Sec. 246.050. CONTENTS OF DISCLOSURE STATEMENT: FINANCIAL INFORMATION. (a) The disclosure statement must:
(1) describe any provisions made or to be made to provide reserve funding or security to enable the provider to fully perform its obligations under a continuing care contract, including:
(A) the establishment of escrow accounts, trusts, or reserve funds and the manner in which those funds will be invested; and
(B) the name and experience of any individual in the direct employment of the provider who will make the investment decisions; and
(2) provide financial statements of the provider, including:
(A) a balance sheet as of the end of the most recent fiscal year; and
(B) income statements and a statement of cash flow for each of the three most recent fiscal years that the provider has been in existence.
(b) Financial statements required by Subsection (a)(2) must be prepared in accordance with generally accepted accounting principles and must be audited by an independent certified public accountant, who shall state in the audit report whether the financial statements were prepared in accordance with those principles.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 99, eff. Sept. 1, 1991.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1089 (H.B. 2697), Sec. 6, eff. June 19, 2015.
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