Utah Code 31A-44-501.1. Receivership
Current as of: 2024 | Check for updates
|
Other versions
(1) The department may, by petition or motion, request that a court appoint the commissioner as receiver for a provider.
Terms Used In Utah Code 31A-44-501.1
- Continuing care: means furnishing or providing access to an individual, other than by an individual related to the individual by blood, marriage, or adoption, of lodging together with nursing services, medical services, or other related services pursuant to a contract requiring an entrance fee. See Utah Code 31A-44-102
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the Insurance Department. See Utah Code 31A-1-301
- Entrance fee: includes a monthly fee, assessed at a rate that is greater than the value of the provider's monthly services, that a resident agrees to pay in exchange for acceptance into a facility or a promise of future monthly fees assessed at a rate that is less than the value of the services rendered. See Utah Code 31A-44-102
- Facility: means a place in which a person provides continuing care pursuant to a continuing care contract. See Utah Code 31A-44-102
- Insolvent: means :(7)(a) having generally ceased to pay debts in the ordinary course of business other than as a result of a bona fide dispute;(7)(b) being unable to pay debts as they become due; or(7)(c) being insolvent within the meaning of federal bankruptcy law. See Utah Code 31A-44-102
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Proceeding: includes an action or special statutory proceeding. See Utah Code 31A-1-301
- Provider: means :
(9)(a)(i) the owner of a facility;(9)(a)(ii) a person, other than a resident, that claims a possessory interest in a facility; or(9)(a)(iii) a person who enters into a continuing care contract with a resident or potential resident. See Utah Code 31A-44-102- Resident: means an individual entitled to receive continuing care in a facility pursuant to a continuing care contract. See Utah Code 31A-44-102
(2) The court may appoint the commissioner as receiver if, as determined by the commissioner, the provider:(2)(a) is insolvent or at material risk of becoming insolvent within the next 12 months;(2)(b) is materially unable to meet the income or available cash projections described in the provider’s disclosure statement; or(2)(c) is unable or at risk of being unable to perform a material obligation under a continuing care contract within the next 12 months.(3) In evaluating whether a receiver is appropriate under this section, the court:(3)(a) shall evaluate and promote the best interests of the residents that have contracted with the provider; and(3)(b) may require the proceeds of a lien imposed under Section 31A-44-601 to be used to pay an entrance fee to another facility on behalf of a resident of the provider’s facility.(4) The commissioner may not file an independent proceeding or action described in this section if another judicial proceeding or action based on the provider’s financial condition is pending, but may move to intervene in a pending proceeding or action that is based on the provider’s financial condition.