20-1806. Reserve fund escrow
The director shall, as a condition of the issuance of a permit pursuant to section 20-1803, require that the provider maintain on a current basis, in escrow with a bank, trust company or other escrow agent approved by the director, an amount which equals the aggregate principal and interest payments due during the next twelve months on account of any first mortgage or other long-term financing of the facility. The principal of the escrow account may be invested with the earnings thereon payable to the provider, and up to one-sixth of the total principal shall be released to the provider upon notice to the director. The escrow agreement shall provide that upon withdrawal of any such amount by the provider, the escrow agent shall provide immediate written notice of such withdrawal to the director and that any amount released to the provider shall be repaid to the escrow account within two years of the release of such amount. In the event that the provider does not repay the escrow account within such two year period, the escrow agent shall provide immediate written notice to the director.
Section: Previous 20-1741 20-1742 20-1801 20-1802 20-1803 20-1804 20-1805 20-1806 20-1807 20-1808 20-1809 20-1810 20-1811 20-1812 20-1901 NextLast modified: October 13, 2016