2015 New York Laws
PBH - Public Health
Article 28-B - (Public Health) HOSPITAL MORTGAGE LOAN CONSTRUCTION
2874-B - Refinancing mortgage loans to eligible secured hospital borrowers.

*   2874-b.  Refinancing  mortgage loans to eligible secured hospital
  borrowers.  1.  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 approved by the
  commissioner pursuant to this section or if the bonds issued to  finance
  such  mortgage loan are issued as tax-exempt bonds, such shorter term as
  is necessary to assure that the interest on bonds  issued  to  refinance
  the  mortgage  loan  will  be  excludable  from  the gross income of the
  holders thereof for federal tax purposes,  provided  that  in  no  event
  shall the term of such refinancing loan exceed the remaining term of the
  bonds  being  refunded  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 the furtherance of
  sustaining,  maintaining  and  improving  the financial condition of the
  hospital. Such evidence shall include but is not limited  to:  financial
  pro  formas that project the borrower's revenues, expenses and financial
  position for life of the bonds; the maximum maturity  of  the  refunding
  bonds  do  not  exceed  the  maturity  of  the bonds to be refunded; net
  present value savings of at least two percent of the par amount  of  the
  refunded  bonds  and net present value savings of at least two times the
  refunding bonds total cost of issuance, including underwriter's discount
  and credit  enhancement;  or  any  other  analysis  or  information  the
  commissioner deems necessary to evaluate the application. As a condition
  of  such  prior  approval,  the commissioner shall approve the principal
  amount of the  refinancing,  and  shall  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. Such refinancing shall be
  subject to section fifty-one of the public authorities law.
2. The use of  all  savings  resulting  from  the  refinancing  of  an
  eligible  secured  hospital  borrower's mortgage loan by the issuance of
  refunding bonds, including original issue premium, shall be  subject  to
  the prior approval of the commissioner.
* NB Repealed December 31, 2015