New York Social Services Code § 461-F

Operation of facility in receivership
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§ 461-f. Operation of facility in receivership.  1. As a means of\nprotecting the health, safety and welfare of the residents of an adult\ncare facility subject to inspection and supervision by the department,\nit may become necessary under certain circumstances to authorize the\ncontinuing operation of such facility for a temporary period by a court\nappointed receiver, at the discretion of the commissioner, as provided\nin this section or with respect to an adult home, enriched housing\nprogram or residence for adults, a receiver approved by the department\nof health pursuant to written agreement between the department and the\noperator or operators of such facility, provided that such agreement\nshall not exceed a period of sixty days but may be extended for an\nadditional sixty day period upon agreement by the parties.\n  2. The operator or operators of any adult home, enriched housing\nprogram or residence for adults may at any time request the department\nof health to appoint a receiver to take over the operation of such\nfacility. Upon receiving such a request, the department of health may,\nif it deems such action desirable, enter into an agreement with any such\noperator or operators for the appointment of a receiver to take charge\nof the facility under whatever conditions as shall be found acceptable\nby the parties, provided that such agreement shall not exceed a period\nof sixty days but may be extended for an additional sixty day period\nupon agreement by the parties.\n  3. (a) In the event of a transfer of possession of the premises of\nsuch facility from an approved operator to a court appointed receiver in\na bankruptcy or mortgage foreclosure proceeding, the department may\nauthorize such court appointed receiver to continue to operate such\nfacility for a temporary period pending the filing and review of an\napplication to the department by such receiver or by another person for\nan operating certificate, provided, however, that such court appointed\nreceiver agrees to operate the facility during such temporary period in\naccordance with such terms and conditions as may be set by the\ndepartment, which terms and conditions shall include compliance with all\napplicable provisions of law and regulations of the department, and\nwhich shall include a waiver by the receiver of any assessment of fees\nagainst the department, the commissioner and the state. Such application\nfor an operating certificate shall be filed within ninety days after the\ntransfer of possession to the receiver, unless the time for such filing\nis extended by the department.\n  (b) The commissioner may make application to appear and advise the\ncourt of any objections he may have to the transfer of possession from\nthe approved operator to any other person including a receiver or of any\nobjections he may have to continuing a receiver or any other person in\npossession.\n  (c) After a receiver obtains such temporary authorization, he may\noperate such facility only so long as he continues to do so in\ncompliance with the applicable law, regulations of the department, and\nthe terms and conditions for such authorization as set by the\ndepartment.\n  4. (a) When the department revokes or temporarily suspends the\noperating certificate of such facility and the commissioner determines\nthat appointment of a receiver is necessary to protect the health,\nsafety and welfare of the residents of a facility the commissioner may\napply to the supreme court in the county where the facility is situated\nfor an order directing the operators, owners and prime lessors, if any,\nof the premises to show cause why the commissioner, or at the discretion\nof the commissioner, his designee, should not be appointed receiver to\ntake charge of the facility. Such order to show cause shall be\nreturnable not less than five days after service is completed and shall\nprovide for personal service of a copy thereof and the papers on which\nit is based on the operators, 

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