33-2211

33-2211. Trustee's sale of timeshare estates;
notice; cure; notice to prevent sale; definitions

A. The association or other managing entity may cause a trustee's sale of the
timeshare estate, of an owner who is delinquent in the payment of assessments for that
timeshare estate to that association or managing entity, under a timeshare instrument
pursuant to this section, but only if that owner has been delinquent in the payment of
assessments for that timeshare estate for a period of one year.

B. An association or other managing entity that desires to use a trustee's sale
shall prepare, execute and acknowledge a notice of delinquency identifying the owner of
the timeshare estate, the nature and amount of the owner's current delinquency in payment
of assessments, the legal description of the owner's timeshare estate, the name and
address of the association or other managing entity and the name and address of the
trustee designated by the association or managing entity to conduct the trustee's sale.

C. A notice of delinquency may apply to multiple timeshare estates owned by an
owner if the owner is delinquent in payment of assessments for all of the timeshare
estates included in the notice of delinquency and the notice of delinquency states
separately the delinquent assessments for each timeshare estate. A notice of delinquency
may apply to multiple delinquent owners if each owner's delinquency or delinquencies are
listed separately and the notice includes the information required by subsection b of
this section for each owner.

D. The association or managing entity shall record the notice of delinquency with
the county recorder of the county in which the timeshare property relating to the
timeshare estate or estates is located and shall mail by certified mail, return
receipt requested, a copy of the notice of delinquency to the owner or owners listed in
the notice at the last address for each delinquent owner according to the records of the
association or managing entity. The association or other managing entity shall post a
summary of the notice of delinquency on an owners' bulletin board or other owner notice
board provided by the association or other managing entity at the timeshare property,
subject to other applicable law.

E. A trustee appointed in a notice of delinquency and any properly appointed
substitute trustee may conduct a trustee's sale of a timeshare estate under this section.
The recording of a notice of delinquency shall satisfy all requirements for the trustee,
or any properly appointed substitute trustee, to appear in the chain of title for the
timeshare estate in order for the trustee to be entitled to issue a trustee's deed on
completion of a trustee's sale for the timeshare estate.

F. If the delinquencies identified in a notice of delinquency are not cured within
thirty days after the association or managing entity mails the notice of delinquency to
the delinquent owner under subsection d of this section, the association or managing
entity may cause the trustee to conduct a trustee's sale of the delinquent owner's
timeshare estate pursuant to sections 33-803.01, 33-804, 33-807, 33-808, 33-809, 33-810,
33-811, 33-812, 33-813 and 33-820, except as otherwise provided in this section. For the
purposes of a trustee's sale of a delinquent owner's timeshare estate pursuant to chapter
6.1 of this title:

1. "Contract secured by the trust deed" means a specific owner's obligation to pay
delinquent assessments for a specific timeshare estate.

2. "Deed of trust" means a specific owner's obligation for payment of assessments
under the timeshare instrument and the lien securing payment of that obligation, however
denominated.

3. "Trust property" means the timeshare estate or estates for which a specific
owner is delinquent in the payment of assessments.

4. "Trustee" means a person who is qualified to serve as trustee as prescribed by
section 33-803 and who is appointed as trustee pursuant to this section or any substitute
trustee appointed by the beneficiary in accordance with section 33-804.

G. The posting of the notice of the time and place of sale required by section
33-808, subsection A, paragraph 3 shall occur on an owners' bulletin board or other owner
notice board provided by the association or other managing entity at the timeshare
property, on the association's or other managing entity's website for the timeshare
property, if any, and in the association's or other managing entity's next newsletter, if
any. Any format of notice of trustee's sale may be used if the required information
stated in section 33-808, subsection C is provided. A request for notice under section
33-809 must identify a specific trustor and timeshare estate and the recorded timeshare
instrument, if any. The mailing of the notice of the time and place of sale required by
section 33-809, subsection B, shall include a return receipt requested. A copy of the
notice of delinquency under subsection B of this section constitutes the statement of
breach or nonperformance under section 33-809, subsection C, and the trustor's address
for mailing is the address stated in the notice of delinquency. The bid deposit under
section 33-810, subsection A is one thousand dollars, as a single deposit for all
timeshare estates included in the notice of trustee's sale. Only the beneficiary or its
assignee may make a credit bid in place of cash at the sale. The proceeds of a trustee's
sale shall be applied as provided in section 33-812, including the payment of all
remaining excess proceeds to the trustor under section 33-812, subsection A. The trustor
and junior lienholders may reinstate by paying all amounts due in accordance with section
33-813.

H. The trustee's sale may include multiple timeshare estates owned by an owner if
the owner is delinquent in payment of assessments for all of the timeshare estates
included in the trustee's sale proceeding. The trustee's sale may include timeshare
estates owned by multiple owners if the notice of trustee's sale provides all information
required by section 33-808, subsection D for each owner and timeshare estate and each
timeshare estate is sold separately.

I. If fee title to a timeshare estate was acquired by an owner before January 1,
2009, the trustee shall proceed as follows and the owner may prevent a trustee's sale as
to that timeshare estate as follows:

1. The notice of delinquency for any timeshare estate acquired by the owner before
January 1, 2009 shall include a statement informing the owner of the owner's right to
prevent a trustee's sale as to that timeshare estate by returning the form that is
described in paragraph 2 of this subsection and that is signed by the owner, by certified
mail, return receipt requested, to the trustee and to the association or other managing
entity at the addresses stated in the notice of delinquency within thirty days after the
association or other managing entity sends the notice of delinquency to the owner.

2. The notice of delinquency shall be accompanied by a form of notice in
substantially the following form:

Notice of Election to Prevent

Trustee's Sale

The undersigned, (name(s)) , is (are) the owner(s) of
timeshare estate nos. _________ at (timeshare plan name) . The
undersigned has received a notice of delinquency dated _______________, ____
from (association or other managing entity) . The undersigned hereby
exercises the undersigned's right to prevent a trustee sale of the timeshare
estate(s) that was (were) acquired by me (us) before January 1, 2009,
pursuant to Arizona Revised Statutes section 33-2211, subsection I.

 Dated:  __________________________
 __________________________
 Owner's signature(s) 
 

3. If an owner returns the signed form described in paragraph 2 of this subsection
to the trustee and the association or other managing entity as required by paragraph 1 of
this subsection, the association or other managing entity and the trustee shall desist
from any trustee's sale proceedings with respect to the timeshare estate that was
acquired by the owner before January 1, 2009 and described in the notice, but the
association or managing entity may continue to use other available remedies to collect
delinquent assessments for the timeshare estate. If the owner does not timely return the
signed form as prescribed by this subsection, the owner waives any rights under this
subsection.

J. The remedy provided by this section does not exclude the use of any other
available remedy of the association or managing entity for delinquency by a timeshare
estate owner, unless an owner's timeshare estate is sold pursuant to a trustee's power of
sale, in which case an action may not be maintained to recover any difference between the
amount obtained by sale and the amount of the indebtedness and any interest, costs and
expenses in connection with that timeshare estate. This section does not prohibit an
association or other managing entity from taking a deed in lieu of foreclosure executed
by an owner of a timeshare estate.

K. This section shall not apply to any timeshare property for which the timeshare
instrument expressly mandates that judicial foreclosure is the sole method for the
association or other managing entity to foreclose or realize upon a lien securing payment
of assessments due to that association or other managing entity.

L. For the purposes of this section:

1. "Beneficiary" means the association or other managing entity entitled to collect
assessments.

2. "Trustor" means a specific owner who is delinquent in payment of assessments for
a timeshare estate or estates.