[§514E-9.5]  Exchange program; general
provisions.  (a)  An exchange agent (including the developer if it is also
an exchange agent) shall distribute not less than annually to each purchaser of
a time share interest participating in the exchange program materials
containing written information which shall include the following:



(1)  The manner in which the program is operated, the
identity of the persons operating the program, and the affiliation between the
persons operating the program and the developer;



(2)  Whether membership, participation, or both, in
the program are voluntary or mandatory;



(3)  The costs or ranges of costs of membership and
participation in the program as of a specified date, not more than one year
before the disclosure statement is delivered to the purchaser, and the person
to whom those costs are payable;



(4)  Whether and how any of the costs specified in
paragraph (3) may be altered, which costs are to be fixed on a case-by-case
basis, and the manner in which they are to be fixed in each case;



(5)  A description of the availability of time share
units represented to be participating in the exchange program;



(6)  The reservation and confirmation or other
procedures to effectuate the exchange of occupancy rights; and



(7)  Other disclosures required by the director as
provided by rules adopted pursuant to chapter 91.



(b)  A copy of the most current written
materials supplied by the exchange agent pursuant to subsection (a) of this
section shall be delivered to each purchaser simultaneously with the delivery
of the disclosure statement.



(c)  If the exchange agent is not the
developer, a subsidiary of the developer, controlled by the developer, or
affiliated with the developer, then:



(1)  The developer shall have no liability for the
publication or distribution by the developer of the most current written
materials supplied to the developer by the exchange agent pursuant to this
section or the rules adopted by the director; and



(2)  The exchange agent shall have no liability with
respect to any violation of this chapter or the rules adopted by the director
arising out of the use by a developer of information relating to an exchange
program other than that provided to the developer by the exchange agent. [L
1981, c 81, pt of §1]