Section 110-RICR-40-00-4.4 - Administration and Registration4.4.1 Registration RequiredRegistration of the following information is required under these regulations. This requirement is necessary to ensure the ability to enforce and effectively carry out the consumer protection measures these regulations are intended to implement. A developer may not offer or transfer a time share unless the time share is registered with the Department of Business Regulations (hereinafter "the Agency"), but an offering by a developer of time shares in no more than one time-share unit at any one time is exempted from the requirement of the regulations.
4.4.2 Application for Registration: Approval of Uncompleted UnitsA. For the purposes of this section, "substantially completed" means that all structural components and mechanical systems of all buildings constituting or containing any time share units or portions thereof are finished in accordance with the plans, as evidenced by a recorded certification of completion executed by an independent registered engineer, surveyor, or architect.B. An application for registration must contain the required information and be accompanied by any reasonable fees required by the agency. A developer shall promptly file amendments to report any actual or expected material change in any document or information contained in his application.C. If a developer files with the agency the time share instrument or proposed time share instrument, or an amendment or proposed amendment to the time share instrument, describing time share units consisting in whole or in part of buildings or portions of buildings that have not been substantially completed, the developer shall also file with the agency: 1. a verified statement showing all costs involved in completing the time share property;2. a verified estimate of the time of completion of construction of the time share property;3. satisfactory evidence that he has sufficient funds to cover all costs to complete the time share property;4. a copy of the executed construction contract and any other contracts for the completion of the time share property;5. a one hundred percent (100%) payment and performance bond covering the entire cost of construction of the time share property;6. if purchasers' funds are to be utilized for the construction of the time share property, an executed copy of the escrow agreement with an escrow company or financial institution authorized to do business within the state which provides: a. that disbursements of purchasers' funds may be made from time to time to pay for construction of the time share property, architectural, engineering, finance, and legal fees, and other costs for the completion of the time share property in proportion to the value of the work completed by the contractor as certified by an independent registered architect or engineer, on bills submitted and approved by the lender of construction funds or the escrow agent;b. that disbursement of the balance of purchasers' funds remaining after completion of the time share property may be made only after the escrow agent or lender receives satisfactory evidence that the period for filing mechanics'' and materialmen's lien has expired, the right to claim those liens has been waived, or adequate provision has been made for satisfaction of any claimed mechanics' or materialmen's lien; and7. any other materials or information the agency may reasonably require.4.4.3 Receipt of Application; Order of RegistrationThe agency shall acknowledge receipt of an application for registration within five (5) business days after receiving it. The registration shall be made available to the general public for inspection thereafter.
4.4.4 Annual Report and AmendmentsA. A developer within thirty (30) days after the anniversary date of the order of registration, annually shall file a report to bring up to date the material contained in the application for registration and the public offering statement. This provision does not relieve the developer of the obligation to file amendments pursuant to §4.4.4(B) of this Part.B. A developer promptly shall file amendments to the public offering statement with the agency.C. If an annual report reveals that a developer owns or controls time shares representing less than twenty-five percent (25%) of the time shares in the time share units and that a developer has no power to increase the number of time shares in the units, the agency shall issue an order relieving the developer of any further obligation to file annual reports.4.4.5 Agency Regulation of Public Offering StatementA. Both the agency and the Department of Attorney General at any time may require a developer to alter or supplement the form or substance of a public offering statement to assure adequate and accurate disclosure to prospective purchasers.B. The public offering statement may not be used for any promotional purpose before registration and afterwards only if it is used in its entirety. No person may advertise or represent that the agency has approved or recommended the time shares, the disclosure statement, or any of the documents contained in the application for registration.C. In the case of any time share property situated wholly outside of this State, no application for registration or proposed public offering statement filed with the agency which has been approved by an agency of the state in which the time share property is located and substantially complies with the requirements of this act may be rejected by the agency on the grounds of noncompliance with any different or additional requirements imposed by this Act or by the agency. However, the agency may require additional documents or information in particular cases to assure adequate and accurate disclosure to prospective purchasers.110 R.I. Code R. 110-RICR-40-00-4.4