Section 16-106-4.2 - Biennial renewal requirement(a) A developer shall submit the following to the director at the time of renewal of the registration for a time share plan not later than December 31 of each odd-numbered year, as required by section 514E-10(f), HRS, and section 16-106-4(h); provided that no application for renewal shall be deemed complete, nor shall the same be accepted for registration, unless the prescribed information is provided separately tabbed and numbered in the exact order as follows: (1) An application for renewal of registration on a form prescribed by the director;(2) A current disclosure statement meeting the requirements of section 514E-9, HRS, and section 16-106-3;(3) A current financial statement prepared not more than one hundred twenty days before the date of renewal in accordance with generally accepted accounting principles and certified by the developer or a certified public accountant to be true and correct in all respects and to fairly, completely, and accurately represent the financial condition of the subject thereof as of the respective date thereof; provided that in lieu of this financial statement, an audited financial report may be submitted if it is the most current report of the subject thereof and is not more than fifteen months old at the time of renewal of the developer's registration. Any false, misleading, or fraudulent financial statement or report submitted by the developer shall be grounds for cancellation, suspension, or revocation of a registration;(4) With respect to any unsold interests in each registered unit in the time share plan which are held by the developer at the time of renewal of the registration for the plan, a policy of title insurance, a preliminary title report, abstract of title, or certificate of title not more than ninety days old at the time of renewal of the registration for the time share plan; provided that the policy of title insurance, preliminary title report, abstract of title, or certificate of title discloses the status of ownership of the unit and any and all liens and encumbrances affecting the unit;(5) The name and address of the person in the State authorized to receive service of process on behalf of the developer; provided that written notification of any change of this name or address shall be submitted to the director within twenty days of any change;(6) A complete statement setting forth the number of registered units in the time share plan and the number of time share interests being offered for sale in each unit; provided that this statement shall also specify the number of interests which have currently been sold in each unit and the number of interests which remain unsold as of the date of renewal; and provided further that this statement shall be certified by the developer to be true and correct in all respects;(7) If a corporation, partnership, or joint venture, a certificate of good standing issued by the business registration division of the department not more than forty-five days before the date of submission of the application; and(8) The biennial renewal fee. A developer is prohibited from renewing the registration of sold interests in a registered time share unit.
(b) An acquisition agent, including the developer if it is also the acquisition agent, shall submit the following to the director at the time of renewal of the acquisition agent's registration not later than December 31 of each odd-numbered year; provided that the acquisition agent shall submit a separate application for renewal with respect to each time share plan with which the acquisition agent is registered; and provided further that no application for renewal shall be deemed complete, nor shall the same be accepted for registration, unless the prescribed information is provided separately tabbed and numbered in the exact order as follows: (1) An application for renewal of registration on a form prescribed by the director;(2) Satisfactory evidence that the acquisition agent is currently bonded as required by section 16-106-40.1 to cover any violation by the acquisition agent of any solicitation ordinances or other rules governing the use of the premise or premises in which the time share plan is promoted; or evidence that the acquisition agent is currently licensed pursuant to chapter 467, HRS, as a real estate salesperson or a real estate broker;(3) An alphabetized list of the names, addresses, and telephone numbers of all employees and independent contractors who are currently engaged in contacting persons who may be interested in purchasing interests in the time share plan;(4) A copy of the executed agency agreement currently applicable to the time share plan;(5) The name and address of the person in the State authorized to receive service of process on behalf of the acquisition agent; provided that written notification of any change of this name or address shall be submitted to the director within twenty days of any change;(6) If a corporation, partnership, or joint venture, a certificate of good standing issued by the business registration division of the department not more than forty-five days before the date of submission of the application; and(7) The biennial renewal fee. An OPC employed directly or indirectly by the acquisition agent shall submit the biennial renewal fee and an application for renewal of the OPC's registration not later than December 31 of each odd-numbered year on a form prescribed by the director.
(c) A sales agent, including the developer if it is also the sales agent, shall submit the following to the director at the time of renewal of the sales agent's registration not later than December 31 of each odd-numbered year; provided that the sales agent shall submit a separate application for renewal with respect to each time share plan with which the sales agent is registered; and provided further that no application shall be deemed complete, nor shall the same be accepted for registration, unless the prescribed information is provided separately tabbed and numbered in the exact order as follows: (1) An application for renewal of registration on a form prescribed by the director;(2) Evidence that the sales agent is currently licensed pursuant to chapter 467, HRS, as a real estate salesperson or a real estate broker;(3) An alphabetized list of the names, addresses, and telephone numbers of all employees and independent contractors who are currently selling or contacting persons who may be interested in purchasing interests in the time share plan, as well as evidence that each of these employees and independent contractors is currently licensed pursuant to chapter 467, HRS, as a real estate salesperson or a real estate broker;(4) A copy of the executed sales agency or brokerage agreement currently applicable to the time share plan;(5) The name and address of the person in the State authorized to receive service of process on behalf of the sales agent; provided that written notification of any change of this name or address shall be submitted to the director within twenty days of any change;(6) If a corporation, partnership, or joint venture, a certificate of good standing issued by the business registration division of the department not more than forty-five days before the date of submission of the application; and(7) The biennial renewal fee. An OPC employed directly or indirectly by the sales agent shall submit the biennial renewal fee and an application for renewal of the OPC's registration not later than December 31 of each odd-numbered year on a form prescribed by the director.
A sales agent shall submit, for each person on the list required by paragraph (3), the biennial renewal fee and an application for renewal of the real estate salesperson or broker's registration not later than December 31 of each odd-numbered year on a form prescribed by the director.
(d) A plan manager, including the developer if it is also the plan manager, shall submit the following to the director at the time of renewal of the plan manager's registration not later than December 31 of each odd-numbered year; provided that the plan manager shall submit a separate application for renewal with respect to each time share plan with which the plan manager is registered; and provided further that no application for renewal shall be deemed complete, nor shall the same be accepted for registration, unless the prescribed information is provided separately tabbed and numbered in the exact order as follows:(1) An application for renewal of registration on a form prescribed by the director;(2) The address at which all accounting records, including but not limited to receipts, expenditures, and payment vouchers, are currently maintained;(3) Satisfactory evidence that the plan manager is currently bonded as required by section 16-106-40 to cover any default of the plan manager and any of the employees of the plan manager of their duties and responsibilities;(4) A copy of the executed management agreement currently applicable to the time share plan;(5) The name and address of the person in the State authorized to receive service of process on behalf of the plan manager; provided that written notification of any change of this name or address shall be submitted to the director within twenty days of any change;(6) If a corporation, partnership, or joint venture, a certificate of good standing issued by the business registration division of the department not more than forty-five days before the date of submission of the application; and(7) The biennial renewal fee.(e) An exchange agent, including the developer if it is also the exchange agent, shall submit to the director at the time of renewal of the exchange agent's registration not later than December 31 of each odd-numbered year the biennial renewal fee and an application for renewal of registration on a form prescribed by the director and copies of the exchange program materials containing the written information set forth in section 514E-9.5, HRS, which are currently distributed to each purchaser of a time share interest participating in the exchange program.(f) Any application required for renewal of registration by this section shall be deemed accepted if the director has not acted upon the application within sixty days following receipt of the same; except that this subsection shall not apply to any application which is incomplete and does not contain all of the information required to be submitted to the director under this section. Restoration of a forfeited registration may be made in accordance with section 16-106-4.3(c).(g) Any party required to renew a registration under this section shall notify the director in writing of any material change in any information submitted to the director within twenty days of any material change. Failure to notify the director of any material change in the information submitted shall be grounds for cancellation, suspension, or revocation of a registration.(h) Any registration which has been forfeited may be restored within ninety days upon written application and payment to the department of the delinquent fee and penalty fee; provided that the registration meets all the requirements for renewal specified in this section. The registrant shall not engage in any time share activities in connection with the forfeited registration until the registration has been restored.(i) The registration of a developer, acquisition agent, sales agent, OPC, plan manager, exchange agent, or sales agent employees or independent contractors, or both, may be placed on inactive status upon payment of the biennial renewal fee; provided that the registration shall be renewed biennially before December 31 of each odd-numbered year. The information required by this section shall be updated before an inactive registration will be activated.(j) The biennial renewal fee required by this section shall be in the form of a cashier's check or certified check made payable to the "Department of Commerce and Consumer Affairs" in the amount specified in chapter 16-53, Hawaii Administrative Rules.(k) The renewal fee shall be paid upon submission of a renewal application. Applications shall not be accepted for department review unless accompanied by the requisite fee.(l) The format for renewal of registration shall be prescribed by the director.Haw. Code R. § 16-106-4.2
[Eff and comp 3/28/85; am and comp 8/30/85; comp 11/29/85; am and comp 6/5/87; am and comp 3/7/88; comp 9/15/90] (Auth: HRS § 514E-13) (Imp: HRS § 514E-10)