2978

LAWS OF MARYLAND

Ch. 579

AFTER NOTICE OF THE PROPOSED CANCELLATION HAS BEEN MAILED TO THE
MANAGING ENTITY AND EACH PERSON TO WHOM A CERTIFICATE OR
MEMORANDUM OF INSURANCE HAS BEEN ISSUED.

(D) (1) EXCEPT TO THE EXTENT THAT A PROJECT INSTRUMENT
REQUIRES OTHERWISE AND TO THE EXTENT OF THE PROCEEDS AVAILABLE,
ANY PORTION OF THE TIME-SHARE PROJECT DAMAGED OR DESTROYED SHALL
BE REPAIRED OR REPLACED PROMPTLY BY THE MANAGING ENTITY UNLESS:

(I)  ANOTHER PERSON REPAIRS OR REPLACES IT;

(II)  THERE IS A TERMINATION OF THE TIME-SHARE
PROJECT;

(III)  REPAIR OR REPLACEMENT WOULD BE ILLEGAL
UNDER ANY STATE OR LOCAL HEALTH OR SAFETY STATUTE OR ORDINANCE;

(IV)   50 PERCENT OF THE TIME-SHARE OWNERS,
INCLUDING 80 PERCENT OF OWNERS OF EVERY TIME-SHARE IN A
TIME-SHARE UNIT THAT WILL NOT BE REBUILT, VOTE NOT TO REBUILD; OR

(V)  A DECISION NOT TO REBUILD THE DAMAGED
PROPERTY IS MADE BY ANOTHER PERSON EMPOWERED TO MAKE THAT
DECISION.

(2)  THE COST OF REPAIR OR REPLACEMENT IN EXCESS OF
INSURANCE PROCEEDS AND RESERVES SHALL BE A TIME-SHARE EXPENSE.

(3)   IF THE ENTIRE TIME-SHARE PROJECT NEED NOT BE
REPAIRED OR REPLACED, UNLESS THE TIME-SHARE INSTRUMENT PROVIDES
OTHERWISE:

(I)  THE INSURANCE PROCEEDS ATTRIBUTABLE TO THE
DAMAGED AREA MUST BE USED TO RESTORE THE DAMAGED AREA TO A
CONDITION COMPATIBLE WITH THE REMAINDER OF THE PROJECT; AND

(II)  THE INSURANCE PROCEEDS ATTRIBUTABLE TO
TIME-SHARE UNITS THAT ARE NOT REBUILT SHALL BE DISTRIBUTED AS IF
THOSE UNITS CONSTITUTED A TIME-SHARE PROJECT IN WHICH ALL
TIME-SHARES ARE TERMINATED.

11A-112.

(A)  ANY DEVELOPER OR OTHER PERSON IN THE BUSINESS OF
SELLING REAL ESTATE WHO OFFERS A TIME-SHARE FOR HIS OWN ACCOUNT
TO A PURCHASER SHALL DELIVER A PUBLIC OFFERING STATEMENT TO THE
PURCHASER BEFORE TRANSFER OF THE TIME-SHARE AND NO LATER THAN THE
DATE OF THE CONTRACT.

(B)  (1) A PUBLIC OFFERING STATEMENT TOGETHER WITH A FEE OF
$100, MUST BE FILED WITH, AND APPROVED BY, THE SECRETARY OF STATE
PRIOR TO BEING DELIVERED TO ANY TIME-SHARE PURCHASER. THE
SECRETARY OF STATE SHALL DETERMINE WHETHER THE PUBLIC OFFERING
STATEMENT SATISFIES THE REQUIREMENTS OF THIS TITLE, AND SHALL
EITHER APPROVE OR REJECT WITHIN 45 DAYS OF RECEIPT. AFTER