Conveyance of campground to trustee before sale of first membership; requirements for trusts; inspection of records of trust.
1. If the title to a campground is conveyed to a trustee before the sale of the first membership related to it, the developer must provide the Administrator with satisfactory evidence that:
(a) Title to the campground has been conveyed to the trustee.
(b) All proceeds received by the developer from the sales of memberships are being delivered to the trustee and deposited in a fund which has been established to provide for the payment of any taxes, cost of insurance or the discharge of any lien recorded against the campground.
(c) The trustee is required to pay all charges against the trust in the following order:
(1) Trustee’s fees and costs.
(2) Payment of taxes.
(3) Payments due to any holder of a lien recorded against the campground.
(4) Any other payments authorized by the document creating the trust.
2. If a trust is created by a developer to hold title, the:
(a) Trustee must be approved by the Administrator.
(b) Trust must be irrevocable, unless otherwise provided by the Administrator.
(c) Trustee must not be permitted to encumber the property unless permission to do so has been given by the Division.
(d) Association or each member must be made a third‑party beneficiary.
(e) Trust must provide that the trust and not the developer is the contracting party in all matters involving the trust assets.
(f) Trustee must give at least 30 days’ notice in writing of his intention to resign to:
(1) The association, if it has been formed;
(2) All owners; and
(3) The Administrator.
ÊThe Administrator must approve a substitute trustee before the resignation of the trustee may be accepted.
3. The Administrator may inspect the records relating to the trust at any reasonable time.
Last modified: February 27, 2006