N.Y. Public Health Law § 2878: Supervision

§ 2878. Supervision. 1. The commissioner may from time to time make,

alter, amend and repeal rules and regulations for the supervision,

examination, regulation and audit of an eligible borrower and for

carrying into effect the provisions and purposes of this article, and

each eligible borrower shall submit an annual report of its operations

to the commissioner and the agency who may examine and audit the books

and records of the eligible borrower at any time.

2. The commissioner and the department of health shall have power to

act for and in behalf of the agency in servicing the hospital loans of

the agency, and to perform such functions and services in connection

with the making, servicing and collection of such loans as shall be

requested by the agency.

3. (a) The commissioner and the department may, with respect to any

hospital project of which the agency has acquired the fee or otherwise,

enter into an agreement with said agency subject to the approval of the

director of the budget, for the department, as provided in paragraph (b)

of this subdivision, to operate the said project in a manner consistent

with the purposes of this article. In such event, the commissioner, on

behalf of the department, shall have the power to use any available

funds to pay all operating expenses and to comply with all the terms and

provisions of the mortgage, if any, as though the mortgage had not been

foreclosed, or any other applicable agreement and to comply with the

provisions of this article.

(b) Subject to the provisions of the agreement with said agency, the

commissioner may contract with any person, firm or corporation which he

deems qualified to operate and manage such project and to perform such

duties and functions as he may deem necessary.

4. Whenever the commissioner shall be of the opinion that an eligible

borrower is failing or omitting, or is about to fail or omit to do

anything required of it by law or by order of the commissioner and is

doing or is about to do anything, or permitting anything, or is about to

permit anything to be done, contrary to or in violation of law or of any

order of the commissioner, or which is improvident or prejudicial to the

interest of the public, the lienholders, the shareholders, or the

occupants, the commissioner may, in addition to such other remedies as

may be available, commence an action or proceeding in the supreme court

of the state of New York in the name of the commissioner, for the

purpose of having such violations or threatened violations stopped and

prevented, and in such action or proceeding, the court may appoint a

temporary or permanent receiver or both. Such action or proceeding shall

be commenced by a petition to the supreme court, alleging the violation

complained of and praying for appropriate relief. It shall thereupon be

the duty of the court to specify the time, not exceeding twenty days

after service of a copy of the petition, within which the eligible

borrowers complained of must answer the petition. In case of any default

or after answer the court shall immediately inquire into the facts and

circumstances in such manner as the court shall direct in the interest

of substantial justice without other or formal pleading. Such other

persons or corporations as it shall seem to the court necessary or

proper to join as parties in order to make its order or judgment

effective, may be joined as parties. The final judgment in any such

action or proceeding shall either dismiss the action or proceeding or

direct that an order or an injunction, or both, issue, or provide for

the appointment of a receiver as prayed for in the petition, or grant

such other relief as the court may deem appropriate.