1108

LAWS OF MARYLAND

Ch. 272

SECRETARY REQUESTS AN EXTENSION AND THE COURT FINDS THAT
GROUNDS FOR APPOINTMENT OF A RECEIVER AS SET FORTH IN
SUBSECTION (C) EXIST.

(J) THE SECRETARY MAY PETITION THE COURT FOR THE
APPOINTMENT OF A NEW RECEIVER IF THE DEATH, DISABILITY, OR
ADVERSE INTERESTS OF THE RECEIVER CAN BE SHOWN, OR IF THERE
IS LACK OF REASONABLE PROGRESS IN ACCOMPLISHING THE PURPOSE
OF THE RECEIVERSHIP.

(K) (1) A SPECIAL REVOLVING FUND MAY BE ESTABLISHED BY
THE STATE IN THE AMOUNT OF AT LEAST $250,000, BUT NOT MORE
THAN $500,000, FOR THE PURPOSE OF PROVIDING FINANCIAL
SUPPORT FOR THE RECEIVER UNDER THIS SECTION. THIS SPECIAL
REVOLVING FUND MAY ONLY BE UTILIZED FOR EXPENDITURES WHICH
CANNOT BE SATISFIED BY PRIVATE OR THIRD PARTY REIMBURSEMENTS
TO THE NURSING HOME. AND MAY ONLY BE UTILIZED WITH COURT
APPROVAL. THE SPECIAL REVOLVING FUND SHALL BE FUNDED BY THE
STATS OUT OF STATE FUNDS ALLOCATED FOR THAT PURPOSE. PRIOR
TO AUTHORIZING THE USE OF ANY FUNDS FROM THE SPECIAL
REVOLVING FUND, THE COURT SHALL HOLD A HEARING AT WHICH THE
RECEIVER AND THE OWNER OF THE NURSING HOME MAY PRESENT
EVIDENCE AND TESTIMONY FOR OR AGAINST THE USE OF FUNDS FROM
THE SPECIAL REVOLVING FUND. NOTICE OF SUCH HEARING SHALL BE
GIVEN TO THE RECEIVER AND THE OWNER OF THE NURSING HOME AT
LEAST 7 DAYS PRIOR TO THE DATE OF SUCH HEARING.

(2) ANY EXPENDITURES FROM THIS FUND SHALL

IMMEDIATELY CAUSE A LIEN TO BE PLACED ON THE NURSING HOME
AND ITS ASSETS. A REPAYMENT SCHEDULE SHALL BE DETERMINED BY

THE SECRETARY. THE LIEN PROVIDED FOR IN THIS SUBSECTION

SHALL BE PRIOR TO ANY LIEN OR OTHER INTEREST WHICH ATTACHES
SUBSEQUENT TO THE TIME THE LIEN PROVIDED FOR IN THIS

SUBSECTION ATTACHES. A LIEN MAY NOT EXIST UNDER THIS

SUBSECTION AGAINST ANY PERSON, OR ON ANY PROPERTY NOT
SPECIFIED IN THIS SUBSECTION, AN OWNER OR AFFILIATE IS NOT
LIABLE FOR PAYMENT OF THAT LIEN EXCEPT TO THE EXTENT OF HIS
BENEFICIAL INTEREST IN THE PROPERTY AFFECTED BY THE LIEN.

(2) ANY EXPENDITURES FROM THIS FUND SHALL BECOME
A LIEN ON THE NURSING HOME AND ITS ASSETS UPON THE RECEIVER
FILING A NOTICE OF LIEN WHICH SETS FORTH THE AMOUNT OF THE
LIEN, THE NAME OF THE NURSING HOME AFFECTED BY THE LIEN, AND
A DESCRIPTION OF THE NURSING HOME'S ASSETS WHICH ARE
AFFECTED BY THE LIEN. THE NOTICE SHALL BE FILED AMONG THE
LAND AND CHATTEL RECORDS OF THE COUNTY WHERE THE NURSING
HOME IS LOCATED AND WITH THE STATE DEPARTMENT OF ASSESSMENT
AND TAXATION. NO LIEN FOR ANY EXPENDITURE OUT OF THE FUND
SHALL EXIST UNTIL THE NOTICE OF LIEN IS FILED. A REPAYMENT
SCHEDULE SHALL BE DETERMINED BY THE SECRETARY. THE LIEN
PROVIDED FOR IN THIS SUBSECTION SHALL BE PRIOR TO ANY LIEN
OR OTHER INTEREST WHICH ATTACHES SUBSEQUENT TO THE TIME THE
LIEN PROVIDED FOR IN THIS SUBSECTION ATTACHES. NO LIEN
SHALL EXIST UNDER THIS SUBSECTION AGAINST ANY PROPERTY OF A
NURSING HOME WHICH IS NOT DESCRIBED IN THE NOTICE OF LIEN;
AND NO OWNER OR AFFILIATE SHALL BE LIABLE FOR PAYMENT OF ANY
LIEN EXCEPT TO THE EXTENT OF HIS BENEFICIAL INTEREST IN THE
PROPERTY AFFECTED BY THE LIEN.