§8008. Escrow of entrance fees

Link to law: http://legislature.vermont.gov/statutes/section/08/151/08008
Published: 2015

Print

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.)
Read Entire Law on legislature.vermont.gov