Section 87.38 - Escrow funds

87.38 Escrow funds.

(a) A hospital shall submit annually to the State Department of Health a schedule detailing those amounts that it is required to fund in the reserve escrow account.

(b) The reserve escrow account shall be opened in a Federally insured commercial bank that agrees to the uniform custodial agreement of the State Department of Health.

(c) From the financial occupancy date, a hospital shall deposit monthly in a reserve escrow account one-twelfth of its annual required funding.

(d) A hospital shall establish a separate mortgage repayment escrow count and make deposits and withdrawals into and from the account as required by the mortgage and the mortgagee.

(e) A hospital shall invest excess funds in the reserve escrow account in a manner specifically approved by the State Department of Health. Copies of the records of all transactions shall be promptly submitted to the State Department of Health.

(f) The deposited reserves for replacements shall be available to provide purchase money for necessary material replacements of furnishings and/or equipment and major repairs of construction and equipment.

(g) To obtain the disbursement of reserve escrow account funds, other than in the case of imminent peril, a hospital shall submit in advance to the State Department of Health such documentation as may be necessary for its approval.
 

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