New York Laws
Article 46-A - Fee-for-Service Continuing Care Retirement Communities Demonstration Program
4670 - Receiverships.

(i) when the community is issued a new certificate of authority; or
(ii) at such time as all of the residents in the community have been
provided alternate residential and health care services.
b. At the time of termination, the receiver shall render a full and
complete accounting to the court and shall make disposition of surplus
money at the discretion of the court.
7. a. Any person who is served a copy of an order of the court
appointing the receiver shall, upon being notified of the name and
address of the receiver, make all payments for goods supplied by the
community, or services rendered by the community, to the receiver. A
receipt shall be given for each such payment, and copies of all such
receipts shall be kept on file by the receiver. The amount so received
shall be deposited by the receiver in a special account which shall also
be used for all disbursements made by the receiver.
b. Any person refusing or omitting to make such a payment after such
service and notice may be sued therefor by the receiver. Such person
shall not in such suit dispute the authority of the receiver to incur or
order such expenses, or the right of the receiver to such payments made
to him or her. The receipt provided by the receiver for any sum paid to
him or her shall, in all suits and proceedings and for every other
purpose, be as effectual in favor of any person holding the receipt as
actual payment of the amount thereof to the operator or other person or
persons who would, but for the provisions of this section, have been
entitled to receive the sum to be paid. No resident shall be discharged,
nor shall any contract or rights be forfeited or impaired, nor any
forfeiture or liability be incurred, by reason of any omission to pay
any operator, owner, contractor or other person any sum so paid to the
receiver.
8. Any other provision of this article notwithstanding, the council
may, if it deems appropriate, grant to any community operating or
scheduled to operate under a receivership authorized by this section a
certificate of authority, the duration of which shall be limited to the
duration of the receivership.
9. a. No provision of this section shall be deemed to relieve the
operator, owner or manager of any civil or criminal liability incurred,
or any duty imposed by law, by reason of acts or omissions of the

operator, owner or manager prior to the appointment of any receiver
pursuant to this section, nor shall anything in this section be
construed to suspend during the receivership any obligation of the owner
for the payment of taxes or other operating and maintenance expenses of
the community nor of the owner or any other person for the payment of
mortgages or liens.
b. The receiver shall not be responsible for any obligations incurred
by the owner, manager or prime lessor, if any, prior to the appointment
of the receiver, other than those obligations to residents pursuant to
the fee-for-service continuing care contracts.
c. The receiver shall be entitled to use for operating and maintenance
expenses and the basic needs of the residents of the community a portion
of the revenues due the operator during the month in which the receiver
is appointed, which portion shall be established on the basis of the
amounts of the unpaid operating and maintenance expenses for such month.