Section 1789.4 Of Article 6. Reporting And Reserve Requirements From California Health And Safety Code >> Division 2. >> Chapter 10. >> Article 6.
1789.4
. (a) A provider for a continuing care retirement community
shall obtain approval from the department before consummating any
sale or transfer of the continuing care retirement community or any
interest in that community, other than sale of an equity interest in
a unit to a resident or other transferor.
(b) The provider shall provide written notice to the department at
least 120 calendar days prior to consummating the proposed
transaction.
(c) The notice required by this section shall include all of the
following:
(1) The identity of the purchaser.
(2) A description of the terms of the transfer or sale, including
the sales price.
(3) A plan for ensuring performance of the existing continuing
care contract obligations.
(d) The provider shall give written notice to all continuing care
contract residents and depositors 120 calendar days prior to the sale
or transfer. The notice shall do all of the following:
(1) Describe the parties.
(2) Describe the proposed sale or transfer.
(3) Describe the arrangements for fulfilling continuing care
contract obligations.
(4) Describe options available to any depositor or resident who
does not wish to have his or her contract assumed by a new provider.
(5) Include an acknowledgment of receipt of the notice to be
signed by the resident.
(e) Unless a new provider assumes all of the continuing care
obligations of the selling provider at the close of the sale or
transfer, the selling provider shall set up a trust fund or secure a
performance bond to ensure the fulfillment of all its continuing care
contract obligations.
(f) The purchaser shall make applications for, and obtain, the
appropriate licenses and a certificate of authority before executing
any continuing care contracts or assuming the selling provider's
continuing care contract obligations.