2013 New York Consolidated Laws
PBH - Public Health
Article 46-A - (4650 - 4676) FEE-FOR-SERVICE CONTINUING CARE RETIREMENT COMMUNITIES DEMONSTRATION PROGRAM
4662 - Entrance fee escrow account.

 
    * §  4662. Entrance fee escrow account. As a condition for approval to
  advertise and collect refundable entry fees/deposits:
    1. The operator shall establish an interest-bearing account with a New
  York state bank, New York state savings and  loan  association,  or  New
  York state trust company for any entrance fees received by the operator,
  which  escrow  funds  shall be subject to release as provided by section
  forty-six hundred sixty-three of this article.
    2. An escrow agreement shall be entered into between the bank, savings
  and  loan  association,  or  trust  company  and  the  operator  of  the
  community.  The agreement shall state that its purpose is to protect the
  resident or the prospective resident  and  that,  upon  presentation  of
  evidence of compliance with applicable portions of this article, or upon
  order  of  a  court  of  competent  jurisdiction, the escrow agent shall
  release and pay over the funds, or portions thereof, together  with  any
  interest  accrued thereon or earned from investment of the funds, to the
  operator or resident as directed.
    3. Checks, drafts  and  money  orders  for  deposit  from  prospective
  residents shall be made payable to the escrow agent only.
    4. All funds deposited in the escrow account shall remain the property
  of  the  resident  until  released  to  the  operator in accordance with
  section forty-six hundred sixty-three of this  article,  and  the  funds
  shall  not  be  subject  to  any liens or charges by the escrow agent or
  judgments, garnishments, or creditor's claims against  the  operator  or
  community.
    5.  At  the  request  of  the operator or the commissioner, the escrow
  agent shall issue a  statement  indicating  the  status  of  the  escrow
  account.
    6.  If  the  funds  in  an  escrow  account under this section and any
  interest thereon are not released to the operator within  such  time  as
  provided  by  rules  and  regulations  adopted by the council, then such
  funds shall be returned by the escrow agent to the persons who had  made
  payment to the operator.
    7.  An entrance fee held in escrow may be returned by the escrow agent
  to the person who paid the fee upon  receipt  by  the  escrow  agent  of
  notice from the operator that such person is entitled to a refund of the
  entrance fee.
    8.  Nothing  in  this  section  shall  be interpreted as requiring the
  escrow of any nonrefundable application fee, designated as such  in  the
  contract, received by the operator from a prospective resident.
    9. Occupancy of housing or other facilities shall not begin until:
    a.  the operator has executed contracts accompanied by a deposit of at
  least ten percent of the entry fee payment  for  fifty  percent  of  all
  units or an approved phase of a community; and
    b. all permits and approvals necessary for operation of the community,
  or  an  approved  phase  of  a community, have been granted except those
  depending upon construction; provided, nothing in this subdivision shall
  prohibit an operator, upon the approval of the council, or an  applicant
  or  prospective applicant upon the approval of the commissioner pursuant
  to  section  forty-six  hundred  seventy-four  of  this  article,   from
  constructing model units and a sales office.
    10.  Any  entry  fee  deposit  required  by an operator shall be fully
  refundable if the contract is canceled within seventy-two hours  of  its
  execution.  In the event of cancellation, the entry fee deposit shall be
  refunded within three business days of receipt of cancellation.
    * NB There are 2 § 4662's