Section 16-106-3 - Developer registration(a) Unless the transaction is exempt by law, a developer shall not offer, sell, transfer, or otherwise dispose of any time share interest in a time share plan through marketing efforts in the State, whether the plan is comprised of any unit or units located in the State or out-of-state, unless the developer for the plan has filed with the director an application for registration as prescribed by section 16-106-4(a), and the application has been accepted for registration by the director. The requirement for registration shall also be satisfied before a developer may offer, sell, transfer, or otherwise dispose of any interest in a time share plan comprised of any unit or units located in the State through out-of-state marketing efforts. An application for registration shall include the filing of a disclosure statement meeting the requirements set forth in this section.(b) The following shall be printed on the bottom half of the face page of the disclosure statement, in centered capital letters in bold print one-half inch in size, with one-half inch spaces between lines: READ THIS
DISCLOSURE STATEMENT
BEFORE SIGNING
ANYTHING
and below it, the following shall be printed:
The disclosure statement is prepared and issued by the developer of the time share plan. It is NOT prepared or issued by the State of Hawaii.
THE STATE OF HAWAII HAS NOT PASSED ON THE MERITS OF THE TIME SHARE PLAN DESCRIBED HEREIN.
(c) Any disclosure statement distributed to the public shall: (1) Comply with the disclosure requirements set forth in section 514E-9, HRS;(2) Provide a description of the number of units and types of units being offered by the developer for the time share plan;(3) Provide a summary of the provisions of the escrow agreement required under chapter 514E, HRS, and as provided for in subchapter 9;(4) If the developer is offering to sell any time share interest by agreement of sale or other installment sales contract, and the time share interest being sold is subject to a "blanket lien" (as that term is defined in section 514E-1, HRS), provide a description of the consequences which a subsequent foreclosure of that blanket lien will have upon the purchaser's interest in the agreement of sale or sales contract and the time share interest being sold thereunder;(5) Provide a brief description of the hazard and liability insurance coverages on the project and any protection afforded purchasers against the possible loss or destruction of the time share unit or units;(6) Provide a brief description of the method by which interests in the time share plan will be offered, the name and address of each sales agent through which the offering is to be made, and a statement of any material relationship, exclusive of the marketing relationship, between the developer and each agent;(7) Disclose the major conflicts of interest which may arise on the part of the plan manager in carrying out the duties, responsibilities, and obligations attendant to the position of a plan manager, if the developer or an affiliate of the developer is also designated as the plan manager for the time share plan; and(8) Disclose the major conflicts of interest which may arise on the part of the exchange agent (if an exchange program is offered for the time share plan) in carrying out the duties, responsibilities, and obligations attendant to the position of an exchange agent, if the developer or an affiliate of the developer is also designated as an exchange agent for the time share plan.(d) Any disclosure statement not in conformance with the requirements of subsection (c) shall be void and any offer, sale, transfer, or disposition of any interest in the time share plan which is the subject thereof shall be voidable at the option of the purchaser pursuant to section 514E-11.3, HRS.(e) The format for the disclosure statement shall be prescribed by the director.[Eff 11/15/80; am and comp 3/28/85; comp 8/30/85; comp 11/29/85; comp 6/5/87; comp 3/7/88; comp 9/15/90] (Auth: HRS §§ 514E-9, 514E-13) (Imp: HRS §§ 514E-9, 514E-10)