HARRY HUGHES, Governor                                       723

The time-share instrument for a time-share license plan
shall prescribe and outline reasonable arrangements for the
management and operation of the time-share license plan and for
the maintenance, repair, and furnishing of time-share units,
which arrangements shall include provisions for the following:

(9) Procedures for imposing a monetary penalty[,] OR
A suspension of a time-share licensee's rights upon failure to
comply with the provisions of the time-share instrument, to obey
rules and regulations established by the developer, or to pay
time-share expenses charged against the time-share licensee. The
licensee shall be given notice and the opportunity to answer in
person or in writing to the Commission before a decision to
impose a monetary penalty or a suspension of rights is rendered.

11A-108.

(d)  (1) The termination agreement may provide for the sale
of time-share units and designate a trustee to effect a sale so
long as the proceeds of the sale are distributed to individual
time-share owners less a sales commission of 5 percent and
reasonable sales expenses to be paid to the trustee. On the
termination date, the interests of a time-share owner vests in
the trustee for the benefit of owners. Proceeds from a sale
shall be distributed in the normal order of priority to
creditors, lienholders, and to time-share owners in proportion to
their shares as provided in the termination agreement or as
provided in paragraph [(5)] (4) if the termination agreement does
not establish proportionate shares.

11A-112.

(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
approval, the Secretary of State shall promptly issue an order
of approval. If the Secretary of State rejects a public offering
statement, he shall promptly issue a written order stating the
reasons for rejection. The [Secretary's of State] SECRETARY OF
STATE'S failure to act within 45 days of receipt shall be deemed
an approval of the public offering statement. A developer may
consent in writing to an extension of the review period for
approval or rejection.

(c) (2) The Secretary of State shall either approve or
reject the changes within 10 days of receipt. The [Secretary's
of State] SECRETARY OF STATE'S failure to act within said 10 days
shall be deemed an approval of such changes.

11A-116.

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