20-1806. Reserve fund escrow
The director shall, as a condition of the issuance of a permit pursuant to section
20-1803, require that the provider maintain on a current basis, in escrow with a bank,
trust company or other escrow agent approved by the director, an amount which equals the
aggregate principal and interest payments due during the next twelve months on account of
any first mortgage or other long-term financing of the facility. The principal of the
escrow account may be invested with the earnings thereon payable to the provider, and up
to one-sixth of the total principal shall be released to the provider upon notice to the
director. The escrow agreement shall provide that upon withdrawal of any such amount by
the provider, the escrow agent shall provide immediate written notice of such withdrawal
to the director and that any amount released to the provider shall be repaid to the
escrow account within two years of the release of such amount. In the event that the
provider does not repay the escrow account within such two year period, the escrow agent
shall provide immediate written notice to the director.
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