§ 10-410
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§10–410.
(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.