Section 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.