P.R. Laws tit. 31, § 1258
If a prospective purchaser is offered the opportunity to become a member of an exchange program, the seller shall deliver to such prospective purchaser, together with the public offering statement and any other materials required to be furnished hereunder and prior to the offering or execution of any contract between the prospective purchaser and the exchange company offering membership in the exchange program, or, if the exchange company is dealing directly with the prospective purchaser, the seller or the exchange company (as appropriate) shall deliver to the prospective purchaser, prior to the initial offering or execution of any contract between the prospective purchaser and the exchange company, the following written information regarding such exchange program:
(1) The name and address of the exchange company.
(2) The names of all officers, directors, and shareholders owning five percent (5%) or more of the outstanding stock of the exchange company.
(3) Whether the exchange company or any of its officers or directors have any legal or beneficial participation in any developer, seller, or managing entity for any timeshare plan or vacation club participating in the exchange program and, if so, the name and location of the timeshare plan or vacation club and the nature of the participation.
(4) Unless otherwise stated, a statement that the purchaser’s contract with the exchange company is a contract separate and distinct from the purchaser’s contract with the seller of timeshares or vacation club rights.
(5) Whether the purchaser’s participation in the exchange program is dependent upon the continued affiliation of the applicable timeshare plan or vacation club with the exchange program.
(6) A statement that the purchaser’s participation in the exchange program is voluntary.
(7) A complete and accurate description of the terms and conditions of the purchaser’s contractual relationship with the exchange program and the procedure by which changes thereto may be made.
(8) A complete and accurate description of the procedures necessary to qualify for and effectuate exchanges.
(9) A complete and accurate description of all limitations, restrictions, and priorities employed in the operation of the exchange program, including but not limited to limitations on exchanges based on seasonality, accommodation size, or levels of occupancy, expressed in conspicuous type, and, in the event that such limitations, restrictions, or priorities are not uniformly applied by the exchange program, a clear description of the manner in which they are applied.
(10) Whether exchanges are arranged on a space-available basis and whether any guarantees of fulfillment of specific requests for exchanges are made by the exchange program.
(11) Whether and under what circumstances an owner, in dealing with the exchange program, may lose the right to use and occupy an accommodation of the timeshare plan or vacation club during a reserved use period in any properly applied for exchange without his being provided with substitute accommodations by the exchange program.
(12) The fees or range of fees for participation by owners in the exchange program, a statement of whether any such fees may be altered by the exchange company, and the circumstances under which alterations may be made.
(13) The name and address of the site of each accommodation or facility included within a timeshare plan or vacation club participating in the exchange program.
(14) The number of accommodations in each timeshare plan which are available for occupancy and which qualify for participation in the exchange program, expressed within the following numerical groups: 1—5; 6—10; 11—20; 21—50; and 51 and over.
(15) The number of currently enrolled owners for each timeshare plan and vacation club participating in the exchange program, expressed within the following numerical groups: 1—100; 101—249; 250—499; 500—999; and 1,000 and over; and a statement of the criteria used to determine those owners who are currently enrolled with the exchange program.
(16) The disposition made by the exchange company of timeshare periods deposited with the exchange program by owners enrolled in the exchange program and not used by the exchange company in effecting exchanges.
(17) The following information as of the end of the immediately preceding calendar or fiscal year, as applicable, which shall be independently audited by a certified public accountant in accordance with the standards of the Accounting Standards Board of the American Institute of Certified Public Accountants and reported annually no later than one hundred eighty-three (183) days after the conclusion of the calendar or fiscal year:
(a) The number of owners currently enrolled in the exchange program.
(b) The number of accommodations and facilities that have current 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 timeshare periods for which the exchange program has an outstanding obligation to provide an exchange to an owner who relinquished a timeshare period during the year in exchange for a timeshare period in any future year.
(e) The number of exchanges confirmed by the exchange program during the year.
(18) A statement in conspicuous type to the effect that the percentage described in subsection (17)(c) 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 an owner’s being confirmed to any specific choice or range of choices.
History —Dec. 26, 1995, No. 252, § 8-101.