§ 38.2-4904.1. Escrow of entrance fee to continuing care providers and others.
A. A provider shall maintain in escrow with a bank or trust company, or otherescrow agent approved by the Commission, all entrance fees or portionsthereof in excess of $1,000 per person received by the provider prior to thedate the resident is permitted to occupy a unit in the facility. Funds orassets deposited therein shall be kept and maintained in an account separateand apart from the provider's business accounts. For the purposes of thissection only, the term "entrance fee" shall include within its meaning anyadvanced payment or series of advanced payments totaling $5,000 or more andthe term "provider" shall include any person or entity that would beincluded in the definition thereof in § 38.2-4900 if such fee of $5,000 ormore constituted an entrance fee for the purposes of the definition of"continuing care" in § 38.2-4900.
B. All funds or assets deposited in the escrow account shall remain theproperty of the prospective resident until released to the provider inaccordance with this section. The funds or assets shall not be subject to anyliens, judgments, garnishments or creditor's claims against the provider orfacility. The escrow agreement may provide that charges by the escrow agentmay be deducted from the funds or assets if such provision is disclosed inthe disclosure statement.
C. All funds or assets deposited in escrow pursuant to this section shall bereleased to the provider when the provider presents to the escrow agentevidence that a unit has been occupied by the resident or a unit of the typereserved is available for immediate occupancy by the resident or prospectiveresident on whose behalf the fee was received.
D. Notwithstanding any other provision of this section, all funds or assetsdeposited in escrow pursuant to this section shall be released according tothe terms of the escrow agreement to the prospective resident from whom itwas received (i) if such funds or assets have not been released within threeyears after placement in escrow or within three years after construction hasstarted, whichever is later (but in any event within six years afterplacement in escrow unless specifically approved by the Commission), orwithin such longer period as determined appropriate by the Commission inwriting, (ii) if the prospective resident dies before occupying a unit, (iii)if the construction of a facility, not yet operating is stopped indefinitelybefore the facility is completed or (iv) upon rescission of the contractpursuant to provisions in the contract or in this chapter. If construction ofthe unit to be reserved has not started within three years after the depositof funds or assets into an escrow account, the prospective resident mayrequire the return of such funds or assets unless the Commission determinesthat construction will begin in a reasonable period of time and the extensionof such three-year period is appropriate. However, funds or assets subject torelease under item (i) of this subsection or under subsection C of thissection may be held in escrow for an additional period at the mutual consentof the provider and the prospective resident; however, the prospectiveresident may consent to such additional period only after his deposit hasbeen held in escrow for at least two years. Item (i) above shall not apply iffees are refundable within thirty days of request for refund.
E. Unless otherwise specified in the escrow agreement, funds or assets in anescrow account pursuant to this section may be held in the form received orif invested shall be invested in instruments authorized for the investment ofpublic funds as set forth in Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2 andnot in default as to principal or interest.
F. This section shall not apply to entrance fees for initial occupancy ofunits under construction on June 30, 1986.
G. This section shall not apply to application or reservation fees whether ornot such fees are considered to be a portion of the entrance fee, providedsuch application or reservation fees are not in excess of $1,000 per person.
§ 38.2-4904.1. Escrow of entrance fee to continuing care providers and others.
A. A provider shall maintain in escrow with a bank or trust company, or otherescrow agent approved by the Commission, all entrance fees or portionsthereof in excess of $1,000 per person received by the provider prior to thedate the resident is permitted to occupy a unit in the facility. Funds orassets deposited therein shall be kept and maintained in an account separateand apart from the provider's business accounts. For the purposes of thissection only, the term "entrance fee" shall include within its meaning anyadvanced payment or series of advanced payments totaling $5,000 or more andthe term "provider" shall include any person or entity that would beincluded in the definition thereof in § 38.2-4900 if such fee of $5,000 ormore constituted an entrance fee for the purposes of the definition of"continuing care" in § 38.2-4900.
B. All funds or assets deposited in the escrow account shall remain theproperty of the prospective resident until released to the provider inaccordance with this section. The funds or assets shall not be subject to anyliens, judgments, garnishments or creditor's claims against the provider orfacility. The escrow agreement may provide that charges by the escrow agentmay be deducted from the funds or assets if such provision is disclosed inthe disclosure statement.
C. All funds or assets deposited in escrow pursuant to this section shall bereleased to the provider when the provider presents to the escrow agentevidence that a unit has been occupied by the resident or a unit of the typereserved is available for immediate occupancy by the resident or prospectiveresident on whose behalf the fee was received.
D. Notwithstanding any other provision of this section, all funds or assetsdeposited in escrow pursuant to this section shall be released according tothe terms of the escrow agreement to the prospective resident from whom itwas received (i) if such funds or assets have not been released within threeyears after placement in escrow or within three years after construction hasstarted, whichever is later (but in any event within six years afterplacement in escrow unless specifically approved by the Commission), orwithin such longer period as determined appropriate by the Commission inwriting, (ii) if the prospective resident dies before occupying a unit, (iii)if the construction of a facility, not yet operating is stopped indefinitelybefore the facility is completed or (iv) upon rescission of the contractpursuant to provisions in the contract or in this chapter. If construction ofthe unit to be reserved has not started within three years after the depositof funds or assets into an escrow account, the prospective resident mayrequire the return of such funds or assets unless the Commission determinesthat construction will begin in a reasonable period of time and the extensionof such three-year period is appropriate. However, funds or assets subject torelease under item (i) of this subsection or under subsection C of thissection may be held in escrow for an additional period at the mutual consentof the provider and the prospective resident; however, the prospectiveresident may consent to such additional period only after his deposit hasbeen held in escrow for at least two years. Item (i) above shall not apply iffees are refundable within thirty days of request for refund.
E. Unless otherwise specified in the escrow agreement, funds or assets in anescrow account pursuant to this section may be held in the form received orif invested shall be invested in instruments authorized for the investment ofpublic funds as set forth in Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2 andnot in default as to principal or interest.
F. This section shall not apply to entrance fees for initial occupancy ofunits under construction on June 30, 1986.
G. This section shall not apply to application or reservation fees whether ornot such fees are considered to be a portion of the entrance fee, providedsuch application or reservation fees are not in excess of $1,000 per person.
§ 38.2-4904.1. Escrow of entrance fee to continuing care providers and others.
A. A provider shall maintain in escrow with a bank or trust company, or otherescrow agent approved by the Commission, all entrance fees or portionsthereof in excess of $1,000 per person received by the provider prior to thedate the resident is permitted to occupy a unit in the facility. Funds orassets deposited therein shall be kept and maintained in an account separateand apart from the provider's business accounts. For the purposes of thissection only, the term "entrance fee" shall include within its meaning anyadvanced payment or series of advanced payments totaling $5,000 or more andthe term "provider" shall include any person or entity that would beincluded in the definition thereof in § 38.2-4900 if such fee of $5,000 ormore constituted an entrance fee for the purposes of the definition of"continuing care" in § 38.2-4900.
B. All funds or assets deposited in the escrow account shall remain theproperty of the prospective resident until released to the provider inaccordance with this section. The funds or assets shall not be subject to anyliens, judgments, garnishments or creditor's claims against the provider orfacility. The escrow agreement may provide that charges by the escrow agentmay be deducted from the funds or assets if such provision is disclosed inthe disclosure statement.
C. All funds or assets deposited in escrow pursuant to this section shall bereleased to the provider when the provider presents to the escrow agentevidence that a unit has been occupied by the resident or a unit of the typereserved is available for immediate occupancy by the resident or prospectiveresident on whose behalf the fee was received.
D. Notwithstanding any other provision of this section, all funds or assetsdeposited in escrow pursuant to this section shall be released according tothe terms of the escrow agreement to the prospective resident from whom itwas received (i) if such funds or assets have not been released within threeyears after placement in escrow or within three years after construction hasstarted, whichever is later (but in any event within six years afterplacement in escrow unless specifically approved by the Commission), orwithin such longer period as determined appropriate by the Commission inwriting, (ii) if the prospective resident dies before occupying a unit, (iii)if the construction of a facility, not yet operating is stopped indefinitelybefore the facility is completed or (iv) upon rescission of the contractpursuant to provisions in the contract or in this chapter. If construction ofthe unit to be reserved has not started within three years after the depositof funds or assets into an escrow account, the prospective resident mayrequire the return of such funds or assets unless the Commission determinesthat construction will begin in a reasonable period of time and the extensionof such three-year period is appropriate. However, funds or assets subject torelease under item (i) of this subsection or under subsection C of thissection may be held in escrow for an additional period at the mutual consentof the provider and the prospective resident; however, the prospectiveresident may consent to such additional period only after his deposit hasbeen held in escrow for at least two years. Item (i) above shall not apply iffees are refundable within thirty days of request for refund.
E. Unless otherwise specified in the escrow agreement, funds or assets in anescrow account pursuant to this section may be held in the form received orif invested shall be invested in instruments authorized for the investment ofpublic funds as set forth in Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2 andnot in default as to principal or interest.
F. This section shall not apply to entrance fees for initial occupancy ofunits under construction on June 30, 1986.
G. This section shall not apply to application or reservation fees whether ornot such fees are considered to be a portion of the entrance fee, providedsuch application or reservation fees are not in excess of $1,000 per person.
