2874-B - Refinancing mortgage loans to eligible secured hospital borrowers.

* §  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