Section 10-410 - Deposits. - Maryland Statutes

§ 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. 
 

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