CHAPTER 734b*
TIME-SHARING PLANS

      Sec. 42-103w. Application of chapter. The provisions of sections 42-103w to 42-103aa, inclusive, shall apply to all time-sharing plans offered within this state except nonprofit plans, and to persons or firms that engage in offering or contracting with any person for the purchase of such plans.

      (P.A. 82-232, S. 1.)

      Sec. 42-103x. Definitions. As used in sections 42-103w to 42-103aa, inclusive:

      (1) "Accommodations" means any apartment, condominium or cooperative unit, cabin, lodge, hotel or motel room, or any other structure which is situated on real property and designed for occupancy by one or more individuals.

      (2) "Advertising" means the use of the media, mail or personal contact to offer any person the opportunity to contract for the use of time-sharing plan accommodations or facilities.

      (3) "Assessments" means the share of funds required for the payment of common expenses which are assessed from time to time against each purchaser by the managing entity.

      (4) "Business day" means any calendar day, except Sundays or holidays.

      (5) "Common expenses" means those expenses properly incurred for the maintenance, operation and repair of all accommodations or facilities subject to sections 42-103w to 42-103aa, inclusive.

      (6) "Contract" means any agreement conferring the rights and obligations of a time-sharing plan on a purchaser.

      (7) "Developer" means the person creating a time-sharing plan.

      (8) "Facilities" means any structure, service, improvement, or real property whether improved or unimproved, which is made available to the purchasers of a time-sharing plan.

      (9) "Offer to sell", "offer for sale", "offered for sale", or "offer" refers to solicitation of purchasers, the taking of reservations, or any other method whereby a purchaser is offered the opportunity to participate in a time-sharing plan.

      (10) "Purchaser" means any person who is buying or who has bought a time- share period in a time-sharing plan.

      (11) "Seller" means any developer, or any other person, or agent or employee thereof, who offers time-share periods for sale to the public in the ordinary course of business, except persons who have acquired a time-share period for their own occupancy and later offer it for resale.

      (12) "Time-share period" means that period of time during which a purchaser of a time-sharing plan is entitled to the possession and use of the accommodations or facilities, or both, of a time-sharing plan.

      (13) "Time-share unit" means an accommodation or facility of a time-sharing plan which is divided into time-share periods.

      (14) "Time-sharing plan" means any arrangement, plan, scheme, or similar device, whereby a purchaser, in exchange for consideration, receives a right to use accommodations or facilities, or both, for a period of more than three years and such use is to occur during specific periods of time which are less than one year during any given year within the term of such arrangement, plan, scheme or device.

      (P.A. 82-232, S. 2.)

      Sec. 42-103y. Contract. Information required. Right to cancel. (a) Each seller of a time-sharing plan shall provide each purchaser of such plan with a fully completed copy of a contract pertaining to such sale which shall include the following information: (1) The date the contract is executed by all parties; (2) the name and address of the seller, the developer and the time-sharing plan; (3) the total financial obligation of the purchaser, including the initial purchase price and any additional charges to which the purchaser may be subject, such as reserve assessments, maintenance, management and recreation charges; (4) the estimated date of availability of each accommodation or facility which is not completed at the time the contract is executed by the seller and purchaser; (5) a description of the nature and duration of the time-share period being sold, a statement of whether any interest in real property is being conveyed and the specific period of years or months constituting the term of the contract; (6) immediately above the space reserved in the contract for the signature of the purchaser, in boldface type of a minimum size of ten points, substantially the following statements:

.... (Date of Transaction)

NO PURCHASER SHOULD RELY UPON REPRESENTATIONS OTHER THAN THOSE INCLUDED IN THIS CONTRACT."

      Sec. 42-103z. Advertising and promotional devices. (a) Advertising materials pertaining to time-sharing plans shall not: (1) Misrepresent facts or create false or misleading impressions regarding the time-sharing plan; (2) make predictions of specific or immediate price or value increases of time-share periods; (3) contain statements concerning nonspecific or not bona fide future price increases by the seller; (4) contain any asterisk or other reference symbol as a means of contradicting or substantially changing any previously made statement or as a means of obscuring material facts; (5) describe any improvement to the time-sharing plan that is not required to be built or that is uncompleted unless conspicuously labeled as "need not be built", or "proposed", or "under construction" with the date of promised completion clearly indicated; (6) misrepresent the size, nature, extent, qualities or characteristics of the offered accommodations or facilities; (7) misrepresent the amount or period of time during which the accommodations or facilities will be available to any purchaser; (8) misrepresent the nature or extent of any services incident to the time-sharing plan; (9) misrepresent the conditions under which a purchaser may exchange the right to use accommodations or facilities in one location for the right to use accommodations or facilities in another location.

      (b) No promotional device, including sweepstakes, lodging certificates, gift awards, premiums, discounts, drawings or display booths may be utilized without a disclosure that: (1) The promotional devices are being used for the purpose of soliciting sales of time-share periods; and (2) the promotional devices are being used to obtain the names and addresses of prospective purchasers, and that any acquired names and addresses may be used for the purpose of soliciting sales of time-share periods.

      (c) When a time-share project uses free offers, gift enterprises, drawings, sweepstakes or discounts as a promotional program the rules of such promotional program shall be disclosed to the public and shall state: (1) The name of each time-sharing plan or business entity participating in the program; (2) the day and the year by which all prizes listed or offered will be awarded; and (3) the method by which all prizes are to be awarded.

      (d) At least one of each prize featured in a promotional program shall be awarded by the day and year specified in the promotion. The provisions of this section shall apply to persons or firms that engage in advertising the opportunity for any person to contract for the purchase of a time-sharing plan.

      (P.A. 82-232, S. 4.)

      Sec. 42-103aa. Unfair trade practices. A violation of any of the provisions of sections 42-103w to 42-103z, inclusive, and section 42-103bb, or failure to comply with the provisions of the notice of cancellation required by section 42-103y shall constitute an unfair or deceptive act or practice as defined by section 42-110b.

      (P.A. 82-232, S. 5; P.A. 91-367, S. 6.)

      History: P.A. 91-367 added reference to a violation of Sec. 42-103bb.

      Cited. 231 C. 707.

      Sec. 42-103bb. Disclosure of information concerning prizes in advertisements and promotional materials. Each individual or business entity advertising or promoting, by mail, any time-sharing plan or property sale, in this state and offering prizes in its promotional materials, shall disclose, in all advertisements and promotional materials, the value of the prize and the odds of winning such prize, expressed as a fraction, with a numerator of one and any conditions or restrictions that would apply to the receipt of the prize or would void the receipt of such prizes. Such information shall be printed adjacent to and in the same size and face type as the description of the prize. As used in this section, "prize" includes but is not limited to an award, gift or anything of value regardless of whether there are any conditions or restrictions attached to the receipt of the prize.

      (P.A. 82-418, S. 2, 4; P.A. 91-367, S. 7.)

      History: P.A. 91-367 required the disclosure of any conditions or restrictions that would apply to the receipt of the prize or would void the receipt of such prizes and defined "prize".