(2) A summary containing all statements required to be in
conspicuous type in the public offering statement and in all exhibits
thereto.
(3) A separate index for the contents and exhibits of the public
offering statement.
(4) A text, which shall include, where applicable, the
information and disclosures set forth in paragraphs (a)-(l) below together
with cross-references to the location in the public offering statement of each
exhibit, if applicable.
(a) A description of the multisite timeshare plan, including its
term, legal structure, and form of ownership. For multisite timeshare plans
in which the purchaser will receive a timeshare estate pursuant to s. 721.57
or a specific timeshare license as defined in s. 721.552(4), the description
must also include the term of each component site within the multisite
timeshare plan.
(b) A description of the structure and ownership of the reservation
system together with a disclosure of the entity responsible for the operation
of the reservation system. The description shall include the financial terms
of any lease of the reservation system, if applicable. The developer shall
not be required to disclose the financial terms of any such lease if such
lease is prepaid in full for the term of the multisite timeshare plan or to
any extent that neither purchasers nor the managing entity will be required to
make payments for the continued use of the system following default by the
developer or termination of the managing entity.
(c)
1. A description of the manner in which the reservation system
operates. The description shall include a disclosure in compliance with the
demand balancing standard set forth in s. 721.56(6) and shall describe the
developer's efforts to comply with same in creating the reservation system.
The description shall also include a summary of the rules and regulations
governing access to and use of the reservation system.
2. In lieu of describing the rules and regulations of the
reservation system in the public offering statement text, the developer may
attach the rules and regulations as a separate public offering statement
exhibit, together with a cross-reference in the public offering statement text
to such exhibit.
3. For each component site for which occupancy information is
available, the developer shall disclose the average level of occupancy
calculated by category of quarter or season for the calendar year including
the date 2 years prior to the date on which the multisite timeshare plan is
first offered. Every 2 years such averages must be revised and updated. In
lieu of providing such information in the public offering statement text, the
developer may provide the information in a public offering statement exhibit,
together with a cross-reference in the public offering statement text to such
exhibit.
(d) The existence of and an explanation regarding any priority
reservation features that affect a purchaser's ability to make reservations
for the use of a given accommodation or facility on a first come, first served
basis, including, if applicable, the following statement in conspicuous type:
Component sites contained in the multisite timeshare plan (or
multisite vacation ownership plan or multisite vacation plan or vacation club)
are subject to priority reservation features which may affect your ability to
obtain a reservation.
(e) A summary of the material rules and regulations, if any, other
than the reservation system rules and regulations, affecting the purchaser's
use of each accommodation and facility at each component site.
(f) If the provisions of s. 721.552 and the timeshare instrument
permit additions, substitutions, or deletions of accommodations or facilities,
the public offering statement must include the following information:
1. Additions.
a. A description of the basis upon which new accommodations and
facilities may be added to the multisite timeshare plan; by whom additions may
be made; and the anticipated effect of the addition of new accommodations and
facilities upon the reservation system, its priorities, its rules and
regulations, and the availability of existing accommodations and
facilities.
b. The developer must disclose the existence of any cap on annual
increases in common expenses of the multisite timeshare plan that would apply
in the event that additional accommodations and facilities are made a part of
the plan.
c. The developer shall also disclose any extent to which the
purchasers of the multisite timeshare plan will have the right to consent to
any proposed additions; if the purchasers do not have the right to consent,
the developer must include the following disclosure in conspicuous type:
Accommodations and facilities may be added to this multisite
timeshare plan (or multisite vacation ownership plan or multisite vacation
plan or vacation club) without the consent of the purchasers. The addition of
accommodations and facilities to the plan may result in the addition of new
purchasers who will compete with existing purchasers in making reservations
for the use of available accommodations and facilities within the plan, and
may also result in an increase in the annual assessment against purchasers for
common expenses.
2. Substitutions.
a. A description of the basis upon which new accommodations and
facilities may be substituted for existing accommodations and facilities of
the multisite timeshare plan; by whom substitutions may be made; the basis
upon which the determination may be made to cause such substitutions to occur;
and any limitations upon the ability to cause substitutions to occur.
b. The developer shall also disclose any extent to which purchasers
will have the right to consent to any proposed substitutions; if the
purchasers do not have the right to consent, the developer must include the
following disclosure in conspicuous type:
New accommodations and facilities may be substituted for existing
accommodations and facilities of this multisite timeshare plan (or multisite
vacation ownership plan or multisite vacation plan or vacation club) without
the consent of the purchasers. The replacement accommodations and facilities
may be located at a different place or may be of a different type or quality
than the replaced accommodations and facilities. The substitution of
accommodations and facilities may also result in an increase in the annual
assessment against purchasers for common expenses.
3. Deletions. A description of any provision of the timeshare
instrument governing deletion of accommodations and facilities from the
multisite timeshare plan. If the timeshare instrument does not provide for
business interruption insurance in the event of a casualty, or if it is
unavailable, or if the instrument permits the developer, the managing entity,
or the purchasers to elect not to reconstruct after casualty under certain
circumstances or to secure replacement accommodations or facilities in lieu of
reconstruction, the public offering statement must contain a disclosure that
during the reconstruction, replacement, or acquisition period, or as a result
of a decision not to reconstruct, purchasers of the plan may temporarily
compete for available accommodations on a greater than one-to-one purchaser to
accommodation ratio.
(g) A description of the developer and the managing entity of the
multisite timeshare plan, including:
1. The identity of the developer; the developer's business address;
the number of years of experience the developer has in the timeshare, hotel,
motel, travel, resort, or leisure industries; and a description of any pending
lawsuit or judgment against the developer which is material to the plan. If
there are no such pending lawsuits or judgments, there shall be a statement to
that effect.
2. The identity of the managing entity of the multisite timeshare
plan; the managing entity's business address; the number of years of
experience the managing entity has in the timeshare, hotel, motel, travel,
resort, or leisure industries; and a description of any lawsuit or judgment
against the managing entity which is material to the plan. If there are no
pending lawsuits or judgments, there shall be a statement to that effect. The
description of the managing entity shall also include a description of the
relationship among the managing entity of the multisite timeshare plan and the
various component site managing entities.
(h) A description of the purchaser's liability for common expenses of
the multisite timeshare plan, including the following:
1. A description of the common expenses of the plan, including the
method of allocation and assessment of such common expenses, whether component
site common expenses and real estate taxes are included within the total
common expense assessment of the multisite timeshare plan, and, if not, the
manner in which timely payment of component site common expenses and real
estate taxes shall be accomplished.
2. A description of any cap imposed upon the level of common
expenses payable by the purchaser. In no event shall the total common expense
assessment for the multisite timeshare plan in a given calendar year exceed
125 percent of the total common expense assessment for the plan in the
previous calendar year.
3. A description of the entity responsible for the determination of
the common expenses of the multisite timeshare plan, as well as any entity
which may increase the level of common expenses assessed against the purchaser
at the multisite timeshare plan level.
4. A description of the method used to collect common expenses,
including the entity responsible for such collections, and the lien rights of
any entity for nonpayment of common expenses. If the common expenses of any
component site are collected by the managing entity of the multisite timeshare
plan, a statement to that effect together with the identity and address of the
escrow agent required by s. 721.56(3).
5. If the purchaser will receive a nonspecific timeshare license as
defined in s. 721.552(4), a statement that a multisite timeshare plan budget
is attached to the public offering statement as an exhibit pursuant to
paragraph (7)(c). The multisite timeshare plan budget shall comply with the
provisions of s. 721.07(5)(x).
6. If the developer intends to guarantee the level of assessments
for the multisite timeshare plan, such guarantee must be based upon a good
faith estimate of the revenues and expenses of the multisite timeshare plan.
The guarantee must include a description of the following:
a. The specific time period, measured in one or more calendar or
fiscal years, during which the guarantee will be in effect.
b. A statement that the developer will pay all common expenses
incurred in excess of the total revenues of the multisite timeshare plan, if
the developer is to be excused from the payment of assessments during the
guarantee period.
c. The level, expressed in total dollars, at which the developer
guarantees the assessments. If the developer has reserved the right to extend
or increase the guarantee level, a disclosure must be included to that
effect.
7. As required under applicable law, the developer shall also
disclose the following matters for each component site:
a. Any limitation upon annual increases in common expenses;
b. The existence of any bad debt or working capital reserve;
and
c. The existence of any replacement or deferred maintenance
reserve.
(i) If there are any restrictions upon the sale, transfer,
conveyance, or leasing of an interest in a multisite timeshare plan, a
description of the restrictions together with a statement in conspicuous type
in substantially the following form:
The sale, lease, or transfer of interests in this multisite timeshare
plan is restricted or controlled.
(j) The following statement in conspicuous type in substantially the
following form:
The purchase of an interest in a multisite timeshare plan (or
multisite vacation ownership plan or multisite vacation plan or vacation club)
should be based upon its value as a vacation experience or for spending
leisure time, and not considered for purposes of acquiring an appreciating
investment or with an expectation that the interest may be resold.
(k) If the multisite timeshare plan provides purchasers with the
opportunity to participate in an exchange program, a description of the name
and address of the exchange company and the method by which a purchaser
accesses the exchange program. In lieu of this requirement, the public
offering statement text may contain a cross-reference to other provisions in
the public offering statement or in an exhibit containing this
information.
(l) A description of each component site, which description may be
disclosed in a written, graphic, tabular, or other form approved by the
division. The description of each component site shall include the following
information:
1. The name and address of each component site.
2. The number of accommodations and timeshare periods, expressed in
periods of 7-day use availability, committed to the multisite timeshare plan
and available for use by purchasers.
3. Each type of accommodation in terms of the number of bedrooms,
bathrooms, sleeping capacity, and whether or not the accommodation contains a
full kitchen. For purposes of this description, a full kitchen shall mean a
kitchen having a minimum of a dishwasher, range, sink, oven, and
refrigerator.
4. A description of facilities available for use by the purchaser at
each component site, including the following:
a. The intended use of the facility, if not apparent from the
description.
b. The capacity of the facility in terms of the number of people
who can use it at any one time.
c. If the facility is a swimming pool, a statement as to whether or
not the pool is heated.
d. Any user fees associated with a purchaser's use of the
facility.
5. A cross-reference to the location in the public offering
statement of the description of any priority reservation features which may
affect a purchaser's ability to obtain a reservation in the component
site.
(5) Such other information as the division determines is
necessary to fairly, meaningfully, and effectively disclose all aspects of the
multisite timeshare plan, including, but not limited to, any disclosures made
necessary by the operation of s. 721.03(9). However, if a developer has, in
good faith, attempted to comply with the requirements of this section, and if,
in fact, the developer has substantially complied with the disclosure
requirements of this chapter, nonmaterial errors or omissions shall not be
actionable.
(6) Any other information that the developer, with the approval
of the division, desires to include in the public offering statement
text.
(7) The following documents shall be included as exhibits to the
public offering statement filed with the division, if applicable:
(a) The timeshare instrument.
(b) The reservation system rules and regulations.
(c) The multisite timeshare plan budget pursuant to subparagraph
(4)(h)5.
(d) Any document containing the material rules and regulations
described in paragraph (4)(e).
(e) Any contract, agreement, or other document through which
component sites are affiliated with the multisite timeshare plan.
(f) Any escrow agreement required pursuant to s. 721.08 or s.
721.56(3).
(g) The form agreement for sale or lease of an interest in the
multisite timeshare plan.
(h) The form receipt for multisite timeshare plan documents required
to be given to the purchaser pursuant to s. 721.551(2)(b).
(i) The description of documents list required to be given to the
purchaser by s. 721.551(2)(b).
(j) The component site managing entity affidavit or statement
required by s. 721.56(1).
(k) Any subordination instrument required by s. 721.53.
(l)
1. If the multisite timeshare plan contains any component sites
located in this state, the information required by s. 721.07(5) pertaining to
each such component site.
2. If the purchaser will receive a timeshare estate pursuant to s.
721.57 or a specific timeshare license as defined in s. 721.552(4) in a
component site located outside of this state but which is offered in this
state, the information required by s. 721.07(5) pertaining to that component
site.
(8)
(a) A timeshare plan containing only one component site must be filed
with the division as a multisite timeshare plan if the timeshare instrument
reserves the right for the developer to add future component sites. However,
if the developer fails to add at least one additional component site to a
timeshare plan described in this [Footnote 2] paragraph within 3 years after
the date the plan is initially filed with the division, the multisite filing
for such plan shall thereupon terminate, and the developer may not thereafter
offer any further interests in such plan unless and until he refiles such plan
with the division pursuant to this chapter.
(b) The public offering statement for any timeshare plan described in
paragraph (a) must include the following disclosure in conspicuous type:
This timeshare plan has been filed as a multisite timeshare plan (or
multisite vacation ownership plan or multisite vacation plan or vacation
club); however, this plan currently contains only one component site. The
developer is not required to add any additional component sites to the plan.
Do not purchase an interest in this plan in reliance upon the addition of any
other component sites.
History: s. 12, ch. 93-58; s. 22, ch. 95-274.
[Footnote 1] Note. Section 66, ch. 95-274, provides that
"this act shall take effect June 14, 1995; however, with
respect to any timeshare plan or exchange program filing approved by the
division prior to June 14, 1995, the amendments to s. 721.05(15), s.
721.07, s. 721.52(4) and (5), or s. 721.55, Florida Statutes, and the
creation of ss. 721.551, 721.552, and 721.553, Florida Statutes, shall not
apply to such filing or to any amendments to such filing made subsequent to
June 14, 1995 unless and only to the extent that the developer or
exchange company otherwise voluntarily agrees to comply with all or a portion
of such provisions. The amendments to s. 721.05(15), s. 721.07, s. 721.52(4)
and (5), or s. 721.55, Florida Statutes, and the creation of ss. 721.551,
721.552, and 721.553, Florida Statutes, shall apply to all timeshare plan and
exchange program filings and amendments thereto on January 1, 1996, regardless
of the date on which such filings and amendments were made or
approved."
[Footnote 2] Note. The word "paragraph" was substituted for
the word "subparagraph" by the editors.
