32.02.01.27

.27 Deposit Agreement and Processing Fee.

A. A deposit agreement used for a deposit on a unit for which the provider has not received written approval to withdraw deposits under Regulation .12 of this chapter shall:

(1) State that all deposits and entrance fees shall be held in escrow until:

(a) The issuance of an initial certificate of registration for the unit,

(b) Construction is completed,

(c) A certificate of occupancy, or its equivalent, has been issued by the local jurisdiction, and

(d) The provider has been issued appropriate licenses or certificates by MDH, MHCC, and the Department;

(2) Describe the disposition of any interest earned on deposits and entrance fees;

(3) State the amount of any processing fee and whether it will be refunded if the deposit agreement is canceled; and

(4) State that the deposit will be refunded within not more than 60 days of the cancellation, if the deposit agreement is canceled before the continuing care agreement is executed.

B. A deposit agreement that is used for a deposit on a unit for which the provider has received written approval to withdraw deposits under Regulation .12 of this chapter shall:

(1) State that the provider may use all deposits and entrance fees at any time; or

(2) Describe any applicable limitations on the use of deposits and entrance fees.

C. A processing fee may only be assessed against a subscriber one time and may not exceed $300 per individual.

D. If a deposit agreement does not precede a continuing care agreement, the provider shall ensure that the continuing care agreement referred to in Regulation .28 of this chapter meets the requirements of §A of this regulation.