50-30-04. Long-term care facility loans

50-30-04. Long-term care facility loans 1. The department may approve loans from the long-term care facility loan fund established under chapter 6-09.16 for renovation projects involving a nursing facility, basic care facility, or assisted living facility. 2. An approved loan for any project may not exceed one million dollars or ninety percent of the project cost, whichever is less. 3. The department shall give preference for loan approval to an applicant that is converting nursing facility bed capacity to basic care bed capacity. 4. No loan may be approved unless the applicant agrees to repay to the long-term care facility loan fund the outstanding balance of the loan and any accrued interest if the applicant or its successor in interest ceases to operate the project or facility financed by the loan proceeds during the ten-year period after the date the applicant began operation of the project or facility or fails to commence operations within a reasonable time. 5. In addition to other remedies provided by law or contract, the department may deduct the amount of any refund due from a recipient of a loan from any money owed by the department to such recipient or the recipient's successor in interest.