CA Health & Safety Code Section 1793.62

(a)

The department, administrator, or any interested person, upon due notice to the parties, may petition the court for an order terminating the rehabilitation proceedings when the rehabilitation efforts have not been successful, the continuing care retirement community has been sold at foreclosure sale, the provider is the subject of an order for relief in bankruptcy, or the provider has otherwise been shown to be unable to perform its obligations under the continuing care contracts.

(b)

The court shall not issue the order requested pursuant to subdivision (a) unless all of the following have occurred:

(1)

There has been a full hearing and the court has determined that the provider is unable to perform its contractual obligations.

(2)

The administrator has given the court a full and complete report and financial accounting signed by the administrator as being a full and complete report and accounting.

(3)

The court has determined that the residents of the continuing care retirement community have been protected to the extent possible and has made such orders in this regard as the court deems proper.