2010 Michigan Compiled Laws
Chapter 554 - REAL AND PERSONAL PROPERTY
Act 440 of 1976 - LIVING CARE DISCLOSURE ACT (554.801 - 554.844)

LIVING CARE DISCLOSURE ACT
Act 440 of 1976
AN ACT to regulate the offer and sale of life estates, life leases, and long-term leases in nursing homes, retirement homes, homes for the aged, and foster care facilities; to prohibit fraudulent practices in relation to the offer and sale of those estates and leases; to impose regulatory duties upon the corporation and securities bureau of the department of commerce; and to provide penalties.

History: 1976, Act 440, Eff. July 1, 1977

• Section 554.801 - Short title.
• Section 554.802 - Meanings of words and phrases.
• Section 554.803 - Definitions.
• Section 554.804 - Additional definitions.
• Section 554.805 - Applicability of act; offer or sale of life interest or long-term lease; making offer to sell; accepting offer to sell; facility offering long-term lease or life interest as profit or nonprofit corporation; compliance with federal law; limitation on purposes of corporations.
• Section 554.806 - Fraud and deceit.
• Section 554.807 - Registration required.
• Section 554.808 - Application for registration; form; contents of disclosure statement; financial statement; signing and verification of application; type and spacing of contracts; untrue statement or omission of material fact; notice of filing; order of registration or rejection; notice of deficiencies.
• Section 554.809 - Alternative disclosure statement.
• Section 554.810 - Lease or membership agreement; minimum provisions; termination of member; refund; providing access to adequate alternative facility.
• Section 554.811 - Arbitration of dispute, claim, or grievance; waiver.
• Section 554.812 - Resident as advisory member of board of directors.
• Section 554.813 - Conservators or guardians.
• Section 554.814 - Order temporarily suspending repayment of entrance fee.
• Section 554.815 - Exemptions from registration requirements.
• Section 554.816 - Pro forma financial plan; filing; deposit with escrow agent; surety bond or guaranty; temporary suspension of sales; entrance fees as capital in calculating solvency.
• Section 554.817 - Notice of intent to issue stop order denying, suspending, or revoking registration; grounds.
• Section 554.818 - Notifying applicant of stop order; hearing; vacating or modifying stop order.
• Section 554.819 - Right to rescind purchase of life lease or long-term lease; retention of funds in separate escrow account; moving into facility.
• Section 554.820 - Registration of life interest or long-term lease offering.
• Section 554.821 - Registration renewal statement; form and content; automatic renewal.
• Section 554.822 - Material change in information; application to amend registration; revised disclosure statement; effective date of amendment; semiannual financial statements; financial information or reports.
• Section 554.823 - Account of sales; reports and records; examination; opinions, appraisals, and reports of experts on questions affecting interests proposed to be offered or sold; failure to furnish information; investigation; expenses; disposition of fees.
• Section 554.824 - Effect of application for registration being filed or becoming effective.
• Section 554.825 - Service of process generally.
• Section 554.826 - Requirements before use of disclosure statement, pamphlet, circular, form letter, advertisement, or other sales literature or advertising communication; requirements for publication of advertisement; liability of publisher.
• Section 554.827 - Conduct and qualifications of agents; rules.
• Section 554.828 - Notice of intent to issue cease and desist order; issuance; hearing; order of censure; violation; penalty; separate offenses.
• Section 554.829 - Liability to person purchasing life interest or lease; rescission as bar to action.
• Section 554.830 - Joint and several liability.
• Section 554.831 - Limitations.
• Section 554.832 - Civil liability by implication; common law or other statutory liability not limited.
• Section 554.833 - Powers of bureau; circuit court orders; contempt.
• Section 554.834 - Injunction, restraining order, or writ of mandamus; appointment of receiver or conservator; bond.
• Section 554.835 - Proceedings by attorney general or prosecuting attorney.
• Section 554.836 - Violation; penalty; conduct constituting crime under other statute.
• Section 554.837 - Service of process where conduct prohibited or made actionable by act or rule.
• Section 554.838 - Fees.
• Section 554.839 - Rules.
• Section 554.840 - Public inspection of documents; disclosure of information.
• Section 554.841 - Reproduction of public records; certified copy of document as prima facie evidence.
• Section 554.842 - Destruction of applications, orders, files, and folders as useless or obsolete; permanent record of disciplinary action; retention of reproductions.
• Section 554.843 - Submitting information in compliance with MCL 554.808.
• Section 554.844 - Effective dates.