Section 18-14-404 - Required contents of public offering statements for time-share interests(a) A public offering statement shall be provided to each purchaser of a time-share interest and may be delivered by hard copy or electronically, including a CD, DVD, thumb drive, or other electronic media agreeable to the purchaser. The public offering statement shall fully and accurately disclose: (1) The name of the developer, its principal address, and the time-share plan offered in the statement;(2) A general description of the accommodations, including, without limitation, the developer's schedule of commencement and completion of all buildings, accommodations, and amenities or, if completed, that the buildings, accommodations, and amenities have been completed;(3) As to the accommodations offered by the developer in the time-share plan: (A) The types and number of accommodations by location, if applicable;(B) Identification of accommodations that are subject to time-share interests; and(C) The estimated number of accommodations that may become subject to time-share interests;(4) A brief description of the time-share plan;(5)(A) If applicable, the current budget and a projected budget for the time-share interests for one (1) year after the date of the first transfer to a purchaser.(B) The budget shall include, without limitation: (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 or expenditures for the time-share interests;(iii) The total annual projected common expense liability for all time-share interests in the time-share plan; and(iv) A statement of any services not shown in the budget that the developer provides or expenses that it pays;(6) Any initial or special fee due from the purchaser at closing with a description of the purpose and method of calculating the fee;(7) A description of any liens, defects, or encumbrances on or affecting the title to any of the time-share interests;(8) A description of any financing offered by the developer;(9) A statement that within five (5) days after execution of a contract of purchase a purchaser may cancel any contract for purchase of time-share interests from the developer;(10) A statement of any pending suits material to the time-share interests of which the developer has actual knowledge;(11) Any restraints on alienation of any number or part of any of the time-share interests;(12) A description of the insurance coverage that is for the benefit of the owners of time-share interests;(13) Any current or expected fees or charges to be paid by time-share interest owners for the use of any facilities related to any of the time-share property;(14) The extent to which financial arrangements have been provided for completion of the promised improvements; and(15) The extent to which a time-share accommodation may become subject to a tax or other lien arising out of claims against other owners of the accommodation.(b)(1) If a purchaser is offered the opportunity to subscribe to any program that provides exchanges of time-shares among purchasers in either the same time-sharing plan or other time-sharing plans, or both, the developer shall deliver to the purchaser before the execution of a contract between the purchaser and the company offering the exchange program, written information concerning the exchange program, which information may be delivered by hard copy or electronically.(2) The purchaser shall certify in writing to the receipt of the information that includes: (A) The name and address of the exchange program;(B) The names of the officers and directors;(C) Whether the exchange program, or any of its officers or directors, has a legal or beneficial interest in any developer or managing agent for a time-share plan participating in the exchange program and, if so, the name and location of the time-share plan and the nature of the interest;(D) Unless otherwise stated, a statement that the purchaser's contract with the exchange program is a contract separate and distinct from the purchaser's contract with the developer;(E) Whether the purchaser's participation in the exchange program is dependent upon the continued affiliation of the time-share project with the exchange program;(F) Whether the purchaser's membership or participation, or both, in the exchange program is voluntary or mandatory;(G) A complete and accurate description of the terms and conditions of the purchaser's contractual relationship with the exchange program and the procedure by which changes may be made;(H) A complete and accurate description of the procedure to qualify for and carry out exchanges;(I) A complete and accurate description of the limitations, restrictions, or priorities used in the operation of the exchange program, including limitations on exchanges based on seasonality, accommodation size, or levels of occupancy that are expressed in bold-faced type and if limitations, restrictions, or priorities are not uniformly applied by the exchange program, a clear description of the way in which they are applied;(J) Whether exchanges are arranged on a space-available basis and whether any guarantees of fulfillment of specific requests for exchanges are made by the exchange program;(K) Whether and under what circumstances, a purchaser, in dealing with the exchange program, may lose the use and occupancy of his or her time-share in any exchange properly applied for without his or her being provided with substitute accommodations by the exchange program;(L) The fees or range of fees for participation by purchasers in the exchange program, a statement whether such fees may be altered by the exchange company, and the circumstances under which alterations may be made;(M) The name and address of the site of each accommodation or facility included in the time-share properties that are participating in the exchange program as of the last annual review or audit;(N) The number of time-share accommodations in each time-share property that are available for occupancy, under the last annual review or audit, and that qualify for participation in the exchange program, expressed in numerical groupings: 1-5, 6-10, 11-20, 21-50, and 51 and over;(O) The number of purchasers enrolled for each time-share plan participating in the exchange program, under the last annual review or audit, expressed in numerical groupings: 1-100, 101-249, 250-499, 500-999, and 1,000 and over, and a statement of the criteria used to determine those purchasers that are enrolled with the exchange program;(P) The disposition made by the exchange company of time-shares deposited with the exchange program by purchasers enrolled in the exchange program and not used by the exchange company in making changes;(Q) The information required in this subdivision (b)(2)(Q) shall be independently reviewed or audited by a certified public accountant or accounting firm according to the standards of the Financial Accounting Standards Board and annually reported: (i) The number of purchasers currently enrolled in the exchange program;(ii) The number of accommodations and facilities that have current written affiliation agreements with the exchange program;(iii) The percentage of confirmed exchanges that are the number of exchanges confirmed by the exchange program divided by the number of exchanges properly applied for, together with a complete and accurate statement of the criteria used to determine whether an exchange request was properly applied for;(iv) The number of time-share periods for which the exchange program has an outstanding obligation to provide an exchange to a purchaser who relinquished a time-share during the year in exchange for a time-share in any future year; and(v) The number of exchanges confirmed by the exchange program during the year; and(R)(i) A statement in boldface type to the effect that the percentage described in subdivision (b)(2)(Q)(iii) of this section is a summary of the exchange requests entered with the exchange program in the period reported.(ii) The percentage does not indicate a purchaser's probabilities of being confirmed to a specific choice or range of choices, since availability at individual locations may vary.(c) Each exchange company offering an exchange program to purchasers in this state shall include the statement in subdivision (b)(2)(R) of this section on all promotional brochures, pamphlets, advertisements, or other materials distributed by the exchange company that contains the percentage in subdivision (b)(2)(Q)(iii) of this section.(d)(1) A developer may satisfy the requirements of this section by delivery to purchasers of materials furnished to the developer by the exchange program if the exchange program has certified to the developer that the materials satisfy the requirements of this section.(2) A developer has no liability to a person if the materials furnished by the exchange program fail to comply with this section.Amended by Act 2013, No. 710,§ 4, eff. 8/16/2013.Acts 1983, No. 294, Art. 3, § 3-101; A.S.A. 1947, § 50-1315.