Recent Legislation Affords Greater Flexibility In REIT Health Care Facility Ownership.Thanks to recent legislation regarding the structure of real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) ownership of health care facilities, restrictions on REIT ownership have been modified to the benefit of REITs. A taxable REIT subsidiary may now lease a health care facility directly from its parent REIT, hold the licenses applicable to operating such a facility, and then use an independent contractor A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. to operate the facility. Formerly, REITs had to lease a health care facility through a third-party tenant, who would then utilize an independent contractor to manage the facility. This new legislation allows REITs to stop using third-party tenants as accommodation parties One who signs a Commercial Paper for the purpose of lending his or her name and credit to another party to the document—the accommodated party—to help that party obtain a loan or an extension of credit. and thus enjoy the cost savings associated with eliminating what in some cases is an unnecessary party from the health care facility ownership structure. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Mr Michael Okaty Foley fo·ley n. 1. A technical process by which sounds are created or altered for use in a film, video, or other electronically produced work. 2. A person who creates or alters sounds using this process. & Lardner 111 North Orange Avenue Suite 1800 Orlando 32801 UNITED STATES United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Tel: 3128324734 Fax: 3128324700 E-mail: jbrumbaugh@foley.com URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : www.foley.com Click Here for related articles (c) Mondaq Ltd, 2008 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com |
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