The developer of a time-share plan which is the subject of an outstanding public report shall report to the Bureau pursuant to Section 11226(f)(1), relevant details concerning any material change in the time-share plan. A material change in the time-share plan includes, but shall not be limited to, the following:
(a) Deletion of an accommodation from the time-share plan or addition of an accommodation not authorized under an existing time-share public report for the time-share plan.
(b) Change in the name or form of organization of the developer such as incorporation, dissolution of a corporation or a change in the corporate or fictitious business name.
(c) Change in the methods of conveyancing of time-share interests such as the use of real property sales contracts.
(d) Change in purchase money handling procedures previously submitted to the Bureau including but not limited to a change in the escrow depository or the creation of an encumbrance affecting more than one timeshare interest in the time-share plan.
(e) Resignation of the trustee or other change in any of the terms of the trust agreement for the time-share plan.
(f) The existence of either of the following conditions with respect to the corpus of the trust.
(1) Insufficient funds in the trust to satisfy the trust fund provision for payment of debt service, property taxes, assessments and/or insurance premiums for the trust property.
(2) Insufficient non-delinquent installment sales contracts and/or promissory notes to satisfy the provision of the trust agreement for payment of the aggregate principal balance owing under a blanket encumbrance against the trust properties.
(g) Any legal or physical condition rendering an accommodation of the time-share plan unusable by time-share owners for one year or more.
(h) Litigation undertaken by a governmental entity or time-share owners' association seeking to prohibit or restrict the dedication of an accommodation to the time-share plan.
(i) An annual budget for a time-share project which will necessitate a regular annual assessment that is more than 20 percent greater than the regular annual assessment in the certified budget for the immediately preceding year.
(j) An amendment to any provision of the recorded time-share plan or declaration.
(k) A change in any aspect of the offering for the time-share plan which will cause information in the current public report for the project to be incorrect or misleading.
Credits
Note: Authority cited: Section 11281, Business and Professions Code. Reference: Section 11226, Business and Professions Code.
History
1. New section filed 1-9-85; effective thirtieth day thereafter (Register 85, No. 2). For prior history, see Register 83, No. 30.
2. Amendment of subsection (a)(1) filed 4-2-86; effective thirtieth day thereafter (Register 86, No. 14).
4. Amendment of subsections (b)(3) and Note, and adoption of subsection (b)(4) filed 4-7-92; operative 5-7-92 (Register 92, No. 14).
5. New subsection (a)(3) and amendment of Note filed 4-1-93; operative 5-1-93 (Register 93, No. 14).
6. Amendment of section and Note filed 12-30-97; operative 1-29-98 (Register 98, No. 1).
7. Amendment moving section 2806 from article 21.1 to article 12.2. and repealer and new section filed 5-5-2005; operative 7-1-2005 (Register 2005, No. 18).
8. Change without regulatory effect amending first paragraph and subsection (d) filed 6-30-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 27).
This database is current through 5/10/24 Register 2024, No. 19.
