(a) In lieu of the deposit of funds in an escrow or trust account as required by section 1104, the escrow agent may accept from the developer a surety bond, irrevocable letter of credit or other form of financial assurance, including financial assurance posted in another jurisdiction.
(b) The amount of the financial assurance provided under this section must be in an amount equal to or greater than the amount of funds that would otherwise be placed in an escrow or trust account under section 1104.
(c) The amount of the financial assurance provided under this section for timeshare property under construction must be no less than:(1) The amount equal to or more than the amount of funds that would otherwise be required to be placed in an escrow or trust account under section 1104(a)(3); or(2) The amount necessary to assure completion of all accommodations promised to be completed along with all furniture, fixtures and any other promised improvements as portrayed in the timeshare instruments or timeshare disclosure statement. The surety bond may provide for the reduction of the bond amount as work is completed if the bond reductions have been approved by the escrow agent pursuant to the escrow agreement or an amendment thereto. If the developer is considering future additional phases, the amount need not include the cost of completion of those phases so long as they have not been promised as part of the timeshare instruments.
(1) The amount equal to or more than the amount of funds that would otherwise be required to be placed in an escrow or trust account under section 1104(a)(3); or
(2) The amount necessary to assure completion of all accommodations promised to be completed along with all furniture, fixtures and any other promised improvements as portrayed in the timeshare instruments or timeshare disclosure statement. The surety bond may provide for the reduction of the bond amount as work is completed if the bond reductions have been approved by the escrow agent pursuant to the escrow agreement or an amendment thereto. If the developer is considering future additional phases, the amount need not include the cost of completion of those phases so long as they have not been promised as part of the timeshare instruments.
(d) The type of surety bond provided under this section may include, but not be limited to, a completion of construction bond or escrow bond. Such bond insurance must maintain a Triple A training (AAA) rating by Standard & Poor’s, Moody’s, Duff & Phelps, or Fitch, as determined by the escrow agent.
(e) The developer shall make documents related to the escrow or trust account or the financial assurance provided available to the escrow agent upon the escrow agent’s request.