§ 4670. Receiverships. 1. The commissioner may, upon a determination\nthat serious operational deficiencies exist or serious financial\nproblems exist and such action is desirable, enter into an agreement\nwith the operator or owners of a fee-for-service continuing care\nretirement community with respect to the appointment of a receiver to\ntake charge of the community under conditions as found acceptable by\nboth parties. Receivership commenced in accordance with the provisions\nof this subdivision shall terminate at such time as may be provided in\nthe receivership agreement, or at such time as either party notifies the\nother in writing that it wishes to terminate such receivership.\n 2. The commissioner shall, at the time of revocation, suspension or\ntemporary suspension of a certificate of authority, apply to the supreme\ncourt where the community is situated for an order directing the owner\nof the land and/or structure on or in which the community is located, to\nshow cause why a receiver should not be appointed to take charge of the\ncommunity. In those cases where the certificate of authority has been\nrevoked, suspended or temporarily suspended, the supreme court shall\nappoint a receiver that, where reasonably possible, is a legal entity\nthat holds a valid certificate of authority. Such application shall\ncontain proof by affidavit that the facility has had its certificate of\nauthority revoked, suspended or temporarily suspended. Such order to\nshow cause shall be returnable not less than five days after service is\ncompleted and shall provide for personal service of a copy thereof and\nthe papers on which it is based, on the owner or owners of the land\nand/or structures on or in which the community is located. If any such\nowner and manager cannot with due diligence be served personally within\nthe county where the property is located and within the time fixed in\nsuch order, then service may be made on such person by posting a copy\nthereof in a conspicuous place within the community in question, and by\nsending a copy thereof by registered mail, return receipt requested, to\nsuch owner at the last address registered by such owner with the\ndepartment or in the absence of such registration to the address set\nforth in the last recorded deed with respect to the facility. Service\nshall be deemed complete on filing proof of service thereof in the\noffice of the county clerk, or the clerk of the city of New York, as the\ncase may be.\n 3. On the return of said order to show cause, the matter shall have\nprecedence over every other business of the court unless the court shall\nfind that some other pending proceeding, having a similar statutory\nprecedence, shall have priority. The court may conduct a hearing at\nwhich all interested parties shall have the opportunity to present\nevidence pertaining to the application. If the court shall find the\nfacts warrant the granting thereof, then any such qualified and approved\nagency, person or corporation, or the commissioner or any person\ndesignated by the commissioner, shall be appointed receiver to take\ncharge and assume operation of the community. However, such receiver may\nmake application to the appointing court for decision, reformation or\nsuch other relief as may be appropriate to protect the best interests of\nthe residents residing within such community. No security interest in\nany real or personal property comprising the community shall be impaired\nor diminished in priority by the receiver. The receiver shall compensate\nthe owner or owners of any goods held in inventory for those goods which\nhe or she uses or causes to be used by reimbursing the costs of such\ngoods, except that no such compensation shall be made for any goods for\nwhich the owners or operators of the community have already been\nreimbursed.\n 4. Any receiver appointed pursuant to this section shall have all of\nthe powers and duties of a receiver appointed in an action to foreclose
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