WILLIAM DONALD SCHAEFER, Governor Ch. 262

(2)  On petition of a receiver [of a nursing home],
the court may:

(i) Allow the receiver to avoid a lease,
mortgage, secured transaction, or other contract that the owner
[of the nursing home] OR OPERATING ENTITY 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 OR COMMUNITY RESIDENTIAL
PROGRAM.

(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.

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