S.D. Admin. R. 20:69:12:31

Current through Register Vol. 51, page 64, December 9, 2024

Section 20:69:12:31 - Developer's escrow agreement when funds deposited

If a developer elects to place in the special escrow account all funds, except those excluded by § 20:69:12:33, the escrow agreement must provide for the following:

(1) The purchaser's right to refund at any time the time-share units or facilities are no longer available as provided in the contract in an amount which represents the purchaser's pro rata share of the moneys in the escrow account;

(2) If a deed, title, or assignment of lease of the time-share plan free and clear of any liens is transferred to the benefit of the purchaser, withdrawal by the developer of all of the funds which have been placed in escrow on behalf of the purchaser;

(3) If a deed, title, or assignment of lease of the time-share plan free and clear of any liens is not transferred to the benefit of the purchaser, withdrawal by the developer of a proportion of the moneys placed in escrow which is in the ratio of the time made available to the purchaser in relation to the total amount of time which the purchaser has a right to use under the contract.

S.D. Admin. R. 20:69:12:31

10 SDR 68, effective 1/1/1984; 12 SDR 102, effective 12/22/1985; 12 SDR 151, 12 SDR 155, effective 7/1/1986; transferred from

General Authority: SDCL 36-21A-89, 43-15B-6.

Law Implemented: SDCL 43-15B-3, 43-15B-6.

Example:

Examples for subdivision (3):

(1) If the total time available to a time-share plan purchaser under the purchaser's plan is 100 days and in a given year the purchaser uses 10 of those days, the time-share plan seller that year may withdraw one-tenth of the moneys placed in escrow for the purchaser.

(2) If the time-share purchaser is entitled to 10 days a year and it is a 40-year plan, the time share seller may withdraw each year one-fortieth of the moneys placed in escrow for the purchaser.