(a)    A provider may collect deposits from prospective subscribers if:

(1)    the Department has approved the provider’s feasibility study; and

(2)    funds collected are maintained in an escrow account.

(b)    Each deposit agreement shall comply with the requirements of subsection (c) or (d) of this section.

(c)    If a deposit agreement is used for a deposit on a unit for which the provider has not received written approval to withdraw deposits, the deposit agreement shall:

(1)    state that all deposits and entrance fees will be held in escrow until:

(i)    an initial certificate of registration for the unit is issued;

(ii)    construction is completed;

(iii)    a certificate of occupancy, or its equivalent, is issued by the local jurisdiction; and

(iv)    the provider has the appropriate licenses or certificates from the Maryland Department of Health, the Maryland Health Care Commission, and the Department;

(2)    describe the disposition of any interest earned on deposits and entrance fees;

(3)    state the amount of any processing fee and whether it will be refunded if the deposit agreement is canceled; and

(4)    describe the disposition of the deposit if the deposit agreement is canceled before the continuing care agreement is executed.

(d)    If a deposit agreement is used for a deposit on a unit for which the provider has received written approval to withdraw deposits, the deposit agreement shall:

(1)    state that the provider may use all deposits and entrance fees at any time; or

(2)    describe any applicable limitations on the use of deposits and entrance fees.