(a) The purpose of this chapter is to:(1) Give statutory recognition to timesharing in the Territory;(2) Regulate timeshare plans located in the Territory, whether or not offered or sold in the Territory, and regulate the sale of timeshare plans located outside the Territory when the sale occurs in the Territory;(3) Require that developers of timeshare plans:(A) Make certain disclosures to purchasers and prospective purchasers of timeshare interests;(B) Deposit certain funds with an escrow agent;(C) Provide a rescission right for purchasers of timeshare interests; and(D) Comply with the one-to-one use-right to use-night requirement;(4) Establish disclosures required for the offer of exchange programs in the Territory;(5) Provide for the non-judicial foreclosure of timeshare interests;(6) Provide for a securities exemption for the offer or sale of timeshare interests offered in compliance with this chapter;(7) Require the establishment of a timeshare association;(8) Provide for sanctions for violations of any provisions of this chapter, which will permit courts of competent jurisdictions to impose fines or imprisonment for misdemeanors and felonies and a claim for appropriate relief by any person adversely affected; and(9) Exempt existing timeshare plans created prior to the enactment of this chapter from certain provisions of this chapter but allow the voluntary adoption of certain provisions.
(1) Give statutory recognition to timesharing in the Territory;
(2) Regulate timeshare plans located in the Territory, whether or not offered or sold in the Territory, and regulate the sale of timeshare plans located outside the Territory when the sale occurs in the Territory;
(3) Require that developers of timeshare plans:(A) Make certain disclosures to purchasers and prospective purchasers of timeshare interests;(B) Deposit certain funds with an escrow agent;(C) Provide a rescission right for purchasers of timeshare interests; and(D) Comply with the one-to-one use-right to use-night requirement;
(A) Make certain disclosures to purchasers and prospective purchasers of timeshare interests;
(B) Deposit certain funds with an escrow agent;
(C) Provide a rescission right for purchasers of timeshare interests; and
(D) Comply with the one-to-one use-right to use-night requirement;
(4) Establish disclosures required for the offer of exchange programs in the Territory;
(5) Provide for the non-judicial foreclosure of timeshare interests;
(6) Provide for a securities exemption for the offer or sale of timeshare interests offered in compliance with this chapter;
(7) Require the establishment of a timeshare association;
(8) Provide for sanctions for violations of any provisions of this chapter, which will permit courts of competent jurisdictions to impose fines or imprisonment for misdemeanors and felonies and a claim for appropriate relief by any person adversely affected; and
(9) Exempt existing timeshare plans created prior to the enactment of this chapter from certain provisions of this chapter but allow the voluntary adoption of certain provisions.
(b) The purposes of the non-judicial foreclosure section are to:(1) Recognize that timeshare interests are used for vacation experience rather than for homestead or investment purposes;(2) Recognize that the economic health and efficient operation of the vacation ownership industry are in part dependent upon the availability of an efficient and economical process for all timeshare interest foreclosures;(3) Recognize the need to assist both owners’ associations and mortgages by simplifying and expediting the process for the judicial and trustee foreclosure of assessment liens and mortgage liens against timeshare interests;(4) Improve judicial economy and reduce court congestion and the cost to taxpayers by establishing streamlined procedures for the judicial and trustee foreclosure of assessment liens and mortgage liens against timeshare interests;(5) Recognize that nearly all timeshares interest foreclosures are uncontested;(6) Protect the ability of consumers who own timeshares interests located in this Territory to choose a judicial proceeding for the foreclosure of an assessment lien or a mortgage lien against their timeshare interest; and(7) Recognize that the use of the trustee foreclosure procedure established under section 1110 of this chapter has the same force as the use of the judicial foreclosure procedure against a timeshare interest with respect to the provisions of this chapter or any other applicable law; however, owners are not subject to deficiency judgement even if the proceeds from the sale of the timeshare interest are insufficient to offset the amount secured by the lien.
(1) Recognize that timeshare interests are used for vacation experience rather than for homestead or investment purposes;
(2) Recognize that the economic health and efficient operation of the vacation ownership industry are in part dependent upon the availability of an efficient and economical process for all timeshare interest foreclosures;
(3) Recognize the need to assist both owners’ associations and mortgages by simplifying and expediting the process for the judicial and trustee foreclosure of assessment liens and mortgage liens against timeshare interests;
(4) Improve judicial economy and reduce court congestion and the cost to taxpayers by establishing streamlined procedures for the judicial and trustee foreclosure of assessment liens and mortgage liens against timeshare interests;
(5) Recognize that nearly all timeshares interest foreclosures are uncontested;
(6) Protect the ability of consumers who own timeshares interests located in this Territory to choose a judicial proceeding for the foreclosure of an assessment lien or a mortgage lien against their timeshare interest; and
(7) Recognize that the use of the trustee foreclosure procedure established under section 1110 of this chapter has the same force as the use of the judicial foreclosure procedure against a timeshare interest with respect to the provisions of this chapter or any other applicable law; however, owners are not subject to deficiency judgement even if the proceeds from the sale of the timeshare interest are insufficient to offset the amount secured by the lien.