3350                                         LAWS OF MARYLAND                                     Ch. 721

is prevented from enjoying exclusive occupancy of a time-share
unit, or a statement that none is provided in the instrument; and

[(6)] (5) 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-116.

(a) (1) IN THIS SECTION "PURCHASE MONEY" INCLUDES ANY
MONEY, NOTE, SECURITY, OR OTHER MONETARY CONSIDERATION PAID BY A
PURCHASER FOR A TIME-SHARE.

[(1)] (2) All purchase money received by or on behalf
of a developer from a purchaser for the purchase or reservation
of a time-share shall be deposited in an escrow account
designated solely for that purpose with a financial institution
whose accounts are insured by a government agency until the
expiration of the time for cancellation or any later time
provided in the contract.

[(2)] (3) After the expiration of the cancellation
period or that provided in the contract, if no notice of
cancellation is received, such funds or instruments may be
released as provided in subsection (b).

(b)  Any purchase money received by or on behalf of a
developer from purchasers of time-shares may be released to the
developer, provided he maintains a surety bond for the benefit of
each purchaser of a time-share, until the happening of the
earlier of: