960

LAWS OF MARYLAND

Ch. 21

(I)  ALLOW THE RECEIVER TO AVOID A LEASE,
MORTGAGE, SECURED TRANSACTION, OR OTHER CONTRACT THAT THE

OWNER OF THE NURSING HOME MADE IF:

1.  THE PERSON SEEKING PAYMENT UNDER
THE CONTRACT IS OR, AT THE TIME THE CONTRACT WAS MADE, WAS
THE OWNER OR AN AFFILIATE OF THE OWNER; AND

2.  THE CONTRACT PROVIDES FOR A RENT
OR INTEREST RATE SUBSTANTIALLY EXCEEDING THE RENT OR
INTEREST RATE THAT WAS REASONABLE WHEN THE CONTRACT WAS
MADE; AND

(II)  IF THE RECEIVER IS ALLOWED TO AVOID
THE CONTRACT, SET A REASONABLE RENT OR INTEREST RATE TO BE
PAID ON ANY PROPERTY THAT IS SUBJECT TO THE CONTRACT AND IS
NEEDED TO CONTINUE OPERATION OF THE NURSING HOME.

(3)  THE COURT SHALL HOLD A HEARING ON A PETITION
UNDER THIS SUBSECTION WITHIN 15 DAYS AFTER THE PETITION IS
FILED.

(4)  NOTICE OF THE PETITION SHALL BE GIVEN TO ALL
KNOWN OWNERS OF PROPERTY THAT THE PETITION AFFECTS:

(I)  BY THE RECEIVER, AT LEAST 10 DAYS
BEFORE THE HEARING; OR

(II)  BY PUBLICATION, IF THE RECEIVER FILES
WITH THE COURT A STATEMENT THAT:

1.  IS SIGNED AND VERIFIED BY THE
RECEIVER;

2.  STATES THAT THE OWNER OF THE
PROPERTY CANNOT BE FOUND; AND

3.  SETS FORTH A SUBSTANTIAL ACCOUNT
OF REASONABLE, GOOD FAITH EFFORTS TO FIND THE OWNER AND
SERVE PROCESS.

(5)  THE COURT SHALL SET A RENT UNDER THIS
SUBSECTION IN AN AMOUNT THAT IS NOT LESS THAN THE TOTAL
CURRENT PAYMENTS OF PRINCIPAL AND INTEREST REQUIRED ON ALL
MORTGAGES AND SECURED TRANSACTIONS THAT:

(I)  AFFECT THE PROPERTY UNDER THE CONTRACT
TO BE AVOIDED; AND

(II)  CANNOT BE AVOIDED UNDER THIS
SUBSECTION.

(6)  PAYMENT OF THE RENT OR INTEREST RATE THAT A
COURT SETS UNDER THIS SUBSECTION IS A DEFENSE IN ANY ACTION