P.R. Laws tit. 31, § 1256b
(1) Prior to representing in any manner that an accommodation is part of a timeshare plan or vacation club component site, the developer or the managing entity must determine and certify to the Company, to the best of the declarer’s knowledge based upon all available information, the following information with respect to the timeshare plan or each vacation club component site:
(a) That all assessments on accommodations owned or otherwise controlled by the developer are fully paid as required by applicable law and the timeshare or vacation club documents;
(b) the aggregate amount of delinquent assessments due with respect to the timeshare plan or component site, if any, and
(c) a statement that the latest annual financial statement or audit of the timeshare’s plan or component site’s books and records shows that to the extent required by applicable law or the timeshare or vacation club documents, adequate reserves have been fully financial and maintained.
(2) The certification described in subsection (1) of this section shall [be] renewed at least annually. In the event that the developer or the managing entity determines that the status of any timeshare plan or component site has materially changed such that any component of the certification described in subsection (1) of this section is no longer materially accurate, the developer or managing entity shall promptly notify the Company of the change.
(3) The managing entity shall owe a fiduciary duty to each owner of a timeshare, vacation club right or accommodation with respect to the overall operation and management of the timeshare plan or vacation club, including without limitation the incurring of expenditures and obligations and the contracting or subcontracting for services and supplies. In the discharge of such fiduciary duty, the managing entity shall exercise due diligence in procuring such supplies or services as may be required by the timeshare plan or vacation club from third parties at competitive prices, in keeping with the quality standards of the timeshare plan or vacation club in question, and shall report as part of its managing fee collected, in addition to its contractually stated managing fee, any amounts or the value of any benefits received by the managing entity from any supplier of goods or services to the timeshare plan or vacation club.
History —Dec. 26, 1995, No. 252, § 6-103.