§ 2858. Loans. 1. Any nursing home company formed under this article
may, subject to the approval of the commissioner, borrow funds from the
New York state housing finance agency or the New York state medical care
facilities finance agency, as the case may be, and the repayment thereof
may be secured by bond or note and mortgage or other agreement which
shall contain such terms and conditions as may be deemed necessary or
desirable by the New York state housing finance agency or the New York
state medical care facilities finance agency, as the case may be, or
required by any agreement between the New York state housing finance
agency or the New York state medical care facilities finance agency, as
the case may be, and the holders of its notes and bonds with respect to
nursing home companies, including the right to assignment of rates and
charges and entry into possession in case of default, but the operation
of such project, in the event of such entry, shall be subject to
regulations promulgated by the commissioner.

2. The New York state housing finance agency or the New York state
medical care facilities finance agency, as the case may be, may make a
contract to make loans to non-profit nursing home companies not to
exceed the total project cost and to limited-profit nursing home
companies not to exceed ninety-five per centum of the total project
cost. Any loan which constitutes a mortgage loan as defined in the New
York state medical care facilities finance agency act shall be secured
by a first mortgage lien upon all the real property and improvements of
which the project consists and upon all fixtures and articles of
personal property attached to or used in connection with the operation
of the project. Notwithstanding the foregoing provisions of this
subdivision or any other provision of this article to the contrary, any
personal property may be excluded from the lien of the mortgage securing
such a mortgage loan provided (a) the commissioner finds that such
property is not essential for the nursing home project as such term is
defined in this article, and (b) the New York State housing finance
agency or the New York state medical care facilities finance agency, as
the case may be, consents to such exclusion.

3. Any inconsistent provision of law to the contrary notwithstanding,
mortgages of a nursing home company shall be exempt from the mortgage
recording taxes imposed by article eleven of the tax law.