Plans subject to this Part shall comply with the format and minimal disclosure requirements set forth in subdivisions (a) through (z) of this section, in addition to the requirements of the provisions of article 23-A of the General Business Law.
The outside front cover of the offering plan shall contain the following information in the following order:
If the law of the jurisdiction in which the timeshare property is located requires a rescission period of longer than seven business days from the date of execution of the contract, substitute the appropriate time period in the above legend.
The format and order set forth below must be followed in the table of contents. Include headings for the subjects not marked with an asterisk. In addition, a limited number of headings or subheadings may be added to the plan. Headings for subjects that are marked with an asterisk may be omitted if the subject matter is not applicable to the offering. Omissions, other than headings marked with an asterisk in the table of contents, and additions should be expressly noted and explained in the transmittal letter. Alternative wording for headings to meet particular facts are set forth in parentheses.
Table of Contents
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Part I
Page
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RIGHT OF CANCELLATION
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SPECIAL RISK FACTORS
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INTRODUCTION
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DEFINITIONS
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DESCRIPTION OF PROPERTY AND IMPROVEMENTS
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LOCATION AND AREA INFORMATION
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SCHEDULE A - PRICES OF INTERVALS
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SCHEDULE B - PROJECTED BUDGET FOR TIMESHARING PLAN
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* SCHEDULE C - PROJECTED BUDGET FOR HOMEOWNERS ASSOCIATION
CHANGES IN PRICES OR UNITS
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* ACCOUNTANT'S CERTIFIED STATEMENTS OF OPERATION
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PROCEDURE TO PURCHASE
___________________________________________________
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* FINANCING OFFERED (ARRANGED) BY SPONSOR
STATE OF TITLE
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* CLOSING OF TITLE
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* CLOSING COSTS
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RIGHTS AND OBLIGATIONS OF SPONSOR
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RIGHTS AND OBLIGATIONS OF TIMESHARE OWNERS
___________________________________________________
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* RIGHTS AND OBLIGATIONS OF BOARD OF MANAGERS
(BOARD OF DIRECTORS)
___________________________________________________
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RESORT EXCHANGE PROGRAM
___________________________________________________
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MANAGEMENT
___________________________________________________
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RESERVATION AND CHECK-IN/CHECK-OUT PROCEDURES
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IDENTITY OF PARTIES
___________________________________________________
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DOCUMENTS ON FILE
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GENERAL
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Part II
DESCRIPTION OF PROPERTY (AND SPECIFICATIONS)
(AND BUILDING CONDITION)
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LOCATION/AREA MAP
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SITE MAP
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* FLOOR PLANS
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PURCHASE (SUBSCRIPTION) AGREEMENT
___________________________________________________
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* POWER OF ATTORNEY
___________________________________________________
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* FORM OF DEED
___________________________________________________
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* FORM OF SECURITY INSTRUMENT, NOTE AND RELATED
FINANCING DOCUMENTS
___________________________________________________
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* DECLARATION OF CONDOMINIUM
___________________________________________________
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* DECLARATION OF COVENANTS AND RESTRICTIONS
___________________________________________________
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* BYLAWS
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* PROPRIETARY LEASE
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HOUSE RULES
___________________________________________________
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* FACILITIES USE AGREEMENT
___________________________________________________
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* TITLE TRUST AGREEMENT
___________________________________________________
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TAX OPINION
___________________________________________________
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FINANCIAL STATEMENTS OF SPONSOR
___________________________________________________
___________________________________________________
LIST OF PERSONAL PROPERTY INCLUDED IN UNITS
___________________________________________________
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* FIVE-YEAR CALENDAR OF INTERVALS
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CERTIFICATIONS
___________________________________________________
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SPONSOR AND PRINCIPALS
___________________________________________________
___________________________________________________
SPONSOR'S ENGINEER (OR ARCHITECT)
___________________________________________________
___________________________________________________
SPONSOR'S EXPERT CONCERNING ADEQUACY OF BUDGET
___________________________________________________
___________________________________________________
This section must be on a separate right-hand page immediately following the table of contents and must provide, at a minimum, that:
If the law of the jurisdiction in which the property subject to the timesharing plan is located requires a rescission period of more than seven business days from the date of execution of the contract, substitute the appropriate time period in this section of the offering plan.
This section must begin on a separate right-hand page immediately following the section on purchaser's right of cancellation. All features of a plan which involve significant risk or will disproportionately or unusually affect maintenance charges or obligations of timeshare owners in future years of timeshare operation must be conspicuously disclosed and highlighted in consecutively numbered paragraphs in order of decreasing significance. A brief description given in this section and a more thorough description should be given in a referenced later section. Questions highlighted in this section should be resolved in favor of inclusion. To the extent applicable, this section should include the following special risk factors in the following order:
The introduction must:
THE PURCHASE OF A TIMESHARE HAS MANY SIGNIFICANT LEGAL AND FINANCIAL CONSEQUENCES. THE ATTORNEY GENERAL STRONGLY URGES YOU TO READ THIS OFFERING PLAN CAREFULLY BEFORE THE EXPIRATION OF THE SEVEN (7) BUSINESS-DAY CANCELLATION PERIOD (SEE PAGE 1).
If the law of the jurisdiction in which the property subject to the timesharing plan is located requires a rescission period of more than seven business days from the date of execution of the contract, substitute the appropriate time period in the legend above.
Important terms, terms that are not likely to be understood by the general public and terms that have a special meaning or are used as proper nouns should be defined and explained. Such terms include, but are not limited to, the following: timeshare interval, exchange network, condominium, association, cooperative corporation, common elements, limited common elements, maintenance charges, declaration, board of directors, board of managers, bylaws, common expenses, offering plan, unit.
This section should:
The offering plan must include a current or projected budget for timesharing operation in schedule B.
SCHEDULE B
Budget for Timeshare Operation
__, 20 to _ __, 20
Income
Maintenance Charges_ $__ _____________________________________________________
* Sponsor guaranty_ $__ _____________________________________________________
* Other (explain)_ $__ _____________________________________________________
_________________________________________________
TOTAL $__
Expenses
Labor_ $__ _____________________________________________________
Heating_ $__ _____________________________________________________
Utilities (electricity and gas)_ $__ _____________________________________________________
Water charges and sewer rents_ $__ _____________________________________________________
Repairs, maintenance and supplies_ $__ _____________________________________________________
* Service contracts_ $__ _____________________________________________________
Insurance_ $__ _____________________________________________________
Management fees_ $__ _____________________________________________________
Legal fees and audit fees_ $__ _____________________________________________________
Franchise and corporate taxes_ $__ _____________________________________________________
Real estate taxes_ $__ _____________________________________________________
Replacement reserve_ $__ _____________________________________________________
* Association fees_ $__ _____________________________________________________
Other_ $__ ________________________________________
* Contingency_ $__ __________________________________
_________________________________________________
TOTAL
$__
If the timesharing plan is in operation at the time the proposed offering plan is submitted to the Department of Law, include certified statements of income and expenses for the two most recent fiscal years of operation, prepared by an independent certified public accountant. If the timesharing plan has been in operation for less than two years, include a statement for the period since operations began.
Describe the essential terms of the purchase or subscription agreement, which must comply with this Part.
The sponsor shall comply with the escrow and trust fund requirements of GBL sections 352-e(2-b) and 352-h and these regulations, and all funds paid by purchasers shall be handled in accordance with these statutes and regulations.
The following requirements shall apply to all offerings and shall be fully disclosed in all offering plans subject to this Part:
A sponsor may apply to the Attorney General to use security in the form of surety bonds or a letter of credit in lieu of escrow of such funds for use in newly constructed or gut rehabilitated developments upon showing of adequate insurance of such funds to the satisfaction of the Attorney General.
A sponsor whose application to use alternate security is approved by the Attorney General, may meet its obligation to insure the availability of such funds to purchasers or subscribers by effectuating the issuance of surety bonds to such purchasers or subscribers by a licensed insurance company which agrees to act as surety for the amount of such down payments or deposits.
A sponsor whose application to use alternate security is approved by the Attorney General, may meet its obligation to insure the availability of such funds to purchasers or subscribers by effectuating the issuance of a letter of credit for the benefit of the purchasers or subscribers by an issuer qualifying hereunder.
Where alternate security as provided under a filed offering plan is no longer needed by the sponsor, or new or additional alternate security cannot be obtained by a sponsor or its successor, sponsor shall submit an amendment for filing which provides that any future purchase or subscription down payments or deposits shall be held in any escrow account in accordance with paragraph (3) of this subdivision. Such amendment shall not affect the sponsor's obligation to account for funds previously released to the sponsor unless the funds representing all such down payments or deposits are restored to any escrow account.
Disclose the terms of any commitment by the sponsor or a lender procured by the sponsor to finance the purchase of timeshares. The following information should be included in this discussion:
State the maximum amount (which may be expressed as a percentage of the purchase price) available for a timeshare and the minimum term of the loan. If the financing offered is not self-liquidating over the term, state how the amount of the balance or "balloon" due on maturity will be calculated and explain the risk that refinancing may not be available on the same or better terms. If the sponsor is providing the financing, state whether the sponsor will refinance or extend the loan at maturity. State the maximum amount of financing available to purchasers generally through a bulk commitment.
Sponsor must discuss whether financing is available to all purchasers. If not, discuss the method of allocation of such financing.
State the annual percentage rate over the term of the loan. If the loan has a variable or adjustable rate, indicate the initial interest rate or (if not a fixed rate) explain how it will be established, the method of calculating adjustments, any limits on increases or decreases, when adjustments may be made, and the impact that adjustments will have on debt service payments and the principal balance. If the sponsor procures financing at an interest rate that is below the prevailing rate offered by the lender, disclose the prevailing interest rate and the interest rate offered to purchasers. If the loan is not self-liquidating, also disclose any limitation on the ability of the purchasers to refinance on the same or better terms.
State when payments are due, and how payments are applied to interest and principal. For variable rate or adjustable rate loans, disclose how initial payments are allocated to interest and principal, disclose the impact that interest rate changes will have on the allocation of payments to interest and principal and on itemized deductions available to timeshare owners.
State whether and when the unpaid principal balance may be prepaid in whole or in part, the number of days of prior notice that must be given, and any charges for prepayment. Disclose any restrictions on the ability of a purchaser to prepay the entire unpaid principal at any time.
State when the financing commitment expires.
Describe the amount of late charges and how they are assessed.
Disclose the amount of additional costs or charges to purchasers in connection with such financing, including, for example, points, origination fees, lender's or any other legal fees, processing fees, application fees, insurance and appraisal fees.
Describe major restrictions on a timeshare owner's right to alter, improve, sell, sublease, purchase, own, occupy, finance or otherwise acquire, use or dispose of a unit.
Describe the material events of default entitling the lender to accelerate the principal indebtedness, and describe grace periods granted to purchasers.
Describe what closing means, when closing can take place and what prior notice is required. In a fee or cooperative timesharing plan, state what type of deed the sponsor will deliver. State that the sponsor is responsible for the proper recordation of all deeds, leases, easements, mortgages or other instruments of land conveyance.
Describe fully all estimated costs, fees and charges to be paid or apportioned in connection with acquiring a timeshare, and specify whether they will be paid by purchaser or sponsor. Include fee and mortgage title insurance charges, State and local transfer taxes, mortgage recording taxes, recording fees for the deed and any mortgage, power of attorney and any other documents, apportionment of taxes, water and sewer charges, and all other costs or adjustments. For all items to be apportioned, set forth the basis for apportionment.
Describe the rights and obligations of the sponsor under the offering plan and applicable law, including (but not necessarily limited to) the following:
Describe the rights and obligations of timeshare owners, including (but not necessarily limited to) the following:
Describe how the affairs of a fee or cooperative timesharing plan will be governed, and summarize the important provisions of the declaration of condominium, declaration of covenants and restrictions, certificate of incorporation and bylaws. Include a discussion of the following topics:
State that copies of the declaration of condominium, declaration of covenants and restrictions, and bylaws are included in part II of the offering plan.
Summarize the important terms of any management agreement, including (but not necessarily limited to) the following:
State that the sponsor shall keep copies of the plan, all documents referred to in the plan, and all exhibits submitted to the Department of Law in connection with the filing of the plan, on file and available for inspection without charge, and copying at a reasonable charge, at a specified location for six years from the date of closing.
Describe any other material facts concerning the sponsor, the selling agent, the managing agent, any of their principals, the property, the offering, and prospective purchasers' rights and obligations, including the following:
N.Y. Comp. Codes R. & Regs. Tit. 13 § 24.3