76-1714. Public-offering statement; exchange-of-occupancy rights; disclosure provisions.
If the owners of time-share intervals are to be permitted or required to become members of or to participate in any program for the exchange-of-occupancy rights among themselves or with the owners of time-share intervals of other time-share projects, or both, the public-offering statement or a supplement delivered therewith shall fully and accurately disclose:
(1) The identity of the person operating the exchange program and whether that person is an affiliate of the developer;
(2) A general description of the procedures to qualify for and effectuate exchanges, including any stated or practiced priorities and restrictions, and the extent to which changes thereof may be made, whether membership or participation in the exchange program, or both, are voluntary or mandatory, and a statement of the disposition, if any, of the unused exchange time-share interval of the exchange agent;
(3) The expenses, or ranges of expenses, to the time-share interval owners of membership in the exchange program including the expenses, if any, of exchanging as of a date not more than one year before the public-offering statement is delivered to the purchaser, and the person to whom those expenses are payable;
(4) Whether and how any of the expenses specified in subdivision (3) of this section may be altered and, if any of them are to be fixed on a case-by-case basis, the manner in which they are to be fixed in each case;
(5) With respect to the owners of time-share intervals in the exchange program, the geographical location of each time-share project and the minimum duration of time-share intervals and number of time-share interval owners in the exchange program at each project during a calendar year ending not more than fifteen months before the public-offering statement is delivered to the purchaser;
(6) The percentage of exchanges properly applied for by members of participants in the exchange program that were fulfilled during a calendar year ending not more than fifteen months before the date the public-offering statement is delivered to the purchaser, together with a statement of the criteria used to determine whether an exchange was properly applied for and fulfilled;
(7) The number of persons applying for an exchange as a percentage of the number of members in the exchange program as a whole during the calendar year ending not more than fifteen months before the public-offering statement is delivered to the purchaser; and
(8) In those cases in which the exchange agent is not an affiliate of the developer, the exchange agent shall provide the developer with all of the information contained in subdivisions (2) to (7) of this section which it shall certify as being true, accurate, and complete in all particulars. The developer shall include the certified information in the public-offering statement as replacement for the developer's disclosures required by this section.
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