Michigan Laws 554.909 – Definitions; P to R
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Terms Used In Michigan Laws 554.909
- Amortized component of an entrance fee: means the portion of an entrance fee that is amortizable to reflect the cost of continuing care, multiplied by 1. See Michigan Laws 554.903
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- community: means a retirement community in which a person undertakes to provide or arrange for continuing care and which is 1 or more of the following:
(i) An adult foster care facility. See Michigan Laws 554.903Continuing care: means some or all of the following services:
(i) A living unit. See Michigan Laws 554.903Continuing care agreement: means a written agreement, including a long-term lease or an agreement conferring a life interest, between a member and a continuing care community for continuing care upon payment of an entrance fee. See Michigan Laws 554.903 Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name. Disclosure statement: means a disclosure statement as required under section 19(1)(c) or that may be required by the department under section 25, as applicable. See Michigan Laws 554.905 Entrance fee: means money paid in a lump sum or installments or property transferred pursuant to a continuing care agreement before initiation of continuing care for 1 or more individuals and that confers the right to the continuing care. See Michigan Laws 554.905 Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury. Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases. Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity. Member: means an individual who enters into a continuing care agreement with a continuing care community. See Michigan Laws 554.907 Order: means a consent, authorization, approval, prohibition, or requirement applicable to a specific case issued by the department. See Michigan Laws 554.907 Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses. state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
As used in this act:
(a) “Person” means an individual, partnership, corporation, association, governmental entity, or other legal entity.
(b) “Publish” means to publicly issue or circulate by newspaper, mail, radio, television, or electronic means or otherwise to disseminate to the public.
(c) “Refundable portion of an entrance fee” means the component of an entrance fee that is refundable to the member or his or her estate under the terms and conditions of the continuing care agreement, but excludes the amortized component of an entrance fee.
(d) “Registrant” means a continuing care community registered under this act.
(e) “Reportable change”, subject to subdivision (f), means any of the following:
(i) Any change in the tax status of the continuing care community.
(ii) Termination of the continuing care community’s sponsorship, or a portion thereof, by a religious, nonprofit, or proprietary organization or group, or the establishment of any new sponsorship for the community.
(iii) Denial, suspension, or revocation of any license, certification, or registration held by the continuing care community and required by state or federal law.
(iv) The entry of any cease and desist order, other order similar in nature, or a temporary or permanent injunction by a court of competent jurisdiction that restricts the continuing care community from offering continuing care agreements to prospective members or restricts the community from operating in any material respect in compliance with the most recent registration.
(v) Any substantive amendments or changes in the disclosure statement, continuing care agreement, or the rules and regulations of the continuing care community.
(vi) Any significant alteration in the care, amenities, or services indicated in the disclosure statement or continuing care agreement.
(vii) Any change in monthly service fees.
(viii) A variation of 10% or more between the actual amount of any of the following items and the amount forecast in the continuing care community’s pro forma financial plan most recently filed under this act:
(A) Total assets.
(B) Total liabilities.
(C) Equity.
(D) Fund balance or deficit.
(E) Long-term debt.
(F) Total revenue.
(G) Total expenses.
(H) Cash flow.
(ix) A violation of any debt covenant applicable to the continuing care community.
(f) “Reportable change” does not include a change in the value of an interest rate swap not related to the termination of the interest rate swap.