370 LAWS OF MARYLAND [CH. 138
provided for the construction, expansion, replacement, relocation or
modernization of hospital buildings, facilities and equipment, for
voluntary non-profit hospitals in this State. For this purpose, the
Commission has the responsibility and authority to receive and ex-
amine, and to approve or disapprove applications from voluntary
nonprofit hospitals for loans to be made from State funds for the
construction, expansion, relocation or modernization of hospital
buildings, facilities and equipment belonging to and used by volun-
tary non-profit hospitals in this State. The approval or disapproval
of loans so requested by the several hospitals shall be submitted by
the Commission to the Board of Public Works. Any such approval
or disapproval, together with any recommendations made to the
Board of Public Works by the Commission are only for the consider-
ation of the Board of Public Works, and are not binding upon the
Board of Public Works. The Maryland Hospital Commission shall
not consider any application from any voluntary non-profit hospital
if the purpose of such application is to obtain funds for refinancing
an existing loan. This shall not prohibit the submission of an applica-
tion in those cases where the term of an existing loan has expired
and there is a necessity for new financing for the balance.
(b) In the performance of its duties and responsibilities in rela-
tion to such State loans, the Maryland Hospital Commission shall
give general consideration to the current status and operations of
voluntary non-profit hospitals throughout the State, and shall study
and consider also plans and needs concerning the adequacy of hospi-
tal facilities throughout the State. In the consideration of any spe-
cific application for loan funds from the State, the Commission, as
in its discretion seems advisable in the public interest, may require
the applicant hospital to modify or change its plans as a condition
precedent to the approval of the proposed loan by the Commission.
In performing this function, the Commission may call upon any State
official or agency for information that may be helpful, and it may
utilize the services of private agencies for additional research analy-
sis or information.
(c) Final authority for the granting of any State loan funds to
any applicant hospital is vested in the Board of Public Works. If an
applicant, or any hospital, is rejected by the Board of Public Works,
neither the Commission nor the Board of Public Works shall receive
or consider another application for loan funds from that hospital or
applicant until after a period of six (6) months from the time the
prior application was disapproved.
(d) In considering applications for loan funds and prior to mak-
ing recommendations upon any application for State funds under
this subheading, the Commission shall consider, ascertain and de-
termine that:
(1) The applicant is, in fact, a voluntary non-profit hospital
corporation, chartered as such in the State of Maryland.
(2) The said applicant or hospital has sufficient financial integ-
rity and is in such financial condition that it can reasonably be ex-
pected to meet its obligations to the State in the repayment of the
principal and interest on the said loan.
(3) There exists in the community in which the hospital is lo-
cated an ability to support the hospital in the repayment of the
said loan.
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