Section 151-F:7 Termination of Receivership.
I. The court may terminate a receivership under the following conditions:
(a) The department grants a license to operate the facility to the licensee divested of possession and control by the receiver;
(b) There is a transfer of ownership or management of the facility to a transferee approved for licensure by the department; or
(c) All residents of the facility have been provided appropriate alternative placements, either in another facility or otherwise, and the subject facility is closed.
II. Notwithstanding the provisions of paragraph I, a receivership shall not be terminated in favor of the former licensee, or, in the discretion of the court, a related person, unless such person assumes all obligations incurred by the receiver and provides collateral or other assurance of payment deemed sufficient by the department.
III. As an additional precondition to termination in favor of the former licensee, or in the discretion of the court, a related person, the court may require the posting of a bond in an amount fixed by the court as security for maintaining compliance with the laws and regulations governing the operation of the facility. If it shall appear that the licensee fails to maintain the facility in substantial compliance with such laws and regulations, the court, after notice to those persons who have appeared in the proceeding, and after hearing, shall reinstate its order appointing a receiver. A receiver thus appointed may use the security, or such part of the security as is necessary, to remedy the deficient conditions.
IV. The receivership shall be reviewed after 30, 60, and 90 days by the probate court. If the receivership has not been terminated within 90 days of the appointment of the receiver, the court shall, after hearing, order either that the facility shall be closed, after an orderly transfer of the residents to appropriate alternative placements; or the facility shall be transferred, under reasonable terms approved by the court, to a new owner or operator approved for licensure by the department. The receivership period may be extended by the court following the 90-day review only with the agreement of all of the parties involved or as necessary to protect the health and safety of the residents.
V. Within 30 days after termination of the receivership, or such time as the court may allow, the receiver shall submit to the court a final accounting of all property of which the receiver has taken possession, of all funds collected under this section and all expenses of the receivership. The court shall fix the fees and expenses of the receiver and issue orders for the disposition of funds held by the receiver following a hearing, at which time the following parties may appear and be heard: the licensee at the time the receivership was established, the current licensee, the owner of the real estate, the department, and any mortgagee or lienholder whose interests could be impacted by the court's order. Following the court's determination of the receiver's fees and expenses, and the disposition of funds held by the receiver, control of the facility shall be relinquished by the receiver to the current licensee or owner subject to the rights of any third parties.
Source. 2003, 264:1, eff. Jan. 1, 2004.