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12 U.S.C. 1709, 1710, 1715b, 1715n(f), and 1715u; 42 U.S.C. 3535(d).
72 FR 67546, Nov. 28, 2007, unless otherwise noted.
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The hospital must be free and clear of all liens other than the insured mortgage, except that the property may be subject to a lien as provided by terms and conditions established by HUD, as follows:
(a) An inferior lien made or held by a federal, state, or local government instrumentality;
(b) An inferior lien required in connection with a supplemental loan insured pursuant to section 241 of the Act;
(c) An inferior or superior lien on equipment as may be approved in connection with an equipment leasing program approved by HUD;
(d) An inferior or superior lien on accounts receivable as approved by HUD as collateral for a line of credit or other borrowing by a hospital insured under this part that has extraordinary needs such as cash flow difficulties; or
(e) Similar liens otherwise approved by HUD.