N.Y. Medical Care Facilities Finance Agency 392/73 § 5-b*: Health maintenance organization loans

* § 5-b. Health maintenance organization loans. 1. The agency may make

Hmo investment loans to lending institutions for the purpose of

financing an Hmo project. In connection with the making of investment

loans and commitments therefor to lending institutions, the agency may

make and collect from such lending institutions such fees and charges

including, but not limited to, reimbursement of all costs of financing

by the agency and service charges, as the agency shall determine to be

reasonable.

2. In addition to the powers of the agency to make Hmo investment

loans pursuant to other provisions of this act, the agency may make

loans and undertake commitments to make loans to owners of Hmo projects,

which loans may be but are not limited to mortgage loans, mortgage loans

insured by the federal government or leasehold mortgage loans. Such

loans shall be of such terms and conditions, and shall be secured in

such manner as is satisfactory to the agency.

3. The agency shall not make a loan or Hmo investment loan pursuant to

this section unless (a) the commissioner has approved the Hmo project

pursuant to section twenty-eight hundred two of the public health law in

any case where the project is subject to the provisions of such section

or has approved the project according to guidelines prescribed by the

commissioner in any other case, and (b) the agency finds that the

estimated revenues of the Hmo project or the Hmo investment loan, as the

case may be, will be sufficient to cover all installments of principal

and interest on the indebtedness issued relating to the Hmo project, and

(c) the indebtedness issued relating to the Hmo project has received an

investment grade rating from a recognized rating agency, or the loan or

the Hmo investment loan made by the agency is fully secured as to

principal and interest by the general credit of a bank, national bank,

trust company, savings bank, savings and loan association, insurance

company, governmental agency of the United States of America, or a

combination thereof.

* NB There are two § 5-b's