(a) If a prospective purchaser is also offered participation in any exchange program, at or before the time the prospective purchaser signs the agreement to acquire the timeshare interest, the developer shall deliver to the prospective purchaser the exchange disclosure statement of any exchange company whose service is advertised or offered by the developer or other person in connection with the disposition.
(b) If participation in an exchange program is offered for the first time after a disposition has occurred, any person offering that participation shall also deliver an exchange disclosure statement to the purchaser before the execution by the purchaser of any instrument relating to participation in the exchange program.
(c) In all cases, the person offering participation in the exchange program must obtain from the purchaser a written acknowledgement of receipt of the exchange disclosure statement.
(d) The exchange disclosure statement must include:(1) The name and address of the exchange company;(2) The names of all officers, directors, and shareholders owning 5 percent or more of the outstanding stock of the exchange company;(3) Whether the exchange company or any of its officers or directors has any legal or beneficial interest in any developer or managing entity for any timeshare plan participating in the exchange program and, if so, the name and location of the timeshare plan and the nature of the interest;(4) Unless the exchange company is also the developer or an affiliate, a statement that the purchaser’s contract with the exchange company is a contract separate and distinct from the purchase contract;(5) Whether the purchaser’s participation in the exchange program is dependent upon the continued affiliation of the timeshare plan with the exchange program;(6) Whether the purchaser’s membership or participation, or both, in the exchange program is voluntary or mandatory;(7) A complete and accurate description of the terms and conditions of the purchaser’s contracted relationship with the exchange company and the procedure by which changes thereto may be made;(8) A complete and accurate description of the procedure to qualify for and effectuate exchanges;(9) A complete and accurate description of all limitations, restrictions, or priorities employed in the operation of the exchange program, including limitations on exchanges based on seasonality, accommodation size, or levels of occupancy, expressed in a conspicuous statement and, if such limitations, restrictions, or priorities are not uniformly applied by the exchange program, a clear description of the manner in which they are applied;(10) Whether exchanges are arranged on a space-available basis and whether any guarantees of fulfillment of specific requests for exchanges are made by the exchange program;(11) Whether and under what circumstances a purchaser, in dealing with the exchange company, may lose the use and occupancy of such purchaser’s timeshare interest in any properly applied for exchange without such purchaser being provided with substitute accommodations by the exchange company;(12) The fees or range of fees for participation by purchasers in the exchange program, a statement whether any such fees may be altered by the exchange company, and the circumstances under which alterations may be made;(13) The name and address of the site of each timeshare property, accommodation, or amenity which is participating in the exchange program;(14) The number of accommodations in each property participating in the exchange program which are available for occupancy, and which qualify for participation in the exchange program, expressed within the numerical groupings: 1-5, 6-10, 11-20, 21-50, and 51 and over;(15) The number of purchasers with respect to each timeshare plan or other property which are eligible to participate in the exchange program expressed within the numerical groupings: 1-100, 101-249, 250-499, 500-999, and 1,000 and over, and a statement of the criteria used to determine those purchasers who are currently eligible to participate in the exchange program;(16) The disposition made by the exchange company of timeshare interests deposited with the exchange program by purchasers eligible to participate in the exchange program and not used by the exchange company in effecting exchanges;(17) The following information:(A) The number of purchasers eligible to participate in the exchange program; such number must disclose the relationship between the exchange company and purchasers as being either free-paying or gratuitous in nature;(B) The number of timeshare properties, accommodations, or amenities eligible to participate in the exchange program categorized by those having a contractual relationship between the developer or the timeshare association and the exchange company and those having solely a contractual relationship between the exchange company and purchasers directly; and(C) The percentage of confirmed exchanges, which is the number of exchanges confirmed by the exchange company divided by the number of exchanges properly applied for, together with a complete and accurate statement of the criteria used to determine whether an exchange request was properly applied for;(18) The number of timeshare interests for which the exchange company has an outstanding obligation to provide an exchange to a purchaser who relinquished a timeshare interest during the year in exchange for a timeshare interest in any future year;(19) The number of exchanges confirmed by the exchange company during this year; and(20) A conspicuous statement to the effect that the percentage described in subsection (d)(17)(C) of this subsection is a summary of the exchange requests entered with the exchange company in the period reported, and that the percentage does not indicate a purchaser’s probabilities of being confirmed to any specific choice or range of choices, since availability at individual locations may vary.
(1) The name and address of the exchange company;
(2) The names of all officers, directors, and shareholders owning 5 percent or more of the outstanding stock of the exchange company;
(3) Whether the exchange company or any of its officers or directors has any legal or beneficial interest in any developer or managing entity for any timeshare plan participating in the exchange program and, if so, the name and location of the timeshare plan and the nature of the interest;
(4) Unless the exchange company is also the developer or an affiliate, a statement that the purchaser’s contract with the exchange company is a contract separate and distinct from the purchase contract;
(5) Whether the purchaser’s participation in the exchange program is dependent upon the continued affiliation of the timeshare plan with the exchange program;
(6) Whether the purchaser’s membership or participation, or both, in the exchange program is voluntary or mandatory;
(7) A complete and accurate description of the terms and conditions of the purchaser’s contracted relationship with the exchange company and the procedure by which changes thereto may be made;
(8) A complete and accurate description of the procedure to qualify for and effectuate exchanges;
(9) A complete and accurate description of all limitations, restrictions, or priorities employed in the operation of the exchange program, including limitations on exchanges based on seasonality, accommodation size, or levels of occupancy, expressed in a conspicuous statement and, if such limitations, restrictions, or priorities are not uniformly applied by the exchange program, a clear description of the manner in which they are applied;
(10) Whether exchanges are arranged on a space-available basis and whether any guarantees of fulfillment of specific requests for exchanges are made by the exchange program;
(11) Whether and under what circumstances a purchaser, in dealing with the exchange company, may lose the use and occupancy of such purchaser’s timeshare interest in any properly applied for exchange without such purchaser being provided with substitute accommodations by the exchange company;
(12) The fees or range of fees for participation by purchasers in the exchange program, a statement whether any such fees may be altered by the exchange company, and the circumstances under which alterations may be made;
(13) The name and address of the site of each timeshare property, accommodation, or amenity which is participating in the exchange program;
(14) The number of accommodations in each property participating in the exchange program which are available for occupancy, and which qualify for participation in the exchange program, expressed within the numerical groupings: 1-5, 6-10, 11-20, 21-50, and 51 and over;
(15) The number of purchasers with respect to each timeshare plan or other property which are eligible to participate in the exchange program expressed within the numerical groupings: 1-100, 101-249, 250-499, 500-999, and 1,000 and over, and a statement of the criteria used to determine those purchasers who are currently eligible to participate in the exchange program;
(16) The disposition made by the exchange company of timeshare interests deposited with the exchange program by purchasers eligible to participate in the exchange program and not used by the exchange company in effecting exchanges;
(17) The following information:(A) The number of purchasers eligible to participate in the exchange program; such number must disclose the relationship between the exchange company and purchasers as being either free-paying or gratuitous in nature;(B) The number of timeshare properties, accommodations, or amenities eligible to participate in the exchange program categorized by those having a contractual relationship between the developer or the timeshare association and the exchange company and those having solely a contractual relationship between the exchange company and purchasers directly; and(C) The percentage of confirmed exchanges, which is the number of exchanges confirmed by the exchange company divided by the number of exchanges properly applied for, together with a complete and accurate statement of the criteria used to determine whether an exchange request was properly applied for;
(A) The number of purchasers eligible to participate in the exchange program; such number must disclose the relationship between the exchange company and purchasers as being either free-paying or gratuitous in nature;
(B) The number of timeshare properties, accommodations, or amenities eligible to participate in the exchange program categorized by those having a contractual relationship between the developer or the timeshare association and the exchange company and those having solely a contractual relationship between the exchange company and purchasers directly; and
(C) The percentage of confirmed exchanges, which is the number of exchanges confirmed by the exchange company divided by the number of exchanges properly applied for, together with a complete and accurate statement of the criteria used to determine whether an exchange request was properly applied for;
(18) The number of timeshare interests for which the exchange company has an outstanding obligation to provide an exchange to a purchaser who relinquished a timeshare interest during the year in exchange for a timeshare interest in any future year;
(19) The number of exchanges confirmed by the exchange company during this year; and
(20) A conspicuous statement to the effect that the percentage described in subsection (d)(17)(C) of this subsection is a summary of the exchange requests entered with the exchange company in the period reported, and that the percentage does not indicate a purchaser’s probabilities of being confirmed to any specific choice or range of choices, since availability at individual locations may vary.
(e) A purchaser may elect to receive the exchange disclosure statement by electronic means, so long as the purchaser has the option of receiving the exchange disclosure statement in paper format or by electronic means.