(a) All deposit agreements between the applicant and the depositor shall be in writing and shall contain all information required by this section. (b) All deposit agreement forms shall be approved by the department prior to their use. (c) The requirements of this chapter and Chapter 3.2 (commencing with Section 1569) shall be the bases for approval of the forms by the department. (d) All text in deposit agreement forms shall be printed in at least 10-point typeface. (e) The deposit agreement form shall provide all of the following: (1) An estimated date for commencement of construction of the proposed continuing care retirement community or, if applicable, each phase not to exceed 36 months from the date the permit to accept deposits is issued. (2) A statement to the effect that the applicant will notify depositors of any material change in the application. (3) The identity of the specific unit reserved and the total deposit for that unit. (4) Processing fee terms and conditions, including: (A) The amount. (B) A statement explaining the applicantâs policy regarding refund or retention of the processing fee in the event of death of the depositor or voluntary cancellation by the depositor. (C) Notice that the processing fee shall be refunded within 30 days if the applicant does not accept the depositor for residency, or the applicant fails to construct the continuing care retirement community before the estimated date of completion and the department determines that there is no satisfactory cause for the delay. (5) Requirements for payment of the deposit by the depositor. (6) A statement informing the depositor that their deposit payments will be converted to an entrance fee payment at the time the continuing care contract is executed. (7) A statement informing the depositor that deposits shall be refunded within 30 calendar days of the depositorâs nonacceptance for residency or notice to the applicant of the death of the depositor. (8) A statement informing the depositor that all deposits shall be refunded to the depositors if the continuing care retirement community is not constructed by the estimated date of completion and the department determines that there is no satisfactory cause for the delay. (9) A statement informing the depositor that a refund of the deposit within 10 calendar days of notice of cancellation by the depositor. The deposit agreement shall state that depositors who have deposited more than one thousand dollars ($1,000) or 5 percent of the entrance fee, whichever is greater, and who have been notified that construction of the proposed continuing care retirement community has commenced, will not be entitled to a refund of their deposit until the provisional certificate of authority is issued or after one of the following occurs: (A) Another depositor has reserved the canceling depositorâs specific residential unit and paid the necessary deposit. (B) The depositor no longer meets financial or health requirements for admission. (C) The applicant fails to meet the requirements of Section 1786 or 1786.2. (10) A statement to depositors that specifies when funds may be released from escrow to the applicant and explains that thereafter the depositorâs funds will not have escrow protection. (11) A statement advising the depositor whether interest will be paid to the depositor on deposits placed in the deposit escrow account. (f) If cash equivalents are to be accepted in lieu of cash, all of the following shall also be included in the deposit agreement: (1) A statement that cash equivalents that may be accepted as deposits shall be either certificates of deposit or United States securities with maturities of five years or less. (2) A statement that the instruments will be held by the escrow agent in the form in which they were delivered and assigned by the depositor until they are replaced by cash or converted to cash. (3) A statement that the depositor will be required to assign the instruments to a neutral
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