CODE OF VIRGINIA

ESCROW OF ENTRANCE FEE TO COMMUNITY-BASED CONTINUING CARE PROVIDERS AND OTHERS
(§ 38.2-4922)

A. A CBCC provider shall maintain in escrow with a bank or trust company, or
other escrow agent approved by the Commission, all CBCC entrance fees or
portions thereof in excess of $ 1,000 per person received by the CBCC provider
prior to the date the participant is permitted to enroll and receive services in
the CBCC program. Funds or assets deposited therein shall be kept and maintained
in an account separate and apart from the CBCC provider’s business
accounts. For the purposes of this section only, the term “CBCC entrance
fee” shall include within its meaning any advanced payment or series of
advanced payments totaling $ 1,000 or more, and the term “CBCC
provider” shall include any person or entity that would be included in the
definition thereof in § 38.2-4918 if such fee of $ 1,000 or more constituted a
CBCC entrance fee for the purposes of the definition of “community-based
continuing care” in § 38.2-4918.

B. All funds or assets deposited in the escrow account shall remain the property
of the prospective participant until released to the CBCC provider in accordance
with this section. The funds or assets shall not be subject to any liens,
judgments, garnishments, or creditor’s claims against the provider or
facility. The escrow agreement may provide that charges by the escrow agent may
be deducted from the funds or assets if such provision is disclosed in the
disclosure statement.

C. All funds or assets deposited in escrow pursuant to this section shall be
released to the CBCC provider when the provider presents to the escrow agent
evidence that the corporation has been deemed eligible to begin service and
enter into permanent contracts.

D. Notwithstanding any other provision of this section, all funds or assets
deposited in escrow pursuant to this section shall be released according to the
terms of the escrow agreement to the prospective participant from whom it was
received (i) if such funds or assets have not been released within three years
after placement in escrow (but in any event within six years after placement in
escrow unless specifically approved by the Commission) or within such longer
period as determined appropriate by the Commission in writing, (ii) if the
prospective participant dies before enrolling and receiving services from the
program, or (iii) upon rescission of the CBCC contract pursuant to provisions in
the CBCC contract or in this article. Funds or assets subject to release under
clause (i) of this subsection or under subsection C may be held in escrow for an
additional period at the mutual consent of the provider and the prospective
participant; however, the prospective participant may consent to such additional
period only after his deposit has been held in escrow for at least two years.
Clause (i) of this subsection shall not apply if fees are refundable within 30
days of request for refund.

E. Unless otherwise specified in the escrow agreement, funds or assets in an
escrow account pursuant to this section may be held in the form received or if
invested shall be invested in instruments authorized for the investment of
public funds as set forth in Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2 and
not in default as to principal or interest.

F. This section shall not apply to application or reservation fees whether or
not such fees are considered to be a portion of the CBCC entrance fee, provided
such application or reservation fees are not in excess of $ 1,000 per person.

HISTORY: 2012, cc. 208, 303.