P.R. Laws tit. 31, § 1254b
(1) A developer shall complete all accommodations and facilities, the future availability of which is represented by or on behalf of the developer to purchasers, whether in the timeshare or vacation club documents, in advertising or promotional materials, by oral or written statement, or by any other means, within eighteen (18) months of the date designated by the developer pursuant to subsection (2)(b) of this section.
(2) A developer shall file with the Company in connection with any such accommodation or facility not yet completed as of the date upon which any such representation is made:
(a) A written statement disclosing all costs involved in completing the subject accommodation or facility.
(b) A written statement of the estimated time of completion of such accommodation or facility.
(c) A copy of the executed construction contract and any other contracts for the completion of the accommodation or facility.
(d) Satisfactory evidence of the availability of sufficient funds to complete such accommodation or facility which shall consist of:
(i) Payment and performance bond in the amount of one hundred percent (100%) of the anticipated cost of completing the subject accommodation or facility. Any such bond shall be issued by a surety or insurance company authorized to do business in Puerto Rico and having a sufficient net worth to be acceptable to the Company, or
(ii) a letter of credit in the amount specified in paragraph (i) above issued by a bank, savings and loan association, or other federally insured financial institution authorized to do business in Puerto Rico and having a sufficient net worth to be acceptable to the Company.
Any such bond or letter of credit shall be irrevocable pending the developer’s completion of the promised accommodation or facility. Should it become necessary for the Company to call upon the bond or letter of credit in order to assure the completion of such accommodation or facility, the Company shall have the authority to petition a court of competent jurisdiction to appoint a receiver to administer such completion.
History —Dec. 26, 1995, No. 252, § 4-103.