§ 10–410
Statutes in effect as of October 1, 2026.
Md. Code Ann., Hum. Servs. § 10-410 (2026)
Title 10. Department of Aging
Subtitle 4. Continuing Care
§ 10–410LinkCopy Citation
(a)
A provider may collect deposits from prospective subscribers if:
(1)
the Department has approved the provider’s feasibility study; and
(2)
funds collected are maintained in an escrow account.
(b)
Each deposit agreement shall comply with the requirements of subsection (c) or (d) of this section.
(c)
If a deposit agreement is used for a deposit on a unit for which the provider has not received written approval to withdraw deposits, the deposit agreement shall:
(1)
state that all deposits and entrance fees will be held in escrow until:
(i)
an initial certificate of registration for the unit is issued;
(ii)
construction is completed;
(iii)
a certificate of occupancy, or its equivalent, is issued by the local jurisdiction; and
(iv)
the provider has the appropriate licenses or certificates from the Maryland Department of Health, the Maryland Health Care Commission, and the Department;
(2)
describe the disposition of any interest earned on deposits and entrance fees;
(3)
state the amount of any processing fee and whether it will be refunded if the deposit agreement is canceled; and
(4)
describe the disposition of the deposit if the deposit agreement is canceled before the continuing care agreement is executed.
(d)
If a deposit agreement is used for a deposit on a unit for which the provider has received written approval to withdraw deposits, the deposit agreement shall:
(1)
state that the provider may use all deposits and entrance fees at any time; or
(2)
describe any applicable limitations on the use of deposits and entrance fees.