New Mexico Statutes 24-17-3. Definitions
As used in the Continuing Care Act:
Terms Used In New Mexico Statutes 24-17-3
- Amortization: Paying off a loan by regular installments.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- 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.
- 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.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
A. “affiliate” means a person having a five percent or greater interest in a provider; B. “community” means a retirement home, retirement community, home for the aged or other place that undertakes to provide continuing care;
C. “continuing care” means furnishing, pursuant to a contract that requires entrance or advance fees and service or periodic fees, independent-living and health or health- related services. Entrance or advanced fees do not include security or damage deposit fees that amount to less than three months’ service or periodic fees. These services may be provided in the community, in the resident’s independent living unit or in another setting, designated by the continuing care contract, to an individual not related by consanguinity or affinity to the provider furnishing the care. The services include, at a minimum, priority access to a nursing facility or hospital either on site or at a site designated by the continuing care contract;
D. “continuing care contract” means an agreement by a provider to furnish continuing care to a resident;
E. “liquid reserves” means cash or other assets that are available within sixty days to satisfy a community’s expenses and that do not include real property or interests in real property;
F. “net operating expenses” means the total costs of operating a community, including taxes and insurance but not including amortization, depreciation or long-term debt service;
G. “person” means an individual, corporation, partnership, trust, association or other legal entity;
H. “priority access to a nursing facility or hospital” means that a nursing facility or hospital services the residents of independent living units or that there is a promise of such health care or health-related services being available in the future;
I. “provider” means the owner or manager of a community that provides, or offers to provide, continuing care;
J. “resident” means, unless otherwise specified, an actual or prospective purchaser of, nominee of or subscriber to a continuing care contract;
K. “type A” agreement means an extensive entrance-fee contract that includes housing, residential services, amenities and unlimited specific health-related services with little or no substantial increase in monthly payments, except to cover normal operating costs and inflation adjustments;
L. “type B” agreement means a modified entrance-fee contract that includes housing, residential services, amenities and a specific amount of health care with no substantial increase in monthly payments, except to cover normal operating costs and inflation adjustments. After the specified amount of health care is used, persons served pay either a discounted rate or the full per diem rates for required health care services; and
M. “unit” means the living quarters that a resident buys, leases or has assigned as part of the continuing care contract.