N.Y. Comp. Codes R. & Regs. tit. 10 § 903.7

Current through Register Vol. 46, No. 50, December 11, 2024

Section 903.7 - Marketing materials

(a) For purposes of this section, marketing materials shall mean any financial statement, pamphlet, circular, graphic, form letter, or other sales literature or advertising communication intended for or directed to prospective residents of the life care community or proposed life care community or to the general public.

(b) All marketing materials, including all materials associated with a sales office and model units, used in the solicitation of priority reservation agreements and priority reservation fees shall, at a minimum, contain the following statements:

(1) The purpose of the marketing material is:

(i) in the case of a proposed community, to test the market demand for the proposed community and to allow prospective residents to place their names on a priority waiting list for admission to the community; or

(ii) in the case of an existing community operating under a life care contract, to allow prospective residents to place their names on a priority waiting list for admission to the community.

(2) The cancelable priority reservation agreement is not a life care contract and may be canceled by the prospective resident or the prospective resident's legal representative at any time, without cause.

(3) Any priority reservation fee paid shall be deposited directly into an escrow account and shall be refunded with interest earned at the prevailing rates upon request and cancellation of the agreement by the prospective resident or the prospective resident's legal representative.

(c) All marketing materials shall comply with the standards set forth in section 901.6(c)-(k) of this Title.

N.Y. Comp. Codes R. & Regs. Tit. 10 § 903.7