2005 Illinois Code - 210 ILCS 45/ Nursing Home Care Act. Part 5 - Monitors and Receivership
(210 ILCS 45/Art. III Pt. 5 heading) PART 5. MONITORS AND RECEIVERSHIP
(210 ILCS 45/3‑501)(from Ch. 111 1/2, par. 4153‑501) Sec. 3‑501. The Department may place an employee or agent to serve as a
monitor in a facility or may petition the circuit court for appointment of a
receiver for a facility, or both, when any of the following conditions exist: (a) The facility is operating without a license; (b) The Department has suspended, revoked or refused
to renew the existing license of the facility;
(c) The facility is closing or has informed the
Department that it intends to close and adequate arrangements for relocation of residents have not been made at least 30 days prior to closure;
(d) The Department determines that an emergency
exists, whether or not it has initiated revocation or nonrenewal procedures, if because of the unwillingness or inability of the licensee to remedy the emergency the Department believes a monitor or receiver is necessary; or
(e) The Department is notified that the facility is
terminated or will not be renewed for participation in the federal reimbursement program under either Title XVIII or Title XIX of the Social Security Act.
As used in subsection (d) and Section 3‑503, "emergency" means a threat
to the health, safety or welfare of a resident that the facility is
unwilling or unable to correct. (Source: P.A. 87‑549.)
(210 ILCS 45/3‑502)(from Ch. 111 1/2, par. 4153‑502) Sec. 3‑502. In any situation described in Section 3‑501, the Department
may place a qualified person to act as monitor in the facility. The monitor
shall observe operation of the facility, assist the facility by advising
it on how to comply with the State regulations, and shall report periodically
to the Department on the operation of the facility. (Source: P.A. 81‑223.)
(210 ILCS 45/3‑503)(from Ch. 111 1/2, par. 4153‑503) Sec. 3‑503. Where a resident, a resident's representative or a resident's
next of kin believes that an emergency exists each of them, collectively
or separately, may file a verified petition to the circuit court for the
county in which the facility is located for an order placing the facility
under the control of a receiver. (Source: P.A. 81‑223.)
(210 ILCS 45/3‑504)(from Ch. 111 1/2, par. 4153‑504) Sec. 3‑504. The court shall hold a hearing within 5 days of the filing
of the petition. The petition and notice of the hearing shall be served
on the owner, administrator or designated agent of the facility as provided
under the Civil Practice Law, or the petition and notice of
hearing shall be posted in a conspicuous place in the facility not later
than 3 days before the time specified for the hearing, unless a different
period is fixed by order of the court. The court shall appoint a receiver
for a limited time period, not to exceed 180 days, if it finds that: (a) The facility is operating without a license; (b) The Department has suspended, revoked or refused to renew the existing
license of a facility; (c) The facility is closing or has informed the Department that it intends
to close and adequate arrangements
for relocation of residents have not been made at least 30 days prior to closure; or (d) An emergency exists, whether or not the Department has initiated revocation
or nonrenewal procedures, if because of the unwillingness or inability of
the licensee to remedy the emergency the appointment of a receiver is necessary. (Source: P.A. 82‑783.)
(210 ILCS 45/3‑505)(from Ch. 111 1/2, par. 4153‑505) Sec. 3‑505. If a petition filed under Section 3‑503 alleges that the conditions
set out in subsection 3‑504 (d) exist within a facility, the court may set
the matter for hearing at the earliest possible time. The petitioner shall
notify the licensee, administrator of the facility, or registered agent
of the licensee prior to the hearing. Any form of written notice may be
used. A receivership shall not be established ex parte unless the court
determines that the conditions set out in subsection 3‑504 (d) exist in
a facility; that the licensee cannot be found; and that the petitioner has
exhausted all reasonable means of
locating and notifying the licensee, administrator or registered agent. (Source: P.A. 81‑223.)
(210 ILCS 45/3‑506)(from Ch. 111 1/2, par. 4153‑506) Sec. 3‑506. The court may appoint any qualified person as a receiver, except
it shall not appoint any owner or affiliate of the facility which is in
receivership as its receiver. The Department shall maintain a list of such
persons to operate facilities which the court may consider. The court shall
give preference to licensed nursing home administrators in appointing a receiver. (Source: P.A. 81‑1349.)
(210 ILCS 45/3‑507)(from Ch. 111 1/2, par. 4153‑507) Sec. 3‑507. The receiver shall make provisions for the continued health,
safety and welfare of all residents of the facility. (Source: P.A. 81‑223.)
(210 ILCS 45/3‑508)(from Ch. 111 1/2, par. 4153‑508) Sec. 3‑508. A receiver appointed under this Act: (a) Shall exercise those powers and shall perform those duties set out
by the court; (b) Shall operate the facility in such a manner as to assure safety and
adequate health care for the residents; (c) Shall have the same rights to possession of the building in which
the facility is located and of all goods and fixtures in the building at
the time the petition for receivership is filed as the owner would have
had if the receiver had not been appointed, and of all assets of the facility.
The receiver shall take such action as is reasonably necessary to protect
or conserve the assets or property of which the receiver takes possession,
or the proceeds from any transfer thereof, and may use them only in the
performance of the powers and duties set forth in this Section and by order
of the court; (d) May use the building, fixtures, furnishings and any accompanying
consumable goods in the provision of care and services to residents and to
any other persons receiving services from the facility at the time the
petition for receivership was filed. The receiver shall collect payments
for all goods and services provided to residents or others during the
period of the receivership at the same rate of payment charged by the
owners at the time the petition for receivership was filed; (e) May correct or eliminate any deficiency in the structure or furnishings
of the facility which endangers the safety or health of residents while
they remain in the facility, provided the total cost of correction does
not exceed $3,000. The court may order expenditures for this purpose
in excess of $3,000 on application from the receiver after notice to the
owner and hearing; (f) May let contracts and hire agents and employees to carry out the powers
and duties of the receiver under this Section; (g) Except as specified in Section 3‑510, shall honor all leases, mortgages
and secured transactions governing the building in which the facility is
located and all goods and fixtures in the building of which the receiver
has taken possession, but only to the extent of payments which, in the case
of a rental agreement, are for the use of the property during the period
of the receivership, or which, in the case of a purchase agreement, come
due during the period of the receivership. (h) Shall have full power to direct and manage and to discharge employees
of the facility, subject to any contract rights they may have. The receiver
shall pay employees at the same rate of compensation, including benefits,
that the employees would have received from the owner. Receivership does
not relieve the owner of any obligation to employees not carried out by
the receiver; (i) Shall, if any resident is transferred or discharged, follow the
procedures set forth in Part 4 of this Article. (j) Shall be entitled to and shall take possession of all property or
assets of residents which are in the possession of a facility or its
owner. The receiver shall preserve all property, assets and records of
residents of which the receiver takes possession and shall provide for the
prompt transfer of the property, assets and records to the new placement
of any transferred resident. (k) Shall report to the court on any actions he has taken to bring the
facility into compliance with this Act or with Title 18 or 19 of the Social
Security Act that he believes should be continued when the receivership is
terminated in order to protect the health, safety or welfare of the residents. (Source: P.A. 90‑655, eff. 7‑30‑98.)
(210 ILCS 45/3‑509)(from Ch. 111 1/2, par. 4153‑509) Sec. 3‑509. (a) A person who is served with notice of an order of the
court appointing a receiver and of the receiver's name and address shall
be liable to pay the receiver for any goods or services provided by the
receiver after the date of the order if the person would have been liable
for the goods or services as supplied by the owner. The receiver shall
give a receipt for each payment and shall keep a copy of each receipt on
file. The receiver shall deposit amounts received in a separate account
and shall use this account for all disbursements. (b) The receiver may bring an action to enforce the liability created
by subsection (a) of this Section. (c) A payment to the receiver of any sum owing to the facility or its
owner shall discharge any obligation to the facility to the extent of the payment. (Source: P.A. 81‑223.)
(210 ILCS 45/3‑510)(from Ch. 111 1/2, par. 4153‑510) Sec. 3‑510. (a) A receiver may petition the court that he not be required
to honor any lease, mortgage, secured transaction or other wholly or partially
executory contract entered into by the owner of the facility if the rent,
price or rate of interest required to be paid under the agreement was substantially
in excess of a reasonable rent, price or rate of interest at the time the
contract was entered into, or if any material provision of the agreement
was unreasonable. (b) If the receiver is in possession of real estate or goods subject to
a lease, mortgage or security interest which the receiver has obtained a
court order to avoid under subsection (a) of this Section, and if the real
estate or goods are necessary for the continued operation of the facility
under this Section, the receiver may apply to the court to set a reasonable
rental, price or
rate of interest to be paid by the receiver during the duration of the receivership.
The court shall hold a hearing on the application within 15 days. The receiver
shall send notice of the application to any known persons who own the property
involved at least 10 days prior to the hearing. Payment by the receiver
of the amount determined by the court to be reasonable is a defense to any
action against the receiver for payment or for possession of the goods or
real estate subject to the lease, security interest or mortgage involved
by any person who received such notice, but the payment does not relieve
the owner of the facility of any liability for the difference between the
amount paid by the receiver and the amount due under the original lease,
security interest or mortgage involved. (Source: P.A. 81‑223.)
(210 ILCS 45/3‑511)(from Ch. 111 1/2, par. 4153‑511) Sec. 3‑511. If funds collected under Sections 3‑508 and 3‑509 are
insufficient to meet the expenses of performing the powers and duties
conferred on the receiver, or if there are insufficient funds on hand to
meet those expenses, the Department may reimburse the receiver for those
expenses from funds appropriated for its ordinary and contingent expenses
by the General Assembly after funds contained in the Long Term Care
Monitor/Receiver Fund have been exhausted. (Source: P.A. 86‑663.)
(210 ILCS 45/3‑512)(from Ch. 111 1/2, par. 4153‑512) Sec. 3‑512. The court shall set the compensation of the receiver, which
will be considered a necessary expense of a receivership under Section 3‑516. (Source: P.A. 81‑223.)
(210 ILCS 45/3‑513)(from Ch. 111 1/2, par. 4153‑513) Sec. 3‑513. (a) In any action or special proceeding brought against a receiver
in the receiver's official capacity for acts committed while carrying out
powers and duties under this Article, the receiver shall be considered a
public employee under the "Local Governmental and Governmental Employees
Tort Immunity Act", as now or hereafter amended. (b) A receiver may be held liable in a personal capacity only for the
receiver's own gross negligence, intentional acts or breach of fiduciary duty. (c) The court may require a receiver to post a bond. (Source: P.A. 81‑223.)
(210 ILCS 45/3‑514)(from Ch. 111 1/2, par. 4153‑514) Sec. 3‑514. Other provisions of this Act notwithstanding, the Department
may issue a license to a facility placed in receivership. The duration
of a license issued under this Section is limited to the duration of the receivership. (Source: P.A. 81‑223.)
(210 ILCS 45/3‑515)(from Ch. 111 1/2, par. 4153‑515) Sec. 3‑515. The court may terminate a receivership: (a) If the time period specified in the order
appointing the receiver elapses and is not extended;
(b) If the court determines that the receivership is
no longer necessary because the conditions which gave rise to the receivership no longer exist; or the Department grants the facility a new license, whether the structure of the facility, the right to operate the facility, or the land on which it is located is under the same or different ownership; or
(c) If all of the residents in the facility have
been transferred or discharged.
Before terminating a receivership, the court may order the Department
to require any licensee to comply with the recommendations of the receiver
made under subsection (k) of Section 3‑508. A licensee may petition the
court to be relieved of this requirement. (Source: P.A. 87‑549.)
(210 ILCS 45/3‑516)(from Ch. 111 1/2, par. 4153‑516) Sec. 3‑516. (a) Within 30 days after termination, the receiver shall give
the court a complete accounting of all property of which the receiver has
taken possession, of all funds collected, and of the expenses of the receivership. (b) If the operating funds collected by the receiver under Sections 3‑508
and 3‑509 exceed the reasonable expenses of the receivership, the court
shall order payment of the surplus to the owner, after reimbursement of
funds drawn from the contingency fund under Section 3‑511. If the operating
funds are insufficient to cover the reasonable expenses of the receivership,
the owner shall be liable for the deficiency. Payment recovered from the
owner shall be used to reimburse the contingency fund for amounts drawn
by the receiver under Section 3‑511. (c) The Department shall have a lien for any payment made under Section
3‑511 upon any beneficial interest, direct or indirect, of any owner in
the following property: (1) The building in which the facility is located; (2) Any fixtures, equipment or goods used in the operation of the facility; (3) The land on which the facility is located; or (4) The proceeds from any conveyance of property described in subparagraphs
(1), (2) or (3) above, made by the owner within
one year prior to the filing of the petition for receivership. (d) The lien provided by this Section is prior to any lien or other interest
which originates subsequent to the filing of a petition for receivership
under this Article, except for a construction or mechanic's lien arising
out of work performed with the express consent of the receiver. (e) The receiver shall, within 60 days after termination of the receivership,
file a notice of any lien created under this Section. If the lien is on
real property, the notice shall be filed with the recorder. If the lien
is on personal property, the lien shall be filed with
the Secretary of State. The notice shall specify the name of the person
against whom the lien is claimed, the name of the receiver, the dates of
the petition for receivership and the termination of receivership, a description of the
property involved and the amount claimed. No lien shall exist under this
Article against any person, on any property, or for any amount not specified
in the notice filed under this subsection (e). (Source: P.A. 83‑358.)
(210 ILCS 45/3‑517)(from Ch. 111 1/2, par. 4153‑517) Sec. 3‑517. Nothing in this Act shall be deemed to relieve any owner,
administrator or employee of a facility placed in receivership of any civil
or criminal liability incurred, or any duty imposed by law, by reason of
acts or omissions of the owner, administrator, or employee prior to the
appointment of a receiver; nor shall anything contained in this Act be construed
to suspend during the receivership any obligation of the owner, administrator,
or employee for payment of taxes or other operating and maintenance expenses
of the facility nor of the owner, administrator, employee or any other person
for the payment of mortgages or liens. The owner shall retain the right
to sell or mortgage any facility under receivership, subject to approval
of the court which ordered the receivership. (Source: P.A. 81‑223.)
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