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This entry was published on 2014-09-22
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SECTION 2878
Supervision
Public Health (PBH) CHAPTER 45, ARTICLE 28-B
§ 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.