Md. Code Regs. 10.37.01.08

Current through Register Vol. 51, No. 25, December 13, 2024

Section 10.37.01.08 - Notification of Certain Financial Transactions

A. General. A facility subject to the jurisdiction of the Commission shall notify the Commission, in writing, within 30 days before executing any financial transaction, contract, or other agreement that would:

(1) Pledge more than 50 percent of the operating assets of the facility as collateral for a loan or other obligation

(2) Result in more than 50 percent of the operating assets of the facility being sold, leased, or transferred to another person or entity; or

(3) Result in more than 50 percent of all corporate voting rights or governance reserve powers being transferred to or assumed by another person or entity.

B.Information Required. A facility shall file with the Commission within 30 days before executing a proposed financial transaction, contract, or other agreement as required in §A of this regulation, the following information:

(1) The name and address of the person or entity to whom:

(a) The operating assets of the facility are being sold, leased, transferred, or pledged as collateral for a loan or other obligation; or

(b) The corporate voting rights or governance reserve powers are being transferred or assumed.

(2) The precise nature of the financial transaction, contract, or other agreement.

C. Failure or Delay in Reporting Certain Financial Transactions.

(1) A facility under the jurisdiction of the Commission which does not notify the Commission of a proposed financial transaction, contract, or other agreement as required in §A of this regulation, is subject to all penalties prescribed by Commission law and regulation on failure to comply with reporting requirements.

(2) A required statement submitted to the Commission that is substantially incomplete or inaccurate is not considered timely filed.

D. Publication of Notice by Commission. The Commission shall publish a notice of the proposed financial transaction, contract, or other agreement reported by a facility, in accordance with §A of this regulation, in a newspaper of general circulation in the area where the facility is located.

E. Exception. The provisions of this regulation do not apply to any financial transaction, contract, or other agreement made by a facility with any issuer of tax-exempt bonds, including the Maryland Health and Higher Education Facilities Authority, the State, or any county or municipal corporation of the State, if a notice of the proposed issuance of revenue bonds that meets the requirements of § 147(F) of the Internal Revenue Code has been published.

Md. Code Regs. 10.37.01.08

Regulation .08 adopted effective January 6, 1992 (18:26 Md. R. 2830)
Regulation .08 amended effective 42:18 Md. R. 1174, eff.9/14/2015