Required disclosures
Sec. 12. (a) A developer, or exchange company if the exchange
company is dealing directly with the participants or camping club
members, that offers a program for the exchange of occupancy rights
among time share participants or camping club members or with the
purchasers or members in other time share or camping club projects,
or both, shall give in writing to the camping club members or time
share participants the following information:
(1) The name and address of the exchange company offering the
exchange program.
(2) A statement indicating whether the exchange company or
any of its officers or directors has any legal or beneficial
interest in any interest of the developer or managing agent in
any plan to sell time shares or camping club memberships
included in the program and, if so, the name, location, and
nature of the interest.
(3) A statement that the time share participant's or camping club
member's contract with the exchange company is a contract
separate and distinct from the contract to purchase the time
share or camping club membership, unless the exchange
company and the developer or an affiliate of the developer are
the same.
(4) A statement indicating whether the participant's or member's
participation in the exchange project is dependent upon the
continued inclusion of the plan to sell time shares or camping
club memberships in the program.
(5) A statement indicating whether the purchaser's or member's
membership or participation in the exchange program is
voluntary or mandatory.
(6) A complete and accurate description of the following:
(A) The terms and conditions of the purchaser's contractual
relationship with the company and the procedure by which
changes in the contractual relationship and may be made.
(B) The procedure to qualify for and make exchanges.
(C) All limitations, restrictions, and priorities of the
program, including limitations on exchanges based on the
seasons of the year, the size of units, or levels of occupancy.
The written description of the limitations, restrictions, and
priorities given under this clause must be printed in boldface
type and, if the limitations, restrictions, and priorities are not
uniformly applied by the program, must include a clear
description of the manner in which they are applied.
(7) A statement, which must be printed on all promotional
brochures, pamphlets, advertisements, and other materials
disseminated by the exchange company that indicate the
percentage of confirmed exchanges, to the effect that:
(A) the percentage of confirmed exchanges is a summary of
the requests for exchanges received by the exchange
company in the most recent annual reporting period; and
(B) the percentage does not indicate the probability of a
purchaser or members being confirmed to any specific
choice since availability at individual locations may vary.
(8) A statement indicating whether exchanges are arranged on
the basis of available space and whether there are any
guarantees of fulfilling specific requests for exchanges.
(9) A statement indicating whether and under what
circumstances a participant or member, in dealing with the
exchange company, may lose the right to use and occupy a time
share unit or camping site in any properly applied for exchange
without being provided with substitute accommodations by the
company.
(10) A statement of the fees to be paid by participants or
members in the program, including a statement indicating
whether any fees may be changed by the exchange company,
and if so, the circumstances under which those changes may be
made.
(11) The name and address of the site of each time share or
camping club project included in the program.
(b) The information required by subsection (a) must be delivered
to the camping club member or time share participant before the
execution of:
(1) any contract between the camping club member or time
share participant and the exchange company; or
(2) the contract to purchase the time share or camping club
membership.
(c) Upon receipt of the information required by subsection (a), the
camping club member or time share participant shall certify in
writing that the member or participant has received the information
from the developer.
(d) Except as otherwise provided in this section, the information
required by subsection (a) must be accurate as of thirty (30) days
before the date on which the information is delivered to the
participant or member.
As added by P.L.2-2002, SEC.17.
Last modified: May 24, 2006