§ 2874 — Loans

§ 2874. Loans. 1. Any eligible borrower may, subject to the approval\nof the commissioner, borrow funds from the agency and the repayment\nthereof may be secured by bond or note and mortgage or other agreement\nwhich shall contain such terms and conditions as may be deemed necessary\nor desirable by the agency or required by any agreement between the\nagency and the holders of its notes and bonds, including the right to\nassignment of rates and charges and entry into possession in case of\ndefault, but the operation of such project, in the event of such entry,\nshall be subject to regulations promulgated by the commissioner.\n 2. The agency may make contracts to make loans to an eligible borrower\nin an amount not to exceed the total project cost. Any such loan which\nconstitutes a mortgage loan as defined in the New York state medical\ncare facilities finance agency act shall be secured by a first mortgage\nlien upon all the real property and improvements of which the project\nconsists and upon all personal property attached to or used in\nconnection with the operation of the project. In the case of a mortgage\nloan in an amount greater than ninety per centum of the total project\ncost, the commissioner may, in his discretion, require satisfactory\nindependent guarantees that the loan will be repaid according to the\nterms of the bond or note and mortgage of the eligible borrower. Any\nmortgage loan may be further secured by such a lien upon other real\nproperty owned by the eligible borrower. Notwithstanding the foregoing\nprovisions of this subdivision or any other provision of this article to\nthe contrary, any personal property may be excluded from the lien of the\nmortgage securing such a mortgage loan, provided (a) the commissioner\nfinds that such property is not essential for the rendition of required\nhospital services as such term is defined in article twenty-eight of\nthis chapter, and (b) the agency consents to such exclusion.\n 3. In connection with assistance grants which are made by the state,\nfederal government or a municipality to reimburse the eligible borrower\nfor project costs which have been paid for by such eligible borrower\nfrom the proceeds of a loan or such other funds which are legally made\navailable to the eligible borrower, the eligible borrower shall hold and\napply such assistance grants in accordance with the requirements of the\ncommissioner and the agency.\n 4. Any inconsistent provision of law to the contrary notwithstanding,\nmortgages of an eligible borrower shall be exempt from the mortgage\nrecording taxes imposed by article eleven of the tax law.\n 5. The dormitory authority of the state of New York and the New York\nstate urban development corporation are each hereby authorized to issue\nbonds in one or more series pursuant to article 5-C or article 5-F of\nthe state finance law for the purpose of refunding outstanding secured\nhospital project bonds, as defined in subdivision three-a of section\ntwenty-eight hundred seventy-two of this article, and to finance one or\nmore related debt service reserve funds and to pay costs of issuance\nattributable to such refunding bonds.\n