WVC 16 - 29 A- 6
§16-29A-6. Hospital loans.
The authority may lend money to hospitals for the
acquisition, construction, improvement or alteration of hospital
facilities. A hospital loan shall not be made unless the
authority is reasonably satisfied that there will be made
available to the hospital from the hospital loan and other
sources all the funds necessary to pay all project costs; that
the hospital facilities will produce revenues sufficient,
together with any other revenues pledged, to meet the principal
of and interest on the hospital loan, other costs, expenses and
charges in connection with the hospital loan and other charges or
obligations of the hospital which may be prior or equal to the
hospital loan, promptly as they become due; and that the hospital
is otherwise soundly financed. The hospital loan may be secured
by a deed of trust on or a security interest in, as applicable,
property of the hospital, including the hospital facilities, and
may provide for the appointment of a receiver to operate the
hospital facilities in case of default. A hospital loan made
pursuant to this section shall not exceed the project costs as
determined by the authority. A hospital loan shall be secured in
a manner, be repaid in a period not exceeding fifty years and
bear interest at a rate, all as determined by the authority,
which interest rate may be decreased or increased so that it
shall in no event be less than the rate paid by the authority on
notes, renewal notes or bonds issued to fund the hospital loan.
Such terms and provisions shall be set forth in a loan agreement
between the authority and the hospital.
Note: WV Code updated with legislation passed through the 2015 Regular Session
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