Liangjiang's elderly care initiative receives national recognition

Liangjiang New Area has been recognized for its innovative escrow notarization model, designed to regulate prepayments in elderly care institutions.

This model is one of 22 exemplary cases of civil affairs reform and innovation recognized nationwide.

Under this model, seniors or their families deposit prepayments into a fund supervision platform managed by the Chongqing Notary Office at a bank. The notary office oversees these accounts and issues fund supervision certificates.

When funds need to be accessed or refunded, applications are submitted through the platform, and the notary office processes these requests in accordance with contractual agreements or approved applications.

Liangjiang utilizes this fund supervision platform to prevent and mitigate risks associated with illegal financial activities in the elderly care sector. All deposits, including security deposits and membership fees, are funneled into a dedicated escrow account managed by the Chongqing Notary Office.

This ensures these funds remain separate from the institution's assets, safeguarding them against freezing or misappropriation in cases of bankruptcy or litigation. Over 3.88 million yuan ($565,407) in prepaid funds from elderly care institutions have been secured through this platform.

The platform also provides digital interfaces for civil affairs departments, notary institutions, elderly care institutions, and seniors (or their representatives), breaking down information barriers and facilitating business collaboration.

It provides real-time access to eight key data points, including fund flow, service records, and contract fulfillment, ensuring a seamless closed-loop management system spanning prepayment, service delivery, and fee settlement. 

The platform also integrates multiple functions, such as online electronic contract signing, issuance of fund supervision certificates, comprehensive documentation, and efficient evidence retrieval, while seamlessly interfacing with judicial arbitration processes.

In the event of disputes, a legally binding evidence chain can be retrieved, reducing the cost of rights protection. The platform minimizes human intervention, reduces opportunities for rent-seeking, and ensures that regulatory power is exercised transparently and in accordance with established norms.