(a)        Within 30 days after termination of the temporary management, the temporary manager shall give the court a complete accounting of:

(1)        All property of which the temporary manager took possession;

(2)        All funds collected under this Article;

(3)        Expenses of the temporary management; and

(4)        All disbursements or transfers of facility funds or other assets made during the period of temporary management. On the same day the accounting is filed with the court, the temporary manager shall serve on the respondent by registered mail a copy of this accounting.

(b)        If the operating funds collected during the temporary management exceed the reasonable expenses of the temporary management, the court shall order payment of the excess to the respondent, after reimbursement to the contingency fund. If the operating funds are insufficient to cover the reasonable expenses of the temporary management, the respondent shall be liable for the deficiency, except as described in this section.? If the respondent demonstrates to the court that repayment of amounts spent from the contingency fund would significantly impair the provision of appropriate care or services to residents, the court may order repayment over a period of time with or without interest or may order that the respondent be required to repay only part or none of the amount spent from the contingency fund. In reaching this decision, the court may consider all assets, revenues, debts and other obligations of the long-term care facility, the likelihood of the sale of the long-term care facility where repayment forgiveness would result in unjust enrichment of the respondent, and shall consider the impact of its determination on the provision of care to residents.? The respondent may petition the court to determine the reasonableness of any expenses of the temporary management.? The respondent shall not be responsible for expenses in excess of amounts the court finds to be reasonable.? Payment recovered from the respondent shall be used to reimburse the contingency fund for amounts used by the temporary manager.

(c)        The court may order that the Department have a lien for any reasonable costs of the temporary management that are not covered by the operating funds collected by the temporary manager and for any funds paid out of the contingency fund during the temporary management upon any beneficial interest, direct or indirect, of any respondent in the following property:

(1)        The building in which the long-term care facility is located;

(2)        The land on which the long-term care facility is located;

(3)        Any fixtures, equipment, or goods used in the operation of the long-term care facility; or

(4)        The proceeds from any conveyance of property described in subdivisions (1), (2), and (3) of this subsection made by the respondent within one year prior to the filing of the petition for temporary management unless such transfers were made in good faith, in the ordinary course of business, and without intent to frustrate the intent of subsection (b) of this section. Transfers made coincidental with serious deficiencies in resident care may be considered evidence of intent to frustrate the intent of subsection (b) of this section.

(d)       To the extent permitted by other provisions of applicable State or federal law, the lien provided for in this section is superior to any lien or other interest that arises subsequent to the filing of the petition for temporary management under this section, except for a construction or mechanic’s lien arising out of work performed with the express consent of the temporary manager.

(e)        The clerk of court in the county in which the long-term care facility is located shall record the filing of the petition for temporary management in the lien docket opposite the names of the respondents and licensees named in the petition.

(f)        Within 60 days after termination of the temporary management, the temporary manager shall file a notice of any lien created under this section.? If the lien is on real property, the notice shall be filed with the clerk of court in the county where the long-term care facility is located and entered on the lien docket.? If the lien is on personal property, the lien shall be filed with the person against whom the lien is claimed, and shall state the name of the temporary manager, the date of the petition for temporary management, the date of the termination of temporary management, a description of the property involved, and the amount claimed.? No lien shall exist under this section against any person, on any property, or for any amount not specified in the notice filed under this section. (1993, c. 390, s. 1.)

Terms Used In North Carolina General Statutes 131E-244

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Clerk of court: An officer appointed by the court to work with the chief judge in overseeing the court's administration, especially to assist in managing the flow of cases through the court and to maintain court records.
  • Department: means the Department of Health and Human Services. See North Carolina General Statutes 131E-1
  • Docket: A log containing brief entries of court proceedings.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Long-term care facility: means a nursing home as defined in N. See North Carolina General Statutes 131E-231
  • Person: means an individual, trust, estate, partnership, or corporation including associations, joint-stock companies, and insurance companies. See North Carolina General Statutes 131E-1
  • property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Resident: means a person who has been admitted to a long-term care facility. See North Carolina General Statutes 131E-231
  • Respondent: means the person or entity holding a license pursuant to N. See North Carolina General Statutes 131E-231
  • 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, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3