2014 Indiana Code TITLE 32. PROPERTY ARTICLE 32. TIME SHARES AND CAMPING CLUBS CHAPTER 3. TIME SHARES AND CAMPING CLUBS
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IC 32-32-3
Chapter 3. Time Shares and Camping Clubs
IC 32-32-3-1
Registration with division
Sec. 1. (a) Before a developer may offer to sell any time shares or
camping club memberships in this state, the developer must register
with the division under this section.
(b) A person who applies for registration under this section shall
submit an application in the manner provided by the division and
shall disclose the following information under oath:
(1) The names and addresses of all officers, project managers,
marketing agencies, advertising agencies, and exchange
companies who are actively involved in soliciting or selling
time share units or camping club memberships.
(2) The name and address of each person who owns an interest
of ten percent (10%) or more in the registrant, except for
reporting companies under the Securities Exchange Act of 1934.
(3) A copy of the document in which the time share project or
camping club project is created.
(4) A preliminary title report for the time share project or
camping club project and copies of the documents listed as
exceptions in the report showing any encumbrances.
(5) Copies of and instructions for escrow agreements, deeds, and
sales contracts.
(6) Documents that show the current assessments for property
taxes on the time share project or camping club project.
(7) A copy of bylaws or similar instrument that creates any
community ownership relationship.
(8) Copies of all documents that will be given to a participant
who is interested in participating in a program for the exchange
of occupancy rights among time share participants or camping
club members, and copies of the documents that show
acceptance of the time share or camping club membership in the
program.
(c) A developer who knowingly or intentionally offers to sell any
time shares or camping club memberships in this state before
registering with the division under this section commits a Level 6
felony.
As added by P.L.2-2002, SEC.17. Amended by P.L.158-2013,
SEC.334.
IC 32-32-3-2
Amendment by developer must be filed
Sec. 2. Any amendment by the developer of the provisions of the
document that created the time share or camping club membership,
or of the articles of incorporation, trust, or bylaws, must be filed with
the division.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-3
Registration fee
Sec. 3. (a) A time share or camping site developer who applies for
registration under section 1 of this chapter shall pay a one (1) time
registration fee of two hundred fifty dollars ($250).
(b) Each July 1 after a developer applies for registration under
section 1 of this chapter, the developer shall file an update to the
registration. The developer shall pay an additional fifty dollars ($50)
for each yearly refiling under this subsection.
(c) The fees collected under this section shall be used, in addition
to funds appropriated by the general assembly, for the administration
and enforcement of this chapter.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-4
Requirements for membership agreement
Sec. 4. All registration statements and information required to be
filed under this chapter with the division are subject to IC 5-14-3.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-5
Requirements of membership agreement
Sec. 5. A time share project and camping club project must be
created by a time share instrument or camping club membership
agreement. The membership agreement must include the following
provisions:
(1) A legal description of the time share project or camping club
project that transfers an interest in real property.
(2) The name and location of the time share project or camping
club project.
(3) A system of identification of the time periods assigned to
time shares by letter, name, number, or any combination of
letters, names, or numbers.
(4) Provisions for assessment of the expenses of the time share
project or camping club project and an allocation of those
expenses among the time share participants or camping club
members.
(5) A procedure to add units to the time share project or
camping club project.
(6) Provisions for maintenance of the time share units or camp
sites.
(7) Provisions for management of the time share project or
camping club project.
(8) A procedure to amend the time share instrument or the
camping club membership agreement.
(9) A description of the rights of the purchaser relating to the
occupancy of the time share unit or camping site.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-6
Transfer of interest
Sec. 6. A transfer of an interest in a time share unit or camping
club membership shall be by written contract that includes or
incorporates by reference the following provisions:
(1) A legal description of the time share unit or camping site
that transfers an interest in real property.
(2) The name and location of the time share unit or camping
site.
(3) A system of identification of the time periods assigned to
time shares by letter, name, number, or any combination of
letters, names, or numbers.
(4) Provisions for assessment of the expenses of the time share
project or camping club project and an allocation of those
expenses among the time share participants or camping club
members.
(5) Provisions for maintenance of the time share units or
camping sites.
(6) Provisions for management of the time share project or
camping club project.
(7) A description of the rights of the time share participant or
camping club member relating to the occupancy of the time
share unit or camping site.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-7
Cancellation of purchase
Sec. 7. (a) A purchaser has the right to cancel a camping club
membership or time share purchase within seventy-two (72) hours
after the execution of the sales contract, excluding Sundays and legal
holidays as set forth in IC 1-1-9-1. The right of cancellation shall be
set forth conspicuously in boldface type on the first page of any time
share instrument or camping club membership agreement and
immediately above the signature of the purchaser on any sales
contract. In each case, the cancellation clause must include an
explanation of the conditions and manner of exercise of the
cancellation right. The right of cancellation may not be waivable by
any purchaser. The developer shall furnish to each purchaser a form,
as prescribed by the agency, for the exercise of the right.
(b) To cancel a camping club membership or time share purchase,
a consumer must give notice of cancellation by mail or telegraphic
communication or as otherwise allowed by this subsection. The
notice is effective on the date postmarked or when transmitted from
the place of origin. Any written notice of cancellation delivered other
than by mail or telegraph is effective at the time of delivery at the
place of business of the developer or escrow agent designated in the
form of notice of cancellation.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-8
Attorney general requirements
Sec. 8. The attorney general may require:
(1) that a developer file a performance bond with the division;
or
(2) that all or part of the money collected from the consumer as
part of a purchase of a time share instrument or camping club
membership, including closing costs and exchange company
membership fees, be placed and held in escrow until the
particular time share unit or camping site to which the time
share or camping club membership relates is substantially
completed and ready for occupancy.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-9
Unavailability; remedy
Sec. 9. If a time share unit or camping site is not available for a
period to which the owner is entitled by schedule or by confirmed
reservation and the developer is responsible for the unavailability of
the unit or site, the participant is entitled at the participant's election
to be provided:
(1) a comparable unit or site for the period; or
(2) monetary compensation for the loss of use of the time share
unit or camping site.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-10
Leasehold interest
Sec. 10. (a) If the interest of the developer in a project is a
leasehold interest, the lease, unless otherwise determined by the
division, must provide that:
(1) the lessee must give the association notice of termination of
the lease for any default by the lessor; and
(2) the lessor, upon the bankruptcy of the lessee, shall enter into
a new lease with the association upon the same terms and
conditions as were contained in the lease with the developer.
(b) The division may require the developer to execute a bond or
other type of security for the payment of the lease obligation.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-11
Action for partition; judicial sale
Sec. 11. An action for partition of a time share unit or camping site
may not be maintained except as provided in the time share
instrument. If a time share or camping site is owned by two (2) or
more persons, an action may be brought for the judicial sale of the
time share or camping site. A provision in a time share instrument for
the waiver or subordination of the right of partition or any other right
characteristic of a tenancy in common is valid.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-12
Required disclosures
Sec. 12. (a) A developer, or exchange company if the exchange
company is dealing directly with the participants or camping club
members, that offers a program for the exchange of occupancy rights
among time share participants or camping club members or with the
purchasers or members in other time share or camping club projects,
or both, shall give in writing to the camping club members or time
share participants the following information:
(1) The name and address of the exchange company offering the
exchange program.
(2) A statement indicating whether the exchange company or
any of its officers or directors has any legal or beneficial interest
in any interest of the developer or managing agent in any plan
to sell time shares or camping club memberships included in the
program and, if so, the name, location, and nature of the interest.
(3) A statement that the time share participant's or camping club
member's contract with the exchange company is a contract
separate and distinct from the contract to purchase the time
share or camping club membership, unless the exchange
company and the developer or an affiliate of the developer are
the same.
(4) A statement indicating whether the participant's or member's
participation in the exchange project is dependent upon the
continued inclusion of the plan to sell time shares or camping
club memberships in the program.
(5) A statement indicating whether the purchaser's or member's
membership or participation in the exchange program is
voluntary or mandatory.
(6) A complete and accurate description of the following:
(A) The terms and conditions of the purchaser's contractual
relationship with the company and the procedure by which
changes in the contractual relationship and may be made.
(B) The procedure to qualify for and make exchanges.
(C) All limitations, restrictions, and priorities of the program,
including limitations on exchanges based on the seasons of
the year, the size of units, or levels of occupancy. The
written description of the limitations, restrictions, and
priorities given under this clause must be printed in boldface
type and, if the limitations, restrictions, and priorities are not
uniformly applied by the program, must include a clear
description of the manner in which they are applied.
(7) A statement, which must be printed on all promotional
brochures, pamphlets, advertisements, and other materials
disseminated by the exchange company that indicate the
percentage of confirmed exchanges, to the effect that:
(A) the percentage of confirmed exchanges is a summary of
the requests for exchanges received by the exchange
company in the most recent annual reporting period; and
(B) the percentage does not indicate the probability of a
purchaser or members being confirmed to any specific
choice since availability at individual locations may vary.
(8) A statement indicating whether exchanges are arranged on
the basis of available space and whether there are any
guarantees of fulfilling specific requests for exchanges.
(9) A statement indicating whether and under what
circumstances a participant or member, in dealing with the
exchange company, may lose the right to use and occupy a time
share unit or camping site in any properly applied for exchange
without being provided with substitute accommodations by the
company.
(10) A statement of the fees to be paid by participants or
members in the program, including a statement indicating
whether any fees may be changed by the exchange company,
and if so, the circumstances under which those changes may be
made.
(11) The name and address of the site of each time share or
camping club project included in the program.
(b) The information required by subsection (a) must be delivered
to the camping club member or time share participant before the
execution of:
(1) any contract between the camping club member or time
share participant and the exchange company; or
(2) the contract to purchase the time share or camping club
membership.
(c) Upon receipt of the information required by subsection (a), the
camping club member or time share participant shall certify in
writing that the member or participant has received the information
from the developer.
(d) Except as otherwise provided in this section, the information
required by subsection (a) must be accurate as of thirty (30) days
before the date on which the information is delivered to the
participant or member.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-13
Investigation and prosecution of complaints
Sec. 13. (a) The division may receive, investigate, and prosecute
complaints concerning persons subject to this chapter.
(b) The director may subpoena witnesses and send for and compel
the production of books, records, papers, and documents of time
share or camping club developers who are subject to registration
under this chapter for the furtherance of any investigation under this
chapter. The circuit or superior court located in the county where the
subpoena is to be issued shall enforce any subpoena by the attorney
general. In addition, the attorney general may issue a civil
investigative demand as provided by IC 4-6-3.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-14
Penalties and remedies
Sec. 14. A person who violates this chapter commits a deceptive
act and is subject to the penalties and remedies provided in
IC 24-5-0.5. Any action by the attorney general for violations of this
chapter may be brought in the circuit or superior court of Marion
County.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-15
Assurance of voluntary compliance
Sec. 15. In the administration of this chapter, the attorney general
may execute an assurance of voluntary compliance with a time share
developer in existence on September 1, 1985, in the same manner as
provided in IC 24-5-0.5-7(a), except that no filing with the court is
required in order for the assurance to be effective under this chapter.
As added by P.L.2-2002, SEC.17.
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