Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 106 - TIME SHARING › Subchapter 2 - REGISTRATION REQUIREMENTS › Section 16-106-3 - Developer registration

Current through June, 2024
(a) Unless the
				transaction is exempt by law, a developer shall not offer, sell, transfer, or
				otherwise dispose of any time share interest in a time share plan through
				marketing efforts in the State, whether the plan is comprised of any unit or
				units located in the State or out-of-state, unless the developer for the plan
				has filed with the director an application for registration as prescribed by
				section 16-106-4(a), and the application has been accepted for registration by
				the director. The requirement for registration shall also be satisfied before a
				developer may offer, sell, transfer, or otherwise dispose of any interest in a
				time share plan comprised of any unit or units located in the State through
				out-of-state marketing efforts. An application for registration shall include
				the filing of a disclosure statement meeting the requirements set forth in this
				section.
(b) The following shall be
				printed on the bottom half of the face page of the disclosure statement, in
				centered capital letters in bold print one-half inch in size, with one-half
				inch spaces between lines:
READ THIS
DISCLOSURE STATEMENT
BEFORE SIGNING
ANYTHING
and below it, the following shall be printed:
The disclosure statement is prepared and issued by the
				  developer of the time share plan. It is NOT prepared or issued by the State of
				  Hawaii.
THE STATE OF HAWAII HAS NOT PASSED ON THE MERITS OF THE TIME
				  SHARE PLAN DESCRIBED HEREIN.
(c) Any
				disclosure statement distributed to the public shall:
(1) Comply with the disclosure requirements
				set forth in section
				514E-9,
				HRS;
(2) Provide a description of
				the number of units and types of units being offered by the developer for the
				time share plan;
(3) Provide a
				summary of the provisions of the escrow agreement required under chapter
				514E, HRS, and as provided for in
				subchapter
				9;
(4) If the developer is offering to sell any
				time share interest by agreement of sale or other installment sales contract,
				and the time share interest being sold is subject to a "blanket lien" (as that
				term is defined in section
				514E-1,
				HRS), provide a description of the consequences which a subsequent foreclosure
				of that blanket lien will have upon the purchaser's interest in the agreement
				of sale or sales contract and the time share interest being sold
				thereunder;
(5) Provide a brief
				description of the hazard and liability insurance coverages on the project and
				any protection afforded purchasers against the possible loss or destruction of
				the time share unit or units;
(6)
				Provide a brief description of the method by which interests in the time share
				plan will be offered, the name and address of each sales agent through which
				the offering is to be made, and a statement of any material relationship,
				exclusive of the marketing relationship, between the developer and each
				agent;
(7) Disclose the major
				conflicts of interest which may arise on the part of the plan manager in
				carrying out the duties, responsibilities, and obligations attendant to the
				position of a plan manager, if the developer or an affiliate of the developer
				is also designated as the plan manager for the time share plan; and
(8) Disclose the major conflicts of interest
				which may arise on the part of the exchange agent (if an exchange program is
				offered for the time share plan) in carrying out the duties, responsibilities,
				and obligations attendant to the position of an exchange agent, if the
				developer or an affiliate of the developer is also designated as an exchange
				agent for the time share plan.