HARRY HUGHES, Governor

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IS PREVENTED FROM ENJOYING EXCLUSIVE OCCUPANCY OF A TIME-SHARE
UNIT, OR A STATEMENT THAT NONE IS PROVIDED IN THE INSTRUMENT; AND

(6) IF THE TIME-SHARE OWNERS ARE TO BE PERMITTED OR
REQUIRED TO BECOME MEMBERS OF OR TO PARTICIPATE IN ANY EXCHANGE
PROGRAM, A STATEMENT CONTAINING THE INFORMATION SET FORTH IN §
11A-120.

(G) A DEVELOPER SHALL PROMPTLY AMEND THE PUBLIC OFFERING
STATEMENT TO REPORT ANY MATERIAL CHANGE IN THE REQUIRED
INFORMATION. INSOFAR AS THE DEVELOPER RELIES IN GOOD FAITH ON
INFORMATION PROVIDED BY OTHERS IN MAKING THE REQUIRED DISCLOSURES
ABOUT EXCHANGE PROGRAMS, HE IS RESPONSIBLE FOR A
MISREPRESENTATION ONLY IF HE HAS KNOWLEDGE OF ITS FALSITY.

(H) (1) AT ANY TIME THAT A TIME-SHARE PROJECT IS REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OF THE UNITED STATES,
A DEVELOPER SATISFIES ALL REQUIREMENTS RELATING TO THE
PREPARATION OF A PUBLIC OFFERING STATEMENT UNDER THIS SECTION IF
HE DELIVERS TO THE TIME-SHARE PURCHASER AND FILES WITH THE
SECRETARY OF STATE AND THE COMMISSION A COPY OF THE PUBLIC
OFFERING STATEMENT FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION IF THAT CONTAINS SUBSTANTIALLY THE SAME INFORMATION AS
IS REQUIRED IN A PUBLIC OFFERING STATEMENT UNDER THIS TITLE.

(2) THE MERE OFFERING OF A TIME-SHARE OR THE OFFERING
OF AN EXCHANGE PROGRAM IN CONJUNCTION WITH THE OFFERING OR SALE
OF A TIME-SHARE IN THIS STATE SHALL NOT CONSTITUTE A SECURITY
UNDER THE LAWS OF THIS STATE.

11A-113.

(A)  IF A CONVERSION BUILDING IS MORE THAN 5 YEARS OLD, AND
THE DEVELOPER OWNS OR CONTROLS TIME-SHARES IN MORE THAN 50
PERCENT OF ALL UNITS IN THE BUILDING, THE PUBLIC OFFERING
STATEMENT SHALL CONTAIN, IN ADDITION TO OTHER REQUIRED
INFORMATION, A STATEMENT OF THE PHYSICAL CONDITION AND STATE OF
REPAIR OF THE MAJOR . STRUCTURAL, MECHANICAL, ELECTRICAL, AND
PLUMBING SYSTEMS OF THE CONVERSION BUILDING, TO THE EXTENT
REASONABLY ASCERTAINABLE, AND ESTIMATED COSTS OF REPAIR FOR WHICH
A PRESENT NEED IS DISCLOSED IN SUCH STATEMENT. THE DEVELOPER IS
ENTITLED TO RELY ON THE REPORTS OF ARCHITECTS AND ENGINEERS WHO
EXAMINE THE CONVERSION BUILDING. THIS REQUIREMENT APPLIES ONLY
TO UNITS IN WHICH USE AS A DWELLING OR FOR RECREATIONAL PURPOSES,
OR BOTH, IS PERMISSIBLE.

(B) (1) THE DEVELOPER OF A TIME-SHARE PROJECT WHICH
INCLUDES ALL OR ANY PART OF A CONVERSION BUILDING, AND ANY PERSON
IN THE BUSINESS OF SELLING REAL ESTATE FOR HIS OWN ACCOUNT WHO
INTENDS TO OFFER TIME-SHARE IN A CONVERSION BUILDING, SHALL GIVE
EACH OF THE RESIDENTIAL TENANTS AND ANY RESIDENTIAL SUBTENANT IN
POSSESSION OF EACH PROPOSED TIME-SHARE UNIT NOTICE OF THE
CONVERSION NO LATER THAN 120 DAYS BEFORE SUCH DEVELOPER WILL
REQUIRE THE TENANTS AND ANY SUBTENANT IN POSSESSION TO VACATE.
THE NOTICE MUST SET FORTH GENERALLY THE RIGHTS OF TENANTS AND