Section 101.060 - Provider to maintain financial reserves; amount; escrow account; withdrawal from reserves(1) A provider shall establish and maintain at all times: (a) A debt service liquid reserve in an amount equal to or exceeding the total of all principal and interest payments due during the next 12 months on account of a mortgage loan or other long term financing of the continuing care retirement community taking into consideration any anticipated refinancing; and(b) An operating liquid reserve in an amount equal to or exceeding the total of the CCRC's projected operating expenses for three months. For the purpose of calculating the amount required for the operating liquid reserve, projected operating expenses include any anticipated expenses associated with providing housing or health related services under all residency agreements.(2) The Department of Human Services may require a provider not meeting its reserve requirements to place the reserves in an escrow account.(3) The notes to the provider's annual audited financial statements shall state whether or not the reserve requirements have been met.(4) The department may allow withdrawal or borrowing from the reserves in an amount not greater than 20 percent of the provider's total required reserves. The withdrawal or borrowing can be approved by the department only if required for making an emergency repair or replacement of equipment, to cover catastrophic loss that is not able to be covered by insurance or for debt service in a potential default situation. No withdrawal or borrowing may be made from a reserve without the approval of the department. All funds borrowed shall be repaid to the reserve within 18 months in accordance with a payment plan approved by the department. 1989 c.693 §12; 1997 c.633 §6; 2003 c. 14, § 40; 2009 c. 201, § 5