A. Before a receiver is appointed, a nominee shall be sworn to faithfully perform the duties of a receiver. At the initial hearing, the receiver shall seek and obtain court approval of one or more sureties and shall execute a bond in such amount as the court shall direct.

B. In establishing a receivership, the court shall set forth the powers and duties of the receiver. The court shall authorize the receiver to do all that is prudent and necessary to protect the health, safety and welfare of all persons served by the agency and to efficiently administer residential services within the requirements of state and federal law, relevant policy, and the agency's contracts with the Department of Human Services and the Oklahoma Health Care Authority. These powers and duties shall include those generally ascribed to receivers and may also include the powers and duties of trustees under the U.S. Bankruptcy Code, as amended. In addition to the powers specified by this section, the court shall authorize the receiver to:

1. Honor all leases, mortgages and secured transactions governing all buildings, goods and fixtures of which the receiver has taken possession and continues to use, but, in the case of a rental agreement, only to the extent of payments that are for the use of the property during the period of the receivership, or, in the case of a purchase agreement, only to the extent of payments that are received during the period of the receivership;

2. If transfer of residents is necessary, provide for the orderly transfer of residents by doing the following:

a.cooperate with all appropriate state and local agencies in carrying out the transfer of residents to alternative community placements,

b.arrange for the transportation of residents' belongings and records,

c.help to locate alternative placements and develop discharge plans,

d.prepare residents for the trauma of discharge, and

e.permit residents or guardians to participate in transfer or discharge planning except when an emergency exists and immediate transfer is necessary;

3. Make periodic reports on the status of the residential program to the appropriate state agency, parents, guardians, and residents;

4. Compromise demands or claims with prior notice to the Department of Human Services and the Oklahoma Health Care Authority, subject to approval by the court; and

5. Subject to the supervision and control of the court, bring and defend actions in the receiver's name, in the official capacity as receiver, and take and keep possession of property.

C. The court shall require the receiver to obtain court approval prior to making any single expenditure of more than Five Thousand Dollars ($5,000.00) to correct deficiencies in the structure or furnishings of residences supported by an agency. The court shall require regular and detailed reports including a final report. The receivership shall be reviewed at least every sixty (60) days.

D. Upon motion by the receiver, the Department of Human Services or other interested party, a receivership established pursuant to this section may be terminated by the court, and the receiver discharged, following notification of the appropriate parties and interested persons and a hearing, if the court determines the following:

1. The residential agency and owners have ceased operations and the former residents have been relocated to an appropriate service setting; or

2. Circumstances no longer exist at the agency that present a substantial risk of physical or mental harm or death to residents, and there is no deficiency in the agency that is likely to create such risk of harm or death.

E. Upon motion of the receiver, the Department of Human Services or other interested party, the court may, during the hearing to consider termination of the receivership and discharge of the receiver, approve the return of control of the agency, corporation, or assets to the original owner or approve the sale of the same to a new owner. The Department of Human Services, the Oklahoma Health Care Authority, all other interested parties, and other persons with a known interest in the proceedings shall receive written notice from the receiver of such hearing.

F. The Department of Human Services and the Oklahoma Health Care Authority shall provide technical assistance to any receiver appointed pursuant to this section.

Added by Laws 1997, c. 407, § 18, eff. Nov. 1, 1997.