20-1806. Reserve fund escrow
186 words·~1 min read·
/az/title-20/20-1806A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The director shall, as a condition of the issuance of a permit pursuant to section 20-1803, require that the provider maintain on a current basis, in escrow with a bank, trust company or other escrow agent approved by the director, an amount which equals the aggregate principal and interest payments due during the next twelve months on account of any first mortgage or other long-term financing of the facility. The principal of the escrow account may be invested with the earnings thereon payable to the provider, and up to one-sixth of the total principal shall be released to the provider upon notice to the director.
The escrow agreement shall provide that upon withdrawal of any such amount by the provider, the escrow agent shall provide immediate written notice of such withdrawal to the director and that any amount released to the provider shall be repaid to the escrow account within two years of the release of such amount. In the event that the provider does not repay the escrow account within such two year period, the escrow agent shall provide immediate written notice to the director.