§514E-18  Release of purchaser's funds,
notes, and contracts from escrow upon closing.  (a)  Upon the closing of
the escrow for the sale of a time share interest, the purchaser's funds and any
negotiable instruments and purchase money contracts made by the purchaser shall
be delivered by the escrow agent:



(1)  To the trustee of a lien payment trust if a lien
payment trust is established pursuant to section 514E-19 to protect purchasers
from blanket liens; or



(2)  As provided by any alternative arrangements
accepted by the director pursuant to section 514E-27 where such alternative
arrangements are used pursuant to section 514E-19 to protect purchasers from
blanket liens; or



(3)  To the developer only after the requirements of
any other alternative under section 514E-19 for protecting purchasers from
blanket liens have been satisfied.



(b)  Notwithstanding any other provisions of
this chapter, the escrow agent may not release the purchaser's funds,
negotiable instruments, and purchase money contracts from the escrow account to
or for the benefit of the developer or a sales agent or for construction until:



(1)  The seven-day cancellation period under section
514E-8 expires as to the purchaser whose funds are being released; and



(2)  The escrow agent receives a sworn statement from
the developer that:



(A)  No cancellation notice postmarked on a
date within the seven-day cancellation period was received from the purchaser
whose funds are being released; and



(B)  No cancellation notice was otherwise received
during the seven-day cancellation period from the purchaser whose funds are
being released. [L 1982, c 186, §5; am L 1985, c 114, §6]