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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
151
:
CONTINUING CARE RETIREMENT COMMUNITIES
§
8008. Escrow of entrance fees
(a) In the event
the facility is not in operation at the time entrance fees are paid, the
entrance fees or portions thereof shall be deposited in an escrow account. Such
escrowed fees shall not be released to the provider until the following
conditions are satisfied:
(1) Commitments
are received from persons who have entered into continuing care contracts for a
minimum of 60 percent of the residential units. As used in this subdivision,
"commitment" means payment of at least ten percent of the entrance
fee.
(2) One hundred
percent of the financing for construction and operation of the facility has
been arranged. As used in this subdivision, "financing" includes all
funds which, when combined with entrance fees and periodic fees receivable
under signed contracts, are sufficient to complete construction of the facility
and to provide enough working capital to enable the facility to operate in a
self-sufficient manner.
(3) The provider
has obtained or caused to be obtained a guaranteed maximum price contract for
construction of the facility.
(4) The provider
has obtained or caused to be obtained all permits and regulatory approvals
necessary for operation of the facility except those dependent upon completion
of construction.
(b) In the case
of a contract for a previously occupied residential unit, fees shall be held in
escrow until 60 days prior to the occupancy date.
(c) If the
provider is unable to satisfy the conditions set forth in subsection (a) of
this section within a reasonable period of time, the Commissioner may order
that escrowed fees be released and refunded. (Added 1987, No. 247 (Adj. Sess.),
§ 1.)