(a)      In this subtitle the following words have the meanings indicated.

      (b)      "Assisted living program" has the meaning stated in § 19-1801 of the Health - General Article.

      (c)      "Certified financial statement" means a complete audit prepared and certified by an independent certified public accountant.

      (d)      "Continuing care" means furnishing or making available shelter and either medical and nursing services or other health related services to an individual 60 years of age or older not related by blood or marriage to the provider for the life of the individual or for a period in excess of 1 year under one or more written agreements that require a transfer of assets or an entrance fee notwithstanding periodic charges.

      (e)      "Continuing care agreement" means an agreement between a provider and a subscriber to provide continuing care.

      (f)      (1)      "Contractual entrance fee refund" means a repayment of all or part of a subscriber's entrance fee to the subscriber or the subscriber's estate or designated beneficiary, as required by the terms of the continuing care agreement.

            (2)      "Contractual entrance fee refund" does not mean a payment required by § 14 or § 15 of this subtitle.

      (f-1)      "Conversion" means the process of taking a facility that provides housing or shelter and converting it to a continuing care facility where:

            (1)      The residential accommodations exist before a statement of intent is filed under § 10(a) of this subtitle; and

            (2)      At least 60% of the available residential accommodations of the facility owner were occupied during the 2 previous fiscal years.

      (g)      "Creditor" means a person with a claim against a continuing care provider.

      (h)      "Delinquency proceeding" means a proceeding under this subtitle to liquidate, rehabilitate, reorganize, or conserve a continuing care provider.

      (i)      "Deposit" means a portion of an entrance fee.

      (j)      (1)      "Entrance fee" means a sum of money or other consideration, other than a surcharge, paid intially or in deferred payments, that:

                  (i)      Assures a subscriber continuing care for a term of more than 1 year or for life; and

                  (ii)      Is at least three times the weighted average of the monthly cost of the periodic fees charged for independent living and assisted living units.

            (2)      "Entrance fee" includes a fee of similar form and application, regardless of title.

      (k)      "Expansion" means any single new capital addition, excluding renovation and normal repair and maintenance, that meets either of the following criteria:

            (1)      If independent or assisted living units are to be constructed, then the number of units to be constructed must be less than or equal to 25% of the number of existing independent and assisted living units; or

            (2)      If independent or assisted living units are not to be constructed, then the total projected cost must be an amount that is more than the sum of:

                  (i)      10% of the total operating expenses, less depreciation, amortization, and interest expense of the facility as shown on the certified financial statement for the most recent fiscal year for which a certified financial statement is available; and

                  (ii)      The amount of the existing reserves properly allocable to, and so allocated for, the expansion.

      (l)      "Extensive contract" means a continuing care agreement that provides residential facilities, meals, amenities, and long-term care services in licensed assisted living and comprehensive care programs for as long as a subscriber needs them and for no increase in the subscriber's entrance fee or periodic fees, except for an adjustment to account for increased operating costs caused by inflation or other factors unrelated to the individual subscriber.

      (m)      "Facility" means a physical plant in which continuing care is provided in accordance with this subtitle.

      (n)      "Financial difficulty" means current or impending financial conditions that impair or may impair the ability of the provider to meet existing or future obligations.

      (o)      "General assets" means:

            (1)      All property that is not specifically mortgaged, pledged, deposited, or otherwise encumbered for the security or benefit of specified persons or a limited class of persons;

            (2)      To the extent that property of a continuing care provider is specifically encumbered, the amount of the property or its proceeds that exceeds the amount necessary to discharge the encumbrance; and

            (3)      Assets held in trust and assets held on deposit for the security or benefit of all subscribers and creditors in the United States.

      (p)      "Governing body" means a board of directors, board of trustees, or similar group that ultimately directs the affairs of a provider, but whose members are not required to have an equity interest in the provider.

      (q)      (1)      "Health related services" means services that are needed by a subscriber to maintain the subscriber's health.

            (2)      "Health related services" include:

                  (i)      Priority admission to a nursing home or assisted living program; or

                  (ii)      Assistance in the activities of daily living not including the provision of meals.

      (r)      "Making available either medical and nursing services or other health related services" means the provider or an affiliate of the provider has made the services readily accessible for use by a subscriber whether or not the services are specifically offered in the written agreement for shelter.

      (s)      "Modified contract" means a continuing care agreement that:

            (1)      Would be an extensive contract but for its limiting the amount of long-term care services to be provided in a licensed assisted living or comprehensive care program for no increase in the periodic fee; and

            (2)      Provides that long-term care services in a licensed assisted living or comprehensive care program beyond the limited amount to be provided for no increase in the periodic fee will be provided on a per diem, fee-for-service, or other agreed upon rate.

      (t)      "Person" means any natural person, firm, association, corporation, company, trust, partnership, limited liability company, public body, or other business or nonprofit entity.

      (u)      "Processing fee" means the fee imposed by the provider for determining the financial, mental, and physical eligibility of an applicant for entrance into a facility.

      (v)      "Provider" means any person who undertakes to provide continuing care and who is:

            (1)      The owner or operator of a facility; or

            (2)      An applicant for or the holder of a certificate of registration.

      (w)      "Receiver" includes a conservator, rehabilitator, and liquidator.

      (x)      "Records" means the information maintained by the provider for the proper operation of the facility under this subtitle.

      (y)      "Renovation" means any single capital improvement to, or replacement of, the existing facility, or any part of the existing facility, but excluding normal repair and maintenance, that will not increase the number of independent or assisted living units and for which the total projected cost is an amount that is more than the sum of:

            (1)      20% of the total operating expenses, less depreciation, amortization, and interest expense of the facility as shown on the certified financial statement for the most recent fiscal year for which a certified financial statement is available; and

            (2)      The amount of the existing reserves properly allocable to, and so allocated for, the renovation.

      (z)      (1)      "Secured claim" means a claim that:

                  (i)      Is secured by mortgage, trust deed, pledge, deposit as security, escrow, or otherwise; or

                  (ii)      Has become a lien on specific assets through judicial process.

            (2)      "Secured claim" does not include a special deposit claim or a claim against general assets.

      (aa)      (1)      "Special deposit claim" means a claim secured by a deposit required by law for the security or benefit of a limited class of persons.

            (2)      "Special deposit claim" does not include a claim against general assets.

      (bb)      "Subscriber" means an individual for whom a continuing care agreement is purchased.

      (cc)      "Surcharge" means a separate and additional charge, other than a second person entrance fee, imposed simultaneously with the entrance fee, that may be required of some but not all subscribers because of a condition or circumstance that applies only to those subscribers.

      (dd)      "Transfer" means, when used in conjunction with property:

            (1)      The sale or other direct or indirect disposition of property or an interest in property;

            (2)      The fixing of a lien on property or an interest in property; or

            (3)      The retention of a security title to property delivered to a debtor.

      (ee)      "Written agreement" does not include an agreement that is regulated as continuing care at home under § 22A of this subtitle or as insurance under the Insurance Article.