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This entry was published on 2014-09-22
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SECTION 5-B*
Health maintenance organization loans
Medical Care Facilities Finance Agency 392/73 (MCF) CHAPTER 392
* § 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