(a) With respect to anyproperty in this State acquired and put into operation by a membership campingoperator on or after January 1, 1993, the membership camping operator shall notoffer or execute a membership camping contract in this State granting the rightto use the property until the following requirements are met:
(1) Each person holdingan interest in a voluntary blanket encumbrance has executed and delivered tothe Secretary of State a nondisturbance agreement and recorded the agreement inthe real estate records of the county in which the campground is located. Theagreement shall include all of the following:
a. That the rights ofthe holder or holders of the blanket encumbrance in the affected campground aresubordinate to the rights of purchasers;
b. That any person whoacquires the affected campground or any portion of the campground by theexercise of any right of sale or foreclosure contained in the blanketencumbrance takes the campground subject to the rights of purchasers; and
c. That the holder orholders of the blanket encumbrance shall not use or cause the campground to beused in a manner which interferes with the right of purchasers to use thecampground and its facilities in accordance with the terms and conditions ofthe membership camping contract; and
(2) Each hypothecationlender which has a lien on or security interest in the membership campingoperator's ownership interest in the campground has executed and delivered tothe Secretary of State a nondisturbance agreement and recorded the agreement inthe real estate records of the county in which the campground is located. Inaddition, each person holding an interest in a blanket encumbrance superior tothe interest held by the hypothecation lender has executed, delivered, andrecorded an instrument stating that such person will give the hypothecationlender notice of, and at least 30 days to cure, any default under the blanketencumbrance before the person commences any foreclosure action affecting thecampground. For the purposes of this section:
a. Hypothecation lendershall mean a financial institution which provides a major hypothecation loan toa membership camping operator;
b. Major hypothecationloan shall mean a loan or line of credit secured by substantially all of thecontracts receivable arising from the membership camping operator's sale ofmembership camping contracts; and
c. Nondisturbanceagreement shall mean an instrument by which a hypothecation lender agrees toconditions substantially the same as those set forth in subdivision (1) of thissubsection.
(b) In lieu ofcompliance with subsection (a) of this section, a surety bond or letter ofcredit satisfying the requirements of this subsection may be delivered andaccepted by the Secretary of State. The surety bond or letter of credit shallbe issued to the Secretary of State for the benefit of purchasers and shall bein an amount which is not less than one hundred five percent (105%) of theremaining principal balance of every indebtedness secured by a blanketencumbrance affecting the campground. The bond shall be issued by a suretywhich is authorized to do business in this State and which has sufficient networth to satisfy the indebtedness. The aggregate liability of the surety forall damages shall not exceed the amount of the bond. The letter of credit shallbe irrevocable, shall be drawn upon an insured bank, savings and loanassociation, or other financial institution, and shall be in a form and contentacceptable to the Secretary of State. The bond or letter of credit shallprovide for payment of all amounts secured by the blanket encumbrance,including costs, expenses, and legal fees of the lienholder, if for any reasonthe blanket encumbrance is enforced. (1991 (Reg. Sess., 1992), c.1009, s. 4.)
(a) With respect to anyproperty in this State acquired and put into operation by a membership campingoperator on or after January 1, 1993, the membership camping operator shall notoffer or execute a membership camping contract in this State granting the rightto use the property until the following requirements are met:
(1) Each person holdingan interest in a voluntary blanket encumbrance has executed and delivered tothe Secretary of State a nondisturbance agreement and recorded the agreement inthe real estate records of the county in which the campground is located. Theagreement shall include all of the following:
a. That the rights ofthe holder or holders of the blanket encumbrance in the affected campground aresubordinate to the rights of purchasers;
b. That any person whoacquires the affected campground or any portion of the campground by theexercise of any right of sale or foreclosure contained in the blanketencumbrance takes the campground subject to the rights of purchasers; and
c. That the holder orholders of the blanket encumbrance shall not use or cause the campground to beused in a manner which interferes with the right of purchasers to use thecampground and its facilities in accordance with the terms and conditions ofthe membership camping contract; and
(2) Each hypothecationlender which has a lien on or security interest in the membership campingoperator's ownership interest in the campground has executed and delivered tothe Secretary of State a nondisturbance agreement and recorded the agreement inthe real estate records of the county in which the campground is located. Inaddition, each person holding an interest in a blanket encumbrance superior tothe interest held by the hypothecation lender has executed, delivered, andrecorded an instrument stating that such person will give the hypothecationlender notice of, and at least 30 days to cure, any default under the blanketencumbrance before the person commences any foreclosure action affecting thecampground. For the purposes of this section:
a. Hypothecation lendershall mean a financial institution which provides a major hypothecation loan toa membership camping operator;
b. Major hypothecationloan shall mean a loan or line of credit secured by substantially all of thecontracts receivable arising from the membership camping operator's sale ofmembership camping contracts; and
c. Nondisturbanceagreement shall mean an instrument by which a hypothecation lender agrees toconditions substantially the same as those set forth in subdivision (1) of thissubsection.
(b) In lieu ofcompliance with subsection (a) of this section, a surety bond or letter ofcredit satisfying the requirements of this subsection may be delivered andaccepted by the Secretary of State. The surety bond or letter of credit shallbe issued to the Secretary of State for the benefit of purchasers and shall bein an amount which is not less than one hundred five percent (105%) of theremaining principal balance of every indebtedness secured by a blanketencumbrance affecting the campground. The bond shall be issued by a suretywhich is authorized to do business in this State and which has sufficient networth to satisfy the indebtedness. The aggregate liability of the surety forall damages shall not exceed the amount of the bond. The letter of credit shallbe irrevocable, shall be drawn upon an insured bank, savings and loanassociation, or other financial institution, and shall be in a form and contentacceptable to the Secretary of State. The bond or letter of credit shallprovide for payment of all amounts secured by the blanket encumbrance,including costs, expenses, and legal fees of the lienholder, if for any reasonthe blanket encumbrance is enforced. (1991 (Reg. Sess., 1992), c.1009, s. 4.)
(a) With respect to anyproperty in this State acquired and put into operation by a membership campingoperator on or after January 1, 1993, the membership camping operator shall notoffer or execute a membership camping contract in this State granting the rightto use the property until the following requirements are met:
(1) Each person holdingan interest in a voluntary blanket encumbrance has executed and delivered tothe Secretary of State a nondisturbance agreement and recorded the agreement inthe real estate records of the county in which the campground is located. Theagreement shall include all of the following:
a. That the rights ofthe holder or holders of the blanket encumbrance in the affected campground aresubordinate to the rights of purchasers;
b. That any person whoacquires the affected campground or any portion of the campground by theexercise of any right of sale or foreclosure contained in the blanketencumbrance takes the campground subject to the rights of purchasers; and
c. That the holder orholders of the blanket encumbrance shall not use or cause the campground to beused in a manner which interferes with the right of purchasers to use thecampground and its facilities in accordance with the terms and conditions ofthe membership camping contract; and
(2) Each hypothecationlender which has a lien on or security interest in the membership campingoperator's ownership interest in the campground has executed and delivered tothe Secretary of State a nondisturbance agreement and recorded the agreement inthe real estate records of the county in which the campground is located. Inaddition, each person holding an interest in a blanket encumbrance superior tothe interest held by the hypothecation lender has executed, delivered, andrecorded an instrument stating that such person will give the hypothecationlender notice of, and at least 30 days to cure, any default under the blanketencumbrance before the person commences any foreclosure action affecting thecampground. For the purposes of this section:
a. Hypothecation lendershall mean a financial institution which provides a major hypothecation loan toa membership camping operator;
b. Major hypothecationloan shall mean a loan or line of credit secured by substantially all of thecontracts receivable arising from the membership camping operator's sale ofmembership camping contracts; and
c. Nondisturbanceagreement shall mean an instrument by which a hypothecation lender agrees toconditions substantially the same as those set forth in subdivision (1) of thissubsection.
(b) In lieu ofcompliance with subsection (a) of this section, a surety bond or letter ofcredit satisfying the requirements of this subsection may be delivered andaccepted by the Secretary of State. The surety bond or letter of credit shallbe issued to the Secretary of State for the benefit of purchasers and shall bein an amount which is not less than one hundred five percent (105%) of theremaining principal balance of every indebtedness secured by a blanketencumbrance affecting the campground. The bond shall be issued by a suretywhich is authorized to do business in this State and which has sufficient networth to satisfy the indebtedness. The aggregate liability of the surety forall damages shall not exceed the amount of the bond. The letter of credit shallbe irrevocable, shall be drawn upon an insured bank, savings and loanassociation, or other financial institution, and shall be in a form and contentacceptable to the Secretary of State. The bond or letter of credit shallprovide for payment of all amounts secured by the blanket encumbrance,including costs, expenses, and legal fees of the lienholder, if for any reasonthe blanket encumbrance is enforced. (1991 (Reg. Sess., 1992), c.1009, s. 4.)
