A mortgage granted by a failing hospital to secure a loan from a healthcare system with which it wanted to affiliate is not illegal because it was not specifically approved by the hospital’s members, a bankruptcy court in Maine has held. The Court has refused to allow the hospital to use the proceeds of the loan in face of the healthcare system’s objection. Parkview Adventist Medical Center, a Maine not-for-profit corporation, held a members meeting in February 2008 to discuss its troubled financial condition. The members authorized the president to take steps for Parkview to become a subsidiary of the Central Maine Healthcare Corporation (“CHMC”). In April, the president met with the board...