reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part IV - Facilities and Assets › Section 10-438 - Sale or Transfer of Assets -- Approval by Department

(a)    (1)    After reviewing the information required by § 10-437 of this subtitle, the Department shall determine whether the sale, transfer, or other disposition satisfies the standard for approval set forth in subsection (b) of this section.
(2)    The Department shall make its determination and notify the provider in writing within 25 days after the date of the notice required by § 10-437(a)(2) of this subtitle, unless extended by the Department for good cause.
(3)    If the Department does not approve the proposed sale, transfer, or other disposition, the Department shall include the reasons for its determination in the written notice to the provider.
(b)    The Department shall approve the sale, transfer, or other disposition of assets unless it determines that the sale, transfer, or disposition is likely to have an unreasonably adverse effect on:
(1)    the financial stability of the provider; or
(2)    the capacity of the provider to perform its obligations under its continuing care agreements.
(c)    (1)    By regulation, the Department shall adopt reasonable objective financial standards for a proposed sale, transfer, or other disposition of assets.
(2)    If the Department determines that the provider has met the objective financial standards, the Department shall approve the proposed sale, transfer, or other disposition of assets.
(3)    If the Department determines that the provider has not met the objective financial standards, the Department may approve a proposed sale, transfer, or other disposition of assets if it satisfies the requirements set forth in subsection (b) of this section.
(d)    (1)    In accordance with Title 10, Subtitle 2 of the State Government Article, the provider may appeal the Department’s decision on the proposed sale, transfer, or other disposition of assets.
(2)    A person other than the provider may not appeal the Department’s decision or be a party in interest to the proceedings.
(e)    A sale, transfer, or other disposition of assets subject to this part may not be completed until 5 days after the later of:
(1)    the day the Department issues the notice required under subsection (a)(2) of this section of its decision to approve the sale, transfer, or other disposition; or
(2)    if an appeal is taken under subsection (d) of this section, the day the administrative law judge issues a decision to allow the sale, transfer, or other disposition of assets.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part IV - Facilities and Assets › Section 10-440 - Removal of Records or Assets From State

(a)    A provider may not remove a record or asset of the provider related to the operation of a facility or the provision of services under a continuing care agreement from the State unless the Department consents in writing.
(b)    Consent shall be based on the provider’s submission of satisfactory evidence that the removal:
(1)    will facilitate and make the operations of the provider more economical; and
(2)    will not diminish the service or protection to be given to the provider’s subscribers in the State.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part IV - Facilities and Assets › Section 10-441 - Inspections

(a)    The Department may:
(1)    inspect a facility that offers continuing care;
(2)    examine the facility’s books and records; and
(3)    audit or observe a service provided under a continuing care agreement.
(b)    If all or part of a facility is subject to licensure by the Maryland Department of Health, the Department shall coordinate its inspections under this section with the Maryland Department of Health to avoid duplication.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part V - Continuing Care Agreements › Section 10-446 - Rescission of Agreement; Withdrawal of Application

(a)    A subscriber may rescind a continuing care agreement for any reason before the date of occupancy by the subscriber.
(b)    (1)    A continuing care agreement is automatically canceled if, before the date of occupancy:
(i)    the subscriber dies;
(ii)    the provider determines that the subscriber is ineligible for admission to the facility; or
(iii)    the subscriber terminates the continuing care agreement because of a substantial change in the subscriber’s physical, mental, or financial condition.
(2)    Within 30 days after a continuing care agreement is canceled under this subsection, the subscriber or the subscriber’s legal representative shall receive a full refund of all money paid to the provider, less:
(i)    a processing fee approved by the Department; and
(ii)    any special additional costs incurred by the provider due to modifications in the structure or furnishings of the unit specifically requested by the subscriber, if:
1.    the costs do not exceed the costs of modification and the reasonable costs of restoration actually incurred by the provider; and
2.    the costs were set forth in writing in a separate addendum to the agreement signed by the subscriber.
(c)    (1)    If the subscriber rescinds the continuing care agreement within 90 days after entering into the agreement and before the date of occupancy for any reason other than the reasons specified in subsection (b)(1) of this section, the provider shall refund the amount described in subsection (b)(2) of this section to the subscriber or the subscriber’s legal representative within 30 days after the date of rescission.
(2)    If the subscriber rescinds the continuing care agreement more than 90 days after entering into the agreement and before the date of occupancy for any reason other than the reasons specified in subsection (b)(1) of this section, the provider may retain up to 25% of the subscriber’s entrance fee deposit.
(d)    (1)    A subscriber may rescind a continuing care agreement at any time if a term of the agreement violates this subtitle and the subscriber is injured by the violation.
(2)    The subscriber is entitled to treble damages for extensive injuries arising from a violation.
(e)    (1)    An applicant for admission to a facility who withdraws the application before executing a continuing care agreement shall receive a refund of all money paid to the provider except a processing fee approved by the Department.
(2)    The refund shall be paid within 60 days after the applicant withdraws the application.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part V - Continuing Care Agreements › Section 10-448 - Dismissal or Discharge of Subscriber Before Expiration of Agreement

(a)    A continuing care agreement may not allow dismissal or discharge of the subscriber from the facility providing care before the agreement expires unless:
(1)    the provider has just cause for the dismissal or discharge; and
(2)    the provider gives the subscriber at least 60 days’ advance notice.
(b)    If a provider terminates a subscriber’s continuing care agreement for just cause, the provider shall pay the subscriber a refund calculated in accordance with subsection (c) of this section, within 60 days after the later of:
(1)    the date of dismissal or discharge; or
(2)    the date the subscriber vacates the unit.
(c)    (1)    The subscriber’s refund shall equal the entrance fee divided by the subscriber’s years of expected lifetime at admission, multiplied by the subscriber’s years of expected lifetime at dismissal or discharge.
(2)    A subscriber’s years of expected lifetime at admission and at dismissal or discharge shall be computed based on the appropriate tables most recently published by the U.S. Department of Health and Human Services at the time of dismissal or discharge.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part V - Continuing Care Agreements › Section 10-449 - Contractual Entrance Fee Refund Due to Termination of Continuing Care Agreement by Subscriber

(a)    A continuing care agreement shall allow a subscriber to terminate the agreement by giving a written termination notice to the provider.
(b)    If a continuing care agreement is terminated by the subscriber’s election or death within the first 90 days of occupancy, the provider shall pay any contractual entrance fee refund within 30 days after the earlier to occur of:
(1)    the recontracting of the subscriber’s unit by:
(i)    another subscriber for whom an entrance fee has been paid; or
(ii)    another party who is not a subscriber; or
(2)    the later to occur of:
(i)    the 90th day after the date the written termination notice is given or the date of death; or
(ii)    the day the independent living units at the facility have operated at 95% of capacity for the previous 6 months.
(c)    If a continuing care agreement is terminated by the subscriber’s election or death after the first 90 days of occupancy, the provider shall pay any contractual entrance fee refund within 60 days after the subscriber’s death or the effective date of termination, if on the date of death or at any time between the date the written termination notice is given and the effective date of termination:
(1)    the subscriber resides in a unit at a higher level of care than the level of care in which the subscriber resided on initially entering the facility; and
(2)    the last unit in which the subscriber resided at the initial level of care on entering the facility has been occupied by or reserved for another subscriber who has paid an entrance fee.
(d)    This section does not prohibit a provider from requiring that a subscriber’s unit be vacated before any contractual entrance fee refund is paid as a result of the subscriber’s election to terminate a continuing care agreement.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part V - Continuing Care Agreements › Section 10-450 - Waiver of Certain Provisions Prohibited

An act, agreement, or statement by a subscriber or by an individual purchasing care for a subscriber under an agreement to furnish care to the subscriber is not a valid waiver of any provision of this subtitle intended for the benefit or protection of the subscriber or the individual purchasing care for the subscriber.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VI - Continuing Care at Home › Section 10-454 - Regulations

(a)    The Department shall adopt regulations that:
(1)    set standards for continuing care at home providers; and
(2)    provide for the certification of continuing care at home providers and the annual renewal of certificates of registration.
(b)    In addition to the provisions required under subsection (a) of this section, the regulations adopted by the Department shall, at a minimum:
(1)    provide for and encourage the establishment of continuing care at home programs;
(2)    for an individual who is employed by or under contract with a continuing care at home provider and who will enter a subscriber’s home to provide continuing care at home services:
(i)    set minimum requirements;
(ii)    require a criminal history records check, if the individual will have routine, direct access to a subscriber; and
(iii)    require the provider to screen and verify the individual’s character references;
(3)    establish standards for the renewal of certificates of registration;
(4)    establish standards for entrance fees, deposits, and the number of executed agreements necessary to begin operations;
(5)    establish conditions for the release of deposits and entrance fees from escrow accounts;
(6)    establish standards for when and how a subscriber or provider may rescind a continuing care at home agreement before continuing care at home services are provided to the subscriber;
(7)    allow a subscriber to rescind a continuing care at home agreement at any time if the terms of the agreement violate this subtitle; and
(8)    establish that a provider may terminate an agreement or discharge a subscriber only for just cause and establish procedures to carry out the termination or discharge.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VI - Continuing Care at Home › Section 10-455 - Feasibility Study

(a)    A provider may not collect deposits to provide continuing care at home services until the Department approves a feasibility study.
(b)    A provider that intends to develop a continuing care at home program and provide continuing care at home services shall file a statement of intent with the Department at least 30 days before submitting the feasibility study required under this section.
(c)    A feasibility study shall:
(1)    be filed in a form satisfactory to the Department; and
(2)    include at least the following information:
(i)    a statement of the purpose of the program and the need for the proposed services;
(ii)    documentation of the financial resources of the provider;
(iii)    a plan demonstrating the financial feasibility of the proposed program, including future funding sources;
(iv)    an actuarial forecast that has been reviewed by a qualified actuary;
(v)    a study demonstrating the proposed market for the program;
(vi)    the form and substance of any proposed advertisements, advertising campaigns, or other promotional materials for the program that is available at the time of filing;
(vii)    a detailed statement of the covered services; and
(viii)    any other information that the Department requires.
(d)    The Department shall approve a feasibility study filed under this section if the Department determines that:
(1)    the proposed use of new or existing health facilities is not inconsistent with the State health plan;
(2)    a reasonable financial plan has been developed to provide continuing care at home services, including the number of agreements to be executed before beginning operations and the criteria to release funds from escrow;
(3)    a market for the continuing care at home program appears to exist;
(4)    the feasibility study was prepared by a recognized authority;
(5)    the provider has submitted all proposed advertisements, advertising campaigns, and other promotional materials for the program;
(6)    the form and substance of all advertisements, advertising campaigns, and other promotional materials submitted are not deceptive, misleading, or likely to mislead;
(7)    the actuarial forecast supports the market for the program;
(8)    the approved escrow agreement and deposit agreement state the conditions for the release of deposits and entrance fees from escrow;
(9)    a copy of the escrow agreement executed by the provider and the financial institution has been filed with the Department; and
(10)    any other information requested by the Department has been submitted and approved.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VI - Continuing Care at Home › Section 10-456 - Deposits

(a)    A provider may collect deposits from prospective subscribers if:
(1)    the Department has approved the provider’s feasibility study; and
(2)    the provider maintains the funds collected in an escrow account.
(b)    Deposits collected under subsection (a) of this section shall be held in escrow until:
(1)    the provider has been issued a certificate of registration under § 10-458 of this subtitle; or
(2)    a later time that the Department may set by regulation.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VI - Continuing Care at Home › Section 10-457 - Preliminary Certificate of Registration

(a)    A provider may not enter into an agreement to provide continuing care at home services until the Department issues a preliminary certificate of registration to the provider.
(b)    An application for a preliminary certificate of registration shall:
(1)    be filed in a form satisfactory to the Department; and
(2)    include at least the following information:
(i)    a copy of the proposed continuing care at home agreement, which shall include the following statement set forth in print no smaller than the largest type used in the body of the agreement:
“A certificate of registration is not an endorsement or guarantee of this continuing care at home provider by the State of Maryland. The Maryland Department of Aging urges you to consult an attorney and a suitable financial advisor before signing any documents.”;
(ii)    the form and substance of any proposed advertisements, advertising campaigns, or other promotional materials for the program that is available at the time of filing the application and that has not been filed previously with the Department; and
(iii)    any other information that the Department requires.
(c)    The Department shall issue a preliminary certificate of registration to a provider if the Department determines that:
(1)    the proposed continuing care at home agreement is satisfactory;
(2)    the provider has submitted all proposed advertisements, advertising campaigns, and other promotional materials for the program;
(3)    the form and substance of all advertisements, advertising campaigns, and other promotional materials submitted are not deceptive, misleading, or likely to mislead;
(4)    the information and documents submitted with the feasibility study under § 10–455 of this subtitle are current and accurate or have been updated to make them accurate; and
(5)    the provider has submitted any other information that the Department requests.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VI - Continuing Care at Home › Section 10-459 - Renewal Certificate of Registration

(a)    (1)    Each year, within 120 days after the end of a provider’s fiscal year, the provider shall file an application for a renewal certificate of registration with the Department.
(2)    An application shall:
(i)    be filed in a form satisfactory to the Department; and
(ii)    contain any reasonable and pertinent information that the Department requires.
(b)    The Department shall issue a renewal certificate of registration if the Department determines that:
(1)    all required documents have been filed and are satisfactory;
(2)    any revised agreements for continuing care at home services meet the Department’s requirements;
(3)    the proposed use of new or existing health facilities is not inconsistent with the State health plan;
(4)    the provider has submitted all proposed advertisements, advertising campaigns, and other promotional materials for the program; and
(5)    the form and substance of all advertisements, advertising campaigns, and other promotional materials submitted are not deceptive, misleading, or likely to mislead.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VI - Continuing Care at Home › Section 10-460 - Denial, Suspension, or Revocation

(a)    For cause, the Department may:
(1)    deny a feasibility study approval; or
(2)    deny, suspend, or revoke a preliminary, initial, or renewal certificate of registration.
(b)    (1)    Grounds for a denial, suspension, or revocation include:
(i)    violation of this subtitle;
(ii)    violation of a regulation the Department adopts under this subtitle;
(iii)    misrepresentation; or
(iv)    submission of a false financial statement.
(2)    The Department shall set forth in writing its reasons for a denial, suspension, or revocation.
(c)    Title 10, Subtitle 2 of the State Government Article governs the appeal of a denial, revocation, or suspension.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VII - Financial Review › Section 10-465 - Membership

(a)    (1)    The Committee consists of seven members appointed by the Secretary.
(2)    Of the seven members:
(i)    two shall be knowledgeable in the field of continuing care;
(ii)    two shall be certified public accountants;
(iii)    one shall be from the financial community; and
(iv)    two shall be consumer members.
(3)    In appointing the consumer members, the Secretary shall give a preference to subscribers of continuing care facilities.
(b)    (1)    The term of a member is 3 years.
(2)    The terms of members are staggered as required by the terms provided for members on October 1, 2007.
(3)    A member may serve consecutive terms.
(c)    The Committee shall elect its chair.
(d)    A member:
(1)    may not receive compensation as a member of the Committee; but
(2)    is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(e)    A member is immune from civil liability as provided in § 5-514 of the Courts Article.
(f)    A member may not participate in a review of a provider’s financial condition if that member has an interest, as defined under the Maryland Public Ethics Law in § 5–101 of the General Provisions Article, in the provider.
(g)    The deliberations of the Committee and communications between the Department and the Committee, including recommendations of the Committee, shall be confidential.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VII - Financial Review › Section 10-466 - Referrals to Committee

(a)    (1)    The Department may refer to the Committee for its consideration:
(i)    a provider’s application for a renewal certificate of registration after review by the Department; or
(ii)    a finding of possible financial difficulty, at any time.
(2)    The Department shall provide to the Committee any materials the Department considers necessary.
(b)    (1)    The Committee shall review the referral from the Department and may request additional information from the Department.
(2)    Except as provided in subsection (c) of this section, within 45 days after receipt of a referral, the Committee shall notify the Department in writing whether the Committee recommends that the Department:
(i)    find the provider in financial difficulty; and
(ii)    find that the financial difficulty, if any, includes a significant risk of financial failure in accordance with § 10-469 of this subtitle.
(3)    In making a recommendation to the Department, the Committee shall state the reason for the recommendation.
(c)    (1)    The Committee may request from the Secretary one 30-day extension of the deadline under subsection (b)(2) of this section.
(2)    The Secretary may grant or deny the extension.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VII - Financial Review › Section 10-467 - Final Determination of Financial Difficulty

(a)    Within 25 days after receipt of the Committee’s recommendations, the Department shall consider the recommendations and make a final determination of whether financial difficulty exists and, if so, whether there is a significant risk of financial failure in accordance with § 10-469 of this subtitle.
(b)    If the Department determines that the provider is in financial difficulty it shall immediately notify the provider by certified mail, return receipt requested, and inform the provider whether the Department has determined that there is a significant risk of financial failure.
(c)    The provider shall:
(1)    advise its subscribers of the Department’s determination in a meeting to be held by the provider with representatives of the subscribers;
(2)    hold the meeting within 10 days after the provider’s receipt of notice from the Department; and
(3)    advise the Department of the date, time, and location of the meeting.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VII - Financial Review › Section 10-468 - Financial Plan

(a)    (1)    A provider notified of financial difficulty by the Department shall prepare and submit to the Department for its approval a 5-year financial plan to correct the causes of the financial difficulty.
(2)    The financial plan shall be submitted within 60 days after receipt of notification.
(3)    The provider may request one 30-day extension from the Secretary.
(4)    The Secretary may grant or deny the extension.
(b)    (1)    The Department shall respond to the provider within 60 days after receipt of the proposed financial plan.
(2)    The Department may:
(i)    work with the provider to establish the financial plan; and
(ii)    consult with the Committee before approving the financial plan.
(c)    (1)    On approval, the financial plan shall be implemented.
(2)    The provider shall make available to its subscribers copies of its approved financial plan.
(d)    The provider shall:
(1)    submit to the Department an annual progress report for the term of its financial plan; and
(2)    revise its financial plan if the Department determines that revisions are necessary.
(e)    The Department may withhold the renewal certificate of registration or withdraw a preliminary, initial, or renewal certificate of registration if:
(1)    the provider does not prepare a financial plan;
(2)    the provider is unwilling or unable to prepare a financial plan;
(3)    the financial plan is inadequate to correct the current or impending financial condition that necessitated the financial plan; or
(4)    the provider fails to implement the financial plan.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VII - Financial Review › Section 10-469 - Determination of Risk of Financial Failure

The Department may determine that there exists a significant risk of the financial failure of a provider based on one or more of the following findings or circumstances:
(1)    the provider has failed to meet loan covenants that give a lender or a bond trustee the option to exercise remedies on its collateral;
(2)    an actuarial report has been provided to the Department reflecting significant underfunding of future liabilities that are unlikely to be readily addressed;
(3)    there is a significant shortfall by the provider in maintaining required reserves for a significant period of time;
(4)    a significant balloon payment or future loan payment will become due within the next 12 months and the provider is unable to demonstrate that it will obtain a modification from its lender, have the resources to make the payment, or have the ability to refinance;
(5)    there has been a significant decline in the occupancy rate that is likely to have a material adverse financial impact on the provider;
(6)    there has been a material adverse change in debt service coverage ratio for an extended period of time that reduces the ratio to less than 1.0;
(7)    there has been a significant decline in days cash on hand that is unrelated to additions to property, plant, and equipment or other community enhancements and that could result in an inability to pay obligations of the provider as they become due;
(8)    there has been a significant increase in the operating ratio, adjusted for unrealized gains and losses on investments, that could result in the inability of the provider to meet its obligations; or
(9)    the refusal or inability of the provider to provide accurate information or data required to be submitted to the Department under this subtitle and related regulations.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-472 - Definitions

(a)    In this part the following words have the meanings indicated.
(b)    “Creditor” means a person with a claim against a provider.
(c)    “Delinquency proceeding” means a proceeding under this subtitle to liquidate, rehabilitate, reorganize, or conserve a provider.
(d)    “General assets” means:
(1)    all property that is not specifically mortgaged, pledged, deposited, or otherwise encumbered for the security or benefit of specified persons or a limited class of persons;
(2)    to the extent that property of a provider is specifically encumbered, the amount of the property or its proceeds that exceeds the amount necessary to discharge the encumbrance; and
(3)    assets held in trust and assets held on deposit for the security or benefit of all subscribers and creditors in the United States.
(e)    “Receiver” includes a conservator, rehabilitator, and liquidator.
(f)    (1)    “Secured claim” means a claim that:
(i)    is secured by mortgage, trust deed, pledge, deposit as security, escrow, or otherwise; or
(ii)    has become a lien on specific assets through judicial process.
(2)    “Secured claim” does not include a special deposit claim or a claim against general assets.
(g)    (1)    “Special deposit claim” means a claim secured by a deposit required by law for the security or benefit of a limited class of persons.
(2)    “Special deposit claim” does not include a claim against general assets.
(h)    “Transfer” means:
(1)    the sale or other direct or indirect disposition of property or an interest in property;
(2)    the fixing of a lien on property or an interest in property; or
(3)    the retention of a security title to property delivered to a debtor.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-473 - Exclusiveness of Remedy

Notwithstanding any other provision of law and subject to § 10-493 of this subtitle, a delinquency proceeding is the exclusive method of liquidating, rehabilitating, reorganizing, or conserving a provider.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-474 - Immunity From Liability

The Secretary, deputy secretary, special deputy secretary, or any person acting as receiver in a rehabilitation, liquidation, or conservation of a provider as a result of a court order shall have the same immunity from liability that the Maryland Insurance Commissioner, deputy commissioner, special deputy commissioner, or any person acting as receiver in a rehabilitation, liquidation, or conservation of an insurer would have under § 5-410 of the Courts Article.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-475 - Fees and Costs

(a)    (1)    This subsection applies even if a paper or instrument is not:
(i)    executed by the Secretary or a deputy, employee, or attorney of record of the Secretary; and
(ii)    connected with the commencement of an action or proceeding by or against the Secretary or with the subsequent conduct of the action or proceeding.
(2)    Subject to subsection (b) of this section, the Secretary may not be required to pay to a public officer in the State a fee for filing, recording, or issuing a transcript or certificate or for authenticating a paper or instrument that relates to the exercise by the Secretary of a power or duty of the Secretary under this subtitle.
(b)    (1)    The Secretary or deputy secretary, when acting as receiver or ancillary receiver under this subtitle, shall pay all court costs out of the assets of the provider before any distribution to creditors or termination of rehabilitation.
(2)    In all cases, court costs and those specified in subsection (a) of this section shall:
(i)    be charged in the accounts of the Secretary to the court; or
(ii)    be paid by the provider as a condition of termination of the action or proceeding.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-476 - Appointment of Staff

(a)    (1)    In a delinquency proceeding in which the Secretary has been appointed receiver, the Secretary may:
(i)    appoint one or more special deputy secretaries to act for the Secretary; and
(ii)    employ counsel, clerks, and assistants.
(2)    Compensation of the special deputies, counsel, clerks, and assistants and all expenses of taking possession of the provider and of conducting the delinquency proceeding shall be:
(i)    set by the Secretary, subject to approval by the court; and
(ii)    paid out of the assets or funds of the provider.
(3)    Within the limits of duties imposed on a special deputy concerning a delinquency proceeding, the special deputy:
(i)    has all powers given to the receiver; and
(ii)    in the exercise of those powers, is subject to all the duties imposed on the receiver concerning the delinquency proceeding.
(b)    In a civil proceeding filed against a special deputy secretary appointed under this subtitle, the special deputy secretary is entitled to representation by the Attorney General as specified in Title 12, Subtitle 3, Part II of the State Government Article.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-477 - Jurisdiction and Venue

(a)    The Circuit Court of Baltimore City:
(1)    has exclusive original jurisdiction over delinquency proceedings; and
(2)    may issue all necessary and proper orders to carry out this subtitle.
(b)    If service is made in accordance with the Maryland Rules or other applicable law, a court with subject matter jurisdiction over an action brought under this subtitle also has jurisdiction over:
(1)    an officer, director, manager, trustee, organizer, promoter, or attorney in fact of a provider against which a delinquency proceeding has been commenced, in an action resulting from or incidental to the person’s relationship with the provider;
(2)    a person that, at the time of or after commencement of the delinquency proceeding, held or was in control of assets in which the receiver claims an interest on behalf of the provider, in an action concerning the assets of the provider; and
(3)    a person obligated to the provider in any way, in an action on or incidental to the obligation.
(c)    The venue of all delinquency proceedings is in Baltimore City.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-478 - Commencement of Delinquency Proceedings

(a)    The Secretary shall commence a delinquency proceeding against a provider by applying to the court for an order that directs the provider to show cause why the court should not grant the relief requested.
(b)    (1)    The court may consider an application for commencement of a delinquency proceeding only if the application is filed by the Secretary in the name of the State.
(2)    After a hearing under the terms of the show cause order, the court:
(i)    shall grant or deny the application; and
(ii)    may order other relief as the nature of the case and the interests of the creditors, stockholders, members, subscribers, or the public may require.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-480 - Orders to Rehabilitate, Liquidate, or Conserve Providers

(a)    (1)    An order to rehabilitate a provider shall:
(i)    appoint the Secretary as rehabilitator;
(ii)    direct the Secretary:
1.    to take possession of the property of the provider and conduct the business of the provider under the general supervision of the court; and
2.    to take action the court directs to remove the causes and conditions that have made rehabilitation necessary;
(iii)    vest title to all property of the provider in the rehabilitator; and
(iv)    require the rehabilitator to make accountings to the court that:
1.    are at intervals as the court specifies in its order, but not less frequently than two times each year; and
2.    include the opinion of the rehabilitator about the likelihood of success of the rehabilitation.
(2)    Issuance of an order of rehabilitation:
(i)    does not constitute an anticipatory breach of any contract of the provider; and
(ii)    is not grounds for retroactive revocation or retroactive cancellation of a contract of the provider, unless the rehabilitator revokes or cancels the contract.
(b)    (1)    Subject to paragraph (2) of this subsection, the Secretary, or an interested person on due notice to the Secretary, may apply to the court at any time for an order that:
(i)    terminates a rehabilitation proceeding; and
(ii)    allows the provider to resume possession of its property and the conduct of its business.
(2)    An order under this subsection may not be issued unless, after a hearing, the court determines that the purposes of the rehabilitation proceeding have been fully accomplished.
(c)    (1)    An order to liquidate the business of a provider shall direct the Secretary promptly to:
(i)    take possession of the property of the provider;
(ii)    liquidate the business of the provider;
(iii)    deal with the property and business of the provider in the name of the Secretary or in the name of the provider, as the court directs; and
(iv)    notify each creditor that may have a claim against the provider to present the creditor’s claim.
(2)    The Secretary may apply for, and the court may issue, an order to dissolve the corporate existence of a provider:
(i)    on application of the Secretary for an order to liquidate the provider; or
(ii)    at any time after the court has granted the order of liquidation.
(d)    An order to conserve the assets of a provider shall require the Secretary promptly to take possession of and conserve the property of the provider in the State, subject to further direction by the court.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-482 - Notice to Subscribers of Delinquency Proceeding

Within 15 days after appointment as receiver or conservator for a provider against which a delinquency proceeding has been commenced, the receiver or conservator shall notify each subscriber of the provider, by letter or other means approved by the court, of the commencement of the delinquency proceeding and of the possibility that the continuing care agreement of the subscriber may be canceled.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-483 - Appeals to Appellate Court of Maryland

An appeal may be taken to the Court of Special Appeals from:
(1)    an order that grants or refuses rehabilitation, liquidation, or conservation; and
(2)    any other order in a delinquency proceeding that has the character of a final order as to the particular part of the delinquency proceeding covered by the order.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-484 - Loans and Pledges of Assets

(a)    To facilitate the rehabilitation, liquidation, conservation, or dissolution of a provider under this subtitle, the Secretary, subject to the approval of the court, may:
(1)    borrow money;
(2)    execute, acknowledge, and deliver notes or other evidences of indebtedness for the loan;
(3)    secure the repayment of the loan by the mortgage, pledge, assignment, or transfer in trust of all or part of the property of the provider; and
(4)    take any other action necessary and proper to consummate the loan and to provide for its repayment.
(b)    The Secretary is not obligated personally or in an official capacity to repay a loan made under this section.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-485 - Administration of Assets

(a)    Whenever under this subtitle a receiver is to be appointed in a delinquency proceeding for a provider, the court shall:
(1)    appoint the Secretary as receiver; and
(2)    order the Secretary promptly to take possession of the assets of the provider and to administer the assets under the orders of the court.
(b)    Beginning on the date of issuance of an order that directs the Secretary to rehabilitate or liquidate a provider, the Secretary as receiver is vested by operation of law with title to and may take possession of all of the property, contracts, rights of action, books, and records of the provider, wherever located.
(c)    The filing of the order that directs possession to be taken, or a certified copy of the order, in an office where instruments affecting title to property are required to be filed provides the same notice as would be provided by a deed, bill of sale, or other evidence of title that is so filed.
(d)    (1)    The Secretary as receiver shall administer properly all assets that come into the possession or control of the Secretary.
(2)    If considered desirable to protect the assets, the court at any time may require a bond from the Secretary or deputy secretary.
(3)    On taking possession of the assets of a provider and subject to the direction of the court, the Secretary immediately shall:
(i)    conduct the business of the provider; or
(ii)    take action authorized by this subtitle to rehabilitate, liquidate, or conserve the affairs or assets of the provider.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-486 - Attachment or Garnishment of Assets

(a)    During pendency of a delinquency proceeding for a provider, an attachment, garnishment, execution, or similar action or proceeding may not be commenced or maintained in a court of this State against the provider or its assets.
(b)    A lien obtained or an action or proceeding prohibited by subsection (a) of this section is void as against any rights arising in the delinquency proceeding, if the lien was obtained or the action or proceeding commenced within 4 months before or at any time after commencement of a delinquency proceeding.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-487 - Voidable Transfers

(a)    A transfer of or lien on the property of a provider is voidable if the transfer or lien is:
(1)    made or created within 4 months before the issuance of a show–cause order under this subtitle;
(2)    made or created with the intent to give a creditor a preference or to enable the creditor to obtain a greater percentage of the debt than another creditor of the same class; and
(3)    accepted by the creditor having reasonable cause to believe that the preference will occur.
(b)    Each director, officer, employee, stockholder, member, subscriber, and any other person acting on behalf of a provider that is concerned in a voidable transfer under subsection (a) of this section and each person that, as a result of the voidable transfer, receives any property of the provider or benefits from the voidable transfer:
(1)    is personally liable; and
(2)    shall account to the Secretary.
(c)    The Secretary as receiver in a delinquency proceeding may:
(1)    avoid a transfer of or lien on the property of a provider that a creditor, stockholder, subscriber, or member of the provider might have avoided; and
(2)    recover the transferred property or its value from the person that received it unless that person was a bona fide holder for value before the date of issuance of a show–cause order under this subtitle.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-488 - Deposits

(a)    (1)    The Secretary shall deposit money collected in a delinquency proceeding in a State or national bank, savings bank, or trust company.
(2)    Deposits made by the Secretary under paragraph (1) of this subsection have priority of payment equal to any other priority specified by the banking laws of this State if the depository:
(i)    is an institution organized and supervised under the laws of this State; and
(ii)    becomes insolvent or liquidates voluntarily or involuntarily.
(3)    The Secretary may deposit all or part of the money collected in a national bank or trust company as a trust fund.
(b)    To the extent that an investment or account is insured by the Federal Deposit Insurance Corporation, the Secretary may invest in shares of or deposits in a savings and loan association or building and loan association.
2023 Maryland Statutes › Human Services › Title 10 - Department of Aging › Subtitle 4 - Continuing Care › Part VIII - Delinquency Proceedings › Section 10-489 - Procedures for Filing Claims

(a)    (1)    If on issuance of an order of liquidation under this subtitle or at any time during a liquidation proceeding the provider is not clearly solvent, the court, after notice it considers proper and a hearing, shall issue an order that the provider is an impaired provider.
(2)    Notwithstanding any previous notice given to creditors, after issuance of an order under paragraph (1) of this subsection, the Secretary shall notify each person that may have a claim against the provider that the claim is forever barred unless the person files the claim with the Secretary at a place and within the time specified in the notice.
(3)    The time specified in the notice:
(i)    shall be as set by the court for filing claims; but
(ii)    may not be less than 6 months after issuance of the order that the provider is an impaired provider.
(4)    The notice shall be given in the manner and for the reasonable period of time that the court orders.
(b)    (1)    Each claimant shall set forth in reasonable detail:
(i)    the amount of the claim or the basis on which the amount can be determined;
(ii)    the facts on which the claim is based; and
(iii)    any priority asserted by the claimant.
(2)    Each claim shall:
(i)    be verified by the affidavit of the claimant or a person authorized to act on behalf of the claimant who has knowledge of the facts; and
(ii)    be supported by any documents that may be material to the claim.
(3)    Each claim shall be filed with the receiver in the State on or before the last date specified under this subtitle for filing of claims.
(c)    The receiver shall:
(1)    report a claim to the court:
(i)    within 10 days after receiving the claim; or
(ii)    within an additional period set by the court for good cause shown; and
(2)    recommend in the report action to be taken on the claim.
(d)    (1)    On receipt of the report of the receiver, the court shall:
(i)    set a time for hearing the claim; and
(ii)    direct the claimant or receiver to give notice as the court determines to each person that appears to the court to be interested in the claim.
(2)    The notice given in accordance with this subsection shall:
(i)    specify the time and place of the hearing; and
(ii)    state concisely:
1.    the amount and nature of the claim;
2.    any priority asserted by the claimant; and
3.    the recommendation of the receiver about the claim.
(e)    (1)    At the hearing specified under subsection (d) of this section:
(i)    each person with an interest in the claim may appear; and
(ii)    the court shall issue an order in which the court allows in part, or disallows the claim.
(2)    An order under this subsection is a final order subject to appeal.