{"data":{"id":"us-nc/n.c.-gen.-stat.-131a-34","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 131A-34","heading":"Commission approval for loan.","body":"(a)\tApproval Required. - UNC Health Care shall not award a loan under the Program unless the Commission approves it. If the Commission enters an order denying the loan, the proceedings under this Article shall be at an end.\n(b)\tConflict of Interest. - UNC Health Care must disclose to the Commission any potential conflict of interest in its review of an application and Plan. The Commission cannot approve a loan if the issuance of the loan would result in a material, direct financial benefit to UNC Health Care at the time the application and Plan are submitted to the Commission for its approval.\n(c)\tConsiderations. - The Commission shall review UNC Health Care's recommendations, an applicant's Plan, and any other information it may believe to have a bearing on whether the loan should be approved. If UNC Health Care has recommended disapproval of a loan, and the applicant has an evaluation prepared by a disinterested and qualified third party approved by the Commission, the Commission may consider the third party's evaluation of the applicant and the applicant's Plan. The Commission may require the applicant and eligible hospital, if different, to provide any of the following information for its consideration:\n(1)\tCurrent and historical financial information.\n(2)\tWhether the undertaking is necessary or expedient.\n(3)\tIts debt management procedures and policies.\n(4)\tWhether it is in default in any of its debt service obligations.\n(5)\tAny other information the Commission may believe to have a bearing on whether the loan should be approved.\n(d)\tLoan Approval. - The Commission may approve the application if, upon the information and evidence it receives, it finds and determines:\n(1)\tThat the loan is necessary or expedient.\n(2)\tThat the amount proposed is adequate and not excessive for the proposed purpose of the loan.\n(3)\tThat the Plan demonstrates a financially sustainable health care service model for the community in which the eligible hospital is located.\n(4)\tThat the applicant's debt management procedures and policies are good, or that reasonable assurances have been given that its debt will be repaid. (2019-240, s. 27.2.)","path":["Chapter 131A. Health Care Facilities Finance Act.","Article 2. Rural Health Care Stabilization Program."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_131A/GS_131A-34.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:20:52Z","sha256":"292032341c796aca66a77ef8e666d58f08eec6880cdbce0e1702826f063ca674","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-131a-33","next":"us-nc/n.c.-gen.-stat.-131a-35"},"notice":"GroundRules: Original legal text. Not legal advice."}