Bond required for facility holding resident's property intrust--exception, cash deposit held in insured escrow.
198.096. 1. The operator of any facility who holds in trust personalfunds of residents as provided in section 198.090 shall obtain and filewith the department a bond in a form approved by the department in anamount equal to one and one-half times the average monthly balance oraverage total of the monthly balances, rounded to the nearest one thousanddollars, in the residents' personal funds account or accounts kept pursuantto subdivision (3) of subsection 1 of section 198.090 for the precedingtwelve months. In the case of a new facility or of an operator notpreviously holding in trust the personal funds of residents, the departmentshall determine the amount of bond to be required, taking intoconsideration the size and type of facility, the number of residents, andthe experience of comparable facilities.
2. The required bond shall be conditioned to secure to every residentor former resident, or the estate of a former resident, the return of anymoneys held in trust of which the resident has been wrongfully deprived byacts of the operator or any affiliates or employees of the operator. Theliability of the surety to any and all persons shall not exceed the statedamount of the bond regardless of the period of time the bond has been ineffect.
3. Whenever the director determines that the amount of any bond whichis filed pursuant to this subsection is insufficient to adequately protectthe money of residents which is being handled, or whenever the amount ofany such bond is impaired by any recovery against the bond, the directormay require the operator to file an additional bond in such amount asnecessary to adequately protect the money of residents being handled.
4. In the event that any such bond includes a provision allowing thesurety to cancel after notice, the bond shall provide for a minimum ofsixty days' notice to the department.
5. The operator may, in lieu of a bond, place a cash deposit equal tothe amount of the bond required in this section with an insured lendinginstitution pursuant to a noncancelable escrow agreement with the lendinginstitution if the written agreement is submitted to and approved by thedepartment. No escrow agreement shall be approved without verification ofcash deposit.
Bond required for facility holding resident's property intrust--exception, cash deposit held in insured escrow.
198.096. 1. The operator of any facility who holds in trust personalfunds of residents as provided in section 198.090 shall obtain and filewith the department a bond in a form approved by the department in anamount equal to one and one-half times the average monthly balance oraverage total of the monthly balances, rounded to the nearest one thousanddollars, in the residents' personal funds account or accounts kept pursuantto subdivision (3) of subsection 1 of section 198.090 for the precedingtwelve months. In the case of a new facility or of an operator notpreviously holding in trust the personal funds of residents, the departmentshall determine the amount of bond to be required, taking intoconsideration the size and type of facility, the number of residents, andthe experience of comparable facilities.
2. The required bond shall be conditioned to secure to every residentor former resident, or the estate of a former resident, the return of anymoneys held in trust of which the resident has been wrongfully deprived byacts of the operator or any affiliates or employees of the operator. Theliability of the surety to any and all persons shall not exceed the statedamount of the bond regardless of the period of time the bond has been ineffect.
3. Whenever the director determines that the amount of any bond whichis filed pursuant to this subsection is insufficient to adequately protectthe money of residents which is being handled, or whenever the amount ofany such bond is impaired by any recovery against the bond, the directormay require the operator to file an additional bond in such amount asnecessary to adequately protect the money of residents being handled.
4. In the event that any such bond includes a provision allowing thesurety to cancel after notice, the bond shall provide for a minimum ofsixty days' notice to the department.
5. The operator may, in lieu of a bond, place a cash deposit equal tothe amount of the bond required in this section with an insured lendinginstitution pursuant to a noncancelable escrow agreement with the lendinginstitution if the written agreement is submitted to and approved by thedepartment. No escrow agreement shall be approved without verification ofcash deposit.
Bond required for facility holding resident's property intrust--exception, cash deposit held in insured escrow.
198.096. 1. The operator of any facility who holds in trust personalfunds of residents as provided in section 198.090 shall obtain and filewith the department a bond in a form approved by the department in anamount equal to one and one-half times the average monthly balance oraverage total of the monthly balances, rounded to the nearest one thousanddollars, in the residents' personal funds account or accounts kept pursuantto subdivision (3) of subsection 1 of section 198.090 for the precedingtwelve months. In the case of a new facility or of an operator notpreviously holding in trust the personal funds of residents, the departmentshall determine the amount of bond to be required, taking intoconsideration the size and type of facility, the number of residents, andthe experience of comparable facilities.
2. The required bond shall be conditioned to secure to every residentor former resident, or the estate of a former resident, the return of anymoneys held in trust of which the resident has been wrongfully deprived byacts of the operator or any affiliates or employees of the operator. Theliability of the surety to any and all persons shall not exceed the statedamount of the bond regardless of the period of time the bond has been ineffect.
3. Whenever the director determines that the amount of any bond whichis filed pursuant to this subsection is insufficient to adequately protectthe money of residents which is being handled, or whenever the amount ofany such bond is impaired by any recovery against the bond, the directormay require the operator to file an additional bond in such amount asnecessary to adequately protect the money of residents being handled.
4. In the event that any such bond includes a provision allowing thesurety to cancel after notice, the bond shall provide for a minimum ofsixty days' notice to the department.
5. The operator may, in lieu of a bond, place a cash deposit equal tothe amount of the bond required in this section with an insured lendinginstitution pursuant to a noncancelable escrow agreement with the lendinginstitution if the written agreement is submitted to and approved by thedepartment. No escrow agreement shall be approved without verification ofcash deposit.
