2016 Connecticut General Statutes
Title 42 - Business, Selling, Trading and Collection Practices
Chapter 734b - Time Shares
Section 42-103nn - Exchange disclosure statement. Filing with department. Amendments. Fees.
(a) Before the signing of any agreement to purchase a time share interest in which a prospective purchaser is also offered participation in any exchange program, 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 shall obtain from the purchaser a written acknowledgment of receipt of the exchange disclosure statement.
(d) The exchange disclosure statement shall include:
(1) The name and address of the exchange company;
(2) If the exchange company is not the developer, a statement describing the legal relationship, if any, between the exchange company and the developer;
(3) A statement indicating the conditions under which the exchange program might terminate or become unavailable;
(4) Whether membership or participation or both in the exchange program is voluntary or mandatory;
(5) A complete description of the required procedure for executing an exchange of time share periods;
(6) The fee required for membership or participation or both in the program and whether the fee is subject to change;
(7) A statement disclosing that participation in the exchange program is conditioned on compliance with the terms of a contract between the exchange company and the purchaser;
(8) A statement in conspicuous type that all exchanges are arranged on a space-available basis and that neither the developer nor the exchange company guarantees that a particular time share period can be exchanged;
(9) A description of seasonal demand and unit occupancy restrictions employed in the exchange program;
(10) The following information, which shall be independently audited by a certified public accountant or accounting firm in accordance with the standards of the Accounting Standards Board of the American Institute of Certified Public Accountants and reported annually:
(A) The number of purchasers currently enrolled in the exchange program;
(B) The number of accommodations and facilities that have current written affiliation agreements with the exchange program;
(C) The percentage of confirmed exchanges, which is the number of exchanges confirmed by the exchange program 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;
(D) The number of time share periods for which the exchange program has an outstanding obligation to provide an exchange to a purchaser who relinquished a time share period during the year in exchange for a time share period in any future year; and
(E) The number of exchanges confirmed by the exchange program during the year; and
(11) A statement in boldface type that the percentage described in subparagraph (C) of subdivision (10) of subsection (d) of this section is a summary of the exchange requests entered with the exchange program in the period reported and that the percentage does not indicate the probabilities of a purchaser's being confirmed to any specific choice or range of choices.
(e) Each exchange company offering an exchange program in this state shall file with the department the information specified in this section, together with any membership agreement and application between the purchaser and the exchange company, and the audit specified in subdivision (10) of subsection (d) of this section on or before June first of each year. An exchange company shall make its initial filing not later than twenty days prior to offering an exchange program to any purchaser in this state. Each filing shall be accompanied by an annual filing fee of five hundred dollars.
(f) Any material change in the information contained in an exchange company filing shall be filed with the department as an amendment prior to becoming effective. Each amendment filing shall be accompanied by a filing fee of one hundred dollars. An exchange program filing is required to be updated with respect to added or deleted time share properties only once each year, and such annual update shall not be deemed to be a material change to the filing.
(g) If at any time the department determines that any of the information supplied by an exchange company fails to meet the requirements of this section, the department shall undertake enforcement action against the exchange company.
(P.A. 09-156, S. 12.)
History: P.A. 09-156 effective January 1, 2010.