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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||||||||||
4 | Section 5. The Real Estate Timeshare Act of 1999 is amended | |||||||||||||||||||||||||||||
5 | by changing Sections 1-15, 5-35, 5-40, 5-45, 5-60, and 10-25 as | |||||||||||||||||||||||||||||
6 | follows:
| |||||||||||||||||||||||||||||
7 | (765 ILCS 101/1-15)
| |||||||||||||||||||||||||||||
8 | Sec. 1-15. Definitions. In this Act, unless the context | |||||||||||||||||||||||||||||
9 | otherwise
requires:
| |||||||||||||||||||||||||||||
10 | "Accommodation" means any apartment, condominium or | |||||||||||||||||||||||||||||
11 | cooperative unit,
cabin, lodge, hotel or motel room, or other | |||||||||||||||||||||||||||||
12 | private or commercial structure
containing
toilet facilities | |||||||||||||||||||||||||||||
13 | therein that is designed and available, pursuant to
applicable | |||||||||||||||||||||||||||||
14 | law, for use
and occupancy as a residence by one or more | |||||||||||||||||||||||||||||
15 | individuals, or any unit or berth
on a
commercial cruise line | |||||||||||||||||||||||||||||
16 | ship, which is included in the offering of a timeshare
plan.
| |||||||||||||||||||||||||||||
17 | "Acquisition agent" means a person who, directly or through | |||||||||||||||||||||||||||||
18 | the person's
employees,
agents, or independent contractors, | |||||||||||||||||||||||||||||
19 | induces or attempts to induce by means of a
promotion or an | |||||||||||||||||||||||||||||
20 | advertisement any
individual located
within the State of | |||||||||||||||||||||||||||||
21 | Illinois to attend a sales presentation for a timeshare
plan.
| |||||||||||||||||||||||||||||
22 | "Advertisement" means any written, oral, or electronic | |||||||||||||||||||||||||||||
23 | communication that is
directed to or targeted to persons within |
| |||||||
| |||||||
1 | the State of Illinois and contains a
promotion,
inducement, or | ||||||
2 | offer to sell a timeshare plan, including but not limited to
| ||||||
3 | brochures,
pamphlets, radio and television scripts, electronic | ||||||
4 | media, telephone and
direct mail
solicitations, and other means | ||||||
5 | of promotion.
| ||||||
6 | "Association" means the organized body consisting of the | ||||||
7 | purchasers of
interests
in a timeshare plan.
| ||||||
8 | "Assessment" means the share of funds required for the | ||||||
9 | payment of common
expenses which is assessed from time to time | ||||||
10 | against each purchaser by the
managing
entity.
| ||||||
11 | "Commissioner" means the Commissioner of Banks and Real | ||||||
12 | Estate,
or a natural person authorized by the Commissioner, the | ||||||
13 | Office of Banks and
Real Estate
Act, or this Act to act in the | ||||||
14 | Commissioner's stead.
| ||||||
15 | "Component site" means a specific geographic location | ||||||
16 | where accommodations
which are part of a multi-site timeshare | ||||||
17 | plan are located. Separate phases of
a
single
timeshare | ||||||
18 | property in a specific geographic location and under common
| ||||||
19 | management
shall be deemed a single component site.
| ||||||
20 | "Developer" means and includes any person or entity, other | ||||||
21 | than a sales
agent,
acquisition agent, or resale agent, who | ||||||
22 | creates a timeshare plan or is in the
business of
selling | ||||||
23 | timeshare interests, or employs agents to do the same, or any | ||||||
24 | person or
entity who
succeeds to the interest of a developer by | ||||||
25 | sale, lease, assignment, mortgage,
or other
transfer, but the | ||||||
26 | term includes only those persons who offer timeshare
interests |
| |||||||
| |||||||
1 | for
disposition in the ordinary course of business.
| ||||||
2 | "Dispose" or "disposition" means a voluntary transfer or | ||||||
3 | assignment of any
legal
or equitable interest in a timeshare | ||||||
4 | plan, other than the transfer, assignment,
or release of
a | ||||||
5 | security interest.
| ||||||
6 | "Exchange company" means any person owning or operating, or | ||||||
7 | both owning and
operating, an exchange program.
| ||||||
8 | "Exchange program" means any method, arrangement, or | ||||||
9 | procedure for the
voluntary exchange of timeshare interests or | ||||||
10 | other property interests. The
term does not
include the | ||||||
11 | assignment of the right to use and occupy accommodations to
| ||||||
12 | owners of
timeshare interests within a single-site timeshare | ||||||
13 | plan. Any method,
arrangement, or
procedure that otherwise | ||||||
14 | meets this definition, wherein the purchaser's total
| ||||||
15 | contractual
financial obligation exceeds $3,000 per any | ||||||
16 | individual, recurring timeshare
period, shall
be regulated as a | ||||||
17 | timeshare plan in accordance with this Act.
| ||||||
18 | "Managing entity" means the person who undertakes the | ||||||
19 | duties,
responsibilities,
and obligations of the management of | ||||||
20 | a timeshare plan.
| ||||||
21 | "Offer" means any inducement, solicitation, or other | ||||||
22 | attempt, whether by
marketing, advertisement, oral or written | ||||||
23 | presentation, or any other means, to
encourage a
person to | ||||||
24 | acquire a timeshare interest in a timeshare plan, other than as
| ||||||
25 | security for an
obligation.
| ||||||
26 | "Person" means a natural person, corporation, limited |
| |||||||
| |||||||
1 | liability company,
partnership, joint venture, association, | ||||||
2 | estate, trust, government,
governmental
subdivision or agency, | ||||||
3 | or other legal entity, or any combination thereof.
| ||||||
4 | "Promotion" means a plan or device, including one involving | ||||||
5 | the possibility
of a
prospective purchaser receiving a | ||||||
6 | vacation, discount vacation, gift, or prize,
used by a
| ||||||
7 | developer, or an agent, independent contractor, or employee of | ||||||
8 | any of the same
on behalf
of the developer, in connection with | ||||||
9 | the offering and sale of timeshare
interests in a
timeshare | ||||||
10 | plan.
| ||||||
11 | "Purchaser" means any person, other than a developer, who | ||||||
12 | by means of a
voluntary transfer acquires a legal or equitable | ||||||
13 | interest in a timeshare plan
other than as
security for an | ||||||
14 | obligation.
| ||||||
15 | "Purchase contract" means a document pursuant to which a | ||||||
16 | person becomes
legally obligated to sell, and a purchaser | ||||||
17 | becomes legally obligated to buy, a
timeshare
interest.
| ||||||
18 | "Resale agent" means a person who, directly or through the | ||||||
19 | person's employees
or
agents,
sells , or offers to sell , or | ||||||
20 | advertises to sell a timeshare interest previously sold to a | ||||||
21 | purchaser or
solicits an
owner of a timeshare interest to list | ||||||
22 | the owner's timeshare interest for sale.
| ||||||
23 | "Reservation system" means the method, arrangement, or | ||||||
24 | procedure by which a
purchaser, in order to reserve the use or | ||||||
25 | occupancy of any accommodation of a
multi-site
timeshare plan | ||||||
26 | for one or more timeshare periods, is required to compete with
|
| |||||||
| |||||||
1 | other
purchasers in the same multi-site timeshare plan, | ||||||
2 | regardless of whether the
reservation
system is operated and | ||||||
3 | maintained by the multi-site timeshare plan managing
entity, an
| ||||||
4 | exchange company, or any other person. In the event that a | ||||||
5 | purchaser is
required to use
an exchange program as the | ||||||
6 | purchaser's principal means of obtaining the right
to use and
| ||||||
7 | occupy accommodations, that arrangement shall be deemed a | ||||||
8 | reservation system.
When
an exchange company utilizes a | ||||||
9 | mechanism for the exchange of use of timeshare
periods
among | ||||||
10 | members of an exchange program, that utilization is not a | ||||||
11 | reservation
system of a
multi-site timeshare plan.
| ||||||
12 | "Sales agent" means a person, other than a resale agent, | ||||||
13 | who, directly or
through the person's employees,
agents,
or
| ||||||
14 | independent contractors, sells or offers to sell timeshare | ||||||
15 | interests in a
timeshare plan to
any individual located in the | ||||||
16 | State of Illinois.
| ||||||
17 | "Timeshare instrument" means one or more documents, by | ||||||
18 | whatever name
denominated, creating or governing the operation | ||||||
19 | of a timeshare plan.
| ||||||
20 | "Timeshare interest" means and includes either:
| ||||||
21 | (1) a "timeshare estate", which is the right to occupy | ||||||
22 | a timeshare
property,
coupled with a freehold estate or an | ||||||
23 | estate for years with a future interest in
a
timeshare | ||||||
24 | property or a specified portion thereof; or
| ||||||
25 | (2) a "timeshare use", which is the right to occupy a | ||||||
26 | timeshare property,
which right is neither coupled with a |
| |||||||
| |||||||
1 | freehold interest, nor coupled with an
estate
for years | ||||||
2 | with a future interest, in a timeshare property.
| ||||||
3 | "Timeshare period" means the period or periods of time when | ||||||
4 | the purchaser of
a
timeshare plan is afforded the opportunity | ||||||
5 | to use the accommodations of a
timeshare
plan.
| ||||||
6 | "Timeshare plan" means any arrangement, plan, scheme, or | ||||||
7 | similar device,
other
than an exchange program, whether by | ||||||
8 | membership agreement, sale, lease, deed,
license,
or | ||||||
9 | right-to-use agreement or by any other means, whereby a | ||||||
10 | purchaser, in
exchange for
consideration, receives ownership | ||||||
11 | rights in or the right to use accommodations
for a
period of | ||||||
12 | time less than a full year during any given year, but not | ||||||
13 | necessarily
for
consecutive years. A timeshare plan may be:
| ||||||
14 | (1) a "single-site timeshare plan", which is the right | ||||||
15 | to use
accommodations at a single timeshare property; or
| ||||||
16 | (2) a "multi-site timeshare plan", which includes:
| ||||||
17 | (A) a "specific timeshare interest", which is the | ||||||
18 | right to use
accommodations at a specific timeshare | ||||||
19 | property, together with use rights
in accommodations | ||||||
20 | at one or more other component sites created by or
| ||||||
21 | acquired through the timeshare plan's reservation | ||||||
22 | system; or
| ||||||
23 | (B) a "non-specific timeshare interest", which is | ||||||
24 | the right to use
accommodations at more than one | ||||||
25 | component site created by or acquired
through the | ||||||
26 | timeshare plan's reservation system, but including no |
| |||||||
| |||||||
1 | specific
right to use any particular accommodations.
| ||||||
2 | "Timeshare property" means one or more accommodations | ||||||
3 | subject to the same
timeshare instrument, together with any | ||||||
4 | other property or rights to property
appurtenant
to those | ||||||
5 | accommodations.
| ||||||
6 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
7 | (765 ILCS 101/5-35)
| ||||||
8 | Sec. 5-35. Resale agent registration requirements.
| ||||||
9 | (a) Every resale agent as defined in this Act shall | ||||||
10 | register with the Office
of
Banks and Real Estate.
| ||||||
11 | (b) Every resale agent shall be responsible for registering | ||||||
12 | the following
information with the Office of Banks and Real | ||||||
13 | Estate on forms provided by the
Office of
Banks and Real | ||||||
14 | Estate:
| ||||||
15 | (1) A description of the resale program offered by the | ||||||
16 | resale agent.
| ||||||
17 | (2) The legal name, any assumed names, and the mailing | ||||||
18 | address, street
address,
contact person, and telephone | ||||||
19 | number of the resale agent.
| ||||||
20 | (3) A properly executed consent-to-audit form, which | ||||||
21 | allows the Office of
Banks
and Real Estate to audit any | ||||||
22 | escrow accounts held by the resale agent.
| ||||||
23 | (4) Any other information required by the Office of | ||||||
24 | Banks and Real Estate
to be
filed by resale agents, as | ||||||
25 | established by rule.
|
| |||||||
| |||||||
1 | (c) The following shall be exempt from registration under | ||||||
2 | this Section:
| ||||||
3 | (1) Any developer, exchange company, sales agent, | ||||||
4 | acquisition agent, or managing entity that
is
currently | ||||||
5 | registered pursuant to this Act.
| ||||||
6 | (2) Any purchaser that sells or offers to sell his or | ||||||
7 | her own timeshare
interest.
| ||||||
8 | (3) Any homeowners' association that sells or offers to | ||||||
9 | sell its own
timeshare
interests acquired through | ||||||
10 | foreclosure, deed in lieu of foreclosure, or
gratuitous
| ||||||
11 | transfer.
| ||||||
12 | (4) Any person who is licensed under the Real Estate | ||||||
13 | License Act
of 2000 1983 or its successor Act.
| ||||||
14 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
15 | (765 ILCS 101/5-40)
| ||||||
16 | Sec. 5-40. Resale agent duties. Whether registered or | ||||||
17 | exempt from
registration under Section 5-35, a resale agent | ||||||
18 | shall comply with all of the
following:
| ||||||
19 | (a) Prior to engaging in any resale activities on behalf of | ||||||
20 | any owner of a
timeshare interest or accepting anything of | ||||||
21 | value from any owner of a timeshare interest , a resale agent | ||||||
22 | shall enter into a listing agreement with
that owner. Every
| ||||||
23 | listing agreement shall be in writing and signed by both the | ||||||
24 | resale agent and
the timeshare
interest owner. The requirements | ||||||
25 | of the written listing agreement shall be
established by
rule, |
| |||||||
| |||||||
1 | but at a minimum the listing agreement shall disclose the | ||||||
2 | following: | ||||||
3 | (1) Whether any person other than the timeshare | ||||||
4 | interest owner may use the timeshare interest during the | ||||||
5 | period before the timeshare interest is resold. | ||||||
6 | (2) Whether any person other than the timeshare | ||||||
7 | interest owner may rent or exchange the use of the | ||||||
8 | timeshare interest during the period before the timeshare | ||||||
9 | interest is resold. | ||||||
10 | (3) The name of any person who will receive any rents, | ||||||
11 | profits, or other consideration generated from the use of | ||||||
12 | the timeshare interest during the period before the | ||||||
13 | timeshare interest is resold. | ||||||
14 | (4) A detailed description of any relationship between | ||||||
15 | the resale agent and any other person who receives any | ||||||
16 | benefit from the use of the timeshare interest. | ||||||
17 | (5) A description of any fee, including the amount, to | ||||||
18 | be paid by the timeshare interest owner to the resale agent | ||||||
19 | prior to the sale of the timeshare interest. If any such | ||||||
20 | fee is charged by the resale agent prior to the sale of the | ||||||
21 | timeshare interest, then a statement must be included | ||||||
22 | disclosing either (A) the number of timeshare interests | ||||||
23 | sold by the resale agent for each of the past 3 years or | ||||||
24 | (B) the ratio or percentage of the number of listings | ||||||
25 | versus the number of timeshare interests sold by the resale | ||||||
26 | agent for each of the past 3 years. |
| |||||||
| |||||||
1 | (6) A description of the amount or percentage and | ||||||
2 | procedures for paying any commissions due to the resale | ||||||
3 | agent upon resale of the timeshare interest. | ||||||
4 | (7) Whether or not the resale agent holds a real estate | ||||||
5 | license and: | ||||||
6 | (A) if licensed, state the name, address, and | ||||||
7 | telephone number of the State agency that issued the | ||||||
8 | real estate license; or | ||||||
9 | (B) if not licensed, provide the following | ||||||
10 | disclosure: | ||||||
11 | "WARNING: This resale agent DOES NOT have a real | ||||||
12 | estate license and cannot perform many of the duties | ||||||
13 | and services that may be conducted only by real estate | ||||||
14 | licensees. The duties and services that only those | ||||||
15 | holding a real estate license are typically permitted | ||||||
16 | to conduct include listing, negotiating for purchase | ||||||
17 | or sale, buying, offering for sale, selling, renting, | ||||||
18 | and exchanging, among other actions reserved to | ||||||
19 | licensees by State laws." the method of
compensation, a
| ||||||
20 | definite date of termination, whether any fees are | ||||||
21 | non-refundable, and whether
the
agreement permits the | ||||||
22 | timeshare resale agent or any other person to make
any | ||||||
23 | use
whatsoever of the owner's timeshare interest or | ||||||
24 | receive any rents or profits
generated
from such use of | ||||||
25 | the timeshare interest.
| ||||||
26 | (b) A resale agent shall maintain records as required by |
| |||||||
| |||||||
1 | rule. The records
required to be maintained include, but are | ||||||
2 | not limited to, all listing
agreements, copies of
disbursement | ||||||
3 | authorizations in accordance with subsection (c), and resale
| ||||||
4 | contracts.
| ||||||
5 | (c) A resale agent who collects any fees prior to a | ||||||
6 | transfer of an interest
from any
owner shall deposit the fees | ||||||
7 | in an escrow account. Any fees that are to be
paid to the
| ||||||
8 | resale agent prior to closing may be disbursed from the escrow | ||||||
9 | account only
upon receipt
of a disbursement authorization, | ||||||
10 | signed by the owner, in the following form:
| ||||||
11 | "I, (name of owner), am the owner of a timeshare | ||||||
12 | interest in
(name of timeshare
plan). I understand that for | ||||||
13 | my protection I can require the
entire fee to be held
in | ||||||
14 | escrow until the closing on the resale of my timeshare | ||||||
15 | interest, but I am
authorizing a release before the | ||||||
16 | transfer in the following amount: (amount
written
in words) | ||||||
17 | ($ (amount in numbers)), for the following purpose or | ||||||
18 | purposes
(description of purpose or purposes). I | ||||||
19 | understand that the resale agent is
regulated
by the Office | ||||||
20 | of Banks and Real Estate under the Real Estate Timeshare | ||||||
21 | Act of
1999. The
Office of Banks and Real Estate requires | ||||||
22 | the resale agent to obtain this
disbursement authorization | ||||||
23 | with my signature before disbursement of my funds."
| ||||||
24 | (d) A resale agent shall utilize a purchase agreement that | ||||||
25 | discloses to a
purchaser of a timeshare interest all of the | ||||||
26 | following:
|
| |||||||
| |||||||
1 | (1) A legally sufficient description of the timeshare | ||||||
2 | interest being
purchased.
| ||||||
3 | (2) The name and address of the managing entity of the | ||||||
4 | timeshare property.
| ||||||
5 | (3) The current year's assessment for the common | ||||||
6 | expenses allocated to the
timeshare interest being | ||||||
7 | purchased including the time period to which the
assessment | ||||||
8 | relates and the date on which it is due. If not included in | ||||||
9 | the
applicable common expense assessment, the amount of any | ||||||
10 | real or personal
property taxes allocated to the timeshare | ||||||
11 | interest being purchased.
| ||||||
12 | (3.5) Whether all assessments and real property taxes | ||||||
13 | against the timeshare interest are paid in full and, if | ||||||
14 | not, the amount owed and the consequences of failure to pay | ||||||
15 | any assessment or real property taxes.
| ||||||
16 | (4) A complete and accurate disclosure of the terms and | ||||||
17 | conditions of the
purchase and closing, including the | ||||||
18 | obligations of the owner, the
purchaser, or both for | ||||||
19 | closing costs and the title insurance.
| ||||||
20 | (5) The entity responsible for providing notification | ||||||
21 | to the managing
entity of the timeshare plan and the | ||||||
22 | applicable exchange company regarding any
change in the | ||||||
23 | ownership of the timeshare interest.
| ||||||
24 | (6) A statement of the first year in which the | ||||||
25 | purchaser is entitled to
receive the actual use rights and | ||||||
26 | occupancy of the timeshare interest, as
determined by the |
| |||||||
| |||||||
1 | managing entity of the timeshare plan and any exchange
| ||||||
2 | company.
| ||||||
3 | (6.5) The place where the documents of formation of the | ||||||
4 | association, if any, and the timeshare instrument may be | ||||||
5 | obtained, together with the following disclosure: | ||||||
6 | "There are many important documents relating to the | ||||||
7 | timeshare plan that you should review prior to purchasing a | ||||||
8 | timeshare interest, which may include the declaration of | ||||||
9 | restrictions, covenants, and conditions; the owners' | ||||||
10 | association articles and bylaws; the current year's | ||||||
11 | operating and reserve budgets; and any rules and | ||||||
12 | regulations affecting the use of the timeshare plan | ||||||
13 | accommodations and amenities."
| ||||||
14 | (7) In making the disclosures required by this | ||||||
15 | subsection (d), the
timeshare resale agent may rely upon | ||||||
16 | information provided in writing by the
owner or managing | ||||||
17 | entity of the timeshare plan.
| ||||||
18 | (8) The purchaser's 5-day cancellation period as | ||||||
19 | required by Section
10-10.
| ||||||
20 | (9) Any other information determined by the Office of | ||||||
21 | Banks and Real
Estate and established by rule.
| ||||||
22 | (e) A resale agent: | ||||||
23 | (1) shall be licensed as a real estate broker or | ||||||
24 | salesperson pursuant to the provisions of the Real Estate | ||||||
25 | License Act of 2000 or its successor Act or pursuant to the | ||||||
26 | real estate laws of the state in which the resale agent has |
| |||||||
| |||||||
1 | its principal place of business; or | ||||||
2 | (2) shall provide the disclosure required by | ||||||
3 | subdivision (a)(7)(B) of this Section. | ||||||
4 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
5 | (765 ILCS 101/5-45)
| ||||||
6 | Sec. 5-45. Amendment to registration information or public | ||||||
7 | offering
statement. The developer, resale agent, and exchange | ||||||
8 | company shall amend or
supplement their disclosure documents | ||||||
9 | and registration information to reflect
any
material change in | ||||||
10 | any information required by this Act or the rules
implementing | ||||||
11 | this Act. All such
amendments,
supplements, and changes shall | ||||||
12 | be filed with the Office of Banks and Real
Estate within 30
20 | ||||||
13 | calendar days of the material change.
| ||||||
14 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
15 | (765 ILCS 101/5-60)
| ||||||
16 | Sec. 5-60. Registration; offer or disposal of interest. | ||||||
17 | (a) A developer,
exchange
company, or resale agent, or any | ||||||
18 | of their agents, shall not sell, offer, or
dispose of a
| ||||||
19 | timeshare interest unless all necessary registrations are | ||||||
20 | filed and approved by
the Office
of Banks and Real Estate, or | ||||||
21 | while an order revoking or suspending a
registration is in
| ||||||
22 | effect.
| ||||||
23 | (b) An applicant for registration under this Act shall | ||||||
24 | submit the necessary
information to complete the application, |
| |||||||
| |||||||
1 | as required by the Office of Banks and
Real Estate, within 6 | ||||||
2 | months from the date the initial registration
application was | ||||||
3 | received by the Office of Banks and Real Estate. If the
| ||||||
4 | applicant fails to submit the information necessary to complete | ||||||
5 | the application
as required by the Office of Banks and Real | ||||||
6 | Estate within the six month period,
said application shall be | ||||||
7 | voided, and a new registration application with
applicable fees | ||||||
8 | must be submitted.
| ||||||
9 | (c) A developer, exchange company, or resale agent shall | ||||||
10 | renew any registrations required by this Act no less frequently | ||||||
11 | than on a biennial basis. | ||||||
12 | (Source: P.A. 91-585, eff. 1-1-00.)
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13 | (765 ILCS 101/10-25)
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14 | Sec. 10-25. Liability; material misrepresentation.
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15 | (a) A developer or other person offering a timeshare plan | ||||||
16 | may not do any of
the
following:
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17 | (1) Misrepresent a fact material to a purchaser's | ||||||
18 | decision to buy a
timeshare
interest.
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19 | (2) Predict specific or immediate increases in the | ||||||
20 | value of a timeshare
interest
represented over a period of | ||||||
21 | time, excluding bona fide pending price increases
by
the | ||||||
22 | developer.
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23 | (3) Materially misrepresent the qualities or | ||||||
24 | characteristics of
accommodations
or
the amenities | ||||||
25 | available to the occupant of those accommodations.
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1 | (4) Misrepresent the length of time accommodations or | ||||||
2 | amenities will be
available to the purchaser of a timeshare | ||||||
3 | interest.
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4 | (5) Misrepresent the conditions under which a | ||||||
5 | purchaser of a timeshare
interest
may exchange the right of | ||||||
6 | his or her occupancy for the right to occupy other
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7 | accommodations.
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8 | (b) A developer or other person using a promotion in | ||||||
9 | connection with the
offering
of a timeshare interest shall | ||||||
10 | clearly disclose all of the following:
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11 | (1) That the purpose of the promotion is to sell | ||||||
12 | timeshare interests,
which shall appear in bold face or | ||||||
13 | other conspicuous type.
| ||||||
14 | (2) That any person whose name or address is obtained | ||||||
15 | during the promotion
may
be solicited to purchase a | ||||||
16 | timeshare interest.
| ||||||
17 | (3) The name of each developer or other person trying | ||||||
18 | to sell a timeshare
interest
through the promotion, and the | ||||||
19 | name of each person paying for the promotion.
| ||||||
20 | (4) The complete rules of the promotion.
| ||||||
21 | (5) The method of awarding prizes, gifts, vacations, | ||||||
22 | discount vacations,
or
other
benefits under the promotion; | ||||||
23 | a complete and fully detailed description,
including
| ||||||
24 | approximate retail value, of all prizes, gifts, or benefits | ||||||
25 | under the
promotion; the
quantity of each prize, gift, or | ||||||
26 | benefit to be awarded or conferred; and the
date by
which |
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| |||||||
1 | each prize, gift, or benefit will be awarded or conferred.
| ||||||
2 | (6) Any other disclosures provided by rule.
| ||||||
3 | (c) If a person represents that a prize, gift, or benefit | ||||||
4 | will be awarded in
connection with a promotion, the prize, | ||||||
5 | gift, or benefit must be awarded or
conferred in
the manner | ||||||
6 | represented, and on or before the date represented.
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7 | (d) A developer or other person using a promotion in | ||||||
8 | connection with the offering of a timeshare interest shall | ||||||
9 | provide the disclosures required by this Section in writing or | ||||||
10 | electronically to the prospective purchaser at least once | ||||||
11 | before a scheduled sales presentation and within a reasonable | ||||||
12 | period before the scheduled sales presentation to ensure that | ||||||
13 | the prospective purchaser receives the disclosures before | ||||||
14 | leaving to attend the sales presentation. | ||||||
15 | (e) A developer or other person using a promotion in | ||||||
16 | connection with the offering of a timeshare interest is not | ||||||
17 | required to provide the disclosures required by this Section in | ||||||
18 | every advertisement or other written, oral, or electronic | ||||||
19 | communication provided or made to a prospective purchaser. | ||||||
20 | (Source: P.A. 91-585, eff. 1-1-00.)
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21 | Section 97. Severability. The provisions of this Act are | ||||||
22 | severable under Section 1.31 of the Statute on Statutes.
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23 | Section 99. Effective date. This Act takes effect upon | ||||||
24 | becoming law.
|