(a) Collection of deposits.- A provider may collect deposits from prospective subscribers if:
(1) the Department has approved the provider's feasibility study; and
(2) funds collected are maintained in an escrow account.
(b) Deposit agreements.- Each deposit agreement shall comply with the requirements of subsection (c) or (d) of this section.
(c) Requirements for deposit agreements - Without approval to withdraw deposits.- If a deposit agreement is used for a deposit on a unit for which the provider has not received written approval to withdraw deposits, the deposit agreement shall:
(1) state that all deposits and entrance fees will be held in escrow until:
(i) an initial certificate of registration for the unit is issued;
(ii) construction is completed;
(iii) a certificate of occupancy, or its equivalent, is issued by the local jurisdiction; and
(iv) the provider has the appropriate licenses or certificates from the Department of Health and Mental Hygiene, the Maryland Health Care Commission, and the Department;
(2) describe the disposition of any interest earned on deposits and entrance fees;
(3) state the amount of any processing fee and whether it will be refunded if the deposit agreement is canceled; and
(4) describe the disposition of the deposit if the deposit agreement is canceled before the continuing care agreement is executed.
(d) Requirements for deposit agreements - With approval to withdraw deposits.- If a deposit agreement is used for a deposit on a unit for which the provider has received written approval to withdraw deposits, the deposit agreement shall:
(1) state that the provider may use all deposits and entrance fees at any time; or
(2) describe any applicable limitations on the use of deposits and entrance fees.
(a) Collection of deposits.- A provider may collect deposits from prospective subscribers if:
(1) the Department has approved the provider's feasibility study; and
(2) funds collected are maintained in an escrow account.
(b) Deposit agreements.- Each deposit agreement shall comply with the requirements of subsection (c) or (d) of this section.
(c) Requirements for deposit agreements - Without approval to withdraw deposits.- If a deposit agreement is used for a deposit on a unit for which the provider has not received written approval to withdraw deposits, the deposit agreement shall:
(1) state that all deposits and entrance fees will be held in escrow until:
(i) an initial certificate of registration for the unit is issued;
(ii) construction is completed;
(iii) a certificate of occupancy, or its equivalent, is issued by the local jurisdiction; and
(iv) the provider has the appropriate licenses or certificates from the Department of Health and Mental Hygiene, the Maryland Health Care Commission, and the Department;
(2) describe the disposition of any interest earned on deposits and entrance fees;
(3) state the amount of any processing fee and whether it will be refunded if the deposit agreement is canceled; and
(4) describe the disposition of the deposit if the deposit agreement is canceled before the continuing care agreement is executed.
(d) Requirements for deposit agreements - With approval to withdraw deposits.- If a deposit agreement is used for a deposit on a unit for which the provider has received written approval to withdraw deposits, the deposit agreement shall:
(1) state that the provider may use all deposits and entrance fees at any time; or
(2) describe any applicable limitations on the use of deposits and entrance fees.
(a) Collection of deposits.- A provider may collect deposits from prospective subscribers if:
(1) the Department has approved the provider's feasibility study; and
(2) funds collected are maintained in an escrow account.
(b) Deposit agreements.- Each deposit agreement shall comply with the requirements of subsection (c) or (d) of this section.
(c) Requirements for deposit agreements - Without approval to withdraw deposits.- If a deposit agreement is used for a deposit on a unit for which the provider has not received written approval to withdraw deposits, the deposit agreement shall:
(1) state that all deposits and entrance fees will be held in escrow until:
(i) an initial certificate of registration for the unit is issued;
(ii) construction is completed;
(iii) a certificate of occupancy, or its equivalent, is issued by the local jurisdiction; and
(iv) the provider has the appropriate licenses or certificates from the Department of Health and Mental Hygiene, the Maryland Health Care Commission, and the Department;
(2) describe the disposition of any interest earned on deposits and entrance fees;
(3) state the amount of any processing fee and whether it will be refunded if the deposit agreement is canceled; and
(4) describe the disposition of the deposit if the deposit agreement is canceled before the continuing care agreement is executed.
(d) Requirements for deposit agreements - With approval to withdraw deposits.- If a deposit agreement is used for a deposit on a unit for which the provider has received written approval to withdraw deposits, the deposit agreement shall:
(1) state that the provider may use all deposits and entrance fees at any time; or
(2) describe any applicable limitations on the use of deposits and entrance fees.
