| (a) If a person who has contracted with a provider elects to rescind his or her continuing care contract or if a person who has made a refundable reservation agreement deposit requests the return of the reservation agreement deposit, the funds or property held in the entrance fee escrow account, or released to the provider under §33.403 of this title (relating to Release of Entrance Fees Escrow Account to Provider) must be refunded in full within 30 days of request. This subsection does not apply to periodic charges specified in the relevant continuing care contract and which are applicable to the period in which the resident actually occupied the living unit under the continuing care contract. (b) If an entrance fee escrow account is not released to the provider under §33.403 of this title (relating to Release of Entrance Fees Escrow Account to Provider), or deposited in the loan reserve fund escrow account under §33.405 of this title
(relating to Loan Reserve Fund Escrow Accounts) within 36 months from the date on which the provider received any portion of the funds, the escrow agent shall return the funds to the resident or prospective resident. This subsection does not apply if a longer time is specified in the provider's disclosure statement delivered to the resident or prospective resident with the continuing care contract or reservation agreement under which the funds were paid. (c) The reservation agreement must contain the provisions in paragraphs (1) and (2) of this subsection relative to the refund of the reservation agreement deposit. (1) At the option of the prospective resident, the reservation agreement deposit may be either refunded to the prospective resident or applied to the entrance fee required under the continuing care contract, when the continuing care contract is executed. If the reservation agreement deposit is applied to the entrance fee, it
shall be maintained in the entrance fee escrow account. (2) A reservation agreement entered into prior to the issuance of a provider's certificate of authority shall require the provider to fully refund the reservation agreement deposit if requested for any reason.
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