Section 1260-06-.05 - MATERIAL CHANGES(1) A Developer shall not intentionally cause any material change in a time-share program as represented in the public offering statement without at least ten (10) days advance notice to the Commission. As long as a developer is engaged in the offering or disposition of time-share intervals respecting a time-share program, the developer shall notify the Commission of any material change within ten (10) days from the date on which the developer first knew of it.(2) For purposes of this rule, "material change" means a change in any information or document disclosed in or attached to a public offering statement which renders such information or document false or misleading. Without limiting the generality of the preceding sentence, a material change shall be deemed to occur whenever. (a) The current or projected budget for the time-share intervals is revised.(b) The scheduled commencement or completion of promised improvement in the time-share project is (or will be) delayed due to adverse financial conditions or other causes.(3) Upon the occurrence of a material change, the Commission may, if it deems:(a) Request that sales be voluntarily suspended by the developer pending a determination of the effect of the material change on the time-share program.(b) Take action in accordance with T.C.A. § 66-32-121.Tenn. Comp. R. & Regs. 1260-06-.05
Original rule filed April 17, 1985; effective May 17, 1985.Authority: T.C.A. §§ 66-32-116 and 66-32-121.