2010 California Code
Civil Code
Title 2.8. Membership Camping Contracts

1812.300.  For the purposes of this title:
   (a) "Membership camping operator" means any enterprise, other than
one that is tax exempt under Section 501(c)(3) of the Internal
Revenue Code of 1954, as amended, that has as one of its purposes the
ownership or operation of campgrounds which include or may include
use of camping sites, that solicits membership paid for by a fee or
periodic payments, such as annual dues, and the contractual members
are the primary intended users. "Membership camping operator" does
not include camping or recreational trailer parks, as defined in
Section 18215 of the Health and Safety Code, which are open to the
general public and which contain camping sites rented for a per use
fee, or a "mobilehome park," as defined in either Section 798.4 of
the Civil Code or Section 18214 of the Health and Safety Code.
   As used in this title, "seller" means membership camping operator.
   (b) "Membership camping contract" means an agreement offered or
sold within the State of California by a membership camping operator
or membership camping broker evidencing a purchaser's right or
license to use for more than 14 days in a year, the campgrounds of a
membership camping operator and includes a membership which provides
for this use.
   (c) "Camping site" means a space designed and promoted for the
purpose of locating a trailer, tent, tent trailer, pickup camper, or
other similar device used for camping.
   (d) "Offer" means any solicitation reasonably designed to result
in entering into a membership camping contract.
   (e) "Person" means any individual, corporation, partnership,
limited liability company, trust, association, or other organization
other than a government or a subdivision thereof.
   (f) "Purchaser" means a person who enters into a membership
camping contract and thereby obtains the right to use the campgrounds
of a membership camping operator.
   (g) "Sale" or "sell" means entering into, or other disposition, of
a membership camping contract for value. The term "value" does not
include a reasonable fee to offset the administrative costs of
transfer of a membership camping contract.
   (h) "Campground" means real property within this state owned or
operated by a membership camping operator and designated in whole or
in part by the membership camping operator as available for camping
or outdoor recreation by purchasers of membership camping contracts.
   (i) "Blanket encumbrance" means any mortgage, deed of trust,
option to purchase, vendor's lien or interest under a contract or
agreement of sale, or other financing lien or encumbrance granted by
the membership camping operator or affiliate which secures or
evidences the obligation to pay money or to sell or convey any
campgrounds made available to purchasers by the membership camping
operator or any portion thereof, and which authorizes, permits, or
requires the foreclosure or other disposition of the campground.
   (j) "Nondisturbance agreement" means an instrument in recordable
form by which the holder of a blanket encumbrance agrees to all of
the following:
   (1) The holder's rights in any campground made available to
purchasers, prior or subsequent to the agreement, by the membership
camping operator shall be subordinate to the rights of purchasers
from and after the recordation of the nondisturbance agreement.
   (2) The holder and all successors and assignees of the holder, and
any person who acquires the campground through foreclosure or by
deed in lieu of foreclosure of the blanket encumbrance shall take the
campground subject to the rights of purchasers.
   (3) The holder or any successor acquiring the campground through
the blanket encumbrance shall not use or cause the campground to be
used in a manner which would materially prevent purchasers from using
or occupying the campground in a manner contemplated by the
purchasers' membership camping contracts. However, the holder shall
have no obligation to, and no liability for failure to assume the
responsibilities or obligations of, the membership camping operator
under the membership camping contracts.
   (k) "Membership camping contract broker" means a person who, for
compensation, resells or offers to resell a membership camping
contract to a new purchaser on behalf of a prior purchaser.
Membership camping contract broker does not include a membership
camping operator or its employees or agents.



1812.301.  The membership camping contracts and persons covered by
this title shall be subject to Chapter 5 (commencing with Section
17200) of Part 2 of Division 7 and Article 1 (commencing with Section
17500) of Chapter 1 of Part 3 of Division 7 of the Business and
Professions Code and the Unruh Act (Chapter 1 (commencing with
Section 1801) of Title 2 of Part 4 of Division 3).



1812.302.  A membership camping operator shall provide to a
purchaser the following written disclosures in any format which
clearly communicates the following reasonably current information
before the purchaser signs a membership camping contract, or gives
any money or thing of value for the purchase of a membership camping
contract. The written disclosures shall be included in or attached to
the contract before the time the contract is signed. The following
information shall be updated once a year.
   (a) The name and address of the membership camping operator and
any material affiliate membership camping operator.
   (b) A brief description of the membership camping operator's
experience in the membership camping business, including the number
of years the operator has been in the membership camping business; a
brief description of the past five years' business experience of the
chairman, the president and chief executive officer, and if other
than the foregoing, the person in charge of marketing of the
membership camping operator, or persons in comparable positions in
noncorporate operators, including the number of other membership
camping operators with which the executive has been associated and
the length of time with each.
   (c) A brief description of the nature of the purchaser's right or
license to use the membership camping operator's property or
facilities.
   (d) The location of each of the membership camping operator's
campgrounds and a brief description for each campground of the
significant facilities then available for use by purchasers and those
which are represented to purchasers as being planned, together with
a brief description of any significant facilities that are or will be
available to nonpurchasers or nonmembers.
   "Significant facilities" shall include, but are not limited to,
each of the following: the number of campsites, in each campground;
the number of campsites in each campground with full or partial
hookups; swimming pools; tennis courts; recreation buildings;
restrooms and showers; laundry rooms; trading posts; or grocery
stores. "Partial hookups" mean those hookups with at least one of the
following connections: electricity, water, or sewer connections.
   Following such description there shall appear in 10-point bold
type the following disclosure:

   NOTICE: PURCHASE A MEMBERSHIP CAMPING CONTRACT ONLY ON THE BASIS
OF EXISTING FACILITIES. CONSTRUCTION OF PLANNED FACILITIES IS
SOMETIMES DEFERRED OR REVISED FOR A VARIETY OF REASONS. SHOULD THE
SALESPERSON DESCRIBE A SIGNIFICANT FACILITY WHICH IS NEITHER LISTED
AS EXISTING NOR PLANNED, TELEPHONE COLLECT OR TOLL FREE DURING
WEEKDAY BUSINESS HOURS TO Ýinsert headquarter's telephone number] TO
VERIFY THE OPERATOR'S PLAN FOR SUCH A FACILITY.

   (e) A brief description of the membership camping operator's
ownership of, or other right to use, the campgrounds represented to
be available for use by purchasers, together with the duration and
expiration date of any lease, license, franchise, or reciprocal
agreement entitling the membership camping operator to use the
campgrounds, and any material provisions of any agreements, land use
permits, or operating licenses which could materially restrict a
purchaser's use of the campgrounds under the terms of the purchaser's
camping contract.
   (f) A summary or copy of the rules, restrictions, or covenants
regulating the purchaser's use of the membership camping operator's
properties, including a statement of whether and how the rules,
restrictions, or covenants may be changed.
   (g) A brief description of all payments of a purchaser under a
membership camping contract, including initial fees and any further
fees, charges, or assessments, together with any provisions for
changing the payments.
   (h) A description of any restraints on the transfer of the
membership camping contract.
   (i) A brief description of the policies relating to the
availability of camping sites and whether reservations are required.
   (j) A brief description of any grounds for forfeiture of a
purchaser's membership camping contract.
   (k) A copy of the membership camping contract form.




1812.303.  (a) A membership camping contract shall be written in the
same language as that principally used in any oral sales
presentation (e.g., Spanish). A membership camping contract shall be
dated, signed by the purchaser, and contain, in immediate proximity
to the space reserved for the signature of the purchaser, a
conspicuous statement in a size equal to at least 10-point bold type,
as follows:  "You, the purchaser, may cancel this contract at any
time prior to midnight of the third business day after the date of
the transaction. See an explanation of this right as set forth in
this contract or on the attached notice of cancellation form."  In
the alternative the notice of cancellation as set forth in
subdivision (b) may be placed in immediate proximity to the signature
line of the contract in lieu of the foregoing statement.
   (b) The contract shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation", which shall be
attached to the contract and easily detachable. In the alternative,
the seller may include all of the cancellation information on the
contract and provide the consumer with a carbon copy which may be
retained after cancellation. Both shall contain, in type of at least
10-point, the following statement written in the same language as
used in the contract:

                             "Notice of Cancellation"
   "You may cancel this contract, without any penalty or obligation,
within three business days from the date the contract is executed.
   "To cancel this contract, mail or deliver a signed and dated copy
of this cancellation notice or a copy of this contract if it contains
the cancellation instructions, or any other written notice, or send
a telegram to
_____________________, at
  (Name of seller)
_______________________
  (Address of seller's
   place of business)
not later than midnight of _______.
               (Date)
I hereby cancel this transaction _______.
                  (Date)
_______________________
(Purchaser's signature)

   "With the notice of cancellation, or separately if a telegram is
sent, you must return the original membership camping contract,
membership card and all other evidence of membership to the seller.
You should promptly return these documents with the notice of
cancellation, or separately if a telegram is sent. Failure to send
the documents promptly could delay your refund. You should retain for
your records one copy of the cancellation notice, or a carbon of the
contract when it provides the cancellation information, or other
writing showing intent to cancel. Mailing by ordinary mail is
adequate but certified mail return receipt requested is recommended."

   (c) On the date of purchase the membership camping operator shall
provide the purchaser with a copy of the contract and duplicate of
the notice of cancellation. The membership camping operator shall
inform the purchaser orally of the right to cancel at the time the
contract is executed.
   (d) Within 20 days after the membership camping operator receives
a notice of cancellation, the membership camping contract, the
membership card and all other evidence of purchase or membership, the
membership camping operator shall refund to the purchaser any sums
paid as a deposit, downpayment or other payment therefor. If the
purchaser does not promptly return the evidence of membership, the
20-day period shall be extended until such evidence of membership is
returned.
   (e) Until the membership camping operator has complied with this
section, the purchaser shall have the right to cancel the contract.
   (f) "Business day" means any calendar day except Sunday, or the
following business holidays: New Year's Day, Washington's Birthday,
Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran's
Day, Thanksgiving Day, and Christmas Day.



1812.304.  (a) If the purchaser has not inspected at least one of
the membership camping operator's campgrounds prior to purchase of a
membership camping contract, the notice shall contain the following
additional language:
   "If you sign this contract without having first inspected one of
the membership camping operator's campgrounds, you may also cancel
this contract at any time prior to midnight of the 10th business day
after date of purchase by mailing or delivering the signed and dated
attached written notice of cancellation or a copy of the contract
when that contains the cancellation instructions together with the
original camping club contract, membership card and any other
evidence of membership."
   (b) The seller shall return any payment made by the purchaser
under the contract or offer to purchase, and any negotiable
instrument executed by the purchaser, within 10 days of the return of
evidence of membership and cancellation of the contract by the
purchaser. If the purchaser does not promptly return the evidence of
membership, the 10-day period shall be extended until the evidence of
membership is returned.



1812.305.  The following transactions are exempt from the provisions
of this title.
   (a) An offer, sale or transfer by any one person of not more than
one membership camping contract for any given membership camping
operator in any 12-month period.
   (b) An offer or sale by a government or governmental agency.
   (c) A bona fide pledge of a membership camping contract.



1812.306.  (a) A purchaser's remedy for errors in or omissions from
the membership camping contract of any of the disclosures or
requirements of Sections 1812.302 to 1812.304, inclusive, shall be
limited to a right of rescission and refund. Reasonable attorney's
fees shall be awarded to the prevailing party in any action under
this title. This limitation does not apply to errors or omissions
from the contract, or disclosures or other requirements of this
title, which are a part of a scheme to willfully misstate or omit the
information required, or other requirements imposed by this title.
   (b) Any failure, except a willful or material failure, to comply
with any provision of Sections 1812.302 to 1812.304, inclusive, may
be corrected within 30 days after receipt of written notice to the
membership camping operator from the purchaser, and, if so corrected,
there shall be no right of rescission. The membership camping
operator or the holder shall not be subject to any penalty under this
title. However, there can be no correction that increases any
monthly payment, the number of payments, or the total amount due,
unless concurred to, in writing, by the purchaser. "Holder" includes
the seller who acquires the contract, or if the contract is
purchased, a financing agency or other assignee who purchases the
contract.


1812.307.  No membership camping operator shall withdraw from the
use by purchasers of membership camping contracts any campground
unless one of the following conditions is satisfied:
   (a) Adequate provision is made to provide within a reasonable
time, a substitute campground in the same general area that is as
desirable for the purpose of camping and outdoor recreation.
   (b) The campground is withdrawn from use because, despite good
faith efforts by the membership camping operator, a person not
affiliated with the membership camping operator has exercised a
superior right to possession (such as the right of a lessor to take
possession following expiration of a lease of the property) and the
terms and date of the withdrawal were disclosed in writing to all
purchasers at or prior to the time of any sale of a membership
camping contract after the membership camping operator represented to
purchasers that the campground would be available for camping or
recreation purposes.
   (c) The rights of all purchasers of membership camping contracts
who are entitled to use the campground have expired or have been
lawfully terminated.



1812.308.  (a) Except in the case of a membership camping operator
substituting a campground in accordance with Section 1812.307, no
membership camping operator or owner of the underlying fee shall
sell, lease, assign, or otherwise transfer his or her interest in a
campground except by an instrument evidencing the transfer recorded
in the office of the county recorder for the county in which the
campground is located. The instrument shall be in recordable form and
be executed by both the transferor and transferee and shall state
each of the following:
   (1) That the instrument is intended to protect the rights of all
purchasers of membership camping contracts.
   (2) That its terms may be enforced by any prior or subsequent
purchaser so long as that purchaser is not in default on his or her
obligations under the membership camping contract.
   (3) That the transferee shall fully honor the rights of the
purchasers to occupy and use the campground as provided in the
purchaser's original membership camping contracts.
   (4) That the transferee shall fully honor all rights of purchasers
to cancel their contracts and receive appropriate refunds.
   (5) That the obligations of the transferee under the instrument
will continue to exist despite any cancellation or rejection of the
contracts between the membership camping operator and purchaser
arising out of bankruptcy proceedings.
   (b) If any transfer of the interest of the membership camping
operator or owner of the underlying fee occurs in a manner which is
not in compliance with this section, the terms set forth in this
section shall be presumed to be a part of the transfer and shall be
deemed to be included in the instrument of transfer. Notice of the
transfer shall be mailed to each purchaser within 30 days of the
transfer. Persons who hold blanket encumbrances on a campground shall
not be considered transferees for the purposes of this section.




1812.309.  (a) Campgrounds subject to this section include any
campground which is offered or made available by an operator for the
first time after January 1, 1991, or any campground which becomes
subject to a new or refinanced blanket encumbrance after January 1,
1991. A membership camping operator shall not offer or represent that
any campground subject to this section is available for use by the
purchasers of its camping contracts unless one of the following
conditions has been satisfied:
   (1) The membership camping operator obtains and records a
nondisturbance agreement from each holder of a blanket encumbrance.
The nondisturbance agreement is executed by the membership camping
operator and each holder of the blanket encumbrance and includes the
provisions set forth in subdivision (j) of Section 1812. 300 and each
of the following:
   (A) The instrument may be enforced by purchasers of membership
camping contracts. If the membership camping operator is not in
default under its obligations to the holder of the blanket
encumbrance, the agreement may be enforced by both the membership
camping operator and the purchasers.
   (B) The nondisturbance agreement is effective as between each
purchaser and the holder of the blanket encumbrance despite any
rejection or cancellation of the purchaser's contract during any
bankruptcy proceedings of the membership camping operator.
   (C) The agreement is binding upon the successors in the interest
of both the membership camping operator and the holder of the blanket
encumbrance.
   (D) A holder of the blanket encumbrance who obtains title or
possession, or who causes a change in title or possession in a
campground by foreclosure or otherwise, and who does not continue to
operate the campground upon conditions no less favorable to members
than existed prior to the change of title or possession shall either:
   (i) Offer the title or possession of the campground to an
association of members to operate the campground.
   (ii) Obtain a commitment from another entity which obtains title
or possession to undertake the responsibility of operating the
campground.
   (2) The membership camping operator posts a surety bond or
irrevocable letter of credit with a trustee in favor of purchasers
and which guarantees that the payments on the blanket encumbrance are
made as they become due. A trustee shall be either a corporate
trustee or an attorney licensed to practice law in this state.
   (3) The membership camping operator delivers to a trustee an
encumbrance trust agreement which contains each of the following
provisions:
   (A) The membership camping operator shall collaterally assign to
the trustee all of its membership camping contracts receivable or
other receivables of the membership camping operator in an amount
calculated in accordance with subparagraph (B). The membership
camping operator shall provide the trustee with a security interest
in the receivables and all proceeds therefrom. For purposes of this
section, the membership camping operator shall be credited with 100
percent of the outstanding principal balance of each receivable
assigned to the trustee. All proceeds of the receivables shall be
held in a trust account by the trustee subject to this section for
the use and benefit of the purchasers to make the payments of
principal and interest due under the blanket encumbrance. However, if
the proceeds of the receivables during any calendar year exceed the
amount due under the blanket encumbrance in the following calendar
quarter, these excess funds shall be returned by the trustee to the
membership camping operator.
   (B) The amount of membership camping contracts receivable or other
receivables to be collaterally assigned as described in subparagraph
(A) shall be calculated based upon the maximum number of contracts
per camping site to be offered on or after January 1, 1991, in
connection with the campground in question, which number of contracts
per camping site shall not exceed 15 multiplied by the total number
of camping sites available at the campground thereby yielding the
anticipated total number of contracts to be sold in connection with
the campground. The outstanding balance due under the blanket
encumbrance shall then be divided by the anticipated total number of
contracts to arrive at the amount per contract sold to be paid over
to the trustee in the form of collaterally assigned receivables as
described in subparagraph (A). The membership camping operator shall
make the required collateral assignments to the trustee on a
quarterly basis based upon the actual sales of contracts at the
campground in question during the previous calendar quarter. However,
the membership camping operator's obligation to collaterally assign
receivables to the trustee shall cease when the membership camping
operator has collaterally assigned to the trustee an aggregate
principal amount of receivables equal to 100 percent of the aggregate
principal indebtedness remaining due under the blanket encumbrance.
   (C) If the outstanding balance due under the blanket encumbrance
at the time of execution of the encumbrance trust agreement exceeds
the anticipated gross revenue based upon the membership camping
operator's price list to be generated by the sale of the anticipated
total number of contracts as calculated in subparagraph (B), the
membership camping operator shall meet the conditions specified in
paragraph (1), (2), or (4) of this subdivision as to the full amount
of the excess.
   (D) It may be terminated by the membership camping operator if the
membership camping operator has satisfied the obligation secured by
the blanket encumbrance in full or has complied with paragraph (1),
(2), or (4) of this subdivision. Upon termination of the agreement,
all receivables and proceeds thereof held by the trustee shall be
immediately assigned and delivered to the membership camping
operator. All costs of administering this trust, filing, and
perfecting the security interest, and foreclosing the lien shall be
borne by the membership camping operator.
   (4) Any financial institution which has made a hypothecation loan
to the membership camping operator (a "hypothecation lender") shall
have a lien on, or security interest in, the membership camping
operator's interest in the campground, and the hypothecation lender
shall have executed and recorded a nondisturbance agreement at the
county recorder's office for the county in which the campground is
located. Each person holding an interest in a blanket encumbrance
superior to the interest held by the hypothecation lender shall
execute and record at the county recorder's office, an instrument
stating that the person shall give the hypothecation lender notice
of, and at least 30 days to cure, any default under the blanket
encumbrance before the person commences any foreclosure action
affecting the campground. For the purposes of this paragraph, a
"hypothecation loan to a membership camping operator" means a loan or
line of credit secured by membership camping contracts receivable
arising from the sale of membership camping contracts by the
membership camping operator, which exceeds in the aggregate all
outstanding indebtedness secured by blanket encumbrances superior to
the interest held by the hypothecation lender.
   A hypothecation lender who obtains title or possession, or who
causes a change in title or possession, in a campground, by
foreclosure or otherwise, and who does not continue to operate the
campground upon conditions no less favorable to purchasers than
existed prior to the change of title or possession shall either:
   (A) Offer the title or possession to an association of members to
operate the campground.
   (B) Obtain a commitment from another entity which obtains title
to, or possession of, the campground to undertake the responsibility
of operating the campground.
   (b) Any membership camping operator which does not comply at all
times with subdivision (a) with regard to any blanket encumbrance in
connection with any campground subject to that subdivision is
prohibited from offering any membership camping contracts for sale
during the period of noncompliance.



1812.314.  (a) All money received from the owner of a membership
camping contract or the prospective purchaser thereof, by a
membership camping contract broker in advance of the completion of
any membership camping contract resale, including, but not limited
to, listing fees, and fees for services, shall be deposited into an
escrow account. The money shall not be disbursed until the
transaction is complete, or until the escrow agent has received
written instructions to disburse the funds signed by the owner of the
membership camping contract or the prospective purchaser and the
broker. For purposes of this section, a transaction is complete when
ownership of the membership camping contract has been transferred
from the prior purchaser to the new purchaser in the manner required
by the terms of the membership camping contract, all documents
necessary to complete the transfer have been fully executed, and the
new purchaser has not exercised the right to cancel provided in
paragraph (2) of subdivision (c).
   (b) The broker shall inform the new purchaser in writing of the
following:
   (1) The risks of purchasing a membership camping contract without
visiting at least one of the membership camping operator's
campgrounds.
   (2) That the membership camping operator may have a valid reason
for not transferring the contract to the new purchaser such as a
default in payment on contract or annual dues, or that the new
purchaser does not meet the same credit standards applied to other
new purchasers.
   (3) That there may have been changes in the rules or regulations
concerning the rights and obligations of the membership camping
operator or its members including changes with respect to annual
dues, fees, assessments, use restrictions or that some campgrounds
may have been withdrawn.
   (4) Any material changes or risks to the purchaser known to the
broker.
   (c) (1) Every broker shall provide in writing the following notice
of cancellation to the new purchaser:

   "You may cancel your contract of purchase, without any penalty or
obligation, within 10 business days from the above date of purchase
by mailing notice of cancellation together with the membership
camping contract, if any, any contract for transfer, membership card
or other evidence of membership to
_______________________,
  (Name and address
    of broker)
the membership camping operator
________________________
  (Name and address of
  membership camping
     operator)
and the escrow company,
________________________
  (Name and address of
   escrow company)
if any, not later than midnight of ________.
                   (Date)

I hereby cancel this transaction____________
                (Purchaser's
                 signature)
__________
  (Date)
Notice by ordinary mail is adequate but certified mail return
receipt requested is recommended."

   (2) Any escrow company which receives a notice of cancellation
from a purchaser shall, within 72 hours of receipt of the notice,
notify the membership camping operator of the cancellation and shall
refund any sums paid by the purchaser of the contract within 10 days
of receipt of the notice of the cancellation and other documents. The
escrow company shall incur no liability to the seller, purchaser, or
broker as a result of its compliance with this section.



1812.315.  If any provision of this title or the application thereof
to any person or circumstances is held invalid, the invalidity shall
not affect other provisions or applications of this title which can
be given effect without the invalid provision or application, and to
this end the provisions of this title are severable.




1812.316.  Any waiver of the provisions of this title is contrary to
public policy, and is void and unenforceable.