Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69O - OIR - Insurance Regulation › Chapter 69O-193 - CONTINUING CARE CONTRACTS › Section 69O-193.050 - Minimum Liquid Reserve Requirement

Current through Reg. 50, No. 138; July 16, 2024
(1) A Minimum Liquid Reserve (MLR)
				Calculation shall be filed with the Office, on or before May 1 of each year if
				the provider's fiscal year end is December 31 or within 120 days of the last
				day of the fiscal year of the provider if the provider has declared a fiscal
				year other than the calendar year, on Form OIR-A3-477, "Minimum Liquid Reserve
				(MLR) Calculation," effective 7/20, hereby incorporated by reference and
				available at
https://www.flrules.org/Gateway/reference.asp?No=Ref-14462
.
				The filings shall be submitted electronically at
https://www.floir.com/iportal
.
(2) The Office may require a recalculation of
				the minimum liquid reserve requirement and resubmission of Form OIR-A3-477 in
				the event of additional long-term financing or other occurrences resulting in a
				change to the aggregate amount of all principal and interest payments due
				during the fiscal year on any mortgage loans or other long-term financing or a
				change to all leasehold payments and all costs related to such payments
				financing of the facility. Any increase in required minimum liquid reserves
				must be funded not later than 61 days after the minimum liquid reserve
				calculation is filed.
(3) For
				purposes of the MLR requirement, long-term financing includes, lease payments,
				mortgage payments, the long-term portion of any construction loan, and any
				long-term debt between affiliates or controlling parties of the provider that
				relate to the real property or fixtures of a facility.
(4) Where a provider has elected to fund the
				MLR upon release of entrance fees as provided by Section
				651.023(6)(d),
				F.S., the funds shall be deposited directly from the entrance fee account into
				MLR accounts.
(5) A provider shall
				have and maintain reserves for property taxes as provided in Section
				651.035, F.S., even if there is
				no long-term debt or financing on the facility.
(6) To request Office approval of a
				withdrawal of MLR funds, a provider must file Form OIR-A3-1284, "Request for
				Withdrawal from Minimum Liquid Reserves," effective 7/20, hereby incorporated
				by reference and available at
https://flrules.org/Gateway/reference.asp?No=Ref-14463
.
				The filing shall be submitted electronically at
https://www.floir.com/iportal
.
(7) If a provider, or its escrow agent or
				trustee, intends to use funds from a debt service reserve that is included in
				computing a provider's minimum liquid reserve pursuant to Section
				651.035(1)(b),
				F.S., rather than filing Form OIR-A3-1284 as required in subsection (6) above,
				the following process applies:
(a) The
				provider, or its escrow agent or trustee if so authorized in the agreement
				under which such debt service reserve is held, shall submit the documents
				listed below.
1. An affidavit, sworn to by an
				officer or director of the provider, stating that the provider anticipates
				being unable to make its scheduled debt service payment and a withdrawal from
				the debt service reserve included in the minimum liquid reserves pursuant to
				Section 651.035(1)(b),
				F.S., is required to avoid a payment default. The affidavit shall include all
				of the following information:
a. The amount
				of the payment;
b. The payment due
				date;
c. The maximum amount of the
				withdrawal needed to make the payment;
d. The date the anticipated date of the
				withdrawal;
e. The account(s) from
				which the withdrawal will be made, which should match the account information
				and escrow statements previously provided to the Office; and
f. If there is a discrepancy in this account
				information, a written explanation of the discrepancy and any relevant
				documentation at the time of filing.