Section 1780.2 Of Article 3. Deposit Subscription Period From California Health And Safety Code >> Division 2. >> Chapter 10. >> Article 3.
1780.2
. (a) A deposit may be paid in one or several payments, at or
after the time the parties enter into the deposit agreement.
A deposit shall be paid by cash or cash equivalent, jointly
payable to the applicant and the escrow agent or depository.
Possession and control of any deposit agreement shall be transferred
to the escrow agent at the time the deposit is paid.
(b) A processing fee may be added to the deposit.
(1) The processing fee shall not exceed 1 percent of the amount of
the average entrance fee or five hundred dollars ($500), whichever
is greater.
(2) A nonrefundable processing fee may be paid directly to the
applicant without being placed in the deposit escrow account.
(c) Payments made by a depositor for upgrades or modifications to
the living unit shall not be placed in escrow with deposits. The
applicant shall provide written refund policies to the depositor
before accepting any payments for modifications or upgrades.
(d) The applicant shall furnish to the department within the first
10 days of each calendar month a list of all residents who have made
payments for modifications or upgrades, the amounts each resident
has paid, the date of each payment, and the unit to be modified or
upgraded for each resident.
(e) All payments for modifications or upgrades shall be refunded
to the depositor with interest if the applicant does not receive a
certificate of authority for the proposed continuing care retirement
community or expansion.
(f) The department may record a lien against the continuing care
retirement community property, or any portion of the continuing care
retirement community property, to secure the applicant's obligations
to refund the depositor's payments made for modifications or
upgrades. Any lien created under this section shall be to protect
depositors and shall be governed by Section 1793.15.