New York Mental Hygiene Code § 31.28

Facilities; receivership
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§ 31.28 Facilities; receivership.\n  (a) The owner or owners of any facility may at any time request the\noffice to take over the operation of such facility by the appointment of\na receiver. Upon receiving such a request, the office may, if it deems\nsuch action desirable, enter into an agreement with any such owners with\nrespect to the appointment of a receiver to take charge of the facility\nunder conditions as found acceptable by both parties. Receivership\ncommenced in accordance with the provisions of this subdivision shall\nterminate at such time as may be provided in the receivership agreement,\nor at such time as either party notified the other in writing that he\nwishes to terminate such receivership.\n  (b) (1) Upon issuing a notice that he will revoke or suspend an\noperating certificate in accordance with subdivision (a) of section\n31.16 of this article, or that he will disapprove an application for\nrenewal of such certificate pursuant to section 31.05 of this article\nthe commissioner may apply to the supreme court in the county where the\nfacility is located for an order to show cause why a receiver should not\nbe appointed to operate the facility. The court shall, upon determining\nthat the notice was properly issued and that it would be in the best\ninterests of the person served by the facility to have services\ncontinued after the effective date of the revocation or suspension,\nappoint a receiver for the facility to take effect upon the revocation\nor suspension of the operating certificate in accordance with the\nprovisions of this article.\n  The order to show cause shall be returnable not less than five days\nafter service is completed and shall provide for personal service of a\ncopy thereof and the papers upon which it is based on the operator of\nthe facility and upon the owner or owners of the land and/or owners of\nthe land and/or structure on or in which the facility is located. If any\nsuch operator or owner cannot with due diligence be served personally\nwithin the county where the property is located and within the time\nfixed in such order, then service may be made on such person by posting\na copy thereof in a conspicuous place within the facility in question,\nand by sending a copy thereof by registered mail, return receipt\nrequested, to such owner at the last address registered to him with the\noffice, or in the absence of such registration, to the address set forth\nin the last recorded deed with respect to such facility. Service shall\nbe deemed complete on filing proof of service thereof in the office of\nthe county clerk, or the clerk of the city of New York, as the case may\nbe.\n  (2) The commissioner may, prior to suspending an operating certificate\nfor up to sixty days pursuant to subdivision (b) of section 31.16 of\nthis article, request a temporary restraining order appointing a\nreceiver for a facility effective with the commissioner's issuance of\nthe notice of the suspension. The court shall issue the temporary\nrestraining order if it is satisfactorily shown by the commissioner that\nhe has reasonable grounds for finding that continued operating of the\nfacility presents an immediate danger to the health and welfare of any\nof the public or any of the individuals served by the facility.\n  (3) The court shall appoint a receiver which should, where reasonably\npossible, be a voluntary association or not-for-profit corporation\nrecommended by the commissioner which holds a valid and current\noperating certificate for a similar type facility, or which shall\nsatisfactorily demonstrate to the commissioner its qualifications for\nsuch operating certificate.\n  (4) On the return of said order to show cause, determination shall\nhave precedence over every other business of the court unless the court\nshall find that some other pending proceeding, having similar statutory\nprecedence, shall have priority. The court may conduct a hearing at\nwhich all interested parties shall have 

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