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Maryland Code, Human Services § 10-410

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) 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) Each deposit agreement shall comply with the requirements of subsection (c) or (d) of this section.

(c) 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 Maryland Department of Health, 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) 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.

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Cite this article: FindLaw.com - Maryland Code, Human Services § 10-410 - last updated January 01, 2025 | https://codes.findlaw.com/md/human-services/md-code-human-serv-sect-10-410/

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