30 Miss. Code. R. 1601-8.4

Current through December 10, 2024

Rule 30-1601-8.4 - Public Offering Statement

A. Public Offering Statement Requirements

(1) A developer must prepare a public offering statement that shall fully and accurately disclose the facts concerning the timeshare developer and timeshare plan as required by these rules. The developer shall provide the public offering statement to each purchaser of a timeshare interest in any timeshare plan prior to execution of the purchase contract. The public offering statement shall be dated and shall require the purchaser to certify in writing the receipt thereof. Upon approval by the Commission, the developer may also deliver the public offering statement on CD ROM or other electronic media.

(2) With regard to timeshare interests offered in a single-site timeshare plan or in the specific interest of a multi-site timeshare plan, the public offering statement should fully and accurately disclose the following:

(a) The name of the developer and the principal address of the developer;

(b) Information regarding the developer's business and property management experience;

(c) A description of the type of timeshare interests being offered;

(d) The number of accommodations and timeshare interests, expressed in periods of seven-days use availability or other time increments applicable to the multi-site timeshare plan for each component site committed to the multi-site timeshare plan and available for use by purchasers, purchasers and a representation about the percentage of useable time authorized for sale, and if that percentage is 100 percent, then a statement describing how adequate periods of time for maintenance and repair will be provided. A general description of the existing and proposed accommodations and amenities of the timeshare plan, including their type and number personal property furnishing the accommodation, any use restrictions, and any required fees for use;

(e) A description of any accommodations and amenities that are committed to be built, including, without limitation:

(i) the developer's schedule of commencement and completion of all accommodations and amenities;

(ii) the estimated number of accommodations per site that may become subject to the timeshare plan;

(iii) a brief description of the duration, phases, and operation of the timeshare plan; and

(iv) the extent to which financial arrangements have been provided for completion of all promised improvements.

(f) If the timeshare plan requires the use of a reservation system, include a description of the reservation system which shall include the following:

(i) The entity responsible for operating the reservation system, its relationship to the developer, and the duration of any agreement for operation of the reservation system.

(ii) A summary of the rules and regulations governing access to and use of the reservation system.

(iii) The existence of and an explanation regarding any priority reservation features that affect a purchaser's ability to make reservations for the use of a given accommodation on a first-come, first-serve basis.

(iv) An explanation of any demand-balancing standard utilized to assure equitable use of the accommodations among participants.

(g) The current annual budget, if available, or the projected annual budget for the timeshare plan. The budget must include, without limitations:

(i) a statement of the amount included in the budget as a reserve for repairs and replacement;

(ii) the projected common expense liability, if any, by category of expenditures for the timeshare plan; and

(iii) a statement of any services or expenses not reflected in the budget that the developer provides or pays.

(h) Information regarding all fees that the purchaser is required to pay in conjunction with the purchase and ownership including, but not limited to, closing cost and annual assessments;

(i) A description of any liens, defects or encumbrances on or affecting the title to the timeshare interests;

(j) A description of any financing offered by or available through the developer;

(k) A statement that within seven (7) calendar days after receipt of the public offering statement or after execution of the purchase contract, whichever is later, a purchaser may cancel any purchase contract for a timeshare interest from a developer together with a statement providing the name and street address to which the purchaser shall mail any notice of cancellation. If by agreement of the parties by and through the purchase contract, the purchase contract allows for cancellation of the purchase contract for a period of time exceeding seven (7) calendar days, then the public offering statement shall include a statement that the cancellation of the purchase contract is allowing for that period of time exceeding seven (7) calendar days;

(l) A description of any bankruptcies, pending civil or criminal suits, adjudications, or disciplinary actions of which the developer has knowledge, which would have a material effect on the developer's ability to perform its obligations.

(m) Any restrictions on alienation of any number or portion of any timeshare interests;

(n) A statement describing liability and casualty insurance for the timeshare property;

(o) Any current or expected fees or charges to be paid by timeshare purchasers for the use of any amenities related to the timeshare plan;

(p) A statement disclosing any right of first refusal or other restraint on the transfer of all or any portion of a timeshare interest.

(q) A statement of disclosing that any deposit made in connection which the purchase of a timeshare interest shall be held by an escrow agent until expiration of any right to cancel the contract and that any deposit shall be returned to the purchaser if he or she elects to exercise his or her right of cancellation. Alternatively, if the Commission has accepted from the developer a surety bond, irrevocable letter of credit, or other financial assurance in lieu of placing deposits in an escrow account, account:

(i) a statement disclosing that the developer has provided a surety bond, irrevocable letter of credit, or other financial assurance in an amount equal to or in excess of the funds that would otherwise be placed in an escrow account and,

(ii) a description of the type of financial assurance that has been arranged,

(iii) a statement that if the purchaser elects to exercise his or her right of cancellation as provided in the contract, the developer shall return the deposit, and

(iv) a description of the person or entity to whom the purchaser shall apply for payment.

(r) If the timeshare plan provides purchasers with the opportunity to participate in an exchange program, a description of the name and address of the exchange company and the method by which a purchaser accesses the exchange program;

(s) Such other information reasonable required by the state agency and established by administrative rule necessary for the protection of purchasers of timeshare interests in timeshare plans; and

(t) Any other information that the developer, with the approval of the Commission, desires to include in the public offering statement.

(3) Public offering statements for specific timeshare interest and multi-site timeshare plans shall include the following disclosures in addition to those required in (b) above:

(a) A description of each component site, including the name and address of each Component site.

(b) The number of accommodations and timeshare interest, expressed in periods of seven-day use availability or other time increments applicable to each component site of the timeshare plan, committed to the multi-site timeshare plan and available for use by purchasers, and a representation about the percentage of useable time authorized for sale, and if that percentage is 100 percent, then a statement describing how adequate periods of time for maintenance and repair will be provided.

(c) Each type of accommodation in terms of the number of bedrooms, bathrooms, and sleeping capacity, and a statement of whether or not the accommodation contains a full kitchen. For purposes of this description, a "full kitchen" means a kitchen having a minimum of a dishwasher, range, sink, oven, and refrigerator.

(d) A description of amenities available for use by the purchaser at each component site.

(e) A description of the reservation system, which shall include the following:

(i) The entity responsible for operating the reservation systems, its relationship to the developer, and the duration of any agreement for operation of the reservation system.

(ii) A summary of the rules and regulations governing access to and use of the reservation system.

(iii) The existence of and an explanation regarding any priority reservations for the use of a given accommodation on a first-come, first-served basis.

(iv) An explanation of any demand-balancing standard utilized to assure equitable use of the accommodations among participants.

(v) A description of any method utilized to permit additions, substitutions, or deletions of accommodations.

(vi) A description of any criteria utilized in the use and operation of the reservation system (such as historical occupancy levels by season, location, demand, etc.)

(f) The name and principal address of the managing entity of the multi-site timeshare plan and description of the procedures, if any, for altering the powers and responsibilities of the managing entity and for removing or replacing it.

(g) A description of any right to make any addition, substitutions, or deletion of accommodations, amenities, or component sites, and a description of the basis upon which accommodations, amenities, or component sites may be added to, substituted in, or deleted from the multi-site timeshare plan.

(h) A description of the purchaser's liability for any fees associated with the multi-site timeshare plan.

(i) The location of each component site of the multi-site timeshare plan, the historical occupancy of each component site for the prior 12-month period, if the component site was part of the multi-site timeshare plan during the 12-month time period, as well as any periodic adjustment or amendment to the reservation system that may be needed in order to respond to actual purchaser use patterns and changes in purchaser use demand for the accommodations existing at that time within the multi-site timeshare plan.

(j) Any other information that the developer, with the approval of the Commission, desires to include in the timeshare disclosure statement.

(4) Public offering statements for nonspecific timeshare multi-site timeshare plans shall include the following:

(a) The name and address of the developer.

(b) A description of the type of interest and usage rights the purchaser will receive.

(c) A description of the duration and operation of the timeshare plan.

(d) A description of the type of insurance coverage provided for each component site.

(e) An explanation of who holds title to the accommodations of each component site.

(f) A description of each component site, including the name and address of each component site.

(g) The number of accommodations and timeshare interest, expressed in periods of seven-day use availability or other time increments applicable to the multi-site timeshare plan for each component site committed to the multi-site timeshare plan and available for use by purchasers. purchasers and a representation about the percentage of useable time authorized for sale, and if that percentage is 100 percent, then a statement describing how adequate periods of time for maintenance and repair will be provided.

(h) Each type of accommodation in terms of the number of bedrooms, bathrooms, and sleeping capacity, and a statement of whether or not the accommodation contains a full kitchen. For purposes of this description, a "full kitchen" means a kitchen having a minimum of a dishwasher, range, sink, oven, and refrigerator.

(i) A description of amenities available for use by the purchaser at each component site.

(j) A description of any incomplete amenities at any of the component sites along with a statement as to any assurance for completion and the estimated date the amenities will be available.

(k) The location of each component site of the multi-site timeshare plan, the historical occupancy of each component site for the prior 12-month period, if the component site was part of the multi-site timeshare plan during such 12-month time period, as well as any periodic adjustment or amendments to the reservation system that may be needed in order to respond to actual purchaser use patterns and changes in purchaser use demand for the accommodations existing at that time within the multi-site timeshare plan.

(l) A description of any rights to make any additions, substitutions, or deletions of accommodations, amenities, or component sites, and a description of the basis upon which accommodations, amenities, or component sites may be added to, substituted in, or deleted form the multi-site timeshare plan.

(m) A description of the reservation system that shall included all of the following:

(i) The entity responsible for operating the reservation system, its relationship to the developer, and the duration of any agreement for operation of the reservation system.

(ii) A summary of the rules and regulations governing access to and use of the reservation system.

(iii) The existence of and an explanation regarding any priority reservation features that affect a purchaser's ability to make reservations for the use of a given accommodation on a first-come, first-served basis.

(n) The name and principal address of the managing entity for the multi-site timeshare plan and a description of the procedures, if any, for altering the powers and responsibilities of the managing entity and for removing or replacing it, and a description of the relationship between a multi-site timeshare plan managing entity and the managing entity of the component sites of a multi-site timeshare plan, if different from the multi-site timeshare plan managing entity.

(o) The current annual budget as provided in Section L. of these rules, along with the projected assessments and a description of the method of calculation and apportioning the assessments among purchasers, all of which shall be attached as an exhibit to the public offering statement.

(p) Any current fees or charges to be paid by timeshare purchasers for the use of any amenities related to the timeshare plan and statement that the fees or charges are subject to change.

(q) Any initial or special fee due from the purchaser at closing, together with a description of the purpose and method of calculating the fee.

(r) A description of any financing offered by or available through the developer.

(s) A description of any bankruptcies, pending civil or criminal suits, adjudications, or disciplinary actions of which the developer has knowledge, which would have a material effect on the developer's ability to perform its obligations.

(t) A statement disclosing any right of first refusal or other restraint on the transfer of all or any portion of a timeshare interest.

(u) A statement disclosing that any deposit made in connection with the purchase of a timeshare interest shall be held by an escrow agent until expiration of any right to cancel the contract and that any deposit shall be returned to the purchaser if he or she elects to exercise his or her right of cancellation. Alternatively, if the Commission has accepted from the developer a surety bond, irrevocable letter of credit, or other financial assurance in lieu of placing deposits in an escrow account, account: (i) a statement disclosing that the developer has provided a surety bond, irrevocable letter of credit, or other financial assurance in an amount equal to or in excess of the funds that would otherwise be placed in an escrow account and, (ii) a description of the type of financial assurance that has been arranged, (iii) a statement that if the purchaser elects to exercise his or her right of cancellation as provided in the contract, the developer shall return the deposit, and (iv) a description of the person or entity to whom the purchaser should apply for payment.

(v) If the timeshare plan provides purchasers with the opportunity to participate in an exchange program, a description of the name and address of the exchange company and the method by which a purchaser accesses the exchange program.

(w) Any other information that the developer, with the approval of the Commission, desires to include in the timeshare disclosure statement.

30 Miss. Code. R. 1601-8.4

Miss. Code Ann. §§ 73-35-35