(A) Unless the timeshare declaration provides a lower percentage, the vote or written consent, or both, of sixty percent of all eligible voting interests in a vacation time sharing plan may terminate the term of the vacation time sharing plan at any time. If a vacation time sharing plan is terminated pursuant to this section, the termination has immediate effect as if the effective date of the termination were the original date of termination.
(B) If the vacation time sharing property is managed by a vacation time sharing association that is separate from any underlying owners' association, the termination of a vacation time sharing plan does not change the corporate status of the vacation time sharing association. The vacation time sharing association continues to exist only for the purposes of concluding its affairs, prosecuting and defending actions by or against it, collecting and discharging obligations, disposing of and conveying its property, collecting and dividing its assets, and otherwise complying with this section.
(C) After termination of a vacation time sharing plan, the board of directors of the vacation time sharing association shall serve as the termination trustee, as the entity empowered to implement the termination of the vacation time sharing plan, and in this fiduciary capacity may bring an action in partition on behalf of the tenants in common in each former vacation time sharing property or sell the former vacation time sharing property in a manner and to a person who is approved by a majority of all tenants in common. The termination trustee also has all other powers reasonably necessary to effect the partition or sale of the former vacation time sharing property, including the power to maintain the property during the pendency of a partition action or sale.
(D) All reasonable expenses incurred by the termination trustee relating to the performance of its duties pursuant to this section, including the reasonable fees of attorneys and other professionals, must be paid by the tenants in common of the former vacation time sharing property subject to partition or sale, proportionate to their respective ownership interests.
(E) The termination trustee shall adopt reasonable procedures to implement the partition or sale of the former vacation time sharing property and comply with the requirements of this section.
(F) If the terminated vacation time sharing plan is in an underlying subdivision that is not simultaneously terminated, a majority of the tenants in common in each former accommodation present and voting in person or by proxy at a meeting of the tenants in common conducted by the termination trustee, or conducted by the board of directors of the underlying owners' association, if the underlying owners' association managed the former vacation time sharing property, shall designate a voting representative for the former accommodation and file a voting certificate with the underlying owners' association. The voting representative may vote on all matters at meetings of the underlying owners' association, including termination of the underlying subdivision.
(G) Unless the timeshare declaration specifically provides for a lower quorum, the quorum for a vacation time sharing association meeting to consider termination of the vacation time sharing plan is fifty percent of all eligible voting interests in the vacation time sharing plan.
(H) The board of directors of the vacation time sharing association may determine that a voting interest that is delinquent in the payment of more than two years of assessments is ineligible to consent to or vote on any termination of the vacation time sharing plan unless the delinquency is paid in full before the consent or vote. A voting interest determined to be ineligible by the board of directors must be subtracted from the total percentage or number of all voting interests required to consent to or vote to approve the termination of the vacation time sharing plan and must not be considered for any purpose, including the percentage or number of voting interests necessary to constitute a quorum.
(I) A proxy for a vote to terminate a vacation time sharing plan pursuant to this section is valid for up to three years and is revocable unless the proxy states it is irrevocable.
HISTORY: 2019 Act No. 66 (H.3754), Section 3, eff May 16, 2019.