N.Y. Public Health Law 4664 – Asset reserves
§ 4664. Asset reserves. An operator shall maintain reserve liabilities and supporting assets in an amount for the purposes set forth in a regulation issued by the commissioner. Liquid assets shall be maintained for the following reserve liabilities:
Terms Used In N.Y. Public Health Law 4664
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Facility: shall mean any place in which an operator undertakes to provide a resident with the services of a fee-for-service continuing care retirement community, pursuant to a contract, whether such place is constructed, owned, leased, rented or otherwise contracted for by the operator. See N.Y. Public Health Law 4651
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Operator: shall mean a legal entity operating a fee-for-service continuing care retirement community pursuant to a certificate of authority, as granted pursuant to section forty-six hundred fifty-six of this article. See N.Y. Public Health Law 4651
1. Fifteen percent of the projected annual operating expenses of the facility, exclusive of depreciation.
2. A provider shall notify the commissioner in writing at least ten days prior to reducing the amount of funds available to satisfy the applicable liquid reserve requirement. A provider shall not expend more than one-half of the required balance each calendar year.
3. A provider may use funds in an endowment fund or escrow account, including an escrow account established by or pursuant to a mortgage loan, bond, indenture or other long-term financing, to satisfy the reserve requirements of this section, if the funds are available to make payments when operating funds are insufficient for these purposes.