§514E-26 - Termination of a trust.
§514E-26 Termination of a trust. (a)
In the case of a time share use plan, the trust for the time share units shall
be irrevocable during the time that any owner of a time share interest has a
right to the occupancy of a time share unit, except as provided in subsection
(c).
(b) In a time share ownership plan, the trust
for a time share unit shall be irrevocable until all blanket liens are
extinguished, except as provided in subsection (c).
(c) The developer may elect to terminate the
use of a trust for a time share unit if, at a later date,
(1) The trustee records a notice of time share plan
after the recording of either:
(A) Nondisturbance agreements executed by
every lienholder who has a blanket lien against the time share unit, or
(B) The director's acceptance of a surety bond
or irrevocable letter of credit for that unit; or
(2) The director approves alternative arrangements
which permit the termination of the trust. [L 1982, c 186, §14]