US Laws, Codes, Statutes & Cases

                                  TITLE  26
                              BANKS AND BANKING
                                  CHAPTER 37
                     IDAHO CONTINUING-CARE DISCLOSURE ACT
    26-3707.  ESCROW -- TRUST -- SURETY BOND -- COLLECTION OF DEPOSITS. (1) A
provider shall establish an escrow account with a bank or a trust company,
that is located in Idaho, agreed upon by the provider and the resident. The
terms of this escrow account shall provide that the total amount of any
entrance fee received by the provider prior to the date the resident is
permitted to occupy a living unit in the facility be placed in this escrow
account. These funds may be released only as follows:
    (a)  If the entrance fee applies to a living unit that has been previously
    occupied in the facility, the entrance fee shall be released to the
    provider when the living unit becomes available for occupancy by the new
    resident;
    (b)  If the entrance fee applies to a living unit which has not been
    previously occupied by any resident, the entrance fee shall be released to
    the provider when the escrow agent is satisfied that:
         (i)   Construction or purchase of the living unit has been completed
         and an occupancy permit, if applicable, covering the living unit has
         been issued by the local government having authority to issue such
         permits;
         (ii)  A commitment has been received by the provider for any
         permanent mortgage loan, long-term financing or other source of
         capital and any conditions of the commitment prior to disbursement of
         funds thereunder have been substantially satisfied; and
         (iii) Aggregate entrance fees received or receivable by the provider
         pursuant to binding continuing care retirement community contracts,
         plus the anticipated proceeds of any first mortgage loan, long-term
         financing commitment, or other source of capital, are equal to not
         less than ninety percent (90%) of the aggregate cost of constructing
         or purchasing, equipping and furnishing the facility plus not less
         than ninety percent (90%) of the funds estimated in the statement of
         anticipated source and application of funds submitted by the provider
         as that part of the disclosure statement required in section 26-3705,
         Idaho Code, to be necessary to fund start-up losses and assure full
         performance of the obligations of the provider pursuant to continuing
         care retirement community contracts.
    (2)  Upon receipt by the escrow agent of a request by the provider for the
release of these escrow funds, the escrow agent shall approve release of the
funds within five (5) working days unless the escrow agent finds that the
requirements of subsection (1) of this section have not been met and notifies
the provider of the basis for this finding. The request for release of the
escrow funds shall be accompanied by any documentation the fiduciary requires.
    (3)  If the provider fails to meet the requirements for release of funds
held in this escrow account within a time period the escrow agent considers
reasonable, these funds shall be returned by the escrow agent to the persons
who have made payment to the provider. The escrow agent shall notify the
provider of the length of this time period when the provider requests release
of the funds.
    (4)  An entrance fee held in escrow may be returned by the escrow agent to
the person who made payment to the provider at any time upon receipt by the
escrow agent of notice from the provider that this person is entitled to a
refund of the entrance fee.
    (5)  In addition to the escrow requirement of this section, each provider
shall provide a surety bond or an irrevocable letter of credit in a form
acceptable to the  department. Any surety bond offered as evidence of
financial responsibility must be written by a company authorized to do
business in this state. The bond must be in effect at any time that funds
remain in escrow under the provisions of this section and shall be an amount
not less than the aggregate value of all outstanding amounts in escrow.