Section 72R: Termination of receivership
Section 72R. A receivership shall not be terminated if a license to operate the facility would not be in effect upon termination; or the facility would revert to the licensee during the pendency of proceedings to revoke, deny, or suspend its license; or the facility would revert to a person not approved for licensure by the department.
The court may terminate a receivership under the following conditions: the department grants a license to operate the facility to the licensee divested of possession and control by the receiver; or there is a transfer of ownership of the facility to a transferee approved for licensure by the department; or all residents of the facility have been provided appropriate alternative placements, either in another facility or otherwise, and the subject facility is closed.
Notwithstanding the provisions of the second paragraph, a receivership shall not be terminated in favor of the former licensee, or, in the discretion of the court, a related person, unless such person first makes restitution to the department of public welfare of any rate increases for the receiver's compensation paid to the facility pursuant to section thirty-two A of chapter six A and such person repays the department of any amount that it may have paid to the receiver as a loan for major repairs or improvements of the facility, or assumes the obligation to repay the loan and provides collateral or other assurance of payment deemed sufficient by the department.
As an additional precondition to termination in favor of the former licensee, or in the discretion of the court, a related person, the court may require the posting of a bond in an amount fixed by the court as security for maintaining compliance with the laws and regulations governing the operation of the facility. If it shall appear that the licensee fails to maintain the facility in substantial compliance with such laws and regulations, the court, after notice to those persons who have appeared in the proceeding, and after hearing, shall reinstate its order appointing a receiver. A receiver thus appointed may use the security, or such part of the security as is necessary, to remedy the deficient conditions. A receivership thus reinstated shall be terminated only upon transfer of the facility to a purchaser approved by the department and the court, or upon closure of the facility.
If the receivership has not been terminated within twelve months of the appointment of the receiver, the court shall, after hearing, order either that the facility shall be closed, after an orderly transfer of the residents to appropriate alternative placements; or the facility shall be sold, under reasonable terms approved by the court, to a new owner approved for licensure by the department. The receivership period may be extended as necessary to protect the health and safety of the residents.