§ 32-32-3-12 — Required disclosures

(a) A developer, or exchange company if the
exchange company is dealing directly with the participants or camping
club members, that offers a program for the exchange of occupancy
rights among time share participants or camping club members or with
the purchasers or members in other time share or camping club
projects, or both, shall give in writing to the camping club members or
time share participants the following information:
(1) The name and address of the exchange company offering the
exchange program.
(2) A statement indicating whether the exchange company or any
of its officers or directors has any legal or beneficial interest in
any interest of the developer or managing agent in any plan to sell
time shares or camping club memberships included in the
program and, if so, the name, location, and nature of the interest.
(3) A statement that the time share participant's or camping club
member's contract with the exchange company is a contract
separate and distinct from the contract to purchase the time share
or camping club membership, unless the exchange company and
the developer or an affiliate of the developer are the same.
(4) A statement indicating whether the participant's or member's
participation in the exchange project is dependent upon the
continued inclusion of the plan to sell time shares or camping
club memberships in the program.
(5) A statement indicating whether the purchaser's or member's
membership or participation in the exchange program is voluntary
or mandatory.
(6) A complete and accurate description of the following:
(A) The terms and conditions of the purchaser's contractual
relationship with the company and the procedure by which
changes in the contractual relationship and may be made.
(B) The procedure to qualify for and make exchanges.
(C) All limitations, restrictions, and priorities of the program,
including limitations on exchanges based on the seasons of the
year, the size of units, or levels of occupancy. The written
description of the limitations, restrictions, and priorities given
under this clause must be printed in boldface type and, if the
limitations, restrictions, and priorities are not uniformly applied
by the program, must include a clear description of the manner
in which they are applied.
(7) A statement, which must be printed on all promotional
brochures, pamphlets, advertisements, and other materials
disseminated by the exchange company that indicate the
percentage of confirmed exchanges, to the effect that:
(A) the percentage of confirmed exchanges is a summary of the
requests for exchanges received by the exchange company in
the most recent annual reporting period; and
(B) the percentage does not indicate the probability of a
purchaser or members being confirmed to any specific choice
since availability at individual locations may vary.
(8) A statement indicating whether exchanges are arranged on the
basis of available space and whether there are any guarantees of
fulfilling specific requests for exchanges.
(9) A statement indicating whether and under what circumstances
a participant or member, in dealing with the exchange company,
may lose the right to use and occupy a time share unit or camping
site in any properly applied for exchange without being provided
with substitute accommodations by the company.
(10) A statement of the fees to be paid by participants or members
in the program, including a statement indicating whether any fees
may be changed by the exchange company, and if so, the
circumstances under which those changes may be made.
(11) The name and address of the site of each time share or
camping club project included in the program.
(b) The information required by subsection (a) must be delivered to
the camping club member or time share participant before the
execution of:
(1) any contract between the camping club member or time share
participant and the exchange company; or
(2) the contract to purchase the time share or camping club
membership.
(c) Upon receipt of the information required by subsection (a), the
camping club member or time share participant shall certify in writing
that the member or participant has received the information from the
developer.
(d) Except as otherwise provided in this section, the information
required by subsection (a) must be accurate as of thirty (30) days
before the date on which the information is delivered to the participant
or member.
[Pre-2002 Recodification Citation: 24-5-9-33.]

Legislative History

As added by P.L.2-2002, SEC.17.