§ 10-410. Deposits

   (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.

HISTORY: An. Code 1957, art. 70B, § 10(c), (c-1); 2007, ch. 3, § 2.