HARRY HUGHES, Governor

3351

(1) The conveying of good and merchantable title to
the time-share estate or the granting of an unencumbered right to
use the time-share project pursuant to a time-share license;

(2) The return of the purchase money to the
purchaser; or

(3) The forfeiture of the purchase money by the
purchaser, under the terms of the contract.

(c)  As used in this section the word "bond" includes a bond
issued by a surety or a letter of credit issued by a financial
institution acceptable to the Commission and in a form acceptable
to the Commission.

(d)  The bond may not be canceled by the surety until 30
days after the surety gives notice of cancellation to the
Commission.

(e)  The penalty of the bond shall be adjusted from time to
time in accordance with the following schedule:

Total Amount of Purchase Money Held

(1)   Zero to $200,000

(2)   $200,000 to $500,000

(3)   $500,000 to $1,000,000

(4)   Over $1,000,000

Penalty of Bond

$ 100,000

200,000

500,000

1,000,000

(f)  (1) The amount of purchase money from sales of
time-shares held at any 1 time by the time-share developer shall
not exceed the amount for which the developer is bonded in
accordance with the schedule set forth in this section.

(2) IF A DEVELOPER IS REQUIRED TO BE BONDED WITH
RESPECT TO MORE THAN ONE PROJECT THAT THE DEVELOPER OWNS OR
CONTROLS, DIRECTLY OR INDIRECTLY, THE DEVELOPER MAY ELECT TO
OBTAIN 1 BOND OR LETTER OF CREDIT IN THE APPROPRIATE PENALTY
AMOUNT FOR THE AGGREGATE PURCHASE MONEY HELD FROM ALL PROJECTS,
IF THE FULL PENALTY AMOUNT APPLIES, AS NEEDED, TO ANY OF THE
PROJECTS.

(g)  A developer who fails to maintain an escrow account or
a surety bond as required by this section shall be guilty of a
misdemeanor and, upon conviction, shall be sentenced to pay a
fine of not more than $1,000 or to undergo imprisonment for a
term of not more than 1 year, or both, for each violation.

(h) The requirements of this section may be waived by the
Commission with respect to a time-share project located outside
this State provided:

(1) Compliance and enforcement of the specific
provisions are impractical or impossible;

(2) The laws of the state or country in which the
time-share project is located require escrow or bonding