§ 4622. Priority reservation agreements; after obtaining a certificate\nof authority. The provisions of this section apply to entities that seek\napproval to enter into priority reservation agreements and to solicit,\ncollect or receive priority reservation fees, with respect to a\ncontinuing care retirement community, after obtaining a certificate of\nauthority under this article.\n 1. No person, partnership, corporation or other entity shall solicit,\ncollect or receive any priority reservation fee or enter into any\nagreement relating to the payment of any priority reservation fee with\nrespect to any continuing care retirement community operated or to be\noperated within the state without first obtaining the written\nauthorization of the commissioner. The commissioner shall not grant such\nauthorization to an entity that has obtained a certificate of authority\nunless the requirements of this section and any applicable regulations\nare met. Upon obtaining the authorization of the commissioner under this\nsection, an operator may enter into cancelable priority reservation\nagreements with prospective residents and solicit, collect and receive\nrefundable priority reservation fees for direct deposit into an escrow\naccount for the purpose of guaranteeing to prospective residents an\nopportunity for priority placement in the continuing care retirement\ncommunity for which the operator has obtained a certificate of\nauthority. A priority reservation fee shall not exceed two thousand\ndollars unless the commissioner, in the discretion of such commissioner,\nestablishes that a priority reservation fee may exceed two thousand\ndollars. A non-refundable priority reservation agreement application fee\nshall not exceed the maximum amount established by the commissioner, in\nsuch commissioner's discretion.\n 2. In order to receive authorization by the commissioner to enter into\ncancelable priority reservation agreements and to solicit, collect or\nreceive any refundable priority reservation fee, an operator shall apply\nfor such authorization on forms or in a format prescribed by the\ncommissioner and, as part of such application, shall submit the\nfollowing information:\n a. a description of the applicant's plan to implement the process of\nentering into cancelable priority reservation agreements and to solicit,\ncollect or receive refundable priority reservation fees;\n b. the name and address of the escrow agent and a copy of the escrow\nagreement required pursuant to this section;\n c. a copy of the instructions to the escrow agent regarding the\nissuance of refunds;\n d. a copy of the forms to be used to document a request for a refund\nof a priority reservation fee and the issuance of such refund;\n e. draft copies of all proposed marketing materials, provided that\ncopies of the final marketing materials must be submitted as soon as\nthey are available provided further that provision of such materials\nshall not be construed to require approval of such materials by the\ndepartment or the council;\n f. a description of the sales office and drawings of any proposed\nmodel units;\n g. a copy of the proposed priority reservation agreement; and\n h. any other information as may be required by regulations adopted\npursuant to this article.\n 3. a. As a condition to receiving the commissioner's authorization\nunder this section, an operator shall establish a government insured\ninterest-bearing account, which earns interest at a rate which is\nconsistent with prevailing interest rates, and enter into an escrow\nagreement with a New York bank, New York savings and loan association or\nNew York trust company for the deposit of any priority reservation fees\ncollected by the operator pursuant to this section, which escrow funds\nshall be subject to release as provided for in this section.\n b. The escrow agreement shall state that its purpose is to protect\nprospective residents who have paid a priority reservation fee to t
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.