(a) In this section, "appointed receiver" means a person, other than
the Secretary, that the court appoints as a conservator, rehabilitator,
or receiver under this section.
(b) (1) On motion of the court or the Secretary, the court may issue an order
that appoints or substitutes a person other than the Secretary as
conservator, rehabilitator, or receiver:
(i) On initial application by the Secretary for an order to appoint the
Secretary as conservator, rehabilitator, or receiver under this
subtitle; or
(ii) At any time during the course of a conservatorship, rehabilitation, or
receivership under this subtitle.
(2) An appointed receiver has the same powers and duties that the Secretary
has under this subtitle as conservator, rehabilitator, or receiver.
(c) (1) In addition to any other report required by the court, the court shall
require an appointed receiver at least quarterly to file with the
Secretary and court a report about:
(i) The status of the conservatorship, rehabilitation, or receivership; and
(ii) The activities of the appointed receiver since the last report filed
under this paragraph.
(2) The report required under paragraph (1) of this subsection at a minimum
shall include:
(i) Information of the character required by Title 13 of the Maryland Rules
that applies to receivers generally;
(ii) Any other information necessary to provide a complete report on the
financial affairs and condition of the conservatorship, rehabilitation,
or receivership;
(iii) A complete account of all efforts by the appointed receiver since the
last report:
1. To sell or dispose of the remaining business or assets of the
continuing care provider; or
2. To otherwise bring to a prompt conclusion the conservatorship,
rehabilitation, or receivership; and
(iv) Copies of any actuarial or other evaluations of the business and assets
under the control of the appointed receiver.
(3) The report shall be audited unless for good cause the court waives the
audit.
(d) Subject to any protective order that the court considers appropriate,
information filed under seal shall be provided to the Secretary.
(e) The appointed receiver shall give the Secretary full access to all
documents and records related to the conservatorship, rehabilitation,
or receivership that are in the possession of the appointed receiver.
(f) The Secretary may be a party to a conservatorship, rehabilitation, or
receivership for which there is an appointed receiver.
(g) (1) Subject to approval of the court, the Secretary may negotiate for sale
of all or part of the assets or business of the continuing care
provider placed in conservatorship, rehabilitation, or receivership.
(2) The appointed receiver:
(i) Shall cooperate fully in any sales negotiation under paragraph (1) of
this subsection; and
(ii) May object to the terms of a sale of the assets or business of the
continuing care provider that results from the negotiation.
(3) After notice and an opportunity to be heard, the court may limit the
efforts of the Secretary to undertake or continue negotiations for the
sale of the assets or business of the continuing care provider if the
negotiations would impair the ability of the appointed receiver to
engage in similar negotiations or discharge other responsibilities.
(h) (1) If the Secretary determines that an appointed receiver is not
adequately discharging the duties and responsibilities of the position,
the Secretary may file with the court an application that seeks to
discharge the appointed receiver and to appoint the Secretary as
conservator, rehabilitator, or receiver or to appoint another receiver.
(2) If the Secretary establishes by a preponderance of the evidence that
grounds exist for discharge of an appointed receiver, the court shall
grant the application of the Secretary to discharge the appointed
receiver and to appoint the Secretary as conservator, rehabilitator, or
receiver or to appoint another receiver.
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