Vermont Statutes Title 33 Sec. 7214
Terms Used In Vermont Statutes Title 33 Sec. 7214
- Contract: A legal written agreement that becomes binding when signed.
- Facility: means a residential care home, nursing home, assisted living residence, home for persons who are terminally ill, or therapeutic community residence licensed or required to be licensed pursuant to the provisions of this chapter. See
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Licensee: means any person, other than a receiver appointed under this chapter, which is licensed or required to be licensed to operate a facility. See
- Licensing agency: means the Agency of Human Services or the department or division within the Agency as the Secretary of Human Services may designate. See
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Owner: means the holder of the title to the property on or in which the facility is maintained. See
- Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See
- real estate: shall include lands, tenements, and hereditaments and all rights thereto and interests therein, and pews or slips in places of public worship shall be treated as real estate. See
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
§ 7214. Avoidance of contracts
(a) The court may grant a motion filed by the receiver to avoid a lease, mortgage, secured transaction, or other contract entered into by the owner or licensee of the facility if the court finds that the agreement:
(1) was entered into for a fraudulent purpose or to hinder or delay creditors;
(2) including a rental amount, price, or rate of interest, was unreasonable or excessive at the time the agreement was entered into; or
(3) is unrelated to the operation of the facility.
(b)(1) The receiver shall send notice of the motion to any known owners and mortgage holder of the property, the licensing agency, and the State Long-Term Care Ombudsman at the time of filing.
(2) The court shall hold a hearing on the receiver’s motion to avoid a contract within 15 days.
(c) If the receiver is in possession of real estate or goods subject to a contract or security interest that the receiver is permitted to avoid under this section and if the real estate or goods are necessary for the continued operation of the facility, the court may set a reasonable rental amount, price, rate of interest, or replacement contract term to be paid by the receiver during the term of the receivership.
(d) Payment by the receiver of the amount determined by the court to be reasonable is a defense to an action against the receiver for payment or for the possession of the subject goods or real estate by a person who received notice.
(e) Notwithstanding any provision of this section to the contrary, there shall not be a foreclosure or eviction during the receivership by any person if the foreclosure or eviction would, in view of the court, serve to defeat the purpose of the receivership. (Added 2009, No. 36, § 2; amended 2021, No. 20, § 362.)