Under which condition may a facility not lose its license?

The correct answer indicates that a facility may not lose its license under the specific condition of a conviction of a crime by an officer of the owner-corporation. This reflects the reality that the operational license of a nursing home is tied primarily to the facility's compliance with state regulations and quality of care standards, rather than the criminal actions of individual officers or shareholders of the owning corporation.

In many jurisdictions, including Illinois, the accountability of a nursing home lies heavily on the operational practices and the wellbeing of its residents. While corporate officers are indeed critical to the management and financial health of facilities, their personal legal issues do not automatically compromise the facility's license unless those issues impact the facility’s operations or a serious violation of nursing home regulations occurs.

In contrast, misappropriating resident funds and failing to eliminate a Type A violation within the designated period are clear violations of regulations, which typically result in actions that could lead to the loss of a facility's license. Similarly, failing to pay penalties after multiple notifications shows negligent behavior towards compliance obligations, which is a significant factor evaluated during licensing reviews. Thus, the relationship between individual actions and the facility’s operational standing is crucial to understanding why a criminal conviction does not necessarily result in license loss.