Sec. 246.091. SUPERVISION BY COMMISSIONER. (a) The commissioner may place a provider or facility under supervision if:
(1) the provider draws on the provider's entrance fee escrow in an amount greater than permitted by Section 246.073;
(2) the provider draws on the provider's loan reserve fund escrow in an amount greater than permitted or more frequently than permitted by Section 246.078;
(3) the commissioner determines, after a complaint and investigation, that the provider is financially unsound or is unable to meet the income or available cash projections previously filed by the provider and that the ability of the provider to fully perform its obligations under continuing care contracts is endangered; or
(4) the provider is bankrupt, insolvent, or has filed for protection from creditors under a federal or state reorganization, bankruptcy, or insolvency law.
(b) The commissioner appoints the supervisor.
(c) The commissioner may provide that the provider may not, during the supervision period and without the prior approval of the commissioner or the supervisor:
(1) dispose of, convey, or encumber its assets;
(2) withdraw its bank accounts;
(3) lend its funds;
(4) invest its funds;
(5) transfer its property;
(6) incur a debt, obligation, or liability; or
(7) merge or consolidate with another facility.
(d) The commissioner shall terminate the supervision and restore to a provider the authority to manage the affairs of the facility if the commissioner determines that the facility is capable of meeting its financial obligations.
(e) The facility or provider shall pay the costs of a supervisor.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 111, eff. Sept. 1, 1991.
Section: Previous 246.074 246.075 246.076 246.077 246.078 246.079 246.080 246.091 246.092 246.093 246.094 246.095 246.096 246.097 246.111 NextLast modified: September 28, 2016