(i) that each purchaser is entitled to the exclusive possession and use of a specific unit or type of unit with the nonexclusive right to use common facilities during his or her interval;

(ii) that each timeshare owner must pay maintenance fees set by the sponsor (in a right-to-use timesharing plan) or by the governing body of the timeshare regime (in a fee timesharing plan or a cooperative timesharing plan);

(iii) any restrictions on use, resale, leasing or mortgaging of timeshare interests;

(iv) the authority of the sponsor and/or the governing body of the timeshare regime to manage the timeshare property, and the timeshare owner's right to vote for members of the governing body;

(v) how each unit or interval will be assessed and taxed; and

(vi) the responsibility of the sponsor and/or the governing body of the timeshare regime for maintenance and repairs and for casualty and liability insurance; and

(i) unit and interval identification;

(ii) number of rooms (or usable space in square feet) and bathrooms;

(iii) allocation of shares or interests in common elements;

(iv) purchase price;

(v) projected annual maintenance charges;

(vi) annual charges (excluding fees for membership in an exchange network) for any items which are not included in annual maintenance charges;

(vii) total annual carrying charges (annual maintenance charges plus other annual charges); and

(viii) maximum amount of sponsor financing available, and the monthly payment due.

(i) Indicate that the projected maintenance charges are based on estimated expenses for a stated 12-month period (e.g., January 1, 20__ to December 31, 20__).

(ii) State the method of calculating the number of rooms in each unit. If the number of rooms is calculated in accordance with an industry standard, it is sufficient to refer to the industry standard employed.

(iii) State which intervals are devoted to maintenance of the units.

(iv) Explain the basis for the allocation of shares or interests in common elements.

(v) Refer to the portion of the offering plan that explains price changes. If applicable, state in capital letters that prices are negotiable and that different purchasers may pay different prices for identical interests.

(vi) Refer to the portion of the offering plan that discloses and explains any closing costs or adjustments that a purchaser may have to pay and project the approximate amount due for each timeshare purchased.

(vii) Explain that the projected maintenance charges are separate and distinct from the payments due on any financing obtained by the purchaser.

(viii) If applicable, refer to the section of the offering plan that fully explains the terms and conditions on which sponsor will extend financing for the purchase of timeshares.

(ix) Explain how the projected annual maintenance charges were derived from schedule B. If the number of units and intervals in the timesharing plan is not firm, incorporate in schedule A the maximum amount that a timeshare owner could be charged for maintenance fees. Describe fully and completely the obligation of the sponsor to pay the maintenance fees allocable to unsold intervals and describe fully and completely any sponsor guarantee of maintenance fees.

(i) Set forth the annual maintenance charges assessed against the various intervals and show how the figure in schedule B for total income from maintenance charges was calculated. State that the maintenance charges are not fixed and will rise over time as the costs of operating the resort increase.

(ii) Sponsor guaranty. Describe the sponsor's commitment to offset the expenses of the timesharing plan (in addition to the sponsor's obligation to pay maintenance fees assessed against unsold intervals) in order to keep maintenance fees low. Explain the method for calculating this subsidy in the future and disclose how long and under what conditions sponsor is obligated to subsidize timeshare expenses. If applicable, state in capital letters that no bond or other security has been provided to assure performance of the sponsor's undertaking in this regard, and that the sponsor's ability to perform will depend on its financial condition at the time.

(iii) Other. Discuss any sources of revenue other than maintenance charges or a guaranty by the sponsor, such as guest fees or fees for maid and linen service. Set forth the individual charges for such services or privileges. The cost associated with providing such services must be itemized as an expense below.

(iv) Labor costs. State the number of full- and part-time staff and whether the staff will be union members. The labor budget must include benefits required by Federal, State or local law or required by contract, such as workers' compensation, disability insurance, welfare and pension contributions by employers, unemployment insurance and payroll taxes. Specify the wages, and the cost of each applicable benefit. The budget must reflect current wage rates and reasonably anticipated increases or increases mandated by contract. If applicable, state the expiration dates of all union contracts. If there are nonunion employees, discuss whether their wages meet State minimum wage laws.

(v) Heating, cooling and hot water costs. State the type and quantity of energy estimated to be used during the budget year, and the cost per gallon or other measure, inclusive of sales tax, for all energy costs for providing heating, cooling and hot water for the timeshare property, including recreational facilities. Cost figures should be based on current rates plus a reasonably anticipated increase.

(vi) Utilities (elctricity and gas). State the basis for the projected consumption and projected unit cost for utilities. Unit cost should be based on the current tariff plus a reasonably anticipated increase.

(vii) Water and sewer. State the present rents and charges and base the projection on reasonably anticipated increases.

(viii) Repairs, maintenance and supplies. Describe the material components of the expense for repairs and maintenance, such as interior repairs, roofing, exterior repairs (including walls, foundations, windows, doors and locks), heating system (fuel burner, boiler, pipes, radiators), plumbing, electrical work, exterminating, grounds maintenance (snow removal, gardening and landscaping, where applicable), janitor supplies, painting of common areas, and such building services and maintenance items not included under “service contracts” or “other expenses.”

(ix) Service contracts. State the name of the contractor, the service, the annual cost and the expiration of the contract for each contract where the cost exceeds $5,000 per year.

(x) Insurance.

(xi) Management contract. State the basis for the projected management fee. The projected cost must include any costs required by the terms of the management agreement, such as bonding.

(xii) Real estate taxes. For the current or projected budget year, and for the two years prior to submission (if such figures are available), state the assessing authority and its fiscal year, the assessed valuation for the timeshare property, the tax rates and the amounts payable. Data for the projected budget year should be estimated if actual figures are not currently available.

(xiii) Replacement reserve. Disclose which items of personal property this reserve fund will be used to replace. Discuss the cost an useful life of the property covered by this fund and state when, and under what circumstances, funds will be withdrawn from this reserve. State whether the fund will be adequate to replace all furnishings and other personal property in the units.

(xiv) Association fees. In the case of a condominium fee timesharing plan, expenses generated by an umbrella homeowner's association must be included as an item in the condominium budget and passed through to timeshare owners in a single maintenance charge. Include a reference to schedule C.

(xv) Contingency fund. State that the contingency fund (if any) is intended to provide for any unanticipated expenses or unanticipated increases in the projected expenses. Distinguish between the contingency fund and the replacement reserve fund.

(i) state that the examination was made in accordance with generally accepted auditing standards and included such tests of the accounting records and other auditing procedures as are generally considered necessary in the circumstances;

(ii) state that, in the accountant's opinion, the statement of income and expenses presents fairly the income and expenses of the project for the periods specified in conformity with generally accepted accounting principles applied on a consistent basis; and

(iii) be signed by a duly authorized signatory or by the firm.

(i) Mandatory escrow agreement. All deposits, down payments, or advances made by subscribers or purchasers prior to closing of each individual transaction shall be held pursuant to a written agreement entered into between the sponsor, the subscriber or purchaser, and the escrow agent. Said provisions may be included in a separate escrow agreement or in the subscription or purchase agreement, and are referred to in this paragraph as the “escrow agreement.” The plan must set forth the material terms of the escrow agreement. The sponsor shall specify the exhibit in Part II of the plan that contains the escrow agreement. If a separate escrow agreement is used, a copy of the full agreement must be contained as a separate exhibit to the plan in Part II. Disclose, without limitation, any indemnity by the sponsor in favor of the escrow agent, provision for discharge of the escrow agent’s obligations by the sponsor upon payment of the deposit and interest in accordance with these regulations, any right of the escrow agent to represent the sponsor in any lawsuit, any compensation by the sponsor to the depository bank, any provision for payments by the sponsor under an indemnity in favor of the escrow agent and whether the sponsor will compensate the escrow agent for acting as such. The plan and escrow agreement must include language conforming to subparagraphs (v)-(vii) of this paragraph. However, the failure to include such language in the plan or escrow agreement shall not excuse the sponsor and the escrow agent from compliance with said subparagraphs.

(ii) Payments. All funds received from purchasers or subscribers whether in the form of checks, drafts, money orders, wire transfers, or other instruments which identify the payor, shall be made payable to or endorsed by the purchaser or subscriber to the order of the attorney or law firm as escrow agent.

(iii) The escrow agent. The escrow agent must be an attorney or firm of attorneys admitted to practice in the State of New York or an attorney admitted in a foreign jurisdiction who submits to the jurisdiction of the State of New York for any cause of action arising out of the escrow provisions set forth in the escrow agreement or a firm of such attorneys. The authorized signatories on any escrow account must be attorneys admitted to practice in the State of New York or admitted in a foreign jurisdiction who submit to the jurisdiction of the State of New York for any cause of action arising out of the escrow provisions set forth in the escrow agreement. Neither the escrow agent nor any authorized signatory on any account may be the sponsor, the selling agent, the managing agent, or a principal thereof. However, a law firm that has a member who is a principal of the sponsor may be the escrow agent provided that members of the firm who are signatories on any account are not themselves principals. Only an attorney or a member of a firm acting as escrow agent shall be a signatory on any account and only such attorney shall be authorized to release funds. The name, address and telephone number of the escrow agent and of each attorney who is a signatory must be stated in the plan.

(iv) The account(s). All deposits, down payments, or advances made by subscribers or purchasers prior to closing of each individual transaction, whether received before or after the date of consummation of the plan, must be placed within five business days after the escrow agreement is signed by all necessary parties in an attorney's segregated special escrow account or accounts in a bank or banks doing business in the State of New York which account is insured by the Federal Deposit Insurance Corporation (“FDIC”). Sponsor shall state the applicable FDIC insurance limits, whether and to what extent the deposits, down payments, or advances are insured, and whether sponsor may utilize more than one segregated special account for each deposit, down payment, or advance. Include as a special risk that deposits in excess of said limits will not be federally insured. An attorney shall open and maintain any such account in his or her own name, or in the name of a firm of attorneys of which he or she is a member, or in the name of the attorney or firm of attorneys by whom he or she is employed, separate from such attorney's personal accounts or from any accounts in which assets belonging to the firm are deposited, and separate from any accounts maintained in the capacity of executor, guardian, trustee or receiver. A master escrow account with a sub-account for each subscriber or purchaser is acceptable. The name of any account, the bank, and the bank address must be stated in the plan. The word “escrow” must be included as part of the name of any account. Funds from any account may be released only by signature of the attorney(s) who is/are named as an authorized signatory or signatories. Neither the sponsor nor any principal of the sponsor may be an authorized signatory on any account. Funds must be placed in an interest-bearing account or accounts, with all interest credited to the subscriber or purchaser, unless the sponsor elects to place the funds in a separate Interest-on-Lawyer's-Account (“IOLA”) for each plan pursuant to Judiciary Law section 497. The plan shall indicate whether the interest rate to be earned will be the prevailing rate for such accounts. State the current prevailing rate and when interest will begin to accrue. No fees of any kind may be deducted from the account principal or any interest earned thereon. Sponsor shall bear any administrative cost for maintenance of any account.

(v) Notification to subscriber or purchaser. Within 10 business days after the escrow agreement is signed by all necessary parties, the escrow agent shall notify the subscriber or purchaser that such funds have been deposited in the bank indicated in the plan, and shall provide any account number and the initial interest rate. If the subscriber or purchaser does not receive notice of such deposit within 15 business days after tender of the deposit, he or she may cancel the subscription or purchase and rescind within 90 days after tender of the deposit. Complaints concerning the failure to honor such cancellation requests may be made to the New York State Department of Law, Real Estate Finance Bureau, 28 Liberty Street, New York, NY 10005. Rescission may not be afforded where proof satisfactory to the Attorney General is submitted establishing that the escrowed funds were timely deposited in accordance with these regulations and requisite notice was timely mailed to the subscriber or purchaser.

(vi) Escrow revisions. Before funds are transferred to any new escrow account, or if the escrow agent is replaced, the plan must be amended to provide the same full disclosure with respect to any new account, the escrow agent and the escrow agreement as was originally provided. A bond, letter of credit or other security may be substituted for any escrow account only after the Department of Law approves in writing the use of such alternate form of security, pursuant to the provisions of paragraph (m)(4) of this section.

(vii) Release of funds. The escrow agreement and the plan must set forth the requirements and procedures for the release of the escrowed funds. These shall include:

(viii) Disputes.

(ix) Exhibits to plan. Copies of the forms provided by the bank for opening any escrow account and the form of escrow agreement, if separate from the subscription or purchase agreement, must be included as Exhibit B-19 of the submission.

(x) Records on file. The escrow agent shall maintain all records concerning any escrow account for seven years after release of the funds. Upon the dissolution of any law firm which was the escrow agent, the former partners or members of the firm shall make appropriate arrangements for the maintenance of these records by one of them or by the successor firm and shall notify the Department of Law of such transfer.

(xi) Review and audit. The Department of Law may perform random reviews and audits of any records involving escrow accounts to determine compliance with statute and regulation.

(xii) Waiver void. Any provision of any contract or agreement, whether oral or in writing, by which a subscriber or purchaser purports to waive or indemnify any obligation of the escrow agent holding trust funds is absolutely void. The provisions of this section of the regulations shall prevail over any conflicting or inconsistent provision in the offering plan or in a purchase or subscription agreement.

(xiii) Trust obligation of sponsor. Nothing contained herein shall diminish or impair the sponsor's statutory obligation to each purchaser or subscriber pursuant to GBL section 352-h to hold in trust all deposits, advances or payments made in connection with the offer until consummation of the transaction with such purchaser or subscriber. Consummation of the plan does not relieve sponsor of its obligations pursuant to GBL section 352-h. Funds from any escrow account remain the property of the purchaser or subscriber until employed in connection with the consummation of the transaction. Such funds shall not be a part of the estate of the sponsor or the escrow agent upon any bankruptcy, incapacity or death.

(xiv) Transition. All funds required to be held pursuant to GBL sections 352-e(2-b) and 352-h on the effective date of this section shall be transferred into escrow accounts in compliance with this regulation within 60 days thereafter.

(i) Application for alternate security. Sponsor must submit an affidavit which contains full information as to the proposed usage of such funds, the sponsor's financing of construction or rehabilitation work, expected completion date, the terms and conditions of the proposed surety bonds or letter of credit and required undertakings and covenants.

(ii) Documentation. The proposed form of surety bond or letter of credit, any underlying agreement or related agreement, and any undertaking or covenant required hereunder, shall be appended to the application and also filed as Exhibits to the plan in Exhibits Part B section 24.2(c)(4)(b)(B-20) or as exhibits to an amendment to the plan.

(iii) Change from escrow account. Where surety bonds are or a letter of credit is to be provided under an amendment to the plan calling for release of funds already deposited in escrow, the amendment shall provide for, and annex a form for, the written consent of each affected purchaser or subscriber and shall provide for continuation of escrow of funds of any purchaser or subscriber who does not execute and deliver such written consent to the sponsor.

(iv) Disclosure. If an application for alternate security is approved, the terms of such alternate security shall be disclosed in the plan or in an amendment to the plan promptly submitted.

(i) Deposits into escrow account(s). All down payments and deposits, received after the Attorney General's approval of the use of surety bonds as alternate security, shall be placed, within five business days after the escrow agreement is signed by all necessary parties, in an attorney's segregated special escrow account or accounts, established pursuant to and in compliance with paragraph (3) of this subdivision. Such funds shall be released by the escrow agent to the sponsor upon receipt by the escrow agent of a copy of the surety bond issued to the purchaser or subscriber whose funds are being released.

(ii) Payments. All funds received from purchasers or subscribers whether in the form of checks, drafts, money orders, wire transfers, or other instruments which identify the payor, shall be made payable to or endorsed by the purchaser or subscriber to the order of the attorney or law firm as escrow agent.

(iii) Requirements to act as surety. The surety company must be licensed to write insurance in the State of New York by the New York State Department of Financial Services, whether or not the property which is the subject of the plan is located in the State of New York, unless the law of the state where the property is located requires otherwise. If the property is located outside New York State and the sponsor claims that the law of such state conflicts and is controlling, the sponsor's application must specify the conflicting law. In order for the application for alternate security to be approved by the Attorney General, the applicant must show that the surety company with which the sponsor proposes to contract has a current rating for debt securities no lower than the third highest grade conferred by at least two of the national reporting services regularly evaluating insurance companies.

(iv) Agreement between sponsor and surety. The plan must fully disclose the material terms of the agreement between the insurance company as surety and the sponsor, including the premium to be paid by the sponsor, any agreement by which sponsor provides collateral to secure its obligations to the surety and any agreement by the sponsor indemnifying the surety. The agreement must provide that the surety will abide by directives in conformity with these regulations.

(v) Provisions of the bond. The surety bond must specify the name and address of the sponsor as principal; the name and address of the surety company to which claims for payment may be made; provision for the name and address of the purchaser or subscriber as obligee on the bond; provision for the amount of the down payment or deposit secured and the rate of interest, if any, to accrue on such funds; the term of the bond, and, if the bond is for a finite period, a guarantee by the surety that it will pay the amount secured to the purchaser-obligee or subscriber-obligee prior to expiration of the bond or a guarantee by the sponsor that the bond will be renewed before expiration.

(vi) Term and continuation. Each surety bond and any accompanying agreement shall provide that it will continue in effect or that it will be renewed periodically until consummation and closing of the sale of the respective unit or shares the down payment for which is secured by such surety bond or until the secured funds of a purchaser or subscriber have been returned in full, or until the funds secured by the surety bond have been placed in any escrow account pursuant to paragraph (7) of this subdivision or until there is an undisputed purchaser or subscriber default of a final, non-reviewable determination by the Attorney General or final, non-appealable order or judgment of a court that the purchaser or subscriber has defaulted and that the sponsor is entitled to the secured funds.

(vii) Delivery of the surety bond. The sponsor shall cause the surety to mail or personally deliver the surety bond to the purchaser-obligee or subscriber-obligee before the funds are released to the sponsor from any escrow account. The sponsor, the escrow agent and the surety company shall each retain a copy of the surety bond.

(viii) Invoking the bond. The purchaser-obligee or subscriber obligee shall have the right to demand payment of the amount secured by the surety bond directly from the surety, without first requesting payment from the sponsor. The surety shall be obligated to pay the amount secured by the bond to the purchaser-obligee or subscriber-obligee without the consent or despite the objection of the sponsor, upon the following events or circumstances:

(ix) Failure by purchaser-obligee or subscriber-obligee to produce a copy of the bond. A purchaser's or subscriber's inability to produce a copy of the surety bond shall not be a basis for the surety to reject the purchaser's or subscriber's claim. The surety shall retain a copy of the bond and shall pay the secured funds to the purchaser-obligee or subscriber-obligee without a copy of the bond as long as the purchaser or subscriber is able to provide proof of identity as the obligee on the bond.

(x) Disputes.

(i) Amount. The amount of the letter of credit shall be at least 125 percent of the aggregate of all down payments or subscription deposits or payments expected to be received from purchasers or subscribers, and not retained in escrow, during such period of time as the letter of credit will be needed, as estimated by the sponsor in the application to the Department of Law. The amount of the letter of credit may be reduced or increased as warranted by circumstances and pursuant to a filed amendment to the plan.

(ii) Irrevocability. The letter of credit must be irrevocable during the stated term and any renewal term.

(iii) Beneficiary. The beneficiary must be an attorney, or firm of attorneys, acting as or qualified under subparagraph (3)(iii) of this subdivision to act as escrow agent under the plan, who shall act as a fiduciary for the benefit of purchasers and subscribers under the plan.

(iv) Authority to draw. The letter of credit must provide that the beneficiary shall have sole power to draw upon the letter of credit without the consent or despite the objection of the sponsor or of any provider of underlying credit, at such times or upon such events as are set forth in subparagraph (ix) of this paragraph.

(v) Issuer. The issuer must be a bank authorized to act as a commercial bank or savings institution under supervision of the New York State Department of Financial Services or a federally supervised banking institution located in the State of New York, unless the property is located in another state and the letter of credit is issued by a bank located within such state. In order for the application for alternate security to be approved by the Attorney General the applicant must show that the issuer bank has surplus funds and net worth of at least ten times the amount of the letter of credit, and must have a current rating with respect to its debt securities that is within “investment grade” by one of the generally accepted national reporting services regularly rating the debt securities of banking institutions and that the provisions of the letter of credit include the right of the beneficiary to draw down the letter of credit in conformity with these regulations.

(vi) Term and continuation. The letter of credit and related agreement and any accompanying undertaking shall provide that it will continue in effect or that it shall be periodically renewed until consummation and closings of sales of all units or shares referred to in the application for alternate security pursuant to subparagraph (4)(i) of this subdivision or until the covered funds of purchasers and subscribers have been returned to them in full.

(vii) Undertaking. If the letter of credit will expire prior to the latest date of closings of sales of all such units or shares, provision for renewal of the letter of credit without loss of irrevocability and without any change of terms shall be afforded by:

(viii) Operative provisions. Upon approval of a sponsor's application for use of a letter of credit as alternate security:

(ix) Right to draw upon letter of credit. The escrow agent as the beneficiary of the letter of credit, acting as a fiduciary for the benefit of purchasers and subscribers under the plan whose funds were released from escrow by reason of the grant of sponsor's application, shall have the duty and the right to draw upon and collect the proceeds of the letter of credit, 10 business days after notice to the sponsor and sponsor's failure or refusal to restore such funds to the escrow agent, without the consent or despite the objection of the sponsor or the provider of the credit, upon the following events or circumstances:

(x) Disputes.

(i) Sponsor shall establish any supplementary escrow account within the State of New York.

(ii) Any supplementary escrow account shall be funded by the sponsor in the amount of one-tenth of one percent (.1%) of the gross offering amount of the public offering, with a minimum of $5,000 and a maximum of $25,000.

(iii) The escrow agent for any supplementary account shall be permitted to withdraw and pay over to the sponsor the interest earned on any supplemental escrow account provided that such withdrawal does not reduce the balance of any account below the minimum principal balance required to be held in escrow by the sponsor. Funds shall not otherwise be released from any supplemental escrow account until the sponsor has withdrawn its public offering and a closing of the sale with the last New York purchaser in New York State shall have occurred unless otherwise directed by the Department of Law. All other provisions for the handling of escrowed amounts, including dispute resolution, shall remain as set forth in paragraph (3) of this subdivision, except that the escrow agent shall be exempted from the notification requirements of subparagraph (3)(v) of this subdivision and no right of rescission shall arise as a result of failing to give notice to purchasers as required in subparagraph (3)(v) of this subdivision.

(iv) As an alternative to the funding of any supplemental escrow account, a sponsor may apply to the Attorney General to use supplemental security in the form of surety bonds or a letter of credit. The funding amount of the alternative security shall be in the same amount as required to establish a supplementary escrow account. The provisions of paragraphs (4), (5), (6) and (7) of this subdivision, including dispute resolution, shall otherwise remain fully in effect.

(v) The sponsor shall appoint an attorney licensed to practice in the State of New York who maintains an office within New York State as the supplementary escrow agent. The sponsor and the supplementary escrow agent shall enter into a written escrow agreement which shall govern the operation of any supplemental escrow account. The agreement shall conform to the requirements of subparagraph (3)(iv) of this subdivision.

(vi) The sponsor shall have a continuing obligation to maintain any supplemental escrow account or supplemental alternate security at the minimum funding amount for such security, and within five business days of a payment to a New York purchaser from any supplemental escrow account or by bond or letter of credit, the sponsor shall be required to replenish the supplemental security to the full required amount. Each sponsor providing security in accordance with this paragraph shall agree that the determinations of the Attorney General with regard to the return of purchasers' moneys pursuant to dispute resolution under this subdivision shall be an obligation of the sponsor who shall cause its escrow agents holding the moneys of New York purchasers in other jurisdictions to comply with such determinations regardless of the value or amount of the supplemental security held by the supplemental escrow agent.

(i) At least five days have passed following the expiration of the purchaser's cancellation period.

(ii) Bona fide purchasers for value have executed purchase agreements (which are no longer subject to rescission by the purchasers) for 15 percent of the total number of timeshares offered in those phases of the project in which any purchase agreements have been executed.

(iii) In a fee timesharing plan, title to the timeshare has been conveyed (and recorded in accordance with the recording act of the jurisdiction in which the timeshare property is located) to the purchaser or to a trust and is not subject to attachment, garnishment, foreclosure, levy or other legal seizure by the creditors or bankruptcy trustee of the sponsor, the selling agent, the owner of the timeshare property, or the principals of any of them.

(iv) In a fee cooperative timesharing plan, title to the timeshare property has been conveyed (and recorded in accordance with the recording act of the jurisdiction in which the timeshare property is located) to the cooperative corporation and the shares allocated to the timeshare have been transferred to the purchaser.

(v) In a leasehold cooperative timesharing plan, the leasehold estate in the timeshare property has been conveyed (and recorded in accordance with the recording act of the jurisdiction in which the timeshare property is located) to the cooperative corporation and the shares allocated to the timeshare have been transferred to the purchaser.

(vi) Any real or personal property to be held by an owner's association under the timesharing plan has been conveyed (and recorded in accordance with the recording act of the jurisdiction in which the timeshare property is located) to the association.

(vii) In a timesharing plan with fixed units, construction of the purchaser's unit and the common facilities (including property and facilities outside the immediate timeshare regime which timeshare owners have the right to use and occupy as part of the timesharing plan at no additional charge or at a discount from rates charged to the general public) has been completed (and a permanent or temporary certificate of occupancy has been issued, if required), and the unit and common facilities have been furnished as set forth in the offering plan, or a bond or other security has been provided in an amount and form satisfactory to the Department of Law.

(viii) In a timesharing plan with floating units, construction of the common facilities has been completed (and a permanent or temporary certificate of occupancy has been issued, if required), and the total number of timeshare purchasers is less than the number of intervals available in those units on which construction has been completed (and a permanent or temporary certificate of occupancy has been issued, if required), and said units and common facilities have been furnished as set forth in the offering plan, or a bond or other security has been provided in an amount and form satisfactory to the Department of Law.

(ix) If, as part of the timesharing plan, timeshare owners have the right to use and occupy property outside the immediate timeshare regime (at no additional charge or at a discount from rates charged to the general public), an easement establishing this right has been recorded against the servient estate in accordance with the recording act of the jurisdiction in which the servient estate is located.

(x) If, as part of the timesharing plan, timeshare owners have the right to use and occupy property outside the immediate timeshare regime (at no additional charge or at a discount from rates charged to the general public), a covenant (running with the land) that such property will be used only for the purposes set forth in the offering plan has been recorded against the other property in accordance with the recording act of the jurisdiction in which the other property is located.

(xi) In a leasehold timesharing plan, the leasehold estate in the timeshare unit has been conveyed (and recorded in accordance with the recording act of the jurisdiction in which the timeshare property is located) to the purchaser.

(i) State that the timeshare property will be conveyed to the cooperative corporation free and clear of liens, encumbrances and title exceptions other than those described in the offering plan. Describe any mortgages or other liens, encumbrances and title exceptions which will affect the property after closing. Title exceptions may include the state of facts shown on a stated survey, and any additional state of facts a subsequent accurate survey would show, provided that such additional state of facts does not render title unmarketable.

(ii) State that the shares allocated to the purchaser's timeshare will be transferred to the purchaser free and clear of all liens and encumbrances.

(iii) State that the holders of all mortgages and other liens which will encumber the timeshare property after closing have agreed not to disturb the rights of timeshare owners to use and occupy the timeshare property, and that an instrument incorporating such agreement will be recorded in accordance with the recording act of the jurisdiction in which the timeshare property is located prior to or at the closing of title to the cooperative corporation.

(iv) State that, after closing of title to the cooperative corporation, the sponsor will not place or cause to be placed on the timeshare property a mortgage or other consensual lien unless and until the lienholder agrees (in a recorded instrument) not to disturb the rights of timeshare owners to use and occupy the timeshare property.

(i) State that the leasehold interest in the timeshare property will be conveyed to the cooperative corporation free and clear of liens, encumbrances and title exceptions, other than those described in the offering plan. Describe any mortgages or other liens, encumbrances and title exceptions which will affect either the leasehold estate or the underlying fee-simple estate. Title exceptions may include the state of facts shown on a stated survey, and any additional state of facts a subsequent accurate survey would show, provided that such additional state of facts does not render title unmarketable.

(ii) State that the shares allocated to the purchaser's timeshare will be transferred to the purchaser free and clear of all liens and encumbrances.

(iii) State that the holders of all mortgages and other liens which will encumber the leasehold estate after conveyance to the cooperative corporation have agreed not to disturb the rights of timeshare owners to use and occupy the timeshare property, and that an instrument incorporating such agreement will be recorded in accordance with the recording act of the jurisdiction in which the timeshare property is located prior to or at the conveyance of the leasehold estate to the cooperative corporation.

(iv) State that the holders of all mortgages and other liens which encumber the underlying fee-simple estate in the timeshare property (at the time that the leasehold estate is conveyed to the cooperative corporation) have agreed either to subordinate their lien to the leasehold estate or not to disturb the rights of timeshare owners to use and occupy the timeshare property. State also that an instrument incorporating such agreement will be recorded in accordance with the recording act of the jurisdiction in which the timeshare property is located prior to or at the conveyance of the leasehold estate to the cooperative corporation.

(v) State that the leasehold estate of the cooperative corporation will not be subordinated to any future mortgage or other lien recorded against the underlying fee-simple estate in the timeshare property.

(vi) State that, after the conveyance of the leasehold estate to the cooperative corporation, the sponsor will not place or cause to be placed on the leasehold estate a mortgage or other consensual lien unless and until the lienholder agrees (in a recorded instrument) not to disturb the rights of timeshare owners to use and occupy the timeshare property.

(i) State that the leasehold interest in the unit and any appurtenant interest in common elements will be conveyed to the purchaser free and clear of encumbrances and title exceptions other than those described in the offering plan. Describe any encumbrances and title exceptions which will affect the timeshare after closing. Title exceptions may include the state of facts shown on a stated survey, and any additional state of facts a subsequent accurate survey would show, provided that such additional state of facts does not render title unmarketable. Prior to or at the conveyance of the leasehold interest to the purchaser, a discharge or partial release of all mortgages and other liens on the leasehold interest must be recorded in accordance with the recording act of the jurisdiction in which the timeshare property is located.

(ii) State that the holders of all mortgages and other liens which encumber the underlying fee-simple estate in the timeshare property (at the time that the leasehold interest is conveyed to the purchaser) have agreed either to subordinate their lien to the leasehold interest or not to disturb the rights of timeshare owners to use and occupy the timeshare property. State also that an instrument incorporating such agreement will be recorded in accordance with the recording act of the jurisdiction in which the timeshare property is located prior to or at the conveyance of the leasehold interest to the purchaser.

(i) substitute equipment or materials of lesser quality or design; or

(ii) change the size or location of buildings, units, common facilities or other improvements, if such changes have a substantial and adverse effect on the interest of any timeshare owner or contract vendee under a timeshare purchase agreement.