P.R. Laws tit. 31, § 1252b
(1) Upon receipt of an application for a timeshare or vacation club permit, the Company shall review such application to determine whether it substantially complies with all of the requirements of § 1252a of this title and any regulations promulgated by the Company thereunder. An application which meets such criteria shall be considered a “substantially complete application”.
(2) The Company shall determine and notify the developer within thirty (30) days following its receipt of the application whether or not it is a substantially complete application and, if it is not, what additional documents or information must be provided in order to render it substantially complete. The Company shall similarly respond within twenty-one (21) days following any additional submission to the Company.
(3) Within thirty (30) days following its mailing of notice to the developer indicating that the developers application is substantially complete. The Company shall:
(a) Issue a timeshare or vacation club permit, as applicable;
(b) issue to the developer an itemization of all deficiencies which it has determined exist and which, if corrected, would entitle the developer to the applicable permit, or
(c) deny the application or advise the developer of its intent to deny the application. In either case, the Company shall notify the developer in writing of its specific grounds for denial.
(4) Nothing in this section shall require the Company to issue a permit if grounds for the denial thereof exist as determined by the Company, in the reasonable exercise of its discretion. Such grounds for denial of a permit include, but shall not be limited to, the following:
(a) The failure of the developer, timeshare plan or the vacation club to comply with any provision of this chapter or of any regulations promulgated by the Company hereunder.
(b) The developer’s inability to demonstrate that adequate financial assurances with respect to the timeshare plan’s or vacation club’s accommodations and facilities, as applicable, pursuant to §§ 1254—1254b of this title, have been provided.
(c) The developer’s inability to demonstrate that the one-to-one purchaser to accommodation ratio requirement is currently satisfied and will at all times during the term of the vacation club be maintained, and
(d) the determination by the Company that the developer, seller or an affiliate thereof has, within the ten (10) years preceding the date of filing the application for a permit or at any time thereafter;
(i) Been convicted of any crime involving an act of fraud, dishonesty, or misrepresentation;
(ii) consented to or suffered a judgment in any civil or administrative action based upon conduct involving an act of fraud, dishonesty, or misrepresentation;
(iii) been permanently enjoined by order, judgment, or decree of a court of competent jurisdiction from engaging in the sale of real estate, securities, or travel plans or entered into a consent decree or other stipulation to such effect;
(iv) had a license to act as a real estate broker or salesperson, or a securities broker or dealer revoked;
(v) been subject to a cease and desist order issued pursuant to this chapter that remains in force, or
(vi) had a timeshare or vacation club permit issued hereunder subsequently revoked or suspended by the Company.
(5) Notwithstanding the existence of sufficient grounds for the denial of a timeshare or vacation club permit, the Company may issue the timeshare or vacation club permit if it finds that the developer has complied with alternative requirements that, in the reasonable exercise of the Company’s discretion, accomplish the purposes and fulfill the intent of this chapter.
History —Dec. 26, 1995, No. 252, § 2-103.