An Act To Implement Model Time-share Foreclosure Procedures
Maine Legislature, Session 122, LD 1932
Committee: judiciary
Sponsors: HOBBINS, KOFFMAN, BRYANT, DAMON, DAVIS, EDMONDS, HASTINGS, SAVAGE, DUPLESSIE, PELLETIER-SIMPSON, TARDY
Amends: 33 MRSA §594, 33 MRSA §595

Legislative Document 
No. 1932 
S.P.732 
In Senate, January 4, 2006 
An Act To Implement Model Time-share Foreclosure Procedures 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on judiciary suggested and ordered printed. 
Presented by Senator HOBBINS of York. 
Cosponsored by Representative KOFFMAN of Bar Harbor and 
JOY 1. O'BRIEN 
Secretary of the Senate 
Senators: BRYANT of Oxford, DAMON of Hancock, DAVIS of Piscataquis, President 
EDMONDS of Cumberland, HASTINGS of Oxford, SAVAGE of Knox, Representatives: 
BRYANT of Windham, DUPLESSIE of Westbrook, PELLETIER-SIMPSON of Auburn, 
TARDY of Newport. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 33 MRSA §594, sub-§l, as enacted by PL 1983, c. 407, 
§l, is repealed and the following enacted in its place: 
1. 
Lien created. 
A managing entity has a lien on a time 
share for any assessment for expenses of the time-share property 
or fines levied against that time share in accordance with the 
project instrument from the time the assessment or fine becomes 
due. 
A lien against a time-share estate may be foreclosed as 
provided in section 595, 
subsection 1, 
and a lien against a 
time-share license may be foreclosed as provided in section 595, 
subsection 2. 
Unless the project instrument otherwise provides, 
fees, 
charges, 
late charges, 
fines 
and 
interest charged 
in 
accordance 
with 
the 
project 
instrument 
are 
enforceable 
as 
assessments under this section. 
If an assessment is payable in 
installments, the full amount of the assessment is a lien from 
the time the first installment thereof becomes due. 
The managing 
entity shall record notice of a lien on a time-share estate in 
the registry of deeds in the county in which the time-share 
estate is located. 
A notice of a lien on a time-share license 
must be recorded in the public records for the filing of security 
interests governed by the Uniform Commercial Code. 
If there is 
more than one lien, they may be listed in one filing. 
Sec. 2. 33 MRSA §595 is enacted to read: 
§595. 
Foreclosure or Commercial sale of timeshare 
1. 
Nonjudicial 
foreclosure 
of 
time-share 
estate. 
A 
time-share owner may grant to a financial institution or other 
person a mortgage with a power of sale on that owner's time-share 
estate that is governed by the 
terms of this section. 
The 
foreclosure of a mortgage with a power of sale or a lien from an 
assessment created pursuant to section 594 must be conducted 
pursuant to this section. 
The provisions of Title 14, sections 
6201 to 6209 do not apply to any such foreclosure. 
In the event of a breach of the conditions of the power of sale 
mortgage or the failure of the time-share owner 
to pay the 
assessments as and when due and owing the following procedure 
must be followed. 
A. 
Upon default, and after all applicable cure periods have 
expired, 
the 
party 
seeking 
to 
foreclose 
shall 
provide 
written notice of the default to the time-share owner at the 
owner's last known address by certified mail, return receipt 
reguested and provide a reasonable opportunity to cure of 
not less than 30 days from the date of the mailing of the 
notice letter. 
Page l-LR2960(l) 
B. 
If, 
after 
expiration 
of 
the 
3~-day period 
under 
paragraph A, the time-share owner has not cured the default 
in the manner prescribed, the party seeking to foreclose 
shall 
conduct 
a 
public 
auction 
under 
the 
conditions 
described in this paragraph. 
(1) 
Notice under this paragraph must be given as 
follows. 
(a) 
Notice of the sale must be published once in 
a public newspaper with a general circulation in 
the 
town 
or 
county 
in 
which 
the 
time-share 
property is situated. 
The publication must be not 
later than 30 days before the date of the sale, 
calculated by excluding the date of publication of 
the first notice and the date of sale. 
(b) 
A written notice of the time, date and place 
of the auction must be mailed to the last known 
address 
of 
the 
time-share 
owner 
of 
record 
by 
certified mail, return receipt requested at least 
days prior to the date of sale. 
The notice of 
sale also must be sent by certified mail, return 
receipt requested to all persons having a lien on 
the time-share estate at least 30 days prior to 
the date of the foreclosure sale. 
(c) 
The notice must contain: 
(i) 
The name of the time-share owner: 
(ii) 
The 
date, 
time 
and 
place 
of 
the 
foreclosure sale: 
( iii) 
A 
general 
description 
of 
the 
time-share estate: and 
(iv) 
The terms of the sale. 
If more 
than 
one 
time-share estate is 
to 
be 
included 
in 
the 
foreclosure 
sale, 
all 
such 
time-share estates may be combined into one notice 
of 
sale, 
with 
one 
property 
description, 
as 
described in division (d) or (e). 
(d) 
The notice of foreclosure for foreclosing on 
the lien of a time-share estate must be printed in 
substantially the following form: 
NOTICE 
OF 
SALE 
OF 
TIME-SHARE 
ESTATE 
OR 
ESTATES 
UNDER TITLE 33, SECTION 595 OF THE MAINE REVISED 
STATUTES ANNOTATED 
By 
virtue 
of 
the 
project 
instrument 
of 
the 
...••.•..•....•..•..•.•. (name 
and 
address 
of 
time-share property) 
and Title 33, 
section 594 
establishing a lien for failure to pay assessments 
on the time-share estate (or estates, if more than 
one) held by the time-share owner (or owners, if 
more than one) listed below, the time-share estate 
(or estates, if more than one) will be sold at 
Public 
Auction 
commencing 
at 
....•... 
on 
""t •••• , 
0 •• at .,., .. ,., .. ... , t ••••••••• , •• , 
Maine. 
(For each time-share estate, list the name 
and address of the time-share owner, 
a general 
description of the time-Share estate and the book 
and page number of the deed,) 
TERMS OF 
SALE: 
( State the depos it amount to be 
paid by the purchaser at the time and place of the 
sale and the times for payment of the balance or 
the whole, 
as the case may be. 
The time-share 
estates, 
if 
more 
than 
one. 
may 
be 
sold 
in 
individual lots or as a group.) 
Other terms to be announced at the sale. 
Signed ....... , , , .. , , , , , , , t 
, ••• , 
Lienholder or authorized agent. 
(e) 
For foreclosure of a mortgage lien containing 
a power of sale on a time-share estate, a notice 
of 
sale 
must 
be printed in substantially the 
following form: 
NOTICE 
OF 
SALE 
OF 
TIME-SHARE 
ESTATE 
OR 
ESTATES 
UNDER TITLE 33, SECTION 595 OF THE MAINE REVISED 
STATUTES ANNOTATED 
By 
virtue 
of 
Title 
33, 
section 
and 
in 
execution of the power of sale contained in a 
certain mortgage (or mortgages, if more than one) 
on the time share estate (or estates, if more than 
one) given by the time-share owner (or owners, if 
more than one) set forth below for breach of the 
conditions of said mortgage (or mortgages, if more 
than one) and for the purpose of foreclosing, the 
Sarne will be sold at Public Auction commencing at 
• • • •• 
n •••• , ••• , 20 •• at , ..................... , 
Maine, 
being 
all 
and 
singular 
the 
premises 
described in said mortgage (or mortgages, if more 
than one). (For each mortgage, list the name and 
address 
of 
the 
time-share 
owner, 
a 
general 
description of the time share estate and the book 
and page number of the mortgage.) 
TERMS OF 
SALE: 
(State the deposit amount to be 
paid by the purchaser at the time and place of the 
sale and the times for payment of the balance or 
the whole, 
as the case may be. 
The 
time-share 
estates, 
if 
more 
than 
one, 
may 
be 
sold 
in 
individual lots or as a group.) 
Other terms to be announced at the sale. 
Signed ............ , .... , , , , , .. 
Holder of Mortgage or authorized agent. 
(f) 
The notice o_f sale in the forms described in 
divisions 
(d) 
and 
(e), 
published in accordance 
with the provisions of this section, together with 
such other or further notice, if any, constitutes 
sufficient notice of the sale. 
(2) 
The foreclosure sale must be conducted pursuant to 
this subparagraph. 
(a) 
Unless the notice of sale otherwise provides~ 
the 
foreclosure 
sale 
must 
take 
place 
on 
the 
time-share property. 
(b) 
The 
foreclosure 
sale 
must 
be 
by 
public 
auction, 
conducted by an auctioneer or attorney 
licensed 
to 
practice 
in 
the 
State. 
At 
the 
discretion 
of 
the 
auctioneer 
or 
attorney, 
the 
reading of the names of the time-share owners, if 
more 
than 
one, 
the 
description 
of 
time-share 
estates, 
if more 
than 
one, 
and 
the 
recording 
information, if more than one instrument, may be 
dispensed with. 
( c) 
All rights of redemption of the time-share 
owner are extinguished upon sale of a time-share 
estate. 
(d) 
The managing entity, the foreclosing person 
or any time-share owner may bid at the foreclosure 
sale. 
The 
successful buyer at the foreclosure 
sale takes title to the time-share estate free and 
clear of any outstanding assessments owed by the 
prior time-share owner 
to 
the managing entity, 
except that if 
the 
buyer 
intends 
to 
use 
the 
time-share estate during the same calendar year in 
which the estate is purchased, the buyer shall pay 
the assessment for that year. 
A purchaser at a 
sale is not required to complete the purchase if 
there are liens and encumbrances, other than those 
included in the notice of sale, 
that are not 
stated at the sale and included in the foreclosing 
person's contract with the purchaser. 
(e) 
Upon closing, 
the foreclosing person shall 
provide the buyer with a foreclosure deed or other 
appropriate instrument transferring the rights to 
the time-share estate and an affidavit attesting 
that all requirements of the foreclosure pursuant 
to this section have been met. 
The time-share 
estate is 
deemed 
to 
have 
been 
sold, 
and 
the 
instrument conveying the time-share estate must 
transfer 
the 
time-share 
estate, 
subject 
to 
municipal or other public taxes and to any liens 
and encumbrances recorded prior to the recording 
of the mortgage or the lien for assessments. 
(f) 
The buyer shall record the foreclosure deed 
or other instrument with the appropriate registry 
of 
deeds 
no 
more 
than 
days 
after 
the 
foreclosure sale date. 
(g) 
Within 30 days after the closing and transfer 
of the foreclosure deed or other instrument and 
affidavit, 
the foreclosing person shall mail 
a 
notice detailing the results of the foreclosure 
sale to 
the last 
known address 
of 
the 
former 
time-share 
owner 
and all parties that held 
a 
junior interest to that of the foreclosing person. 
2. 
Foreclosure of lien or security intere_st on t~l.ljlrg 
license. 
In the case of a time-share license, the following must 
be conducted by public or private sale in accordance with the 
provisions of Title II, section 9-1610: 
A. 
The 
foreclosure 
of 
a 
lien 
on 
a 
time-share estate 
pursuant to section 594 for failure to pay assessments when 
due; or 
B. 
The exercise of the rights of a holder of a security 
interest in a time-share license for breach of the terms of 
the instrument granting the security interest. 
All rights of redemption of a time-share owner are extinguished 
upon the 
consummation of the sale proceedings. 
The 
managing 
entity, the foreclosing person or any time-share owner may bid at 
the sale or may enter into agreements for the purchase of one or 
more 
time-share 
licenses 
following 
the 
completion 
of 
sale 
proc~edings. 
The successful buyer takes title to the time-share 
license free and clear of any outstanding assessments owed by the 
prior time-share owner to the managing entity. 
3. 
For~.1.Q..li.ure of ~:t"..tg~~~mltaining power of sale. 
In the event of a breach of the conditions of a mortgage on a 
time-share estate that does not contain a power of sale, the 
holder of the mortgage may conduct a nonjudicial foreclosure of 
the interest of the time-share owner in the time-share estate 
pJ.U.£.uant to subsection 1 
if~t the same time the holder gives 
written notice of default to the time-share owner as provided in 
subsection 1, paragraph A, the holder also gives written notice 
to the time-share owner stating that unless the time-share owner 
objects in writing to the nonjudicial foreclosure within the 
30-day period reguired by subsection 1, paragraph A, the holder 
will proceed to conduct the foreclosure pursuant to subsection 
1. 
The holder must explain in the notice that the time-share 
owner has 
the right to 
a 
judicial foreclosure if the owner 
asserts the objection wi thin the specified time period and must 
include with the notice 
an objection 
form 
together with 
an 
envelope addressed to the holder. 
Failure of a time-share owner 
to object as reguired by this subsection in a timely manner is 
deemed a waiver of the owner's right to a judicial foreclosure. 
SUMMARY 
Under current law, time-share estates are considered to be 
real property. 
The judicial foreclosure of a mortgage or the 
execution of a lien for assessments is expensive. 
The cost is 
disproportionately high 
relative 
to 
the 
value 
of 
time-share 
estates. 
This bill provides for a nonjudicial process for the 
foreclosure of time-share estates pursuant to a power of sale 
granted in a mortgage instrument and for the foreclosure of a 
lien for assessments. 
This bill requires that notice of the 
foreclosure of a time-share estate be given by certified mail to 
the time-share estate owner and by means of newspaper publication 
to 
the public. 
The 
sale of 
the 
time-share estate must 
be 
conducted at an auction. 
The 
foreclosure 
of 
the rights 
of 
time-share owners in time-share licenses may only be conducted as 
a 
sale 
under 
the 
commercial 
reasonableness 
standard of 
the 
Uniform Commercial Code. 
Mortgages on time-share estates that do 
not 
contain 
a 
power 
of 
sale 
also 
may 
be 
foreclosed 
by 
a 
nonjudicial process if notice is given to the time-share owner 
and that owner fails to object to the process in a 
timely 
manner. 
This will enable older mortgages to be foreclosed by the 
nonjudicial process if the owner does not object and eliminate 
the high costs of judicial foreclosure.