CHAPTER 3. TIME SHARES AND CAMPING CLUBS
IC 32-32-3
Chapter 3. Time Shares and Camping Clubs
IC 32-32-3-1
Registration with division
Sec. 1. (a) Before a developer may offer to sell any time shares orcamping club memberships in this state, the developer must registerwith the division under this section.
(b) A person who applies for registration under this section shallsubmit an application in the manner provided by the division andshall disclose the following information under oath:
(1) The names and addresses of all officers, project managers,marketing agencies, advertising agencies, and exchangecompanies who are actively involved in soliciting or sellingtime share units or camping club memberships.
(2) The name and address of each person who owns an interestof ten percent (10%) or more in the registrant, except forreporting companies under the Securities Exchange Act of1934.
(3) A copy of the document in which the time share project orcamping club project is created.
(4) A preliminary title report for the time share project orcamping club project and copies of the documents listed asexceptions in the report showing any encumbrances.
(5) Copies of and instructions for escrow agreements, deeds,and sales contracts.
(6) Documents that show the current assessments for propertytaxes on the time share project or camping club project.
(7) A copy of bylaws or similar instrument that creates anycommunity ownership relationship.
(8) Copies of all documents that will be given to a participantwho is interested in participating in a program for the exchangeof occupancy rights among time share participants or campingclub members, and copies of the documents that showacceptance of the time share or camping club membership in theprogram.
(c) A developer who knowingly or intentionally offers to sell anytime shares or camping club memberships in this state beforeregistering with the division under this section commits a Class Dfelony.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-2
Amendment by developer must be filed
Sec. 2. Any amendment by the developer of the provisions of thedocument that created the time share or camping club membership,or of the articles of incorporation, trust, or bylaws, must be filed withthe division.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-3
Registration fee
Sec. 3. (a) A time share or camping site developer who applies forregistration under section 1 of this chapter shall pay a one (1) timeregistration fee of two hundred fifty dollars ($250).
(b) Each July 1 after a developer applies for registration undersection 1 of this chapter, the developer shall file an update to theregistration. The developer shall pay an additional fifty dollars ($50)for each yearly refiling under this subsection.
(c) The fees collected under this section shall be used, in additionto funds appropriated by the general assembly, for the administrationand enforcement of this chapter.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-4
Requirements for membership agreement
Sec. 4. All registration statements and information required to befiled under this chapter with the division are subject to IC 5-14-3.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-5
Requirements of membership agreement
Sec. 5. A time share project and camping club project must becreated by a time share instrument or camping club membershipagreement. The membership agreement must include the followingprovisions:
(1) A legal description of the time share project or camping clubproject that transfers an interest in real property.
(2) The name and location of the time share project or campingclub project.
(3) A system of identification of the time periods assigned totime shares by letter, name, number, or any combination ofletters, names, or numbers.
(4) Provisions for assessment of the expenses of the time shareproject or camping club project and an allocation of thoseexpenses among the time share participants or camping clubmembers.
(5) A procedure to add units to the time share project orcamping club project.
(6) Provisions for maintenance of the time share units or campsites.
(7) Provisions for management of the time share project orcamping club project.
(8) A procedure to amend the time share instrument or thecamping club membership agreement.
(9) A description of the rights of the purchaser relating to theoccupancy of the time share unit or camping site.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-6 Transfer of interest
Sec. 6. A transfer of an interest in a time share unit or campingclub membership shall be by written contract that includes orincorporates by reference the following provisions:
(1) A legal description of the time share unit or camping sitethat transfers an interest in real property.
(2) The name and location of the time share unit or campingsite.
(3) A system of identification of the time periods assigned totime shares by letter, name, number, or any combination ofletters, names, or numbers.
(4) Provisions for assessment of the expenses of the time shareproject or camping club project and an allocation of thoseexpenses among the time share participants or camping clubmembers.
(5) Provisions for maintenance of the time share units orcamping sites.
(6) Provisions for management of the time share project orcamping club project.
(7) A description of the rights of the time share participant orcamping club member relating to the occupancy of the timeshare unit or camping site.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-7
Cancellation of purchase
Sec. 7. (a) A purchaser has the right to cancel a camping clubmembership or time share purchase within seventy-two (72) hoursafter the execution of the sales contract, excluding Sundays and legalholidays as set forth in IC 1-1-9-1. The right of cancellation shall beset forth conspicuously in boldface type on the first page of any timeshare instrument or camping club membership agreement andimmediately above the signature of the purchaser on any salescontract. In each case, the cancellation clause must include anexplanation of the conditions and manner of exercise of thecancellation right. The right of cancellation may not be waivable byany purchaser. The developer shall furnish to each purchaser a form,as prescribed by the agency, for the exercise of the right.
(b) To cancel a camping club membership or time share purchase,a consumer must give notice of cancellation by mail or telegraphiccommunication or as otherwise allowed by this subsection. Thenotice is effective on the date postmarked or when transmitted fromthe place of origin. Any written notice of cancellation delivered otherthan by mail or telegraph is effective at the time of delivery at theplace of business of the developer or escrow agent designated in theform of notice of cancellation.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-8
Attorney general requirements Sec. 8. The attorney general may require:
(1) that a developer file a performance bond with the division;or
(2) that all or part of the money collected from the consumer aspart of a purchase of a time share instrument or camping clubmembership, including closing costs and exchange companymembership fees, be placed and held in escrow until theparticular time share unit or camping site to which the timeshare or camping club membership relates is substantiallycompleted and ready for occupancy.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-9
Unavailability; remedy
Sec. 9. If a time share unit or camping site is not available for aperiod to which the owner is entitled by schedule or by confirmedreservation and the developer is responsible for the unavailability ofthe unit or site, the participant is entitled at the participant's electionto be provided:
(1) a comparable unit or site for the period; or
(2) monetary compensation for the loss of use of the time shareunit or camping site.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-10
Leasehold interest
Sec. 10. (a) If the interest of the developer in a project is aleasehold interest, the lease, unless otherwise determined by thedivision, must provide that:
(1) the lessee must give the association notice of termination ofthe lease for any default by the lessor; and
(2) the lessor, upon the bankruptcy of the lessee, shall enter intoa new lease with the association upon the same terms andconditions as were contained in the lease with the developer.
(b) The division may require the developer to execute a bond orother type of security for the payment of the lease obligation.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-11
Action for partition; judicial sale
Sec. 11. An action for partition of a time share unit or campingsite may not be maintained except as provided in the time shareinstrument. If a time share or camping site is owned by two (2) ormore persons, an action may be brought for the judicial sale of thetime share or camping site. A provision in a time share instrument forthe waiver or subordination of the right of partition or any other rightcharacteristic of a tenancy in common is valid.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-12 Required disclosures
Sec. 12. (a) A developer, or exchange company if the exchangecompany is dealing directly with the participants or camping clubmembers, that offers a program for the exchange of occupancy rightsamong time share participants or camping club members or with thepurchasers or members in other time share or camping club projects,or both, shall give in writing to the camping club members or timeshare participants the following information:
(1) The name and address of the exchange company offering theexchange program.
(2) A statement indicating whether the exchange company orany of its officers or directors has any legal or beneficialinterest in any interest of the developer or managing agent inany plan to sell time shares or camping club membershipsincluded in the program and, if so, the name, location, andnature of the interest.
(3) A statement that the time share participant's or camping clubmember's contract with the exchange company is a contractseparate and distinct from the contract to purchase the timeshare or camping club membership, unless the exchangecompany and the developer or an affiliate of the developer arethe same.
(4) A statement indicating whether the participant's or member'sparticipation in the exchange project is dependent upon thecontinued inclusion of the plan to sell time shares or campingclub memberships in the program.
(5) A statement indicating whether the purchaser's or member'smembership or participation in the exchange program isvoluntary or mandatory.
(6) A complete and accurate description of the following:
(A) The terms and conditions of the purchaser's contractualrelationship with the company and the procedure by whichchanges in the contractual relationship and may be made.
(B) The procedure to qualify for and make exchanges.
(C) All limitations, restrictions, and priorities of theprogram, including limitations on exchanges based on theseasons of the year, the size of units, or levels of occupancy.The written description of the limitations, restrictions, andpriorities given under this clause must be printed in boldfacetype and, if the limitations, restrictions, and priorities are notuniformly applied by the program, must include a cleardescription of the manner in which they are applied.
(7) A statement, which must be printed on all promotionalbrochures, pamphlets, advertisements, and other materialsdisseminated by the exchange company that indicate thepercentage of confirmed exchanges, to the effect that:
(A) the percentage of confirmed exchanges is a summary ofthe requests for exchanges received by the exchangecompany in the most recent annual reporting period; and
(B) the percentage does not indicate the probability of a
purchaser or members being confirmed to any specificchoice since availability at individual locations may vary.
(8) A statement indicating whether exchanges are arranged onthe basis of available space and whether there are anyguarantees of fulfilling specific requests for exchanges.
(9) A statement indicating whether and under whatcircumstances a participant or member, in dealing with theexchange company, may lose the right to use and occupy a timeshare unit or camping site in any properly applied for exchangewithout being provided with substitute accommodations by thecompany.
(10) A statement of the fees to be paid by participants ormembers in the program, including a statement indicatingwhether any fees may be changed by the exchange company,and if so, the circumstances under which those changes may bemade.
(11) The name and address of the site of each time share orcamping club project included in the program.
(b) The information required by subsection (a) must be deliveredto the camping club member or time share participant before theexecution of:
(1) any contract between the camping club member or timeshare participant and the exchange company; or
(2) the contract to purchase the time share or camping clubmembership.
(c) Upon receipt of the information required by subsection (a), thecamping club member or time share participant shall certify inwriting that the member or participant has received the informationfrom the developer.
(d) Except as otherwise provided in this section, the informationrequired by subsection (a) must be accurate as of thirty (30) daysbefore the date on which the information is delivered to theparticipant or member.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-13
Investigation and prosecution of complaints
Sec. 13. (a) The division may receive, investigate, and prosecutecomplaints concerning persons subject to this chapter.
(b) The director may subpoena witnesses and send for and compelthe production of books, records, papers, and documents of timeshare or camping club developers who are subject to registrationunder this chapter for the furtherance of any investigation under thischapter. The circuit or superior court located in the county where thesubpoena is to be issued shall enforce any subpoena by the attorneygeneral. In addition, the attorney general may issue a civilinvestigative demand as provided by IC 4-6-3.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-14 Penalties and remedies
Sec. 14. A person who violates this chapter commits a deceptiveact and is subject to the penalties and remedies provided inIC 24-5-0.5. Any action by the attorney general for violations of thischapter may be brought in the circuit or superior court of MarionCounty.
As added by P.L.2-2002, SEC.17.
IC 32-32-3-15
Assurance of voluntary compliance
Sec. 15. In the administration of this chapter, the attorney generalmay execute an assurance of voluntary compliance with a time sharedeveloper in existence on September 1, 1985, in the same manner asprovided in IC 24-5-0.5-7(a), except that no filing with the court isrequired in order for the assurance to be effective under this chapter.
As added by P.L.2-2002, SEC.17.