N.Y. Medical Care Facilities Finance Agency 392/73 § 5-c: Terms and conditions regarding alternative indebtedness

§ 5-c. Terms and conditions regarding alternative indebtedness. The

agency may require such terms and conditions regarding indebtedness

incurred or assumed from a lender other than the agency or guaranteed by

an eligible borrower or nursing home company as it deems appropriate

including qualifications and approval of the lender, approval of the

purpose of the indebtedness, time or rate of amortization of principal,

and time or rate of payment of interest; provided, however, that the

interest of the lender created as a result of such indebtedness as to

priority of lien with respect to a mortgage loan may only be on a parity

with or subordinate to that of the agency in proportion to the amount of

the loan secured. Such a borrower may so incur, assume or guarantee

indebtedness from a lender other than the agency, or incur, assume or

guarantee indebtedness from the agency under a separate bond resolution

upon such terms and conditions provided for in the applicable agreement

with bondholders and noteholders and with the consent of the agency

where such lender is other than the agency. This section applies only

where the agency has issued its bonds to make a mortgage loan or a

project loan to a hospital to which the agency is authorized to make a

loan pursuant to this act and the bonds and notes are not secured

pursuant to paragraph (a) of subdivision one of section seven of this

act.