HB 622 - Georgia Time-Share Act; comprehensive revision

Georgia House of Representatives - 1995/1996 Sessions

HB 622 - Georgia Time-Share Act; comprehensive revision

Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10/ 11/ 12/ 13/ 14/ 15/ 16/ 17/ 18/ 19/ 20/ 21/ 22/ 23/ 24/ 25/ 26/ 27/ 28/ 29/ 30/ 31/ 32/ 33/ 34/ 35/ 36/ 37/ 38/ 39/ 40/ 41/ 42/ 43/ 44/ 45/ 46/ 47/ 48/ 49/ 50/ 51
Code Sections - 44-3-160/ 44-3-161/ 44-3-162/ 44-3-163/ 44-3-164/ 44-3-165/ 44-3-166/ 44-3-167/ 44-3-168/ 44-3-169/ 44-3-170/ 44-3-171/ 44-3-172/ 44-3-173/ 44-3-174/ 44-3-175/ 44-3-176/ 44-3-177/ 44-3-178/ 44-3-179/ 44-3-180/ 44-3-181/ 44-3-182/ 44-3-183/ 44-3-184/ 44-3-185
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1. Skipper  137th         2. Watson  139th           3. Powell  23rd

House Comm: Ind / Senate Comm: F&PU / House Vote: Yeas 102 Nays 0 Senate Vote: Yeas 39 Nays 0 ---------------------------------------- House Action Senate ---------------------------------------- 2/6/95 Read 1st Time 2/21/95 2/7/95 Read 2nd Time 3/1/95 2/16/95 Favorably Reported 2/28/95 Sub Committee Amend/Sub 2/20/95 Read 3rd Time 3/9/95 2/20/95 Passed/Adopted 3/9/95 CS Comm/Floor Amend/Sub 4/3/95 Sent to Governor 4/21/95 Signed by Governor 496 Act/Veto Number 7/1/95 Effective Date ---------------------------------------- Code Sections amended: 44-3-160, 44-3-161, 44-3-162, 44-3-163, 44-3-164, 44-3-165, 44-3-166, 44-3-167, 44-3-168, 44-3-169, 44-3-170, 44-3-171, 44-3-172, 44-3-173, 44-3-174, 44-3-175, 44-3-176, 44-3-177, 44-3-178, 44-3-179, 44-3-180, 44-3-181, 44-3-182, 44-3-183, 44-3-184, 44-3-185, 44-3-186, 44-3-187, 44-3-188, 44-3-189, 44-3-190, 44-3-191, 44-3-192, 44-3-193, 44-3-194, 44-3-195, 44-3-196
HB 622 LC 10 1205S A BILL TO BE ENTITLED AN ACT 1- 1 To amend Chapter 3 of Title 44 of the Official Code of 1- 2 Georgia Annotated, relating to the regulation of specialized 1- 3 land transactions, so as to comprehensively revise the 1- 4 provisions of the "Georgia Time-Share Act"; to change the 1- 5 purposes of said Act; to delete certain definitions; to 1- 6 change a definition; to remove the Georgia Real Estate 1- 7 Commission as the administrator of said Act; to change the 1- 8 provisions relating to contents and recording of project and 1- 9 time-share instruments with respect to time-share projects 1-10 located within and outside of the state; to change the 1-11 provisions relating to time-share estate program management 1-12 and operation; to provide for information to ensure full and 1-13 fair disclosure to prospective purchasers; to change the 1-14 provisions relating to the contents of a public offering 1-15 statement with respect to time-share projects located within 1-16 or outside of the state; to change the provisions relating 1-17 to annual reports filed by exchange companies and 1-18 multilocation developers; to change the provisions relating 1-19 to the public offering statement provided to purchasers; to 1-20 change the provisions relating to funds required to be 1-21 escrowed by developers; to change the provisions relating to 1-22 escrow of payment received by developers on uncompleted 1-23 projects; to change the provisions relating to the exemption 1-24 from other state laws requiring registration and public 1-25 offering statements; to change the provisions relating to 1-26 exceptions to the public offering statement requirement; to 1-27 change the provisions relating to the requirement of 1-28 updating the public offering statement; to change the 1-29 provisions relating to purchase of intervals being free of 1-30 liens affecting that interval; to change the provisions 1-31 relating to financial and other records of time-share 1-32 project associations or managing agents; to change the 1-33 provisions relating to limitation of actions; to provide 1-34 when certain actions must commence when the validity of any 1-35 sales agreement is an issue and when rescission of the sales 1-36 agreement or damages are sought; to change the provisions 1-37 relating to the prohibition against certain statements or -1- (Index) LC 10 1205S 2- 1 representations; to change the provisions relating to the 2- 2 offer of gifts or prizes; to provide that certain actions 2- 3 with respect to the offering of gifts or prizes shall be 2- 4 unlawful; to provide penalties; to change the provisions 2- 5 relating to a developer's financial records of a time-share 2- 6 project; to change the provisions relating to protection of 2- 7 purchasers from a developer's underlying blanket 2- 8 encumbrance; to repeal certain provisions relating to the 2- 9 requirement of registration of time-share programs, agents, 2-10 and exchange companies; to provide that prior to the closing 2-11 of a resale of a time-share interval owned by a person other 2-12 than a developer of the time-share program, no person may 2-13 charge or collect any compensation for real estate brokerage 2-14 services from the person reselling the time-share interval; 2-15 to authorize such a person to charge an advertising fee 2-16 under certain conditions; to repeal certain provisions 2-17 relating to contents of application for registration of 2-18 time-share program; to change the provisions relating to 2-19 requirements for out-of-state projects, managing agents, and 2-20 exchange programs; to repeal certain provisions relating to 2-21 the authority of the Georgia Real Estate Commission to 2-22 establish fees; to repeal the provisions relating to 2-23 effective date of registration and administrative review of 2-24 denial of registration; to change certain exceptions from 2-25 the application of said Act; to repeal certain provisions 2-26 relating to the powers and duties of the Georgia Real Estate 2-27 Commission; to change the provisions relating to 2-28 modification of public offering statements and limitations 2-29 on the use of such statements; to change the provisions 2-30 relating to records required to be kept by the developer or 2-31 agents; to change the provisions relating to criminal 2-32 penalties; to repeal certain provisions relating to the 2-33 investigation of a developer, agent, or exchange program; to 2-34 repeal other criminal penalties for certain violations of 2-35 said Act; to repeal certain provisions relating to the 2-36 exclusiveness of said Act with respect to the sale of 2-37 time-share intervals; to provide for related matters; to 2-38 repeal conflicting laws; and for other purposes. 2-39 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. 2-40 Chapter 3 of Title 44 of the Official Code of Georgia 2-41 Annotated, relating to the regulation of specialized land 2-42 transactions, is amended by striking in its entirety Article -2- (Index) LC 10 1205S 3- 1 5, known as the "Georgia Time-Share Act," and inserting in 3- 2 lieu thereof a new Article 5 to read as follows: "ARTICLE 5 Part 1 3- 3 44-3-160. (Index) 3- 4 This article shall be known and may be cited as the 3- 5 'Georgia Time-Share Act.' 3- 6 44-3-161. (Index) 3- 7 The purposes of this article are to: 3- 8 (1) Give statutory recognition to real property 3- 9 timesharing in this state; 3-10 (2) Regulate developers of time-share estate and 3-11 time-share use projects located in this state and 3-12 outside this state when offered for sale in this state; 3-13 (3) Require that developers of time-share projects: 3-14 (A) Make certain disclosures to purchasers and 3-15 prospective purchasers through the use of a public 3-16 offering statement; 3-17 (B) Deposit trust funds with an escrow agent; 3-18 (C) Follow procedures for registering the projects 3-19 with the commission; 3-20 (D)(C) Utilize only licensed real estate brokers as 3-21 sales agents if required by Chapter 40 of Title 43; 3-22 and 3-23 (E)(D) Comply with promotional advertising standards; 3-24 (4) Establish operating standards for and require 3-25 registration with the commission of time-share project 3-26 managing agents and exchange programs operating in this 3-27 state; and 3-28 (5) Provide for sanctions for violations of any 3-29 provisions of this article which will permit: 3-30 (A) The commission to reprimand, suspend, or revoke 3-31 the registration of the time-share project, managing 3-32 agent, or exchange program; 3-33 (B)(A) Courts of competent jurisdiction to impose 3-34 fines or imprisonment for misdemeanors and felonies; 3-35 and -3- (Index) LC 10 1205S 4- 1 (C)(B) A claim for appropriate relief by any person 4- 2 adversely affected. 4- 3 44-3-162. (Index) 4- 4 As used in this article, the term: 4- 5 (1) 'Agent' means a person authorized by the developer 4- 6 to act for him such developer in offering to the public 4- 7 or managing time-share intervals including but not 4- 8 limited to employees or independent contractors of the 4- 9 developer, managing agents, sales agents, and escrow 4-10 agents. 4-11 (2) 'Commission' means the Georgia Real Estate 4-12 Commission. 4-13 (3) 'Commissioner' means the real estate commissioner. 4-14 (4)(2) 'Conspicuous statement' means a statement in 4-15 boldface and conspicuous type of at least ten points, 4-16 such statements always being larger than all other 4-17 statements, except for other conspicuous statements, in 4-18 the body of the document in which they are required. 4-19 (5)(3) 'Developer' means, in the case of any given 4-20 property, any person or entity which is in the business 4-21 of creating or which is in the business of selling its 4-22 own time-share intervals in any time-share program. 4-23 This definition shall not mean a person acting solely as 4-24 a sales agent. 4-25 (5.1)(4) 'Developer control period' means the period of 4-26 time during which the developer or managing agent 4-27 selected by the developer may manage the time-share 4-28 program and the units in the time-share program. 4-29 (6)(5) 'Development,' 'project,' or 'property' means all 4-30 of the real property subject to a project instrument and 4-31 which contains more than one unit. 4-32 (7)(6) 'Escrow agent' means a licensed real estate 4-33 broker, an attorney who is a member of the State Bar of 4-34 Georgia, a title company, or a banking institution or 4-35 savings and loan company having trust powers and located 4-36 in this state who is entrusted with the deposit of trust 4-37 funds with instructions to carry out the provisions of 4-38 an agreement or contract. 4-39 (8)(7) 'Exchange company' means any person owning or 4-40 operating an exchange program. -4- (Index) LC 10 1205S 5- 1 (9)(8) 'Exchange program' means any arrangement whereby 5- 2 owners may exchange occupancy rights with persons owning 5- 3 other time-share intervals or units or other rights of 5- 4 possession; provided, however, that an exchange program 5- 5 shall not exist if all of the occupancy rights which may 5- 6 be exchanged are in the same time-share property. 5- 7 (10)(9) 'Managing agent' means a person who undertakes 5- 8 the duties, responsibilities, and obligations of the 5- 9 management of a time-share program. 5-10 (11)(10) 'Multilocation developer' means a developer 5-11 creating or selling its own time-share intervals in a 5-12 multilocation plan. 5-13 (12)(11) 'Multilocation plan' means a time-share plan 5-14 respecting more than one time-share property pursuant to 5-15 which owners do may or may not obtain use rights in a 5-16 specific time-share property and may, by reservation or 5-17 other similar procedure, become entitled to occupy 5-18 time-share units in more than one time-share property. 5-19 (13)(12) 'Offering' means any offer to sell, 5-20 solicitation, inducement, or advertisement whether by 5-21 radio, television, newspaper, magazine, or mail whereby 5-22 a person is given an opportunity to acquire a time-share 5-23 interval. 5-24 (14)(13) 'Person' means one or more natural persons, 5-25 corporations, partnerships, associations, trusts, other 5-26 entities, or any combination thereof. 5-27 (15)(14) 'Project' means development. 5-28 (16)(15) 'Project instrument' means one or more 5-29 recordable documents applicable to the whole project by 5-30 whatever name denominated, containing restrictions or 5-31 covenants regulating the use, occupancy, or disposition 5-32 of an entire project including any amendments to the 5-33 document excluding any law, ordinance, or governmental 5-34 regulation. 5-35 (17)(16) 'Property' means development. 5-36 (18)(17) 'Public offering statement' means a written 5-37 statement given to prospective purchasers by the 5-38 developer or the developer's agent disclosing such 5-39 information about the time-share project as required by 5-40 this article. -5- (Index) LC 10 1205S 6- 1 (19)(18) 'Purchaser' means any person other than a 6- 2 developer or lender who acquires an interest in a 6- 3 time-share interval. 6- 4 (20)(19) 'Sales agent' means a person who for another, 6- 5 for a fee, commission, or any other valuable 6- 6 consideration or with the intent or expectation of 6- 7 receiving the same from another, negotiates or attempts 6- 8 to negotiate the sale or lease of a time-share interval 6- 9 in a time-share program. 6-10 (21)(20) 'Sales agreement' means that contract, 6-11 agreement, lease, or other written instrument by which a 6-12 purchaser contracts to acquire or acquires, in the event 6-13 there is no contract to acquire, an interest in a 6-14 time-share interval. 6-15 (22)(21) 'Time-share estate' means an ownership or 6-16 leasehold interest in real property divided into 6-17 measurable chronological periods. 6-18 (23)(22) 'Time-share instrument' means any document, by 6-19 whatever name denominated, creating or regulating 6-20 time-share programs excluding any law, ordinance, or 6-21 governmental regulation. 6-22 (24)(23) 'Time-share interval' means a time-share estate 6-23 or a time-share use. 6-24 (25)(24) 'Time-share program' means any arrangement for 6-25 time-share intervals in a time-share project whereby the 6-26 use, occupancy, or possession of real property has been 6-27 made subject to either a time-share estate or time-share 6-28 use whereby such use, occupancy, or possession 6-29 circulates among purchasers of the time-share intervals 6-30 according to a fixed or floating time schedule on a 6-31 periodic basis occurring annually over any period of 6-32 time in excess of one year in duration. 6-33 (26)(25) 'Time-share project' means any real property 6-34 that is subject to a time-share program. 6-35 (27)(26) 'Time-share use' means any contractual right of 6-36 exclusive occupancy which does not fall within the 6-37 definition of a time-share estate including, without 6-38 limitation, a vacation license, prepaid hotel 6-39 reservation, club membership, limited partnership, or 6-40 vacation bond. -6- (Index) LC 10 1205S 7- 1 (28)(27) 'Unit' means the real property or real property 7- 2 improvement in a project which is divided into 7- 3 time-share intervals. 7- 4 44-3-163. (Index) 7- 5 (a) A time-share estate is an estate in real property and 7- 6 has the character and incidents of an estate in fee simple 7- 7 at common law or estate for years, if a leasehold, except 7- 8 as expressly modified by this article. This subsection 7- 9 shall supersede any contrary rule at common law. 7-10 (b) A document transferring or encumbering a time-share 7-11 estate in real property shall not be rejected for 7-12 recordation because of the nature or duration of that 7-13 estate or interest, provided there is compliance with all 7-14 requirements necessary to make an instrument recordable. 7-15 (c) For purposes of title, each time-share estate 7-16 constitutes a separate estate or interest in property. 7-17 (d) For purposes of local real property taxation, each 7-18 time-share unit, other than a unit operated for time-share 7-19 use, shall be valued in the same manner as if such unit 7-20 were owned by a single taxpayer. The total cumulative 7-21 purchase price paid by the time-share owners for a unit 7-22 shall not be utilized by the commissioner of revenue or 7-23 other local assessing officers as a factor in determining 7-24 the assessed value of such unit. A unit operated as a 7-25 time-share use, however, may be assessed the same as other 7-26 income-producing and investment property. Tax records in 7-27 a time-share unit shall be in the name of the association 7-28 or the managing agent. 7-29 44-3-164. (Index) 7-30 No zoning, subdivision, or building code or other real 7-31 estate use ordinance or regulation shall prohibit the 7-32 time-share interval form of ownership or use or impose any 7-33 requirement upon the time-share project which it does not 7-34 impose upon a physically identical improvement or 7-35 development under a different form of ownership. No 7-36 subdivision law, ordinance, or regulation shall apply to 7-37 any division of an improvement or unit into a time-share 7-38 project or time-share intervals. -7- (Index) LC 10 1205S Part 2 8- 1 44-3-165. (Index) 8- 2 (a) A time-share program may be created in any unit, 8- 3 unless expressly prohibited by the project instruments. 8- 4 (b) No action for partition of a unit may be maintained 8- 5 except as permitted by the time-share instrument. 8- 6 44-3-166. (Index) 8- 7 (a) Project instruments and time-share instruments 8- 8 creating time-share estates located in the State of 8- 9 Georgia shall be recorded in the superior court of the 8-10 county in which the project is located and shall contain 8-11 the following: 8-12 (1) The name of the county in which the property is 8-13 situated; 8-14 (2) The legal description, street address, or other 8-15 description sufficient to identify the property; 8-16 (3) Identification of time periods by letter, name, 8-17 number, or combination thereof; 8-18 (4) Identification of time-share estates and, where 8-19 applicable, the method whereby additional time-share 8-20 estates may be created; 8-21 (5) The formula, fraction, or percentage of the common 8-22 expenses and any voting rights assigned to each 8-23 time-share estate and, where applicable, to each unit in 8-24 a project that is not subject to the time-share program; 8-25 (6) Any restrictions on the use, occupancy, alteration, 8-26 or alienation of time-share intervals; and 8-27 (7) The ownership interest, if any, in personal property 8-28 and provisions for care and replacement. 8-29 (b) For time-share projects located outside the State of 8-30 Georgia, project instruments therefor shall be recorded as 8-31 required by the law of the jurisdiction in which such 8-32 time-share project is located. 8-33 44-3-167. (Index) 8-34 The time-share instruments for a time-share estate program 8-35 shall prescribe reasonable arrangements for management and 8-36 operation of the time-share program and for the -8- (Index) LC 10 1205S 9- 1 maintenance, repair, and furnishing of units, which shall 9- 2 include the following: 9- 3 (1) Creation of an association organization of 9- 4 time-share estate owners; 9- 5 (2) Adoption of bylaws for organizing and operating the 9- 6 association organization; 9- 7 (3) Payment of costs and expenses of operating the 9- 8 time-share program and of owning and maintaining the 9- 9 units; 9-10 (4) Employment and termination of employment of the 9-11 managing agent for the association organization; 9-12 (5) Preparation and dissemination to owners of an annual 9-13 budget and of operating statements and other financial 9-14 information including, but not limited to, the current 9-15 status of payments under any security deed, contracts 9-16 for improvements, or other encumbrances concerning the 9-17 time-share program; 9-18 (6) Adoption of standards and rules of conduct for the 9-19 use and occupancy of units by owners; 9-20 (7) Collection of assessments from owners to defray the 9-21 expenses of management of the time-share program and 9-22 maintenance of the units; 9-23 (8) Comprehensive general liability insurance for death, 9-24 bodily injury, and property damage arising out of or in 9-25 connection with the use of units by owners, their 9-26 guests, and others and extended coverage casualty 9-27 insurance; 9-28 (9) Methods for providing compensating use periods or 9-29 monetary compensation to an owner if a unit cannot be 9-30 made available for the period to which the owner is 9-31 entitled by schedule or by confirmed reservation; 9-32 (10) Procedures for imposing a monetary penalty or 9-33 suspension of an owner's rights and privileges in the 9-34 time-share program for failure of the owner to comply 9-35 with provisions of the time-share instruments or the 9-36 rules of the association organization with respect to 9-37 the use of the units. Under these procedures, an owner 9-38 must be given notice and the opportunity to refute or 9-39 explain the charges against him or her in person or in 9-40 writing to the governing body of the association -9- (Index) LC 10 1205S 10- 1 organization before a decision to impose discipline is 10- 2 rendered; 10- 3 (11) Employment of attorneys, accountants, and other 10- 4 professional persons as necessary to assist in the 10- 5 management of the time-share program and the units; and 10- 6 (12) Procedures for the developer to obtain the consent 10- 7 of a majority of the existing owners of the time-share 10- 8 estates before encumbering the time-share project for 10- 9 the purpose of making additional improvements to the 10-10 project. 10-11 44-3-168. (Index) 10-12 (a) The time-share instruments for a time-share estate 10-13 program may provide for a developer control period. 10-14 (b) If the time-share instruments for a time-share estate 10-15 program provide for the establishment of a developer 10-16 control period, they shall include provisions for the 10-17 following: 10-18 (1) Termination of the developer control period by 10-19 action of the association; 10-20 (2) Termination of contracts for goods and services for 10-21 the time-share program or for units in the time-share 10-22 program entered into during the developer control 10-23 period; and 10-24 (3) A regular accounting by the developer to the 10-25 association as to all matters that significantly affect 10-26 the interests of owners in the time-share program 10-27 including, but not limited to, the current status of 10-28 payments under any security deed, contracts for 10-29 improvements, or other encumbrances. 10-30 44-3-169. (Index) 10-31 Project instruments and time-share instruments creating 10-32 time-share uses shall contain the following: 10-33 (1) Identification by name of the time-share project and 10-34 street address where the time-share project is situated; 10-35 (2) Identification of the time periods, type of units, 10-36 and the units that are in the time-share program and the 10-37 length of time that the units are committed to the 10-38 time-share program; and -10- (Index) LC 10 1205S 11- 1 (3) In case of a time-share project, identification of 11- 2 which units are in the time-share program and the method 11- 3 whereby any other units may be added, deleted, or 11- 4 substituted. 11- 5 44-3-170. (Index) 11- 6 The time-share instruments for a time-share use program 11- 7 shall prescribe reasonable arrangements for management and 11- 8 operation of the time-share program and for the 11- 9 maintenance, repair, and furnishing of units which shall 11-10 include the following: 11-11 (1) Standards and procedures for upkeep, repairs, and 11-12 interior furnishing of units; 11-13 (2) Adoption of standards and rules of conduct governing 11-14 the use and occupancy of units by owners; 11-15 (3) Payment of the costs and expenses of operating the 11-16 time-share program and owning and maintaining the units; 11-17 (4) Selection of a managing agent to act on behalf of 11-18 the developer; 11-19 (5) Preparation and dissemination to owners of an annual 11-20 budget and of operating statements and other financial 11-21 information concerning the time-share program; 11-22 (6) Procedures for establishing the rights of owners to 11-23 the use of units by prearrangement or under a first 11-24 reserved, first served priority system; 11-25 (7) Organization of a management advisory board or board 11-26 of directors consisting of time-share use owners 11-27 including an enumeration of rights and responsibilities 11-28 of the board; 11-29 (8) Procedures for imposing and collecting assessments 11-30 or use fees from time-share use owners as necessary to 11-31 defray costs of management of the time-share program and 11-32 in providing materials and services to the units; 11-33 (9) Comprehensive general liability insurance for death, 11-34 bodily injury, and property damage arising out of or in 11-35 connection with the use of units by time-share use 11-36 owners, their guests, and others and extended coverage 11-37 casualty insurance; 11-38 (10) Methods for providing compensation use periods or 11-39 monetary compensation to an owner if a unit cannot be -11- (Index) LC 10 1205S 12- 1 made available for the period to which the owner is 12- 2 entitled by schedule or by a confirmed reservation; 12- 3 (11) Procedures for imposing a monetary penalty or 12- 4 suspension of an owner's rights and privileges in the 12- 5 time-share program for failure of the owner to comply 12- 6 with the provisions of the time-share instruments or the 12- 7 rules established by the developer with respect to the 12- 8 use of the units. The owner shall be given notice and 12- 9 the opportunity to refute or explain the charges in 12-10 person or in writing to the management advisory board 12-11 before a decision to impose discipline is rendered; 12-12 (12) Annual dissemination to all time-share use owners 12-13 by the developer or by the managing agent of a list of 12-14 the names and mailing addresses of all current 12-15 time-share use owners in the time-share program; 12-16 (13) Procedures for the developer to obtain the consent 12-17 of a majority of the existing owners of the time-share 12-18 uses before encumbering the time-share project for the 12-19 purpose of making additional improvements to the 12-20 project; and 12-21 (14) A definition of what shall constitute the 12-22 facilities being available for use. 12-23 44-3-171. (Index) 12-24 In the event that: 12-25 (1) Time-share intervals in a time-share program have 12-26 been sold in this state to a resident of this state 12-27 prior to July 1, 1983; 12-28 (2) The time-share instruments and project instruments 12-29 creating such program do not provide for or contain the 12-30 provisions required by Code Sections 44-3-166 through 12-31 44-3-170; and 12-32 (3) The developer does not control a sufficient number 12-33 of votes in the time-share program to amend the 12-34 time-share instruments and project instruments to 12-35 provide for the inclusion of the provisions required by 12-36 Code Sections 44-3-166 through 44-3-170 without the vote 12-37 of any other time-share interval owners, 12-38 then the developer shall include in the public offering 12-39 statement a listing of those provisions required by Code 12-40 Sections 44-3-166 through 44-3-170 but not included in the 12-41 instruments. -12- (Index) LC 10 1205S Part 3 13- 1 44-3-172. (Index) 13- 2 (a) A public offering statement must be provided to each 13- 3 purchaser of a time-share interval. Prospective 13- 4 purchasers receiving a copy of the public offering 13- 5 statement shall sign a statement acknowledging receipt of 13- 6 the public offering statement and such receipt shall be 13- 7 kept at the principal office of the developer for three 13- 8 years from the date of receipt. 13- 9 (1) The public offering statement must contain or fully 13-10 and accurately disclose such information as the 13-11 commission may require by its rules and regulations and 13-12 must include the following information: 13-13 (A) The name of the developer, the principal address 13-14 of the developer, the address of the time-share 13-15 intervals offered in the statement, and a description 13-16 of the developer's ownership interest in the 13-17 time-share project; 13-18 (B) The nature of the interest in the time-share 13-19 interval being offered whether it involves real 13-20 property ownership, leasehold interest, right to use 13-21 or occupy the facility, or some other interest being 13-22 offered; 13-23 (C) A general description of the units including, 13-24 without limitation, the developer's contemplated 13-25 schedule of commencement and completion of all 13-26 buildings, units, and amenities or, if completed, a 13-27 statement that they have been completed; 13-28 (D) As to all units offered by the developer in the 13-29 same time-share project: 13-30 (i) The types and number of units; 13-31 (ii) Identification of units that are subject to 13-32 time-share intervals; and 13-33 (iii) The estimated number of units that may become 13-34 subject to time-share intervals; 13-35 (E) A brief description of the project; 13-36 (F) Any current budget or a projected budget for the 13-37 time-share intervals for one year after the date of 13-38 the first transfer to a purchaser. The budget must 13-39 include, without limitation: -13- (Index) LC 10 1205S 14- 1 (i) A statement of the amount or a statement that 14- 2 there is no amount included in the budget as a 14- 3 reserve for repairs and replacement; 14- 4 (ii) The projected common expense liability, if any, 14- 5 by category of the expenditures for the time-share 14- 6 intervals; 14- 7 (iii) The projected common expense liability for all 14- 8 time-share intervals; and 14- 9 (iv) A statement of any services not reflected in 14-10 the budget that the developer provides or expenses 14-11 that he or she pays; 14-12 (G) Any initial or special fee for the use of the unit 14-13 or amenities due from the purchaser at closing 14-14 together with a description of the purpose and method 14-15 of calculating the fee; 14-16 (H) A description of any liens, defects, or 14-17 encumbrances on or affecting the title to the 14-18 time-share intervals; 14-19 (I) A description of any financing offered by the 14-20 developer; 14-21 (J) A statement of any pending actions material to the 14-22 time-share intervals of which a developer has actual 14-23 knowledge; 14-24 (K) Any restraints on alienation of any number or 14-25 portion of any time-share intervals; 14-26 (L) A description of the insurance coverage or a 14-27 statement that there is no insurance coverage provided 14-28 for the benefit of time-share interval owners 14-29 including specific statements on the amount of 14-30 comprehensive general liability insurance and extended 14-31 coverage casualty insurance; 14-32 (M) Any current or expected fees or charges to be paid 14-33 by time-share interval owners for the use of any 14-34 facilities related to the property; 14-35 (N) Whether financial arrangements have been provided 14-36 for and with whom financial arrangements have been 14-37 made for the completion of all promised or proposed 14-38 improvements and the proposed date of completion; -14- (Index) LC 10 1205S 15- 1 (O) The extent to which a time-share unit may become 15- 2 subject to a tax or other lien arising out of claims 15- 3 against other owners of the same unit; 15- 4 (P) A conspicuous statement on the cover page as 15- 5 follows: 15- 6 'YOU MAY CANCEL WITHOUT PENALTY OR OBLIGATION ANY 15- 7 SALES AGREEMENT WHICH YOU HAVE SIGNED FOR THE 15- 8 PURCHASE OR LEASE OF A TIME-SHARE INTERVAL WITHIN 15- 9 SEVEN DAYS, SUNDAYS AND HOLIDAYS EXCEPTED, AFTER 15-10 SIGNING ANY SALES AGREEMENT AND RECEIVE A REFUND. 15-11 IF THIS PUBLIC OFFERING STATEMENT WAS NOT GIVEN TO 15-12 YOU BEFORE YOU SIGNED ANY SALES AGREEMENT, YOU MAY 15-13 CANCEL THE SALES AGREEMENT WITHIN SEVEN DAYS, 15-14 SUNDAYS AND HOLIDAYS EXCEPTED, AFTER YOUR RECEIPT OF 15-15 THIS PUBLIC OFFERING STATEMENT AND RECEIVE A REFUND. 15-16 YOU MAY NOT GIVE UP OR WAIVE THIS RIGHT TO CANCEL. 15-17 IF YOU DECIDE TO CANCEL A SALES AGREEMENT, YOU MUST 15-18 NOTIFY THE DEVELOPER IN WRITING WITHIN THE 15-19 CANCELLATION PERIOD OF YOUR INTENT TO CANCEL BY 15-20 SENDING NOTICE BY CERTIFIED MAIL, RETURN RECEIPT 15-21 REQUESTED, TO (insert the name and address of the 15-22 developer or the developer's agent). YOUR NOTICE 15-23 WILL BE EFFECTIVE ON THE DATE YOU MAIL IT.'; 15-24 (Q) When a time-share use is offered, a conspicuous 15-25 statement as follows: 15-26 'YOU MAY CANCEL ANY SALES AGREEMENT WHICH YOU HAVE 15-27 SIGNED FOR THE PURCHASE OF A TIME-SHARE USE AT ANY 15-28 TIME THE FACILITY IS NOT MADE AVAILABLE FOR USE 15-29 ACCORDING TO AGREED UPON TERMS. YOU MAY NOT GIVE UP 15-30 OR WAIVE THIS RIGHT TO CANCEL.'; 15-31 (R) A schedule for refunding any funds due the 15-32 purchaser if the time-share project is not completed 15-33 or if the purchaser exercises cancellation rights; 15-34 (S) The name and address of the escrow agent; and 15-35 (T) A conspicuous statement as follows: 15-36 'ANY QUESTIONS ABOUT THE LEGAL ASPECTS OF THE 15-37 PURCHASE OR LEASE OF A TIME-SHARE INTERVAL SHOULD BE 15-38 REFERRED TO AN ATTORNEY.'; 15-39 (U) A conspicuous statement on the cover page as 15-40 follows: -15- (Index) LC 10 1205S 16- 1 'PURCHASER SHOULD READ THIS DOCUMENT BEFORE SIGNING 16- 2 ANYTHING.'; 16- 3 (V)(i) Except as otherwise provided in division (ii) 16- 4 of this subparagraph, a conspicuous statement as 16- 5 follows: 16- 6 'THIS IS A REAL PROPERTY TRANSACTION. YOU OR YOUR 16- 7 ATTORNEY SHOULD REVIEW THE DOCUMENTS RELATING TO 16- 8 THIS TRANSACTION ON FILE IN THE SUPERIOR COURT OF 16- 9 THE COUNTY WHEREIN THE PROPERTY IS LOCATED.' 16-10 (ii) If the time-share project is located outside 16-11 this state, then the conspicuous statement must read 16-12 as follows: 16-13 'THIS IS A REAL PROPERTY TRANSACTION. YOU OR YOUR 16-14 ATTORNEY SHOULD REVIEW THE DOCUMENTS RELATING TO 16-15 THIS TRANSACTION ON FILE IN THE APPROPRIATE LAND 16-16 RECORDS OF THE JURISDICTION IN WHICH THE PROPERTY 16-17 IS LOCATED.'; and 16-18 (W) A description of the exact procedure that will be 16-19 used by the developer for closing sales of time-share 16-20 intervals including, but not limited to, the 16-21 procedures for conveying title to the time-share 16-22 intervals, the procedures for delivery and recording 16-23 of deeds, and the procedures for disbursing funds held 16-24 by the escrow agent. 16-25 (2) If the owners of time-share intervals are offered an 16-26 opportunity to become members of or to participate in 16-27 any program for the exchange of occupancy rights among 16-28 themselves or with the owners of time-share intervals of 16-29 other time-share projects, or both, the public offering 16-30 statement or a supplement delivered therewith must fully 16-31 and accurately disclose such information as the 16-32 commission may require by its rules and regulations and 16-33 must include the following information: 16-34 (A) The name and address of the exchange company; 16-35 (B) The names of all officers, directors, and 16-36 shareholders owning 5 percent or more of the 16-37 outstanding stock of the exchange company; 16-38 (C) Whether the exchange company or any of its 16-39 officers or directors has any legal or beneficial 16-40 interest in any developer or managing agent for any 16-41 time-share project participating in the exchange -16- (Index) LC 10 1205S 17- 1 program and, if so, the name and location of the 17- 2 time-share project and the nature of the interest; 17- 3 (D) Unless the exchange company is also the developer 17- 4 or an affiliate, a statement that the purchaser's 17- 5 contract with the exchange company is a contract 17- 6 separate and distinct from the sales agreement; 17- 7 (E) Whether the purchaser's participation in the 17- 8 exchange program is dependent upon the continued 17- 9 affiliation of the time-share project with the 17-10 exchange program; 17-11 (F) Whether the purchaser's membership or 17-12 participation, or both, in the exchange program is 17-13 voluntary or mandatory; 17-14 (G) A complete and accurate description of the terms 17-15 and conditions of the purchaser's contractual 17-16 relationship with the exchange company and the 17-17 procedure by which changes thereto may be made; 17-18 (H) A complete and accurate description of the 17-19 procedure to qualify for and effectuate exchanges; 17-20 (I) A complete and accurate description of all 17-21 limitations, restrictions, or priorities employed in 17-22 the operation of the exchange program, including, but 17-23 not limited to, limitations on exchanges based on 17-24 seasonableness, unit size, or levels of occupancy, 17-25 expressed in a conspicuous statement, and, in the 17-26 event that such limitations, restrictions, or 17-27 priorities are not uniformly applied by the exchange 17-28 program, a clear description of the manner in which 17-29 they are applied; 17-30 (J) Whether exchanges are arranged on a 17-31 space-available basis and whether any guarantees of 17-32 fulfillment of specific requests for exchanges are 17-33 made by the exchange program; 17-34 (K) Whether and under what circumstances an owner, in 17-35 dealing with the exchange company, may lose the use 17-36 and occupancy of his such owner's time-share interval 17-37 in any properly applied for exchange without his such 17-38 owner being provided with substitute accommodations by 17-39 the exchange company; 17-40 (L) The fees or range of fees for participation by 17-41 owners in the exchange program, a statement whether -17- (Index) LC 10 1205S 18- 1 any such fees may be altered by the exchange company, 18- 2 and the circumstances under which alterations may be 18- 3 made; 18- 4 (M) The name and address of the site of each 18- 5 time-share property, accommodation, or facility which 18- 6 are participating in the exchange program; 18- 7 (N) The number of units in each property participating 18- 8 in the exchange program which are available for 18- 9 occupancy and which qualify for participation in the 18-10 exchange program, expressed within the following 18-11 numerical groupings: 1-5, 6-10, 11-20, 21-50, and 51 18-12 and over; 18-13 (O) The number of owners with respect to each 18-14 time-share project or other property which are 18-15 eligible to participate in the exchange program 18-16 expressed within the following numerical groupings: 18-17 1-100, 101-249, 250-499, 500-999, and 1,000 and over, 18-18 and a statement of the criteria used to determine 18-19 those owners who are currently eligible to participate 18-20 in the exchange program; 18-21 (P) The disposition made by the exchange company of 18-22 time-share intervals deposited with the exchange 18-23 program by owners eligible to participate in the 18-24 exchange program and not used by the exchange company 18-25 in effecting exchanges; 18-26 (Q) The following information, which, except as 18-27 provided in subparagraph (S) of this paragraph, shall 18-28 be independently audited by a certified public 18-29 accountant or accounting firm in accordance with the 18-30 standards of the Accounting Standards Board of the 18-31 American Institute of Certified Public Accountants and 18-32 included in the public offering statement for each 18-33 year no later than July 1 of the succeeding year, 18-34 beginning no later than July 1, 1983: 18-35 (i) The number of owners eligible to participate in 18-36 the exchange program. Such number shall disclose 18-37 the relationship between the exchange company and 18-38 owners as being either fee-paying or gratuitous in 18-39 nature; 18-40 (ii) The number of time-share properties, 18-41 accommodations, or facilities eligible to 18-42 participate in the exchange program categorized by -18- (Index) LC 10 1205S 19- 1 those having a contractual relationship between the 19- 2 developer or the association and the exchange 19- 3 company and those having solely a contractual 19- 4 relationship between the exchange company and owners 19- 5 directly; 19- 6 (iii) The percentage of confirmed exchanges, which 19- 7 shall be the number of exchanges confirmed by the 19- 8 exchange company divided by the number of exchanges 19- 9 properly applied for, together with a complete and 19-10 accurate statement of the criteria used to determine 19-11 whether an exchange request was properly applied 19-12 for; 19-13 (iv) The number of time-share intervals for which 19-14 the exchange company has an outstanding obligation 19-15 to provide an exchange to an owner who relinquished 19-16 a time-share interval during the year in exchange 19-17 for a time-share interval in any future year; and 19-18 (v) The number of exchanges confirmed by the 19-19 exchange company during the year; 19-20 (R) A conspicuous statement to the effect that the 19-21 percentage described in division (iii) of subparagraph 19-22 (Q) of this paragraph is a summary of the exchange 19-23 requests entered with the exchange company in the 19-24 period reported and that the percentage does not 19-25 indicate a purchaser's or owner's probabilities of 19-26 being confirmed to any specific choice or range of 19-27 choices, since availability at individual locations 19-28 may vary; and 19-29 (S) The information required by this paragraph shall 19-30 be accurate as of a date which is not more than 30 19-31 days prior to the date on which the information is 19-32 delivered to the purchaser, except that the 19-33 information required by subparagraphs (B), (C), (M), 19-34 (N), (O), and (Q) of this paragraph shall be provided 19-35 as of December 31 of the year preceding the year in 19-36 which the information is delivered, except for 19-37 information delivered within the first 180 days of any 19-38 calendar year which shall be provided as of December 19-39 31 of the year preceding the year in which the 19-40 information is delivered. All references in this Code 19-41 section to the word 'year' shall mean calendar year; 19-42 (3) A multilocation developer shall include in the 19-43 public offering statement or a supplement delivered -19- (Index) LC 10 1205S 20- 1 therewith such information as the commission may require 20- 2 by its rules and regulations and must include the 20- 3 following information: 20- 4 (A) A complete and accurate description of the 20- 5 procedure to qualify for and effectuate use rights in 20- 6 time-share units in the multilocation plan; 20- 7 (B) A complete and accurate description of all 20- 8 limitations, restrictions, or priorities employed in 20- 9 the operation of the multilocation plan, including, 20-10 but not limited to, a conspicuous statement of 20-11 limitations on reservations, use or entitlement rights 20-12 based on seasonableness, unit size, levels of 20-13 occupancy or class of owner, and, in the event that 20-14 such limitations, restrictions, or priorities are not 20-15 uniformly applied by the multilocation plan, a clear 20-16 description of the manner in which they are applied; 20-17 (C) Whether use is arranged on a space-available basis 20-18 and whether any guarantees of fulfillment of specific 20-19 requests for use are made by the multilocation 20-20 developer; 20-21 (D) The name and address of the site of each 20-22 time-share property included in the multilocation 20-23 plan; 20-24 (E) The number of time-share units in each time-share 20-25 property which are available for occupancy and, with 20-26 respect to each such time-share unit, the interest, 20-27 such as fee ownership, leasehold, or option to 20-28 purchase, which the multilocation developer has 20-29 therein; a statement of all relevant terms of the 20-30 multilocation developer's interest if such interest is 20-31 less than fee ownership; and whether the time-share 20-32 unit may be withdrawn from the multilocation plan; 20-33 (F) The following information, which, except as 20-34 provided in subparagraph (H) of this paragraph, shall 20-35 be independently audited by a certified public 20-36 accountant or accounting firm in accordance with the 20-37 standards of the Accounting Standards Board of the 20-38 American Institute of Certified Public Accountants and 20-39 included in the public offering statement for each 20-40 year on or before July 1 of the succeeding year 20-41 beginning no later than July 1, 1983: 20-42 (i) The number of owners in the multilocation plan; -20- (Index) LC 10 1205S 21- 1 (ii) For each time-share property in the 21- 2 multilocation plan, the number of properly made 21- 3 requests for use of time-share units in such 21- 4 time-share property; and 21- 5 (iii) For each time-share property, the percentage 21- 6 of owners who properly requested use of a time-share 21- 7 unit in such time-share property who received the 21- 8 right to use a time-share unit in such time-share 21- 9 property; 21-10 (G) A conspicuous statement to the effect that the 21-11 percentages described in subparagraph (F) of this 21-12 paragraph do not indicate a purchaser's or owner's 21-13 probabilities of being able to use any time-share unit 21-14 since availability at individual locations may vary; 21-15 and 21-16 (H) The information required by this paragraph shall 21-17 be provided as of a date which is no more than 30 days 21-18 prior to the date on which the information is 21-19 delivered to the purchaser, except that the 21-20 information required by subparagraphs (D), (E), and 21-21 (F) of this paragraph shall be provided as of December 21-22 31 of the year preceding the year in which the 21-23 information is delivered, except for information 21-24 delivered within the first 180 days of any calendar 21-25 year which shall be provided as of December 31 of the 21-26 year preceding the year in which the information is 21-27 delivered. 21-28 (b) In the event an exchange company offers an exchange 21-29 program directly to the purchaser or owner, the exchange 21-30 company shall deliver to each purchaser or owner, prior to 21-31 the execution of any contract between the purchaser or 21-32 owner and the company offering the exchange program, the 21-33 information set forth in paragraph (2) of subsection (a) 21-34 of this Code section. The requirements of paragraph (2) 21-35 of subsection (a) of this Code section shall not apply to 21-36 any renewal of a contract between an owner and an exchange 21-37 company. 21-38 (c) Each exchange company offering an exchange program to 21-39 purchasers in this state must include the statement set 21-40 forth in subparagraph (a)(2)(R) of this Code section on 21-41 all promotional brochures, pamphlets, advertisements, or 21-42 other materials disseminated by the exchange company which -21- (Index) LC 10 1205S 22- 1 also contain the percentage of confirmed exchanges 22- 2 described in division (a)(2)(Q)(iii) of this Code section. 22- 3 44-3-173. (Index) 22- 4 (a) An exchange company whose exchange program is offered 22- 5 to purchasers in connection with the offer or disposition 22- 6 of time-share intervals in this state shall, on or before 22- 7 July 1 of each year, file with the commission and 22- 8 secretary of the association for the time-share program in 22- 9 which the time-share intervals are offered or disposed, 22-10 the information required by paragraph (2) of subsection 22-11 (a) of Code Section 44-3-172 with respect to the preceding 22-12 year. If the commission determines that any of the 22-13 information supplied fails to meet the requirements of 22-14 this Code section, the commission district attorney or 22-15 Attorney General may undertake enforcement action against 22-16 the exchange company in accordance with the provisions of 22-17 this article in either the superior court of the county 22-18 wherein the time-share accommodations or facilities are 22-19 located or in the Superior Court of Fulton County. No 22-20 developer shall have any liability arising out of the use, 22-21 delivery, or publication by the developer of any 22-22 information provided to it by the exchange company 22-23 pursuant to this Code section. Except as provided in this 22-24 Code section, no exchange company shall have any liability 22-25 with respect to (1) any representation made by the 22-26 developer relating to the exchange program or exchange 22-27 company, or (2) the use, delivery, or publication by the 22-28 developer of any information relating to the exchange 22-29 program or exchange company. An exchange company shall 22-30 only be liable for written information provided to the 22-31 developer by the exchange company. The failure of the 22-32 exchange company to observe the requirements of this Code 22-33 section, or the use by it of any unfair or deceptive act 22-34 or practice in connection with the operation of the 22-35 exchange program, shall be a violation of this article. 22-36 (b) A multilocation developer which offers or disposes of 22-37 time-share intervals in this state shall, on or before 22-38 July 1 of each year, file with the commission secretary of 22-39 the association for the time-share program the information 22-40 required by paragraph (3) of subsection (a) of Code 22-41 Section 44-3-172 with respect to the preceding year. If 22-42 at any time the commission determines that any of the 22-43 information supplied fails to meet the requirements of 22-44 this Code section, the commission district attorney or -22- (Index) LC 10 1205S 23- 1 Attorney General may undertake enforcement action against 23- 2 the multilocation developer in accordance with the 23- 3 provisions of this article in either the superior court of 23- 4 the county wherein the time-share accommodations or 23- 5 facilities are located or in the Superior Court of Fulton 23- 6 County. The failure of a multilocation developer to 23- 7 observe the requirements of this Code section, or the use 23- 8 by it of any unfair or deceptive act or practice in 23- 9 connection with the operation of the exchange program, 23-10 shall be a violation of this article. 23-11 44-3-174. (Index) 23-12 (a) Before transfer of a time-share interval and no later 23-13 than the date of any sales agreement, the developer shall 23-14 provide the intended transferee with a copy of the public 23-15 offering statement and any amendments and supplements 23-16 thereto. The sales agreement is voidable by the purchaser 23-17 for seven days, Sundays and holidays excepted, after 23-18 receipt of the public offering statement or for seven 23-19 days, Sundays and holidays excepted, after signing any 23-20 sales agreement, whichever is later. Cancellation is 23-21 without penalty or obligation, and all payments made by 23-22 the purchaser before cancellation must be refunded within 23-23 30 days after receipt of the notice of cancellation. 23-24 (b) In addition to the rights of the developer provided in 23-25 the sales agreement, up to seven days, Sundays and 23-26 holidays excepted, after the signing of any sales 23-27 agreement, the developer may cancel the sales agreement 23-28 without penalty or obligation to either party. The 23-29 developer shall return all payments made by the purchaser 23-30 within 30 days after canceling the agreement and the 23-31 purchaser shall return all materials received in good 23-32 condition, reasonable wear and tear excepted. 23-33 (c) If a time-share use is being conveyed, a purchaser 23-34 shall have the right to cancel the transaction at any time 23-35 after the facilities are no longer available for use. 23-36 (d) The rights of cancellation provided for in subsections 23-37 (a), (b), and (c) of this Code section shall not be 23-38 waivable by any purchaser. 23-39 (e) Any sales agreement must contain a conspicuous 23-40 statement as follows: 23-41 'YOU MAY CANCEL WITHOUT PENALTY OR OBLIGATION THIS SALES 23-42 AGREEMENT FOR THE PURCHASE OR LEASE OF A TIME-SHARE -23- (Index) LC 10 1205S 24- 1 INTERVAL WITHIN SEVEN DAYS, SUNDAYS AND HOLIDAYS 24- 2 EXCEPTED, AFTER SIGNING AND RECEIVE A REFUND OF ANY 24- 3 FUNDS PAID. IF YOU DID NOT RECEIVE A PUBLIC OFFERING 24- 4 STATEMENT PRIOR TO SIGNING THIS SALES AGREEMENT, YOU MAY 24- 5 CANCEL THIS SALES AGREEMENT WITHIN SEVEN DAYS, SUNDAYS 24- 6 AND HOLIDAYS EXCEPTED, AFTER RECEIPT OF A PUBLIC 24- 7 OFFERING STATEMENT. YOU MAY NOT GIVE UP OR WAIVE THIS 24- 8 RIGHT TO CANCEL. IF YOU DECIDE TO CANCEL, YOU MUST 24- 9 NOTIFY THE DEVELOPER IN WRITING WITHIN THE CANCELLATION 24-10 PERIOD OF YOUR INTENT TO CANCEL BY SENDING NOTICE BY 24-11 CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO (insert the 24-12 name and address of the developer or the developer's 24-13 agent). YOUR NOTICE WILL BE EFFECTIVE UPON THE DATE YOU 24-14 SEND IT.' 24-15 (f) Prospective purchasers receiving a copy of the public 24-16 offering statement shall sign a conspicuous statement 24-17 acknowledging receipt of the public offering statement 24-18 which shall be kept at the principal office of the 24-19 developer for a period of three years from the date of 24-20 receipt. Said statement shall read as follows: 24-21 'I HEREBY ACKNOWLEDGE THAT I HAVE RECEIVED THE PUBLIC 24-22 OFFERING STATEMENT OF (insert name of project) ON 24-23 (insert date) AND I UNDERSTAND THAT MY RIGHT TO CANCEL 24-24 ANY SALES AGREEMENT TO PURCHASE A TIME-SHARE INTERVAL 24-25 EXPIRES ON (insert date), WHICH IS SEVEN DAYS, SUNDAYS 24-26 AND HOLIDAYS EXCEPTED, AFTER SIGNING ANY SALES AGREEMENT 24-27 OR SEVEN DAYS, SUNDAYS AND HOLIDAYS EXCEPTED, AFTER 24-28 RECEIPT OF THE PUBLIC OFFERING STATEMENT, WHICHEVER IS 24-29 LATER.' 24-30 44-3-175. (Index) 24-31 (a) A developer of a time-share program shall: 24-32 (1) Deposit with an escrow agent 100 percent of all 24-33 funds which are received during the seven-day 24-34 cancellation period provided for in this article. The 24-35 deposit of such funds shall be evidenced by an executed 24-36 escrow agreement between the escrow agent and the 24-37 developer, the provisions of which shall include: 24-38 (A) That its purpose is to protect the purchaser's 24-39 right to a refund if he or she cancels the sales 24-40 agreement for a time-share interval within a seven-day 24-41 cancellation period; -24- (Index) LC 10 1205S 25- 1 (B) That funds may be disbursed to the developer by 25- 2 the escrow agent from the escrow account only after 25- 3 expiration of the purchaser's seven-day cancellation 25- 4 period and in accordance with the sales agreement; and 25- 5 (C) That the escrow agent may release funds to the 25- 6 developer from the escrow account only after receipt 25- 7 of a sworn statement from the developer that no 25- 8 cancellation notice was received before expiration of 25- 9 the seven-day period; 25-10 (2) Deposit with an escrow agent after the seven-day 25-11 cancellation period 100 percent of all funds which are 25-12 received from purchasers of time-share uses. The deposit 25-13 of such funds shall be evidenced by an executed escrow 25-14 agreement between the escrow agent and the developer, 25-15 the provisions of which shall include: 25-16 (A) That its purpose is to protect the purchaser's 25-17 right to a refund, at any time the accommodations or 25-18 facilities are no longer available as provided in the 25-19 sales agreement entered into by the developer and the 25-20 purchaser in an amount provided for in subparagraph 25-21 (a)(2)(B) of this Code section (B) of this paragraph; 25-22 (B) That funds may be disbursed to the developer by 25-23 the escrow agent from the escrow account periodically 25-24 in the ratio of the amount of time the purchaser has 25-25 already used or had the right to use the 25-26 accommodations or facilities of the time-share use at 25-27 the time of the disbursement in relation to the total 25-28 time sold to the purchaser; and 25-29 (C) That the escrow agent may release funds to the 25-30 developer from the escrow account only after receipt 25-31 of a statement signed by the purchaser indicating that 25-32 such purchaser has used or has had the right to use a 25-33 specific number of days out of the total time period 25-34 purchased. If a purchaser refuses to sign such a 25-35 statement when tendered, the developer may submit a 25-36 sworn statement to the escrow agent that the purchaser 25-37 used or had the right to use a specific number of 25-38 days, but that the purchaser refused to sign a 25-39 statement to that effect; 25-40 (3) Place 100 percent of all funds received from 25-41 purchasers of such time-share intervals, after the 25-42 seven-day cancellation periods have ended, in an escrow 25-43 account when interests in real property are being sold, -25- (Index) LC 10 1205S 26- 1 according to a sales agreement which will transfer title 26- 2 to the purchasers. The establishment of such an escrow 26- 3 account shall be evidenced by an executed escrow 26- 4 agreement between the escrow agent and the developer, 26- 5 the provisions of which shall include: 26- 6 (A) That its purpose is to protect all deposits and 26- 7 payments made by a purchaser toward the purchase price 26- 8 until the deed is delivered to the purchaser, whether 26- 9 physically or by recording the same, or until the 26-10 purchaser and developer enter into a sales agreement 26-11 which will transfer title to the purchaser; and 26-12 (B) That funds may be disbursed to the developer by 26-13 the escrow agent from the escrow account only after 26-14 title has been delivered to the purchaser physically 26-15 or delivered for recording to the clerk of the 26-16 superior court in the county where the real property 26-17 underlying the time-share project is located or at 26-18 such other time as may be agreed upon in writing by 26-19 the purchaser and developer. However, in the case of a 26-20 time-share estate sold by agreement for deed, funds 26-21 may only be disbursed to the developer after recording 26-22 of the agreement for deed and, if necessary, a notice 26-23 to creditors with secured interests in the property 26-24 underlying the time-share project and, if the property 26-25 is encumbered by a deed to secure debt or mortgage 26-26 instrument, a nondisturbance instrument has been 26-27 recorded in the public records of the county or 26-28 counties in which the timeshare time-share is located; 26-29 or alternatively, after the developer records a notice 26-30 to the aforesaid creditors and obtains a release of 26-31 lien for a time-share interval, funds may be disbursed 26-32 pertaining to that time-share interval; and 26-33 (4) Place any funds escrowed pursuant to this Code 26-34 section with an escrow agent who shall be one of the 26-35 following: an attorney in this state, a bank or savings 26-36 and loan company having trust powers in this state, a 26-37 title company in this state, or a real estate broker in 26-38 this state. In lieu of the foregoing, with the approval 26-39 of the commission, the funds may be escrowed in an 26-40 account required by the jurisdiction in which the sale 26-41 of the timeshare time-share took place. The developer 26-42 must notify the commission purchaser of the name and 26-43 address of the escrow agent or the name, address, and 26-44 account number of the bank or savings and loan company -26- (Index) LC 10 1205S 27- 1 where the developer maintains the funds. Maintenance of 27- 2 trust funds and disbursements by an escrow agent in 27- 3 another state must be in accordance with the provisions 27- 4 of this article. The escrow agreement shall authorize 27- 5 the commission or its purchaser or the purchaser's 27- 6 representative to examine said trust account. 27- 7 (b) An escrow agent holding funds escrowed pursuant to 27- 8 this Code section may invest such escrowed funds in 27- 9 securities of the United States government, or any agency 27-10 thereof, or in savings or time deposits in institutions 27-11 insured by an agency of the United States government. The 27-12 right to receive the interest generated by any such 27-13 investments shall be as specified by a written agreement 27-14 between the developer and the purchaser. 27-15 (c) Each escrow agent shall maintain separate books and 27-16 records for each time-share project and shall maintain 27-17 such books and records according to generally accepted 27-18 accounting principles. 27-19 (d) In lieu of any escrows required by this Code section, 27-20 the commission shall have the discretion to accept other 27-21 assurances, including, but not limited to, a surety bond 27-22 or an irrevocable letter of credit in an amount equal to 27-23 the escrow requirements of this Code section. 27-24 Determination of default and refund of deposits shall be 27-25 governed by the escrow release provision of this Code 27-26 section. 27-27 (e)(1) A developer may elect to terminate the use of an 27-28 escrow account established pursuant to this Code section 27-29 if, at a later date, such developer posts a surety bond 27-30 which complies with the requirements of paragraph (2) of 27-31 this subsection. Any funds remaining in such escrow 27-32 account at the time a developer elects to terminate its 27-33 use shall be disbursed to the developer by the escrow 27-34 agent only after the developer has transmitted to the 27-35 escrow agent and to each purchaser affected a copy of 27-36 the surety bond. 27-37 (2) A surety bond established pursuant to paragraph (1) 27-38 of this subsection shall be executed by the developer as 27-39 principal and with a surety company authorized to do 27-40 business in this state. The surety bond shall be in an 27-41 amount equal to the total amount of the sales agreement 27-42 and shall be posted with the clerk of the superior court 27-43 in the county where the time-share accommodations or -27- (Index) LC 10 1205S 28- 1 facilities are located. The bond shall be payable to 28- 2 the Georgia Real Estate Commission, shall be conditioned 28- 3 upon the faithful compliance with the provisions of this 28- 4 article and with the sales agreement, and shall be used 28- 5 to indemnify any purchaser injured by the developer's 28- 6 violation of this article or failure to perform pursuant 28- 7 to the sales agreement. The bond may be reduced 28- 8 periodically in the ratio of the amount of time used by 28- 9 purchasers to the total time sold to purchasers. 28-10 44-3-176. (Index) 28-11 (a) If a developer enters into a sales agreement to sell a 28-12 time-share interval and the construction, furnishing, and 28-13 landscaping of the time-share project have not been 28-14 substantially completed in accordance with the 28-15 representations made by the developer in the disclosures 28-16 required by this article, the developer shall deposit with 28-17 an escrow agent all payments received by the developer 28-18 from the purchaser towards the sales price until the 28-19 project is substantially complete. Funds shall be 28-20 released from escrow as follows: 28-21 (1) If a purchaser properly terminates the sales 28-22 agreement pursuant to its terms or pursuant to this 28-23 article, the funds shall be paid to the purchaser 28-24 together with any interest earned; 28-25 (2) If the purchaser defaults in the performance of his 28-26 such purchaser's obligations under the sales agreement, 28-27 the funds shall be paid to the developer together with 28-28 any interest earned; or 28-29 (3) If the funds of a purchaser have not been previously 28-30 disbursed in accordance with the provisions of this 28-31 subsection, they may be disbursed to the developer in 28-32 accordance with this article by the escrow agent upon 28-33 substantial completion of the time-share project. 28-34 (b) In lieu of any escrows required by subsection (a) of 28-35 this Code section, the purchasers shall have the 28-36 discretion to accept in writing other financial assurances 28-37 including, but not limited to, a performance bond or an 28-38 irrevocable letter of credit in an amount equal to the 28-39 cost to complete the time-share project. 28-40 (c) For the purpose of this Code section, 'substantially 28-41 completed' means that all amenities, furnishings, 28-42 appliances, and structural components and mechanical -28- (Index) LC 10 1205S 29- 1 systems of buildings are completed and provided as 29- 2 represented in the public offering statement and that the 29- 3 premises are ready for occupancy. 29- 4 44-3-177. (Index) 29- 5 (a) Any time-share program registered under this article 29- 6 in which a public offering statement has been prepared 29- 7 shall not require registration under any of the following: 29- 8 (1) Article 1 of Chapter 3 of Title 44 this chapter; 29- 9 (2) Chapter 5 of Title 10; or 29-10 (3) Any other state law which requires the preparation 29-11 of a public offering statement or substantially similar 29-12 document for distribution to purchasers. 29-13 (b) Any time-share program registered under this article 29-14 that fails to restrict the price at which an owner may 29-15 sell or exchange his such owner's time-share interval 29-16 shall not by virtue of such failure cause the time-share 29-17 interval to become a security under Chapter 5 of Title 10; 29-18 nor shall an exchange program offering such a time-share 29-19 interval for exchange be construed to be offering a 29-20 security under Chapter 5 of Title 10. 29-21 44-3-178. (Index) 29-22 (a) In lieu of the public offering statement required by 29-23 this article, the commission, in its discretion, may 29-24 permit the developer to may give prospective purchasers a 29-25 public offering statement or similar disclosure document 29-26 which meets the requirements of the Federal Securities and 29-27 Exchange Act of 1933 or any other state's act regulating 29-28 time-share projects which requires or, if the time-share 29-29 project is located in another state, a public offering 29-30 statement or similar disclosure document which that state 29-31 may require to be prepared and provided to purchasers. 29-32 (b) A public offering statement need not be prepared or 29-33 delivered in the case of: 29-34 (1) A transfer of a time-share interval by any 29-35 time-share interval owner or user other than the 29-36 developer or his such developer's agent; 29-37 (2) A disposition pursuant to court order; 29-38 (3) A disposition by a government or governmental 29-39 agency; -29- (Index) LC 10 1205S 30- 1 (4) A disposition by foreclosure or deed in lieu of 30- 2 foreclosure; 30- 3 (5) A disposition of a time-share interval in a 30- 4 time-share project situated wholly outside this state, 30- 5 provided that all solicitations, and negotiations, and 30- 6 sales agreements took place wholly outside this state 30- 7 and the sales agreement was executed wholly outside this 30- 8 state; 30- 9 (6) A gratuitous transfer of a time-share interval; or 30-10 (7) Group reservations made for 15 or more people as a 30-11 single transaction between a hotel and travel agent or 30-12 travel groups for hotel accommodations when deposits are 30-13 made and held for more than three years in advance. 30-14 44-3-179. (Index) 30-15 The developer shall immediately amend or supplement the 30-16 public offering statement to report any material change in 30-17 the information required by Code Section 44-3-172. and 30-18 shall supply the commission a copy of that change within 30-19 ten days. As to any exchange program, the developer shall 30-20 use the current written materials that are supplied to it 30-21 for distribution to the time-share interval owners as it 30-22 is received. 30-23 44-3-180. (Index) 30-24 (a) Unless the purchaser expressly agrees in the sales 30-25 agreement to accept his such purchaser's interest subject 30-26 to a lien or by assuming a lien prior to transferring a 30-27 time-share interval other than by deed in lieu of 30-28 foreclosure, the developer shall record or furnish to the 30-29 purchaser releases of all liens affecting that time-share 30-30 interval or shall provide a surety bond or insurance 30-31 against the lien, as provided for liens on real estate in 30-32 this state. In lieu of the foregoing, a lienholder may 30-33 agree to repurchase in the amount agreed to by the parties 30-34 but in no event less than the amount actually paid by the 30-35 purchaser a purchaser's time-share interval in the event 30-36 the lienholder comes into possession of the time-share 30-37 project; or the lienholder may agree to allow the 30-38 continued right of quiet enjoyment to the purchaser. 30-39 (b) Unless a time-share interval owner or his such owner's 30-40 predecessor in title agrees otherwise with the lienor, if 30-41 a lien other than an underlying mortgage or security deed 30-42 becomes effective against more than one time-share -30- (Index) LC 10 1205S 31- 1 interval in a time-share project, any time-share interval 31- 2 owner is entitled to a release of his such owner's 31- 3 time-share interval from the lien upon payment of the 31- 4 amount of the lien attributable to his such owner's 31- 5 time-share interval. The amount of the payment must be 31- 6 proportionate to the ratio that the time-share interval 31- 7 owner's liability bears to the liabilities of all 31- 8 time-share interval owners whose interests are subject to 31- 9 the lien. Upon receipt of payment, the lienholder shall 31-10 promptly deliver to the time-share interval owner a 31-11 release of the lien covering that time-share interval. 31-12 After payment, the managing entity may not assess or have 31-13 a lien against that time-share interval for any portion of 31-14 the expenses incurred in connection with that lien. 31-15 44-3-181. (Index) 31-16 The developer shall not sell, lease, assign, or otherwise 31-17 transfer the entire interest of the developer, other than 31-18 as a transfer of a time-share interval in the normal 31-19 course of marketing, in the time-share program or the 31-20 accommodations or facilities to a third party when such a 31-21 sale, lease, assignment, or other transfer substantially 31-22 affects the rights of other owners of the time-share 31-23 units, unless: 31-24 (1) The third party agrees in writing to honor fully the 31-25 rights of purchasers of the time-share intervals to 31-26 occupy and use the accommodations or facilities or 31-27 agrees in writing to purchase the interval in an amount 31-28 equal to the amount actually paid by the purchaser 31-29 toward the purchase price of the time-share interval; 31-30 (2) The third party agrees in writing to honor fully the 31-31 rights of purchasers of the time-share intervals to 31-32 cancel their sales agreement and receive any refunds 31-33 due; 31-34 (3) The third party agrees in writing to comply with the 31-35 provisions of this article for as long as the third 31-36 party continues to sell the time-share project or for as 31-37 long as purchasers of the time-share project are 31-38 entitled to occupy the accommodations or use the 31-39 facilities, whichever is longer in time; and 31-40 (4) Written notice is given to the association and 31-41 notice shall be sent by certified mail within 30 days of 31-42 the sale, lease, assignment, or other transfer. -31- (Index) LC 10 1205S 32- 1 44-3-182. (Index) 32- 2 The person or entity responsible for making or collecting 32- 3 common expense assessments or maintenance assessments 32- 4 shall keep detailed financial records and shall keep said 32- 5 funds in a designated trust account. All financial and 32- 6 other records shall be made reasonably available for 32- 7 examination by any time-share interval owner or his 32- 8 authorized agents and to the commission or its authorized 32- 9 agents in the program, by the time-share program's 32-10 association, or by the authorized agent of such owner or 32-11 association upon reasonable request. 32-12 (1) The developer of a time-share program shall maintain 32-13 the following records for a period of three years. Said 32-14 records shall be made available for inspection by any 32-15 time-share interval owner in the program, by the 32-16 time-share program's association, or by the authorized 32-17 agent of such owner or association upon reasonable 32-18 request: 32-19 (A) A copy of the escrow agreement for each time-share 32-20 interval sold or, if alternative arrangements are 32-21 made, a copy of the documents relating to those 32-22 arrangements; 32-23 (B) Copies of lien releases, surety bonds, or other 32-24 financial assurances executed by the developer to 32-25 protect purchasers against any claims against the 32-26 time-share program; 32-27 (C) Copies of management agreements entered into with 32-28 managing agents for the management of the time-share 32-29 program; 32-30 (D) Copies of agreements entered into with exchange 32-31 programs for the inclusion of the time-share project 32-32 in the exchange program's available facilities; and 32-33 (E) For multilocation developers, copies of certified 32-34 public accountants' reports required by subparagraph 32-35 (a)(3)(F) of Code Section 44-3-172. 32-36 (2) The managing agent of a time-share program shall 32-37 maintain the following records for a period of three 32-38 years. Said records shall be made available for 32-39 inspection by any time-share interval owner in the 32-40 program, by the time-share program's association, or by 32-41 the authorized agent of such owner or association upon 32-42 reasonable request: -32- (Index) LC 10 1205S 33- 1 (A) Copies of management agreements entered into with 33- 2 developers for the management of time-share programs; 33- 3 and 33- 4 (B) Copies of budgets and statements sent to 33- 5 developers and time-share interval owners accounting 33- 6 for common expense and maintenance assessments. 33- 7 (3) Exchange programs shall maintain the following 33- 8 records for a period of three years. Said records shall 33- 9 be made available for inspection by any time-share 33-10 interval owner in the program, by the time-share 33-11 program's association, or by the authorized agent of 33-12 such owner or association upon reasonable request: 33-13 (A) Copies of agreements with developers for the 33-14 inclusion of their projects in the exchange program's 33-15 available facilities; 33-16 (B) Copies of agreements with time-share interval 33-17 owners for their membership in the exchange program; 33-18 and 33-19 (C) Copies of certified public accountants' reports as 33-20 required by subparagraph (a)(2)(Q) of Code Section 33-21 44-3-172. 33-22 44-3-183. (Index) 33-23 If a developer or any other person subject to this article 33-24 violates any provision of this article or any provision of 33-25 the project instruments, any person or class of persons 33-26 adversely affected by the violation has a claim for 33-27 appropriate relief. Punitive damages may be awarded for a 33-28 willful violation of this article. The court may also 33-29 award reasonable attorney's fees. 33-30 44-3-184. (Index) 33-31 A judicial proceeding where the accuracy of the public 33-32 offering statement or validity of any sales agreement is 33-33 an issue and a rescission of the sales agreement is sought 33-34 or damages are sought must be commenced within one year 33-35 after the date of the sales agreement, notwithstanding 33-36 that the purchaser's terms of payments may extend beyond 33-37 the period of limitations. However, with respect to the 33-38 enforcement provisions in the sales agreement which 33-39 require the continued furnishing of services and the 33-40 reciprocal payments to be made by the purchaser, the 33-41 period of bringing a judicial proceeding will continue for -33- (Index) LC 10 1205S 34- 1 a period of three years for each breach, but the parties 34- 2 may agree to reduce the period of limitation to not less 34- 3 than two years upon which the last of the events described 34- 4 in paragraphs (1) through (3) of this Code section shall 34- 5 occur: 34- 6 (1) The closing of the transaction; 34- 7 (2) The first issuance by the applicable governmental 34- 8 authority of a certificate of occupancy or other 34- 9 evidence of sufficient completion of construction of the 34-10 building containing the unit to allow lawful occupancy 34-11 of the unit. In counties or municipalities in which 34-12 certificates of occupancy or other evidence of 34-13 completion sufficient to allow lawful occupancy are not 34-14 customarily issued, for the purpose of this Code 34-15 section, evidence of lawful occupancy shall be deemed to 34-16 have been given or issued upon the date that such lawful 34-17 occupancy of the unit may first be allowed under 34-18 prevailing applicable laws, ordinances, or statutes; or 34-19 (3) The completion of the common elements and any 34-20 recreational facilities, whether or not the same are 34-21 common elements, which the seller is obligated to 34-22 complete or to provide under the terms of the written 34-23 contract for the sale of the unit. Part 4 34-24 44-3-185. (Index) 34-25 (a) It shall be unlawful for any person, directly or 34-26 indirectly, to sell or offer for sale time-share intervals 34-27 in this state by authorizing, using, directing, or aiding 34-28 in the dissemination, publication, distribution, or 34-29 circulation of any statement, advertisement, radio 34-30 broadcast, or telecast concerning the time-share project 34-31 in which the time-share intervals are offered, which 34-32 contains any statement or sketch which is false or 34-33 misleading or contains any representation or pictorial 34-34 representation of proposed improvements or nonexistent 34-35 scenes without clearly indicating that the improvements 34-36 are proposed and the scenes do not exist. 34-37 (b) Nothing in this Code section shall be construed to 34-38 hold the publisher or employee of any newspaper, or any 34-39 job printer, or any broadcaster or telecaster, or any 34-40 magazine publisher, or any of the employees thereof, 34-41 liable for any publication referred to in subsection (a) -34- (Index) LC 10 1205S 35- 1 of this Code section unless the publisher, employee, or 35- 2 printer has actual knowledge of the falsity thereof or has 35- 3 an interest either as an owner or agent in the time-share 35- 4 project so advertised. 35- 5 44-3-186. 35- 6 Reserved. 35- 7 44-3-186. 44-3-187. 35- 8 No advertising for the sale or offer for sale of 35- 9 time-share intervals shall: 35-10 (1) Contain any representation as to the availability of 35-11 a resale program or rental program offered by or on 35-12 behalf of the developer or its affiliate unless the 35-13 resale program or rental program has been made a part of 35-14 the offering and submitted to the commission offering; 35-15 (2) Contain an offer or inducement to purchase which 35-16 purports to be limited as to quantity or restricted as 35-17 to time unless the numerical quantity or time applicable 35-18 to the offer or inducement is clearly and conspicuously 35-19 disclosed; 35-20 (3) Contain statements concerning the availability of 35-21 time-share intervals at a particular minimum price if 35-22 the number of time-share intervals available at that 35-23 price comprises less than 10 percent of the unsold 35-24 inventory of the developer, unless the number of 35-25 time-share intervals then for sale at the minimum price 35-26 is set forth in the advertisement; 35-27 (4) Contain any statement that the time-share interval 35-28 being offered for sale can be further divided unless a 35-29 full disclosure is included as the legal requirements 35-30 for further division of the time-share interval; 35-31 (5) Contain any asterisk or other reference symbol as a 35-32 means of contradicting or changing the ordinary meaning 35-33 of any previously made statement in the advertisement in 35-34 such a manner as to mislead the public; 35-35 (6) Misrepresent the size, nature, extent, qualities, or 35-36 characteristics of the accommodations or facilities 35-37 which comprise the time-share project; 35-38 (7) Misrepresent the nature or extent of any services 35-39 incident to the time-share project; -35- (Index) LC 10 1205S 36- 1 (8) Misrepresent or imply that a facility or service is 36- 2 available for the exclusive use of purchasers or owners 36- 3 if a public right of access or of use of the facility or 36- 4 service exists; 36- 5 (9) Make any misleading or deceptive representation with 36- 6 respect to the registration of the time-share project, 36- 7 the sales agreement, the purchaser's rights, privileges, 36- 8 benefits, or obligations under the sales agreement or 36- 9 this article; 36-10 (10) Misrepresent the conditions under which a purchaser 36-11 or owner may participate in an exchange program; 36-12 (11) Purport to have resulted through a referral unless 36-13 the name of the person making the referral can be 36-14 produced upon demand of the commission any prospective 36-15 purchaser or the time-share program's association; 36-16 (12) Describe any proposed or uncompleted private 36-17 facilities over which the developer has no control or 36-18 documented right of use unless the estimated date of 36-19 completion is set forth and evidence has been presented 36-20 to the commission can be produced upon the demand of any 36-21 prospective purchaser or the time-share program's 36-22 association that the completion and operation of the 36-23 facilities are reasonably assured within the time 36-24 represented in the advertisement or that no assurances 36-25 of completion are provided; 36-26 (13) Contain any statement that the developer plans to 36-27 affiliate with an exchange program; or 36-28 (14) Represent that No person shall advertise or 36-29 represent that the any federal, state, county, or 36-30 municipal agency, board, or commission has recommended 36-31 the time-share project or any of the documents contained 36-32 in the application for registration. its documents; or 36-33 (15) Contain any statement guaranteeing or offering to 36-34 guarantee the sale or resale of any time-share interval. 36-35 44-3-187. 44-3-188. 36-36 (a) Any person who offers a gift, prize, award, or other 36-37 item, or any other promotional contest or giveaway in 36-38 connection with the sale or offer to sell of time-share 36-39 intervals required to be registered under this article 36-40 must comply with all of the provisions of paragraph (16) -36- (Index) LC 10 1205S 37- 1 of subsection (b) of Code Section 10-1-393, relating to 37- 2 promotional contests and giveaways in general. 37- 3 (b) In accordance with the procedures set forth in Chapter 37- 4 13 of Title 50, the 'Georgia Administrative Procedure 37- 5 Act,' the commission may elect to impose any sanction 37- 6 permitted by this article on any registered developer or 37- 7 time-share project who uses, or in whose behalf is used, 37- 8 any advertisement or promotional contest or giveaway in 37- 9 connection with the sale or offer to sell of time-share 37-10 intervals registered under this article if: 37-11 (1) Such advertisement or promotional contest or 37-12 giveaway is found by a court of law to be in violation 37-13 of Part 2 of Article 15 of Chapter 1 of Title 10, the 37-14 'Fair Business Practices Act of 1975'; 37-15 (2) The party making such advertisement or conducting 37-16 such promotional contest or giveaway enters into a 37-17 settlement of any civil complaint filed by the 37-18 administrator under Code Section 10-1-397 in which the 37-19 party admits a violation; or 37-20 (3) The party making the advertisement or conducting 37-21 such promotional contest or giveaway is successfully 37-22 prosecuted under subparagraph (b)(16)(N) of Code Section 37-23 10-1-393 for promoting and sponsoring promotions which 37-24 constitute an unlawful lottery. 37-25 (c) Notwithstanding anything to the contrary contained in 37-26 Code Section 44-3-201, upon receipt of a sworn request for 37-27 investigation which involves a complaint regarding 37-28 advertising or a promotional giveaway or contest conducted 37-29 in behalf of a developer or time-share promoter, the 37-30 commission may take either or both of the following 37-31 actions: 37-32 (1) Forward any such sworn complaint to the 37-33 administrator of Part 2 of Article 15 of Chapter 1 of 37-34 Title 10, the 'Fair Business Practices Act of 1975' for 37-35 whatever action he deems appropriate; or 37-36 (2) Conduct its own investigation for possible 37-37 violations of this article. Part 5 37-38 44-3-188. 44-3-189. 37-39 In the developer's financing of a time-share program, the 37-40 developer shall retain financial records of the schedule -37- (Index) LC 10 1205S 38- 1 of payments required to be made and the payments made to 38- 2 any person or entity which is the holder of an underlying 38- 3 blanket mortgage, deed of trust, contract of sale, or 38- 4 other lien or encumbrance which is not subordinated to the 38- 5 time-share program and shall be made make the same 38- 6 available upon reasonable request to owners of time-share 38- 7 intervals in the time-share program, and the time-share 38- 8 program's association, and to the commission. The 38- 9 commission time-share program's association, in its 38-10 discretion, may require the developer to submit periodic, 38-11 written reports from the mortgagee, lienholder, or other 38-12 creditor of the status of payments made on any underlying 38-13 blanket mortgage, deed of trust, contract of sale, or 38-14 other lien or encumbrance which is not subordinated in the 38-15 time-share program. Any transfer of the developer's 38-16 interest in the time-share program to any third person 38-17 shall be subject to the obligations of the developer. 38-18 44-3-189. 44-3-190. 38-19 The developer whose project is subject to an underlying 38-20 blanket lien or encumbrance shall protect nondefaulting 38-21 purchasers from foreclosure by the lienholder by obtaining 38-22 from the lienholder a nondisturbance clause, subordination 38-23 agreements, partial release of the lien as the time-share 38-24 intervals are sold, or an agreement in writing that the 38-25 lienholder will purchase nondefaulting purchasers' 38-26 intervals in an amount equal to the amount agreed to by 38-27 the parties but in no event less than the amount actually 38-28 paid by the purchaser toward the purchase price of the 38-29 time-share interval. Part 6 38-30 44-3-191. 38-31 (a) Unless otherwise exempted by Code Section 44-3-197, a 38-32 developer shall not offer or dispose of a time-share 38-33 interval unless the time-share program is registered with 38-34 the commission. A developer may not dispose of or 38-35 transfer a time-share interval while an order revoking or 38-36 suspending the registration of the time-share program is 38-37 in effect. 38-38 (b) It shall be unlawful for any person to act as the 38-39 managing agent of a time-share program unless that person 38-40 has registered with the commission. -38- (Index) LC 10 1205S 39- 1 (c) It shall be unlawful for any exchange program to 39- 2 operate in this state or to offer its services in this 39- 3 state unless it has registered with the commission. 39- 4 (d) The commission may deny any application for 39- 5 registration or reprimand, suspend, or revoke the 39- 6 registration of a time-share program if the developer or 39- 7 the developer's agent or, in the case of a corporate 39- 8 applicant or registrant, its officers, directors, or 39- 9 principals: 39-10 (1) Does not bear a good reputation for honesty, 39-11 trustworthiness, integrity, and competence and, where 39-12 the developer is a corporation or partnership, only if 39-13 the stockholders or partners who have a controlling 39-14 interest therein bear a good reputation for honesty, 39-15 trustworthiness, and integrity; 39-16 (2) Submits an incomplete application for registration 39-17 required in Code Section 44-3-193 or has made a false 39-18 statement of a material fact on the application or 39-19 caused to be submitted or been a party to preparing or 39-20 submitting any falsified application to the commission; 39-21 (3) Has been convicted of or had criminal penalties 39-22 imposed as a result of a plea of nolo contendere to 39-23 charges of any crime involving land dispositions, any 39-24 crime of moral turpitude, any felony, any violations of 39-25 securities laws, any fraudulent business activities, or 39-26 any requirement of this article or any similar law of 39-27 the United States or any other state or foreign country, 39-28 or has been subject to any injunction or administrative 39-29 order within the past ten years restraining a false or 39-30 misleading promotional plan involving any of the 39-31 activities above; 39-32 (4) Has had a sanction other than a reprimand imposed 39-33 against any real estate broker's, associate broker's, or 39-34 salesperson's license he may hold; 39-35 (5) Does not own the time-share project; 39-36 (6) Has been involved with a time-share program whose 39-37 registration has been disciplined by a regulatory agency 39-38 in this state or any other state; or 39-39 (7) Fails to utilize properly licensed real estate 39-40 brokers as sales agents if required by Chapter 40 of 39-41 Title 43. -39- (Index) LC 10 1205S 40- 1 (e) The commission may deny any application for 40- 2 registration or reprimand, suspend, or revoke the 40- 3 registration of any managing agent or exchange program on 40- 4 the grounds provided for in paragraphs (1), (2), (3), (4), 40- 5 and (6) of subsection (d) of this Code section. 40- 6 44-3-190. 44-3-192. 40- 7 (a) It shall be unlawful for any person to engage in the 40- 8 business of, act in the capacity of, advertise, or assume 40- 9 to act as a sales agent or managing agent within this 40-10 state without first obtaining a license to act as a real 40-11 estate broker if required by Chapter 40 of Title 43. Any 40-12 managing agent whose duties include the collection of 40-13 rent, handling of trust funds, negotiation of leases, 40-14 occupancy contracts, or sales agreements shall be required 40-15 to be licensed as a real estate broker if required by 40-16 Chapter 40 of Title 43. 40-17 (b) Prior to the closing of a resale of a time-share 40-18 interval owned by a person other than the developer of the 40-19 time-share program, no person may charge or collect any 40-20 compensation for real estate brokerage services from the 40-21 person reselling the time-share interval; provided, 40-22 however, that such person providing real estate brokerage 40-23 services may charge an advertising fee if: 40-24 (1) Such person can document that said advertising fee 40-25 was paid to a firm which regularly provides advertising 40-26 services to promote the sale of real property and with 40-27 which such person providing real estate brokerage 40-28 services has no personal, familial, or business 40-29 relationship; and 40-30 (2) The party reselling the time-share interval signs an 40-31 agreement authorizing the advertising fee and such 40-32 agreement identifies the party to whom the advertising 40-33 fee will be paid. 40-34 If the person offering real estate brokering services on 40-35 the resale of a time-share interval also offers a 40-36 guaranteed sale of the interval, such person may not 40-37 charge or collect any compensation for any purpose prior 40-38 to the closing of the resale of the time-share interval. 40-39 44-3-193. 40-40 (a) An application for registration of the time-share 40-41 program must contain: -40- (Index) LC 10 1205S 41- 1 (1) The public offering statement required by Code 41- 2 Section 44-3-172 or a public offering statement 41- 3 acceptable to the commission as provided for in Code 41- 4 Section 44-3-178; 41- 5 (2) A brief description of the property; 41- 6 (3) Financial statements prepared in accordance with 41- 7 generally accepted accounting principles fully 41- 8 disclosing the current financial position of the 41- 9 developer; 41-10 (4) Copies of the time-share instruments and any 41-11 documents referred to therein; 41-12 (5) The names of sales agents, managing agents, and 41-13 exchange programs to be used with the program; 41-14 (6) The name of the bank in which the escrow agent for 41-15 the program maintains a separate trust account and the 41-16 name or number of the account and an authorization to 41-17 the commission to examine such trust account by a duly 41-18 authorized representative of the commission at such 41-19 reasonable time or times as the commission may with 41-20 notice to the escrow agent and developer direct; 41-21 (7) All advertising materials to be used in offering for 41-22 sale the time-share intervals; 41-23 (8) An executed escrow agreement between the developer 41-24 and the escrow agent; 41-25 (9) A description of the marketing plans to be used in 41-26 Georgia; and 41-27 (10) Such other information as may be required by the 41-28 commission's rules and regulations. 41-29 (b) An application for registration of the managing agent 41-30 must contain the name and address of the managing agent, 41-31 the name of the bank in which the managing agent for the 41-32 program maintains a separate trust account and the name or 41-33 number of the account, and an authorization to the 41-34 commission, upon notice to the escrow agent and the 41-35 managing agent, to examine such trust account by a duly 41-36 authorized representative of the commission at such 41-37 reasonable time or times as the commission may direct, and 41-38 such other information as may be required by the 41-39 commission's rules and regulations. -41- (Index) LC 10 1205S 42- 1 (c) The application for registration of a time-share 42- 2 exchange program must contain that information provided 42- 3 for in paragraph (2) of subsection (a) of Code Section 42- 4 44-3-172 and such other information as may be required by 42- 5 the commission's rules and regulations. 42- 6 (d) The application provided for in subsections (a), (b), 42- 7 and (c) of this Code section must be accompanied by any 42- 8 reasonable fees established by the commission. 42- 9 44-3-191. 44-3-194. 42-10 (a) Time-share projects located outside this state and 42-11 offered for sale in this state and managing must comply 42-12 with such time-share regulations as exist in the situs 42-13 state unless the provisions of this article are more 42-14 restrictive, and then the provisions of this article shall 42-15 be equally applicable. A time-share project located 42-16 outside this state may supplement its disclosure materials 42-17 in that situs state with an added disclosure addendum to 42-18 be applicable to sales occurring in this state, which 42-19 disclosure addendum incorporates the law of this state if 42-20 more restrictive. 42-21 (b) Managing agents and exchange programs located outside 42-22 this state and operating in this state must comply with 42-23 all of the provisions of this article. 42-24 (b) Out-of-state projects, managing agents, and exchange 42-25 programs applying for registration in this state must 42-26 comply with all of the provisions of Code Section 44-3-193 42-27 and, in addition, must supply the commission with the 42-28 following: 42-29 (1) A statement from the state agency, if any, 42-30 regulating time-share projects in the jurisdiction in 42-31 which the time-share project, managing agent, or 42-32 exchange program is located that the applicant has 42-33 complied with the time-share registration requirements 42-34 of that jurisdiction and that there have been no 42-35 disciplinary actions against the applicant; and 42-36 (2) A designation in writing that appoints the real 42-37 estate commissioner to act as the applicant's agent, 42-38 upon whom all judicial and other process or legal 42-39 notices directed to such applicant may be served. 42-40 Service upon the commissioner shall be equivalent to 42-41 personal service upon the applicant. -42- (Index) LC 10 1205S 43- 1 44-3-195. 43- 2 (a) The commission shall establish reasonable fees for the 43- 3 registration, on-site inspection, and application 43- 4 investigation, if necessary, of three categories of 43- 5 registrants: time-share programs, managing agents, and 43- 6 exchange programs. Reasonable fees shall also be 43- 7 established for the annual renewal of time-share programs, 43- 8 managing agents, and exchange programs and the filing with 43- 9 the commission of any changes to registrations required by 43-10 this article. 43-11 (b) The commission is authorized to establish through its 43-12 rule-making authority the amount of any fee which it is 43-13 authorized by this article to charge and collect. Each 43-14 fee so established shall be reasonable and shall be 43-15 determined in such a manner that the total amount of fees 43-16 charged and collected by the commission shall approximate 43-17 the total of the direct and indirect costs to the state of 43-18 the enforcement of this article. The commission shall 43-19 consider the cost incurred to regulate the activities of 43-20 each category of registrants in establishing their 43-21 respective fees. The expenses of the commission must 43-22 always be kept within the income collected and deposited 43-23 in accordance with this article and the expense thereof 43-24 shall not be supported or paid from any other state fund. 43-25 No fee or portion of a fee required under this article 43-26 which is paid to the commission shall be refunded. Each 43-27 applicant shall be responsible for filing his own fees. 43-28 44-3-196. 43-29 (a) Except as otherwise provided in this Code section, the 43-30 effective date of the registration or any amendment 43-31 thereto shall be the sixtieth day after the filing of a 43-32 completed application and fee or such earlier date as the 43-33 commission may determine, having due regard to the public 43-34 interest and the protection of purchasers. If any 43-35 amendment to any such registration is filed prior to the 43-36 effective date, the registration shall be deemed to have 43-37 been filed when such proper application and fee for 43-38 amendment was filed. 43-39 (b) If it appears to the commission that the application 43-40 for registration or any amendment thereto is on its face 43-41 incomplete or inaccurate in any material respect, the 43-42 commission shall so advise the developer, managing agent, 43-43 or exchange company prior to the date the registration -43- (Index) LC 10 1205S 44- 1 would otherwise be effective. Such notification shall 44- 2 serve to suspend the effective date of the registration 44- 3 until the sixtieth day after the developer, managing 44- 4 agent, or exchange company files such additional 44- 5 information as the commission shall require. Upon denial 44- 6 of an application, the developer, managing agent, or 44- 7 exchange company may request a hearing in accordance with 44- 8 Chapter 13 of Title 50, the 'Georgia Administrative 44- 9 Procedure Act.' 44-10 (c) Applications for registration, for renewal of 44-11 registration, and for any change of information required 44-12 to be filed with the commission must be on 44-13 commission-approved forms. If an application is submitted 44-14 on a form which is no longer in use by the commission, the 44-15 commission may require the registrant or applicant to 44-16 submit a new application on its latest form at no further 44-17 cost to the applicant. A registrant or applicant for 44-18 registration must supply all information requested on any 44-19 form submitted to the commission. The commission shall 44-20 return any incomplete application, any obsolete 44-21 application, or any application on a nonapproved form to a 44-22 registrant or applicant by mail at either the address 44-23 listed on the incomplete or incorrect application or to 44-24 the last known business address of record in the 44-25 commission's files if the incomplete or incorrect 44-26 application contains no address. The registrant or 44-27 applicant must correct any deficiencies noted by the 44-28 commission on such application within 30 days of the 44-29 commission's mailing notice of the deficiency to the 44-30 registrant or applicant. If no response is received by 44-31 the commission within 30 days of the commission's mailing 44-32 notice of the deficiency, the application shall be viewed 44-33 as abandoned, any fee paid forfeited, and the registrant 44-34 or applicant must submit a new application and fee in 44-35 order to complete the transaction. 44-36 44-3-192. 44-3-197. 44-37 Compliance with this article No registration with the 44-38 commission shall not be required in the case of: 44-39 (1) Any transfer of a time-share interval by any 44-40 time-share interval owner other than the developer or 44-41 his such developer's agent; 44-42 (2) Any disposition pursuant to court order; -44- (Index) LC 10 1205S 45- 1 (3) A disposition by a government or governmental 45- 2 agency; 45- 3 (4) A disposition by foreclosure or deed in lieu of 45- 4 foreclosure; 45- 5 (5) A disposition of a time-share interval in a 45- 6 time-share project situated wholly outside this state, 45- 7 provided that all solicitations, and negotiations, and 45- 8 sales agreements took place wholly outside this state 45- 9 and the sales agreement was executed wholly outside this 45-10 state; 45-11 (6) A gratuitous transfer of a time-share interval; or 45-12 (7) Group reservations made for 15 or more people as a 45-13 single transaction between a hotel and travel agent or 45-14 travel groups for hotel accommodations when deposits are 45-15 made and held for more than three years in advance. Part 7 45-16 44-3-198. 45-17 (a) The commission shall have the full power to regulate 45-18 the registration of time-share programs, managing agents, 45-19 and exchange programs and to revoke, suspend, or reprimand 45-20 the registration of same. 45-21 (b) The commission may adopt, amend, and repeal rules and 45-22 regulations and issue orders consistent with and in 45-23 furtherance of the objectives of this article. The 45-24 commission may prescribe forms and procedures for 45-25 submitting information to the commission and to 45-26 prospective purchasers. 45-27 (c) The commission may accept grants or funds from any 45-28 governmental source and may contract with governmental 45-29 agencies charged with similar functions in this or other 45-30 jurisdictions in furtherance of the objectives of this 45-31 article. 45-32 (d) The commission may cooperate with governmental 45-33 agencies performing similar functions in this and other 45-34 jurisdictions to develop uniform filing procedures and 45-35 forms, uniform disclosure standards, and uniform 45-36 administrative practices and may develop information that 45-37 may be useful in the discharge of the duties. 45-38 (e) The commission shall employ such persons as are 45-39 necessary to carry out the provisions of this article in -45- (Index) LC 10 1205S 46- 1 accordance with its authority as set out in Code Section 46- 2 43-40-4. 46- 3 (f) The commissioner shall be charged with the duties and 46- 4 powers as delegated by the commission. 46- 5 44-3-193. 44-3-199. 46- 6 (a) A The commission at any time may require a developer 46- 7 to must alter or supplement the form of or information 46- 8 contained in the public offering statement to assure that 46- 9 the public offering statement adequately and accurately 46-10 discloses to prospective purchasers the material required 46-11 to be disclosed by this article. 46-12 (b) The public offering statement shall not be used for 46-13 any promotional purposes before registration and 46-14 afterwards only if unless it is used in its entirety. No 46-15 person shall advertise or represent that the commission 46-16 any federal, state, county, or municipal agency, board, or 46-17 commission has approved or recommended the time-share 46-18 program, the its disclosure statement, or any of the 46-19 documents contained in the application for registration 46-20 its documents. 46-21 44-3-194. 44-3-200. 46-22 Any developer or its agents shall keep among its business 46-23 records and make reasonably available for examination to 46-24 the commission or its authorized agents the purchaser or 46-25 the time-share program's association or their authorized 46-26 agent the following: 46-27 (1) A copy of each item required to be submitted to the 46-28 commission on the application for registration as 46-29 provided in Code Section 44-3-193 by this article; 46-30 (2) A copy of the sales agreement from each sale of a 46-31 time-share interval in the time-share project, which 46-32 sales agreement shall be retained for a period of at 46-33 least three years after parties to the sale have 46-34 completely performed all of their obligations 46-35 thereunder; and 46-36 (3) A list of all employees or independent contractors, 46-37 including their last known mailing address, which list 46-38 shall include all current and previous employees or 46-39 independent contractors whose employment or contract has 46-40 been terminated within the preceding three years. -46- (Index) LC 10 1205S 47- 1 44-3-201. 47- 2 (a) The commission may, upon its own motion, and shall, 47- 3 upon the sworn written request of any person, investigate 47- 4 the actions of any developer, sales agent, managing agent, 47- 5 or exchange program. Any person authorized to conduct an 47- 6 investigation on behalf of the commission shall have 47- 7 access to and may examine any writings, documents, or 47- 8 other material which may be related to an investigation 47- 9 made upon the order of the commission. In the conduct of 47-10 an authorized investigation, the commissioner or the 47-11 chairman of the commission may issue subpoenas to compel 47-12 production of such writings, documents, or material either 47-13 on behalf of the commission or, after the service of a 47-14 notice of hearing, at the request of a respondent. The 47-15 commission or the respondent may apply to the superior 47-16 court of the county in which a person disobeying a 47-17 subpoena resides for an order requiring compliance. 47-18 Failure to comply with such an order shall be punishable 47-19 as for contempt of court. 47-20 (b) The results of all investigations shall be reported 47-21 only to the commission or to the commissioner and the 47-22 records of such investigations shall be kept by the 47-23 commission and no part of any investigative record shall 47-24 be released for any purpose other than a hearing before 47-25 the commission or its designated hearing officer, a review 47-26 by the respondent or his legal counsel after the service 47-27 of a notice of hearing, a review by the commission's legal 47-28 counsel, a review by another governmental agency which 47-29 regulates time-share programs, or an appeal of a decision 47-30 by the commission to a court of competent jurisdiction. 47-31 After service of a notice of hearing, a respondent shall 47-32 have a right to obtain a copy of the investigative record 47-33 pertaining to the respondent. 47-34 (c) In accordance with the hearing procedures established 47-35 for contested cases by Chapter 13 of Title 50, the 47-36 'Georgia Administrative Procedure Act,' the commission may 47-37 reprimand, suspend, or revoke the registration of any 47-38 time-share program, managing agent, or exchange program, 47-39 or impose a civil penalty, not to exceed $10,000.00, if 47-40 the developer or the developer's agent has been found 47-41 guilty of, if the managing agent has been found guilty of, 47-42 or if the exchange program has been found guilty of a 47-43 violation of any of the provisions of this article, the -47- (Index) LC 10 1205S 48- 1 rules and regulations of the commission, or any of the 48- 2 following unfair trade practices: 48- 3 (1) Making any false or misleading representation in any 48- 4 document or information filed with the commission; 48- 5 (2) Engaging in or previous engagement in any unlawful 48- 6 act or practice prohibited by this article; 48- 7 (3) Disseminating or causing to be disseminated orally 48- 8 or in writing any false or misleading promotional 48- 9 materials in connection with a time-share program; 48-10 (4) Concealing, diverting, or disposing of any funds or 48-11 assets of any person in a manner impairing rights of 48-12 purchasers of time-share intervals in the time-share 48-13 program; 48-14 (5) Making a substantial misrepresentation to a 48-15 purchaser or prospective purchaser; 48-16 (6) Failing to perform any stipulation or agreement made 48-17 to induce the commission to issue an order relating to 48-18 that time-share program; 48-19 (7) Violating any order of the commission; 48-20 (8) Employing or contracting with a person to sell 48-21 time-share intervals whose real estate broker's, 48-22 associate broker's, or salesperson's license has been 48-23 suspended or revoked by the commission; 48-24 (9) Advertising that the development plans to affiliate 48-25 with an exchange program; 48-26 (10) Continuing to sell time-share intervals after 48-27 becoming more than three months in arrears in making 48-28 payments on any encumbrance against the time-share 48-29 project; 48-30 (11) Having been involved with a time-share program 48-31 whose registration has been disciplined by a regulatory 48-32 agency of this state or any other state; 48-33 (12) Having been convicted of any crime involving land 48-34 dispositions, any crimes of moral turpitude, any 48-35 violations of securities law, any fraudulent business 48-36 activities, or any requirement of this article or any 48-37 similar law of the United States or any other state or 48-38 foreign country, or having been subject to any 48-39 injunction or administrative order restraining a false -48- (Index) LC 10 1205S 49- 1 or misleading promotional plan involving any of the 49- 2 activities enumerated in this paragraph; 49- 3 (13) Misrepresenting in any manner a purchaser's rights 49- 4 to cancel any sales agreement; 49- 5 (14) Failing to or refusing to honor a purchaser's 49- 6 request to cancel any sales agreement when that request 49- 7 is made in accordance with the requirements of this 49- 8 article; 49- 9 (15) Failing to remit in a timely manner escrow funds to 49-10 a purchaser if the purchaser has canceled any sales 49-11 agreement in accordance with the provisions of this 49-12 article; or 49-13 (16) Being or becoming a party to any falsification of 49-14 any portion of any public offering statement, sales 49-15 agreement, or other legal document involved in any 49-16 time-share transaction. 49-17 (d) The commission may issue a cease and desist order if a 49-18 developer has failed to register a time-share program or 49-19 if a managing agent or exchange program has failed to 49-20 register as required by this article. 49-21 44-3-195. 44-3-202. 49-22 (a) Except that violations of Code Section 44-3-188 shall 49-23 be subject only to the remedies available under paragraph 49-24 (16) of subsection (b) of Code Section 10-1-393, any Any 49-25 person subject to the provisions of this article who 49-26 violates any of the provisions of this article shall be 49-27 guilty of a misdemeanor. The commission may apply to any 49-28 court of competent jurisdiction for imposition of a 49-29 monetary penalty or imprisonment for any violations of 49-30 this article who shall willfully and intentionally violate 49-31 any provision of this article shall be guilty of a 49-32 misdemeanor except in the case the violation causes loss 49-33 in excess of $5,000.00, then said person shall be guilty 49-34 of a felony and, upon conviction thereof, shall be 49-35 punished by a fine not to exceed $5,000.00 or by 49-36 imprisonment for not less than one nor more than three 49-37 years. Each violation of this article shall constitute a 49-38 separate offense. 49-39 (b) Whenever it appears to the district attorney or the 49-40 Attorney General, either upon complaint or otherwise, that 49-41 any person has engaged in, is engaging in, or is about to 49-42 engage in any act, practice, or transaction which is -49- (Index) LC 10 1205S 50- 1 prohibited by this article, the district attorney or 50- 2 Attorney General or both may in his or her discretion 50- 3 apply to any court of competent jurisdiction in this 50- 4 state, including the Superior Court of Fulton County, for 50- 5 an injunction restraining such person and that person's 50- 6 agents, employees, partners, officers, and directors from 50- 7 continuing such act, practice, or transaction or doing any 50- 8 acts in furtherance thereof and for the appointment of a 50- 9 receiver or an auditor and such other and further relief 50-10 as the facts may warrant. 50-11 (c) Any person who violates this article shall be liable 50-12 in damages to any person or class of persons injured 50-13 thereby. Punitive damages may be awarded for a willful 50-14 violation of this article. The court may also award 50-15 reasonable attorney's fees. 50-16 44-3-203. 50-17 Any developer or any person subject to this article who 50-18 offers or disposes of a time-share interval without having 50-19 complied with this article or who violates any provisions 50-20 of this article shall be guilty of a misdemeanor. 50-21 44-3-204. 50-22 (a) This article shall be the sole law of the state under 50-23 which the sale of time-share intervals for which 50-24 registration is required shall be regulated. Without 50-25 limiting the generality of the foregoing, no registration 50-26 or qualification shall be required under any of the 50-27 following as a condition to the offer for sale of 50-28 time-share intervals registered with the commission: 50-29 (1) Chapter 5 of Title 10; provided, however, that Code 50-30 Section 10-5-12 shall apply if the time-share program 50-31 has not been registered with the commission as required 50-32 by this article; 50-33 (2) Articles 1 and 2 of this chapter; or 50-34 (3) Any other provision of law which, but for the 50-35 existence of this article, requires registration with 50-36 this agency or another state agency as a condition to 50-37 the sale or offer for sale of time-share intervals. 50-38 (b) Nothing in this article shall be deemed to prohibit 50-39 the administrator appointed under Part 2 of Article 15 of 50-40 Chapter 1 of Title 10 from exercising any powers under 50-41 said part against any person, nor shall anything in this -50- (Index) LC 10 1205S 51- 1 article be deemed to abrogate the private right of action 51- 2 under said part. 51- 3 44-3-196. 44-3-205. 51- 4 The provisions of this article shall apply to any 51- 5 time-share program located in this state or outside this 51- 6 state when offered for sale in this state created or 51- 7 commenced after July 1, 1983, and 180 days after July 1, 51- 8 1983, as to any time-share program heretofore created or 51- 9 commenced." SECTION 2. 51-10 All laws and parts of laws in conflict with this Act are 51-11 repealed. -51- (Index)

Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97