agreement and to comply with the provisions of this\narticle.\n (b) Subject to the provisions of the agreement with said agency, the\ncommissioner may contract with any person, firm or corporation which he\ndeems qualified to operate and manage such project and to perform such\nduties and functions as he may deem necessary.\n 4. Whenever the commissioner shall be of the opinion that a company is\nfailing or omitting, or is about to fail or omit to do anything required\nof it by law or by order of the commissioner and is doing or is about to\ndo anything, or permitting anything, or is about to permit anything to\nbe done, contrary to or in violation of law or of any order of the\ncommissioner, or which is improvident or prejudicial to the interest of\nthe public, the lienholders, the shareholders, or the occupants, the\ncommissioner may, in addition to such other remedies as may be\navailable, commence an action or proceeding in the supreme court of the\nstate of New York in the name of the commissioner, for the purpose of\nhaving such violations or threatened violations stopped and prevented,\nand in such action or proceeding, the court may appoint a temporary or\npermanent receiver or both. Such action or proceeding shall be commenced\nby a petition to the supreme court, alleging the violation complained of\nand praying for appropriate relief. It shall thereupon be the duty of\nthe court to specify the time, not exceeding twenty days after service\nof a copy of the petition, within which the company complained of must\nanswer the petition. In case of any default or after answer the court\nshall immediately inquire into the facts and circumstances in such\nmanner as the court shall direct in the interest of substantial justice\nwithout other or formal pleading. Such other persons or corporations as\nit shall seem to the court necessary or proper to join as parties in\norder to make its order or judgment effective, may be joined as parties.\nThe final judgment in any such action or proceeding shall either dismiss\nthe action or proceeding or direct that an order or an injunction, or\nboth, issue, or provide for the appointment of a receiver as prayed for\nin the petition, or grant such other relief as the court may deem\nappropriate.\n