§ 4674. Priority reservation agreements; prior to obtaining a\ncertificate of authority. The provisions of this section shall apply to\nentities that seek approval to enter into priority reservation\nagreements and to solicit, collect or receive priority reservation fees,\nwith respect to a proposed fee-for-service continuing care retirement\ncommunity, prior to obtaining a certificate of authority under this\narticle.\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 fee-for-service continuing care retirement community to\nbe operated within the state without first obtaining the written\nauthorization of the commissioner. The commissioner shall not grant such\nauthorization to an entity that has not yet obtained a certificate of\nauthority unless the requirements of this section and any applicable\nregulations are met. Upon obtaining the authorization of the\ncommissioner under this section, a prospective community applicant or an\nentity having filed an application for a certificate of authority may\nenter into cancelable priority reservation agreements with prospective\nresidents and solicit, collect and receive refundable priority\nreservation fees for direct deposit into an escrow account, prior to\nobtaining a certificate of authority, for the purpose of evaluating\nmarket demand for a proposed fee-for-service continuing care retirement\ncommunity and for the purpose of guaranteeing to prospective residents\nan opportunity for priority placement in a fee-for-service continuing\ncare retirement community. A priority reservation fee shall not exceed\ntwo thousand dollars unless the commissioner, in the discretion of such\ncommissioner, establishes that a priority reservation fee may exceed two\nthousand dollars. A non-refundable priority reservation agreement\napplication fee shall not exceed the maximum amount established by the\ncommissioner, in such 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, a person, partnership,\ncorporation or other entity, hereinafter designated as the applicant,\nshall apply for such authorization on forms or in a format prescribed by\nthe commissioner 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. a general description of the proposed community, including the\nlocation and description of the proposed community site; the components\nto be included in the community, such as independent living units,\nskilled nursing facility and adult care facility; the estimated number\nof each type of unit or beds; and the services to be provided;\n c. an estimate of the pricing structure of the community including\nentrance fees and monthly care fees and the provisions of the\nfee-for-services rates;\n d. a description of the anticipated market to be served;\n e. anticipated methods and sources of financing for the proposed\ncommunity;\n f. organizational structure of the applicant;\n g. the name and address of the escrow agent and a copy of the escrow\nagreement required pursuant to this section;\n h. a copy of the instructions to the escrow agent regarding the\nissuance of refunds;\n i. 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 j. a copy of the most recent set of financial statements of the\napplicant prepared in accordance with generally accepted accounting\nprinciples and certified to be true and accurate by an independent\ncerti
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