2006 New York Code - Supervision And Regulation.

 
    §  2862. Supervision and regulation. 1. The commissioner may from time
  to time make, alter, amend and repeal  rules  and  regulations  for  the
  supervision, examination, regulation and audit of nursing home companies
  and  for  carrying  into  effect  the  provisions  and  purposes of this
  article,  and  each  company  shall  submit  an  annual  report  of  its
  operations  to  the  commissioner and the New York state housing finance
  agency or the New York state medical care facilities finance agency,  as
  the  case may be, who may examine and audit the books and records of the
  company at any time.
    2. The commissioner and the department of health shall have  power  to
  act  for  and  in behalf of the New York state housing finance agency or
  the New York state medical care facilities finance agency, as  the  case
  may be, in servicing the nursing home mortgage loans of such agency, and
  to  perform  such  functions and services in connection with the making,
  servicing and collection of such loans as shall  be  requested  by  such
  agency.
    3.  (a)  The  commissioner and the department may, with respect to any
  nursing home project of which the New York state housing finance  agency
  or  the  New  York  state medical care facilities finance agency, as the
  case may be, 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 a company 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 company 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.