§ 5-c. Terms and conditions regarding alternative indebtedness. 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.