State Codes and Statutes
Statutes > New-york > Pbh > Article-28-b > 2874-b* § 2874-b. Refinancing mortgage loans to eligible secured hospital borrowers. Eligible secured hospital borrowers, as defined in subdivision three-b of section twenty-eight hundred seventy-two of this article, shall be authorized to refinance any mortgage loan financed with the proceeds of special hospital project bonds, which loans are outstanding as of the effective date of this section. A mortgage loan to an eligible secured hospital borrower, as defined in subdivision three-b of section twenty-eight hundred seventy-two of this article, made by the medical care facilities finance agency, and any successor thereto, may be refinanced for a term not longer than the term sufficient to assure that the interest on bonds issued to refinance the mortgage loan will be excludable from gross income of the holders thereof for federal tax purposes, provided that in no event shall the term of such refinancing loan exceed thirty years from the date of the issuance of the refunding bonds and shall include all costs associated with the refinancing of indebtedness. All refinancing applications by eligible secured hospital borrowers shall be approved by the eligible secured hospital borrower's board and the commissioner. Such refinancing applications shall include analytical evidence sufficient to demonstrate that the proposed refinancing is being undertaken for sound business purposes and in furtherance of maintaining or improving the financial condition of the hospital. Such evidence may include but is not limited to: present value analysis of debt service payments, including where applicable, present value analysis that segregates debt service payments between principal and interest components; financial pro formas that project the borrower's revenues, expenses and financial position for a period determined by the commissioner; or any other analysis or information the commissioner deems necessary to evaluate the application (including but not limited to analysis and recommendations of consultants). As a condition of such prior approval, the commissioner shall approve the principal amount of the refinancing, and require the eligible secured hospital borrower to give the department a written undertaking, acceptable to the commissioner, that it will not claim additional reimbursement under the medical assistance program as established under title eleven of article five of the social services law due to interest payments on refinancing indebtedness. Any such additional interest payments on refinanced indebtedness covered by such written undertaking shall not be considered as allowable costs under the medical assistance program and shall not be included in reimbursement rates of payment under article twenty-eight of this chapter. * NB Repealed March 31, 2011
