N.Y. Public Health Law § 2858: Loans

§ 2858. Loans. 1. Any nursing home company formed under this article

may, subject to the approval of the commissioner, borrow funds from the

New York state housing finance agency or the New York state medical care

facilities finance agency, as the case may be, and the repayment thereof

may be secured by bond or note and mortgage or other agreement which

shall contain such terms and conditions as may be deemed necessary or

desirable by the New York state housing finance agency or the New York

state medical care facilities finance agency, as the case may be, or

required by any agreement between the New York state housing finance

agency or the New York state medical care facilities finance agency, as

the case may be, and the holders of its notes and bonds with respect to

nursing home companies, including the right to assignment of rates and

charges and entry into possession in case of default, but the operation

of such project, in the event of such entry, shall be subject to

regulations promulgated by the commissioner.

2. The New York state housing finance agency or the New York state

medical care facilities finance agency, as the case may be, may make a

contract to make loans to non-profit nursing home companies not to

exceed the total project cost and to limited-profit nursing home

companies not to exceed ninety-five per centum of the total project

cost. Any loan which constitutes a mortgage loan as defined in the New

York state medical care facilities finance agency act shall be secured

by a first mortgage lien upon all the real property and improvements of

which the project consists and upon all fixtures and articles of

personal property attached to or used in connection with the operation

of the project. Notwithstanding the foregoing provisions of this

subdivision or any other provision of this article to the contrary, any

personal property may be excluded from the lien of the mortgage securing

such a mortgage loan provided (a) the commissioner finds that such

property is not essential for the nursing home project as such term is

defined in this article, and (b) the New York State housing finance

agency or the New York state medical care facilities finance agency, as

the case may be, consents to such exclusion.

3. Any inconsistent provision of law to the contrary notwithstanding,

mortgages of a nursing home company shall be exempt from the mortgage

recording taxes imposed by article eleven of the tax law.