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Full title: Order Authorizing Debtor to Maintain Escrow Arrangements in the Ordinary Course and Refund Certain Resident Deposits (Related Doc # 21) Signed on 9/3/2021. (So ordered by Judge Bruce A. Harwood ) (amw) (Entered: 09/03/2021)

Document posted on Sep 2, 2021 in the bankruptcy, 4 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

Upon the Emergency Ex Parte Motion of Debtor for Entry of an Order Authorizing Debtors to Maintain Escrow Arrangement in the Ordinary Course and Refund Certain Resident Deposits (the “Motion”)2 of the Debtor for entry of an (this “Order”) authorizing the Debtor to cause the Escrow Agent to honor postpetition Option Deposit refund claims of New Residents in the ordinary course, authorizing the Debtor to allow New Residents to escrow, during the pendency of this chapter 11 case, all resident Option Deposits made postpetition, and granting certain related relief; the Court having reviewed the Motion and the First Day Declaration; and the Court having jurisdiction over this matter pursuant to 28 U.S.C. 157 and §§ 1334(b); and the Court having found that this matter is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); and the Court having found that venue of this proceeding and the Motion in this district is proper pursuant to 28 U.S.C. §§ 1408 and 1409; and the Court having determined that the relief requested in the Motion is in the best interests of the Debtor, the estate, creditors, and other parties in interest; and it appearing that proper and adequate notice of the Motion has been given and that no other or further notice is 1 The Debtor is hereby authorized, without further application to this Court, to cause the Escrow Agent to honor undisputed timely postpetition Option Deposit refund claims made by New Residents in accordance with the Option Agreement, in the ordinary course of business and without further application to or order of this Court.If a New Resident provides the Debtor with a timely and proper Refund Request, then, pursuant to the terms of the Option Agreement, the Debtor shall terminate the Residency Agreement and shall cause the Escrow Agent to refund to the resident from the Resident Option Deposit Escrow Account the Option Deposit, minus any unpaid fees or charges that the resident owes the Debtor, within 30 days after the resident vacates his or her unit at the Hillside Village Community.If the New Resident does not provide the Debtor with a timely Refund Request, the Option Agreement shall (i) automatically terminate; (ii) the escrow of the Option Deposit shall 2 terminate; (iii) the escrow agent shall deliver the applicable balance of the Option Deposit to the Debtor or its assigns; (iv) Debtor shall credit the Option Deposit toward satisfying the Entrance Fee requirement under the resident’s During the pendency of this case, in the event a New Resident elects to leave his or her living unit and requests the refund of his or her Option Deposit in accordance with the terms of the Option Agreement, the Debtor is hereby authorized, without further application to this Court, to cause the Escrow Agent to make such a refund independent of whether such living unit becomes reoccupied.

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IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF NEW HAMPSHIRE In re: ) Chapter 11 ) Prospect-Woodward Home ) Case No. 21-10523 (BAH) dba Hillside Village, ) ) Re: Docket No. 21 Debtor. 1 ) ) ORDER AUTHORIZING DEBTOR TO MAINTAIN ESCROW ARRANGEMENTS IN THE ORDINARY COURSE AND REFUND CERTAIN RESIDENT DEPOSITS Upon the Emergency Ex Parte Motion of Debtor for Entry of an Order Authorizing Debtors to Maintain Escrow Arrangement in the Ordinary Course and Refund Certain Resident Deposits (the “Motion”)2 of the Debtor for entry of an (this “Order”) authorizing the Debtor to cause the Escrow Agent to honor postpetition Option Deposit refund claims of New Residents in the ordinary course, authorizing the Debtor to allow New Residents to escrow, during the pendency of this chapter 11 case, all resident Option Deposits made postpetition, and granting certain related relief; the Court having reviewed the Motion and the First Day Declaration; and the Court having jurisdiction over this matter pursuant to 28 U.S.C. 157 and §§ 1334(b); and the Court having found that this matter is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); and the Court having found that venue of this proceeding and the Motion in this district is proper pursuant to 28 U.S.C. §§ 1408 and 1409; and the Court having determined that the relief requested in the Motion is in the best interests of the Debtor, the estate, creditors, and other parties in interest; and it appearing that proper and adequate notice of the Motion has been given and that no other or further notice is 1 The last four digits of the Debtor’s federal taxpayer identification are 2146. The address of the Debtor’s headquarters is 95 Wyman Road, Keene, New Hampshire 03431. 2 Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Motion.

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necessary; and upon the record herein; and after due deliberation thereon; and good and sufficient cause appearing therefore, it is hereby ORDERED, ADJUDGED, AND DECREED THAT: 1. The Motion is GRANTED as set forth herein. 2. The Debtor is hereby authorized to permit New Residents to make Option Deposits into escrow pursuant to the Option Agreement and Option Deposit Escrow Account Agreement in their present form, or as they may be amended or changed from time to time. 3. The Debtor is hereby authorized, without further application to this Court, to cause the Escrow Agent to honor undisputed timely postpetition Option Deposit refund claims made by New Residents in accordance with the Option Agreement, in the ordinary course of business and without further application to or order of this Court. 4. During the pendency of this Case, all Option Deposits will be deposited in the Resident Option Deposit Escrow Account. Pursuant to the terms of the Option Agreement, a New Resident may provide the Debtor with a written Refund Request at any time before the expiration of 28 days after the Debtor gives notice of a Trigger Event. 5. If a New Resident provides the Debtor with a timely and proper Refund Request, then, pursuant to the terms of the Option Agreement, the Debtor shall terminate the Residency Agreement and shall cause the Escrow Agent to refund to the resident from the Resident Option Deposit Escrow Account the Option Deposit, minus any unpaid fees or charges that the resident owes the Debtor, within 30 days after the resident vacates his or her unit at the Hillside Village Community. 6. If the New Resident does not provide the Debtor with a timely Refund Request, the Option Agreement shall (i) automatically terminate; (ii) the escrow of the Option Deposit shall 2

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terminate; (iii) the escrow agent shall deliver the applicable balance of the Option Deposit to the Debtor or its assigns; (iv) Debtor shall credit the Option Deposit toward satisfying the Entrance Fee requirement under the resident’s Residency Agreement, retroactive to the date of the Residency Agreement; and (v) all of the terms of the Residency Agreement shall govern the rights of resident and Debtor and its assigns, as if the parties had never executed and entered into the Option Agreement. 7. During the pendency of this case, in the event a New Resident elects to leave his or her living unit and requests the refund of his or her Option Deposit in accordance with the terms of the Option Agreement, the Debtor is hereby authorized, without further application to this Court, to cause the Escrow Agent to make such a refund independent of whether such living unit becomes reoccupied. 8. To the extent the Debtor has any interest in the Option Deposits the use of such funds shall be limited to the terms of the interim or final order entered by the Court governing the Debtor’s right to use the Bond Trustee’s cash collateral. 9. The Debtor is authorized to take all actions it deems necessary to effectuate the relief granted pursuant to this Order in accordance with the Motion. 10. Nothing in this Order alters the Debtor’s obligations to comply with applicable nonbankruptcy law or the rights or obligations, including police and regulatory powers, of the State of New Hampshire, and any agencies or instrumentalities thereof. 11. Notwithstanding any Bankruptcy Rule that might otherwise delay the effectiveness of this Order, the terms and conditions of this Order shall be immediately effective and enforceable upon its entry. 3

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12. This Court shall retain jurisdiction over any and all matters arising from the interpretation, implementation, or enforcement of this Order. Dated: _______________________________ Bruce A. Harwood Chief Bankruptcy Judge 4

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