§ 19-217. Notification of certain financial transactions, contracts or agreements required

   (a) In general. -- Except as provided in subsection (c) of this section, a facility shall notify the Commission at least 30 days prior to executing any financial transaction, contract, or other agreement that would:

   (1) Pledge more than 50% of the operating assets of the facility as collateral for a loan or other obligation; or

   (2) Result in more than 50% of the operating assets of the facility being sold, leased, or transferred to another person or entity.

(b) Publication of notice. -- Except as provided in subsection (c) of this section, the Commission shall publish a notice of the proposed financial transaction, contract, or other agreement reported by a facility in accordance with subsection (a) of this section in a newspaper of general circulation in the area where the facility is located.

(c) Exception. -- The provisions of this section do not apply to any financial transaction, contract, or other agreement made by a facility with any issuer of tax-exempt bonds, including the Maryland Health and Higher Education Facilities Authority, the State, or any county or municipal corporation of the State, if a notice of the proposed issuance of revenue bonds that meets the requirements of § 147 (f) of the Internal Revenue Code has been published.

HISTORY: 1991, ch. 555; 1999, ch. 702, § 2; 2009, ch. 60, § 5.