Order to rehabilitate.

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  • (1) A court order to rehabilitate a facility under Section 31A-44-501 may direct a trustee to:
    • (a) take possession of the provider's property in order to conduct the provider's business, including employing any manager or agent that the trustee considers necessary; and
    • (b) take action as directed by the court to eliminate the causes and conditions that made rehabilitation necessary, which action may include:
      • (i) selling the facility through bankruptcy or receivership proceedings; and
      • (ii) requiring a purchaser of the facility to honor any continuing care contract for the facility.
  • (2)
    • (a) For a facility subject to a ground lease, a court may, in addition to the actions described in Subsection (1), direct a trustee to purchase from the ground lessor, or assign to another person that agrees to operate the facility, for market value, the ground lessor's interest in the land and the infrastructure improvements to the land on which the facility is located.
    • (b) A court may direct a trustee under Subsection (2)(a) to purchase from a ground lessor the land and infrastructure improvements to the land on which a facility is located, regardless of the terms of the ground lease agreement.
    • (c) If a court directs a trustee to purchase or assign the land and infrastructure improvements to the land under Subsection (2)(a), the ground lessor shall sell or assign the land and infrastructure improvements to the land in compliance with the court order.
    • (d) The commissioner shall determine market value in accordance with rules made by the commissioner in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
    • (e) In determining market value under Subsection (2)(d), the commissioner shall:
      • (i) value the land and infrastructure improvements to the land on which the facility is located as though the land and infrastructure improvements to the land were not subject to the ground lease; and
      • (ii) disregard the monetized value of an existing ground lease.
  • (3) Solely for the purpose of enforcing this section, a court has personal jurisdiction in a proceeding under this section over:
    • (a) the owner of a facility; and
    • (b) the owner of the land and infrastructure improvements to the land on which a facility is located.




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