Section 1788.4 Of Article 5. Contract From California Health And Safety Code >> Division 2. >> Chapter 10. >> Article 5.
1788.4
. (a) During the cancellation period, the provider shall pay
all refunds owed to a resident within 14 calendar days after a
resident makes possession of the living unit available to the
provider.
(b) After the cancellation period, any refunds due to a resident
under a continuing care contract shall be paid within 14 calendar
days after a resident makes possession of the living unit available
to the provider or 90 calendar days after death or receipt of notice
of termination, whichever is later.
(c) In nonequity projects, if the continuing care contract is
canceled by either party during the cancellation period or terminated
by the provider after the cancellation period, the resident shall be
refunded the difference between the total amount of entrance,
monthly, and optional fees paid and the amount used for care of the
resident.
(d) If a resident has paid additional amounts for upgrades,
special features, or modifications to the living unit and the
provider terminates the resident's continuing care contract, the
provider shall amortize those additional amounts at the same rate as
the entrance fee and shall refund the unamortized balance to the
resident.
(e) A lump-sum payment to a resident after termination of a
continuing care contract that is conditioned upon resale of a unit
shall not be considered to be a refund and may not be characterized
or advertised as a refund. The lump sum payment shall be paid to the
resident within 14 calendar days after resale of the unit.