Ch. 84

2003 LAWS OF MARYLAND

(9)     A copy of the proposed escrow and deposit agreements; and

(10)   The form and substance of any advertising campaign or proposed
advertisement for the facility that is available at the time of filing.

(c)      The provider may collect deposits from prospective subscribers, provided
that a feasibility study has been approved by the Department and that funds collected
are maintained in an escrow account.

(C-1)(1) EACH DEPOSIT AGREEMENT SHALL COMPLY WITH THE
REQUIREMENTS OF THIS SUBSECTION.

(2)      IF THE DEPOSIT AGREEMENT IS USED FOR A DEPOSIT ON A UNIT FOR
WHICH THE PROVIDER HAS NOT RECEIVED WRITTEN APPROVAL TO WITHDRAW
DEPOSITS UNDER § 11(C) OF THIS SUBTITLE, THE DEPOSIT AGREEMENT SHALL:

(I)      STATE THAT ALL DEPOSITS AND ENTRANCE FEES SHALL BE
HELD IN ESCROW UNTIL:

1.       THE ISSUANCE OF AN INITIAL CERTIFICATE OF
REGISTRATION FOR THE UNIT;

2.       CONSTRUCTION IS COMPLETED;

3.       A CERTIFICATE OF OCCUPANCY, OR ITS EQUIVALENT, HAS
BEEN ISSUED BY THE LOCAL JURISDICTION; AND

4.       THE PROVIDER HAS BEEN ISSUED APPROPRIATE
LICENSES OR CERTIFICATES BY THE DEPARTMENT OF HEALTH AND MENTAL
HYGIENE, THE MARYLAND HEALTH CARE COMMISSION, AND THE DEPARTMENT;

(II)     DESCRIBE THE DISPOSITION OF ANY INTEREST EARNED ON
DEPOSITS AND ENTRANCE FEES;

(III)   STATE THE AMOUNT OF ANY PROCESSING FEE AND WHETHER
IT WILL BE REFUNDED IF THE DEPOSIT AGREEMENT IS CANCELED; AND

(IV)    DESCRIBE THE DISPOSITION OF THE DEPOSIT IF THE DEPOSIT
AGREEMENT IS CANCELED BEFORE THE CONTINUING CARE AGREEMENT IS
EXECUTED.

(3)      IF THE DEPOSIT AGREEMENT IS USED FOR A DEPOSIT ON A UNIT FOR
WHICH THE PROVIDER HAS RECEIVED WRITTEN APPROVAL TO WITHDRAW DEPOSITS
UNDER § 11(C) OF THIS SUBTITLE, THE DEPOSIT AGREEMENT SHALL:

(I)      STATE THAT THE PROVIDER MAY USE ALL DEPOSITS AND
ENTRANCE FEES AT ANY TIME; OR

(II)     DESCRIBE ANY APPLICABLE LIMITATIONS ON THE USE OF
DEPOSITS AND ENTRANCE FEES.

(d)     A feasibility study may be approved by the Department when it determines
that:

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