1. The Laws of New York
  2. Unconsolidated Laws
  3. Medical Care Facilities Finance Agency 392/73


Section 5-C Terms and conditions regarding alternative indebtedness

Medical Care Facilities Finance Agency 392/73 (MCF)

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.