HARRY HUGHES, Governor                                      3337

(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.

(I) (1) (I) IN THE CASE OF A TIME-SHARE SITUATED WHOLLY
OUTSIDE OF THIS STATE, AN APPLICATION FOR REGISTRATION OF A
PUBLIC OFFERING STATEMENT WITH THE SECRETARY OF STATE THAT HAS
BEEN APPROVED BY AN AGENCY IN THE STATE WHERE THE TIME-SHARE IS
LOCATED AND THAT SUBSTANTIALLY COMPLIES WITH THE REQUIREMENTS OF
THIS TITLE MAY BE ACCEPTED FOR REGISTRATION AT THE DISCRETION OF
THE SECRETARY.

(II) THE SECRETARY OF STATE MAY REQUIRE
ADDITIONAL INFORMATION, BEFORE ACCEPTING A REGISTRATION UNDER
THIS SUBSECTION, TO ASSURE ADEQUATE DISCLOSURE.

(2) IF THERE IS NO OUT-OF-STATE AGENCY WHERE THE
TIME-SHARE IS LOCATED THAT HAS APPROVED THE PUBLIC OFFERING
STATEMENT, THE APPLICATION FOR REGISTRATION OF THE OUT-OF-STATE
TIME-SHARE SHALL CONSIST OF THE PUBLIC OFFERING STATEMENT
DESCRIBED UNDER THIS SECTION AND THE APPLICATION FORM PRESCRIBED
BY THE SECRETARY OF STATE.

11A-119.

(f) A public offering statement may not be used for
promotional purpose before the developer is registered and
afterwards only if used in its entirety. No person may advertise
or represent that the Commission OR THE SECRETARY OF STATE has
approved or recommended the time-shares or any of the documents
contained in the application for registration.

11A-121.

(a) (1) A developer may not offer a time-share to the
public until the developer has received a certificate of
registration as a time-share developer.