No funds held in an escrow account shall be encumbered or used as collateral for any obligation of the provider, or any other person, unless the provider obtains prior written approval from the Commissioner for the encumbrance or use as collateral. The Commissioner shall not approve any encumbrance or use as collateral under this section unless the encumbrance or use as collateral is expressly subordinated to the rights of depositors under this Article to refunds of their entrance fees or deposits.
N.C. Gen. Stat. § 58-64A-130
Escrowed funds not to be used as collateral
Known as the Continuing Care Retirement Communities Act
The act spans §§ 58-64A-1 to 58-64A-95 (77 sections).
2025-58, s. 2.
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.