§ 4675. 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\nfee-for-service continuing care retirement community, after obtaining a\ncertificate of authority 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 fee-for-service continuing care retirement community\noperated or to be operated within the state without first obtaining the\nwritten authorization of the commissioner. The commissioner shall not\ngrant such authorization to an entity that has 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, an operator may enter into cancelable\npriority reservation agreements with prospective residents and solicit,\ncollect and receive refundable priority reservation fees for direct\ndeposit into an escrow account for the purpose of guaranteeing to\nprospective residents an opportunity for priority placement in the\nfee-for-service continuing care retirement community for which the\noperator has obtained a certificate of authority. A priority reservation\nfee shall not exceed two thousand dollars unless the commissioner, in\nthe discretion of such commissioner, establishes that a priority\nreservation fee may exceed two thousand dollars. A non-refundable\npriority reservation agreement application fee shall not exceed the\nmaximum amount established by the commissioner, in such commissioner's\ndiscretion.\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 following\ninformation:\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 state bank, New York state savings and loan\nassociation or New York state trust company for the deposit of any\npriority reservation fees collected by the operator pursuant to this\nsection, which escrow funds shall be subject to release as provided for\nin this section.\n b. The escrow agreement shall state that its purpose is to protect\n
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