N.Y. Comp. Codes R. & Regs. tit. 13 § 24.5

Current through Register Vol. 46, No. 43, October 23, 2024

Section 24.5 - Amendments

(a)General.

Documents to supplement or amend an offering plan (collectively, "amendment[s]") shall be deemed part of the offering plan and shall meet the following requirements:

(1) If the offering plan does not comply with General Business Law, section 352-e(1)(b) or section 24.1(b) of this Part, due to change of circumstances, the passage of time or any other reason, the offering plan must be amended promptly.

(2) An amendment must include a representation that all material changes of facts or circumstances affecting the property or the offering are included, unless the changes were described in prior amendment(s) submitted to but not yet filed with the Department of Law.

(3) Except as provided in subdivision (d) of this section, an amendment to an offering plan shall be filed on the date indicated in the letter issued by the Department of Law stating that the amendment has been filed, and not sooner.

(4) Amendments that have been filed with the Department of Law must be attached to the inside front cover of the offering plan before the amended plan is distributed to the public. The cover of the offering plan must be stamped: "This plan has been amended. See inside cover." Any revisions, additions or deletions of specific language in the offering plan should reprint a sufficient portion of the paragraph from the offering plan as revised so that the revised portion of the offering plan may be understood easily. An offering plan may be rewritten to incorporate the amendments into the body of the plan, and must be rewritten, if required by the Department of Law.

(5) If there is a substantial amendment to the offering plan that adversely affects purchasers under contract, the sponsor must grant timeshare purchasers a right of rescission and a reasonable period of time that is not less than 15 days after notice to exercise the right. Sponsor must promptly return any money paid by a purchaser who rescinds.

(b)Procedure for submission of amendments.

Amendments must be mailed to or submitted during business hours to the New York State Department of Law, Real Estate Finance Bureau, 28 Liberty Street, New York, NY 10005. Include the following when submitting an amendment:

(1) a transmittal letter, signed by the attorney who prepared the amendment, that:

(i) states the date the offering plan was filed, and the Department of Law file number;

(ii) identifies the subject amendment in numerical order;

(iii) states whether prior amendments had been submitted to but not yet filed with the Department of Law;

(iv) identifies, if possible, the attorney in the Department of Law who reviewed the most recent submission; and

(v) gives the current status of the offering plan, and states if there are any outstanding rescission periods;

(vi) notes if there is currently an investigation pending by the Department of Law of the sponsor, a principal of sponsor, or the proposed timeshare; and

(vii) states the date on which sponsor submitted a digital copy of the offering plan and all previously filed amendments to the Department of Law or whether this is the first time sponsor is submitting a digital copy of the offering plan and previously filed amendments, if any;

(2) one paper copy of the typed or printed amendment to the offering plan and one digital copy of the amendment to the offering plan;

(3) check(s) (certified or uncertified) for filing fee(s) under General Business Law, section 352-e(7), payable to New York State Department of Law, stapled or clipped to the transmittal letter;

(4) one digital copy of the offering plan, including all previously filed amendments, if not already submitted to the Department of Law;

(5) one form RS-2, signed by the sponsor; and

(6) evidence of approval for filing in the situs state, if a five business day review is requested pursuant to section 24.1(d) of this Part.

(c)Amendments extending term of offering plan.

Pursuant to section 24.3(a)(5) of this Part, the term of the initial offer is 12 months, commencing on the date indicated in the letter issued by the Department of Law stating that the plan is filed. Any amendment extends the term of the offering for an additional six-month term from the date of filing of the amendment. In the absence of any amendments, an extension of the term must be made by amendment before the end of the then current term, and must comply with the provisions of this section.

(1) The amendment must disclose all material changes, such as an increase in maintenance charges or a material increase in an expense item.

(2) The amendment must state the number of unsold timeshares remaining and the status of construction of the units and other facilities.

(d)Price change amendments.

Any amendment proposing to change any offering price is subject to the requirements set forth below and must be consistent with section 24.3(k) of this Part.

(1) Notwithstanding paragraph (a)(3) of this section, if the amendment is limited solely to price changes and no prior amendment has been submitted to but not yet filed with the Department of Law, the amendment shall be deemed filed when submitted to the Department of Law. This amendment will not extend the term of the offering.

(2) If the amendment contains price changes and supplements, or amends any other part of the offering plan, the amendment shall be filed on the date indicated in the letter issued by the Department of Law stating that the amendment has been filed.

(3) The transmittal letter for a price change amendment must be accompanied by a completed copy of form C-11 as promulgated by the Department of Law.

N.Y. Comp. Codes R. & Regs. Tit. 13 § 24.5

Amended New York State Register December 30, 2015/Volume XXXVII, Issue 52, eff. 2/1/2016

Amended New York State Register July 3, 2018/Volume XL, Issue 27, eff. 7/3/2018