Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 106 - TIME SHARING › Subchapter 1 - GENERAL PROVISIONS › Section 16-106-2 - Definitions

Current through June, 2024
Definitions of terms found in section
				  514E-1,
				  HRS, shall be adopted by reference. In addition, as used in this
				  chapter:
"Annex" means to add any unit or units to a registered time
				  share plan.
"Booth" means a temporary place of business, other than a
				  licensed real estate broker's principal place of business, branch office, or
				  site office, which is established for the purpose of inviting or encouraging
				  invitees to attend a time share sales presentation.
"Cash bond" means a bond running to the State and executed
				  by the acquisition agent or plan manager, as principal; provided that in lieu
				  of any surety or sureties, the principal shall furnish security in certified
				  checks or certificates of deposit equal to the full cash value or one hundred
				  per cent of the amount of the bond.
"Department" means the department of commerce and consumer
				  affairs.
"Facilities" means any structure, service, or property,
				  whether improved or unimproved, made available to the purchaser for
				  recreational, social, family, or personal use.
"Invitee" means an individual who is contacted by an OPC and
				  invited or encouraged to attend a time share sales presentation.
"Irrevocable letter of credit" means an irrevocable credit
				  running to the State, drawn upon a bank or savings and loan association in the
				  amount required by section
				  16-106-40.
"Material change" means any change of circumstance which
				  would render the information provided in the disclosure statement or in any
				  application for registration no longer accurate or misleading as to purchasers
				  or which affects the rights and obligations of a purchaser or a prospective
				  purchaser of a time share interest, including, but not limited to, change in
				  the nature of the time share plan; change in the period of time usage of the
				  unit; and change in terms and increase in the amounts of underlying
				  encumbrances; provided that administrative changes relating to the operation of
				  the time share plan, including, but not limited to, a change in the RME or
				  person designated for service of process for a corporate registrant, shall not
				  be deemed a material change for purposes of this chapter.
"Outside public contact" or "OPC" means an individual who
				  acts as an acquisition agent and who does not engage in the sale of time share
				  interests.
"Preexisting time share unit" means:
(1) A time share unit in existence prior to June 29, 1980, in
				  which the actual receipt of possession, occupancy, or right of use of the unit
				  was obtained by the purchaser or user prior to June 29, 1980, which receipt of
				  possession, occupancy, or right of use may be evidenced by, but not be limited
				  to, tenancy in common, sale, deed, membership agreement, lease, rental
				  agreement, license, use agreement, or security; or
(2) A time share unit which has been explicitly provided for
				  in a project instrument or in a declaration or other instrument describing a
				  time share plan for property specified therein and which instrument or
				  declaration was recorded in the State office of the assistant registrar of the
				  land court or the State bureau of conveyances prior to June 29, 1980.
"Registrant" means a developer, acquisition agent, sales
				  agent, OPC, sales agent employee/independent contractor, plan manager, or
				  exchange agent required under chapter
				  514E, HRS, or any rule promulgated
				  pursuant thereto, to register with the director.
"Resale agent" means a person who, for a commission or
				  compensation, sells or offers to sell a resale time share interest on behalf of
				  a third party.
"Resale time share interest" means:
(1) A time share interest in a registered or previously
				  registered time share plan that is being resold by the holder of a purchaser
				  money lien who acquires title or ownership to the time share interest as a
				  result of the default of the purchaser under the purchaser money lien;
				  provided, however, that time share interests that are reacquired by currently
				  registered developers are not included; or
(2) A time share interest that is being sold by a person who
				  acquired the time share interest for the person's own occupancy. For the
				  purposes of this definition, the phrase "person who acquired the time share
				  interest for the person's own occupancy" shall mean a person who owns not more
				  than two time share interests, unless the person can prove to the satisfaction
				  of the director that more than two time share interests were purchased for the
				  person's own occupancy.
"Responsible managing employee" or "RME" means the
				  individual employed by a corporate registrant, which individual is responsible
				  for the direct management of the corporate registrant's time share
				  operation.
"State" means the State of Hawaii.
"Supplementary disclosure statement" means an amended
				  disclosure statement filed when there has been a material change in the
				  information provided in the original disclosure statement.
"Time share operation" means any business or operation
				  which, for compensation, solicits or encourages others to attend a time share
				  sales presentation or to contact a time share sales agent or developer; or
				  creates a time share plan; or sells time share units; or sells or offers to
				  sell an interest in a time share plan for a developer; or undertakes the
				  duties, responsibilities, and obligations of managing a time share
				  plan.