1106

LAWS OF MARYLAND

Ch. 272

(6)  THE RECEIVER MAY NOT BE REQUIRED TO HONOR
ANY LEASE, MORTGAGE OR SECURE TRANSACTION OR OTHER CONTRACTS
ENTERED INTO BY THE OWNER OF THE FACILITY IF, UPON PETITION
TO THE COURT, THE COURT DETERMINES THAT:

(I)  THE PERSON SEEKING PAYMENT UNDER THE
AGREEMENT IS THE OWNER OR AN AFFILIATE OF THE OWNER OF THE
NURSING HOME OR WAS THE OWNER OR AN AFFILIATE OF THE OWNER
AT THE TIME THE AGREEMENT WAS MADE; AND

(II)  THE RENTAL PRICE OR RATE OF INTEREST
REQUIRED TO BE PAID UNDER THE AGREEMENT WAS SUBSTANTIALLY IN
EXCESS OF A REASONABLE RENTAL PRICE OR RATE OF INTEREST AT
THE TIME THE CONTRACT WAS EXECUTED.

(7) (I) IF THE RECEIVER IS IN POSSESSION OF REAL
ESTATE OR GOODS SUBJECT TO A LEASE, MORTGAGE OR SECURITY
INTEREST WHICH THE RECEIVER IS PERMITTED TO AVOID UNDER
PARAGRAPH (6) AND IF THE REAL ESTATE OR GOODS ARE NECESSARY
FOR THE CONTINUED OPERATION OF THE NURSING HOME, THE
RECEIVER MAY APPLY TO THE COURT TO SET A REASONABLE RENTAL
PRICE OR RATE OF INTEREST TO BE PAID BY THE RECEIVER DURING
THE DURATION OF THE RECEIVERSHIP. THE COURT SHALL HOLD A
HEARING NOT LATER THAN 15 DAYS AFTER THE PETITION IS FILED.

(II)  ALL KNOWN OWNERS OF THE PROPERTY
INVOLVED SHALL RECEIVE NOTICE OF THE PETITION FROM THE
RECEIVER AT LEAST 10 DAYS PRIOR TO THE HEARING. WHEN THE
WHEREABOUTS OF THE OWNER OR OWNERS OF THE REAL ESTATE OR
GOODS IS UNKNOWN AND THE RECEIVER FILES A STATEMENT UNDER
OATH SETTING FORTH A SUBSTANTIAL ACCOUNT OF THE EFFORT MADE
TO EFFECT SERVICE OF PROCESS WHICH SATISFIES THE COURT THAT
REASONABLE EFFORTS TO LOCATE THE OWNER HAVE BEEN MADE IN
GOOD FAITH, THE COURT SHALL ORDER SERVICE OF PROCESS BY
PUBLICATION.

(III)  PAYMENT BY THE RECEIVER OF THE
AMOUNT DETERMINED BY THE COURT TO BE REASONABLE IS A DEFENSE
TO ANY ACTION AGAINST THE RECEIVER FOR PAYMENT OR FOR
POSSESSION OF THE GOODS OR REAL ESTATE SUBJECT TO THE LEASE,
SECURITY INTEREST, OR MORTAGE INVOLVED, BUT THE PAYMENT DOES
NOT RELIEVE THE OWNER OF THE NURSING HOME OF ANY LIABILITY
FOR THE DIFFERENCE BETWEEN THE AMOUNT PAID BY THE RECEIVER
AND THE AMOUNT DUE UNDER THE LEASE, SECURITY INTEREST, OR
MORTGAGE INVOLVED.

(IV)  NOTWITHSTANDING ANYTHING IN THIS
PARAGRAPH TO THE CONTRARY:

1. WHEN A MORTGAGE IS HELD BY A
PERSON WHO IS NOT THE OWNER OR AN AFFILIATE OF THE OWNER OF
THE NURSING HOME, OR WHEN THE SECURED PARTY IN A SECURED
TRANSACTION IS NOT THE OWNER OR AN AFFILIATE OF THE OWNER OF
THE NURSING HOME, THE RECEIVER SHALL PAY THE ACTUAL
PRINCIPAL AND INTEREST PAYMENTS PAYABLE ON THE MORTGAGE OR
SECURED TRANSACTION.