P.R. Laws tit. 31, § 1256
(1) Prior to offering timeshares, vacation club rights or accommodations, the developer of a timeshare plan or vacation club shall create or provide for a managing entity which must be the developer, a property management firm, a hotel management firm, an owners’ association, a trust, an incorporated club, or some combination thereof. The managing entity of a vacation club may also be the component site managing entity of one or more component sites; however, in such event, unless the vacation club is comprised exclusively of nonspecific vacation club rights, the funds, including reserves, and the books and records of the vacation club and of the component site or sites involved shall not be commingled for longer than a thirty-day period after the managing entity receives funds from an owner. The financial books and records of a timeshare plan or vacation club shall be maintained by the managing entity in accordance with generally accepted accounting principles and audited annually by an independent certified public accountant in accordance with the standards of the Accounting Standards Board of the American Institute of Certified Public Accountants, with a copy of such audit being filed annually with the Company. All expenses associated with such audit shall be common expenses.
(2) The managing entity shall fully comply with the provisions of this chapter; however, with respect to a particular component site, the vacation club managing entity shall not be responsible for any wrongful acts or omissions of the applicable component site managing entity, unless the vacation club managing entity is also the component site managing entity.
History —Dec. 26, 1995, No. 252, § 6-101.