420-D:13 Transfer or Sale of Interest or Control. –
I. A provider shall notify the commissioner prior to the proposed sale or transfer to a third party of a material portion of the provider's assets or beneficial interests, or of a proposed transfer of control of the provider. For purposes of this section, "material portion of the provider's assets and or interests" means any assets of the provider worth greater in the aggregate more than 10 percent of any interests of the provider's total assets or 50 percent or more of the beneficial interests. The notification shall specify the amount of assets or interests involved in the transfer, the type of transfer, and to whom. The proposed transfer shall be approved by the commissioner before such transfer can be made and become effective. The commissioner may refuse to approve such transfers until full disclosure has been made, to his or her satisfaction, of the terms and conditions of the transfer and the commissioner has determined that such transfer (i) will be to a qualified provider to whom a certificate of authority will be issued under the statute; (ii) will not negatively impact the financial stability of the CCRC; and (iii) will not diminish services or protections given to current and future residents, whose interests are paramount. Notwithstanding the above, if a provider is in violation of RSA 420-D or its material loan covenants, the provider shall notify the department of any transfer of assets or interests out of the ordinary course of business in any amount and the department shall, at its option, approve or deny the sale or transfer. If the transfer involves a transfer of ownership of more than 5 percent of the outstanding ownership interests, a new biographical affidavit shall be provided to the department.
II. If the commissioner approves a sale or transfer under this section, the commissioner shall cancel the existing certificate of authority and require that an application for a certificate of authority be submitted by the new provider within 30 days, unless the provider is already licensed, in which case a new certificate shall not be required.
III. Unless a new provider assumes all of the continuing care obligations under the continuing care contracts of the selling provider at the close of the sale or transfer, the selling provider shall set up a trust fund, secure a performance bond, or establish some other mechanism satisfactory to the commissioner to ensure the fulfillment of all its continuing care contract obligations.
IV. The provider shall give written notice to residents 120 days prior to the sale or transfer of a CCRC, unless there are exigent circumstances to shorten the notice period, with specifics of the sale or transfer and options available to the residents. The provider shall confirm that each resident has been provided notice.