(765 ILCS 101/Art. 5 heading)
Article 5.
Registration Requirements and Fees
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(765 ILCS 101/5-5)
Sec. 5-5. Exemptions from developer registration. A person shall not be
required to register as a developer under this Act if:
(1) the person is an owner of a timeshare interest
| | who has acquired the timeshare interest for the person's own use and occupancy and who later offers it for resale; or
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(2) the person is a managing entity or an
| | association that is not otherwise a developer of a timeshare plan in its own right, solely while acting as an association or under a contract with an association to offer or sell a timeshare interest transferred to the association through foreclosure, deed in lieu of foreclosure, or gratuitous transfer, if such acts are performed in the regular course of, or as an incident to, the management of the association for its own account in the timeshare plan; or
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(3) the person offers a timeshare plan in a national
| | publication or by electronic media, as determined by the Department and provided by rule, which is not directed to or targeted to any individual located in Illinois; or
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(4) the person is conveyed, assigned, or transferred
| | more than 7 timeshare periods from a developer in a single voluntary or involuntary transaction and subsequently conveys, assigns, or transfers all of the timeshare interests received from the developer to a single purchaser in a single transaction.
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(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-10)
Sec. 5-10.
Exempt communications.
(a) The following communications are
exempt from the provisions of this Act:
(1) Any stockholder communication such as an annual
| | report or interim financial report, proxy material, a registration statement, a securities prospectus, a registration, a property report, or other material required to be delivered to a prospective purchaser by an agency of any state or the federal government.
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(2) Any oral or written statement disseminated by a
| | developer to broadcast or print media, other than paid advertising or promotional material, regarding plans for the acquisition or development of timeshare property. However, any rebroadcast or any other dissemination of such oral statements to a prospective purchaser by a seller in any manner, or any distribution of copies of newspaper magazine articles or press releases, or any other dissemination of such written statements to a prospective purchaser by a seller in any manner, shall constitute an advertisement.
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(3) Any advertisement or promotion in any medium to
| | the general public if such advertisement or promotion clearly states that it is not an offer in any jurisdiction in which any applicable registration requirements have not been fully satisfied.
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(4) Any audio, written, or visual publication or
| | material relating to the availability of any accommodations for transient rental, so long as a sales presentation is not a term or condition of the availability of such accommodations and so long as the failure of any transient renter to take a tour of a timeshare property or attend a sales presentation does not result in any reduction in the level of services which would otherwise be available to such transient renter.
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(b) The following communications are exempt from the provisions of this Act,
provided they are delivered to any person who has previously executed a
contract for the purchase of or is an existing owner of a timeshare interest in
a
timeshare plan:
(1) Any communication addressed to and relating to
| | the account of any person who has previously executed a contract for the sale or purchase of a timeshare period in a timeshare plan to which the communication relates.
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(2) Any audio, written, or visual publication or
| | material relating to an exchange company or exchange program provided to an existing member of that exchange company or exchange program.
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(3) Any communication by a developer to encourage a
| | person who has previously acquired a timeshare interest from the developer to acquire additional use or occupancy rights or benefits, or additional timeshare interests, offered by the same developer.
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(Source: P.A. 91-585, eff. 1-1-00.)
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(765 ILCS 101/5-15)
Sec. 5-15. Developer registration requirements.
(a) Registration required. Any person who
sells, offers to sell, or attempts to solicit prospective purchasers or to solicit any individual located in Illinois to
purchase a timeshare
interest, or any person who creates a timeshare plan with an accommodation in
the State
of Illinois, shall register as a developer with the Department and shall comply with the provisions of subsection (c) of this Section.
(b) Items to be registered. A developer shall be responsible for
registering with
the Department, on forms provided by the Department, the following:
(1) All timeshare plans which have accommodations
| | located in Illinois or which are sold or offered for sale to any individual located in Illinois.
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(2) All sales agents who sell or offer to sell any
| | timeshare interests in any timeshare plan offered by the developer to any individual located in Illinois.
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(3) All acquisition agents who, by means of
| | inducement, promotion, or advertisement, attempt to encourage or procure prospective purchasers located in Illinois to attend a sales presentation for any timeshare plan offered by the developer.
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(4) All managing entities who manage any timeshare
| | plan offered or sold by the developer to any individual located in Illinois, without limitation as to whether the location of the accommodation site managed is within Illinois.
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(c) Escrow. The developer shall comply with the following escrow
requirements:
(1) A developer of a timeshare plan shall deposit
| | into an escrow account in a federally insured depository 100% of all funds which are received during the purchaser's rescission period. The deposit of such funds shall be evidenced by an executed escrow agreement between the escrow agent and the developer, which shall include provisions that:
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(A) funds may be disbursed to the developer by
| | the escrow agent from the escrow account only after expiration of the purchaser's rescission period and in accordance with the purchase contract, subject to paragraph (2) of this subsection; and
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(B) if a purchaser properly cancels the purchase
| | contract pursuant to its terms, the funds shall be paid to the purchaser or paid to the developer if the purchaser's funds have been previously refunded by the developer.
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(2) If a developer contracts to sell a timeshare
| | interest and the construction of any property in which the timeshare interest is located has not been completed, the developer, upon expiration of the rescission period, shall continue to maintain in an escrow account all funds received by or on behalf of the developer from the purchaser under his or her purchase contract. The Department shall establish, by rule, the types of documentation which shall be required for evidence of completion, including but not limited to a certificate of occupancy, a certificate of substantial completion, or an inspection by the Office of the State Fire Marshal or the State Fire Marshal's designee or an equivalent public safety inspection agency in the applicable jurisdiction. Funds shall be released from escrow as follows:
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(A) If a purchaser properly cancels the purchase
| | contract pursuant to its terms, the funds shall be paid to the purchaser or paid to the developer if the purchaser's funds have been previously refunded by the developer.
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(B) If a purchaser defaults in the performance
| | of the purchaser's obligations under the purchase contract, the funds shall be paid to the developer.
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(C) If the funds of a purchaser have not been
| | previously disbursed in accordance with the provisions of this paragraph (2), they may be disbursed to the developer by the escrow agent upon the issuance of acceptable evidence of completion of construction as provided herein.
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(3) In lieu of the provisions in paragraphs (1) and
| | (2), the Department may accept from the developer a surety bond, irrevocable letter of credit, or other financial assurance acceptable to the Department, as provided by rule. Any acceptable financial assurance must be in an amount equal to or in excess of the funds which would otherwise be placed in escrow, or in an amount equal to the cost to complete the incomplete property in which the timeshare interest is located.
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(4) The developer shall provide escrow account
| | information to the Department and shall execute in writing an authorization consenting to an audit or examination of the account by the Department on forms provided by the Department. The developer shall comply with the reconciliation and records requirements established by rule by the Department. The developer shall make documents related to the escrow account or escrow obligation available to the Department upon the Department's request. The developer shall maintain any disputed funds in the escrow account until either:
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(A) receipt of written direction agreed to by
| | signature of all parties; or
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(B) deposit of the funds with a court of
| | competent jurisdiction in which a civil action regarding the funds has been filed.
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(d) Comprehensive registration. In registering a timeshare plan, the
developer shall be responsible for providing information on the following:
(1) The developer's legal name, any assumed names
| | used by the developer, principal office street address, mailing address, primary contact person, and telephone number;
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(2) The name of the developer's authorized or
| | registered agent in the State of Illinois upon whom claims can be served or service of process be had, the agent's street address in Illinois, and telephone number;
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(3) The name, street address, mailing address,
| | primary contact person, and telephone number of any timeshare plan being registered;
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(4) The name, street address, mailing address and
| | telephone number of any sales agent and acquisition agent utilized by the developer, and any managing entity of the timeshare plan;
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(5) A public offering statement which complies with
| | the requirements of Sections 5-25; and
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(6) Any other information regarding the developer,
| | timeshare plan, sales agents, acquisition agents, or managing entities as reasonably required by the Department and established by rule.
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(e) Abbreviated registration. The Department
may accept, as provided for by rule, an abbreviated registration
application of a
developer of a timeshare plan in which all accommodations are located outside
of the
State of Illinois. A developer of a timeshare plan with any
accommodation
located in the
State of Illinois may not file an abbreviated filing, with the exception of a
succeeding
developer after a merger or acquisition when all of the developers' timeshare
plans were
registered in Illinois immediately preceding the merger or acquisition.
The developer shall provide a certificate of registration or other evidence
of
registration from the appropriate regulatory agency of any other jurisdiction
within the
United States in which some or all of such accommodations are located.
The other
jurisdiction must have disclosure requirements that are substantially
equivalent to or
greater than the information required to be disclosed to purchasers by the
State of Illinois.
A developer filing an abbreviated registration application shall provide the
following:
(1) The developer's legal name, any assumed names
| | used by the developer, and the developer's principal office location, mailing address, primary contact person, and telephone number.
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(2) The name, location, mailing address, primary
| | contact person, and telephone number of the timeshare plan.
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(3) The name of the authorized agent or registered
| | agent in Illinois upon whom claims can be served or service of process can be had, and the address in Illinois of the authorized agent or registered agent.
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(4) The names of any sales agent, acquisition agent,
| | and managing entity, and their principal office location, mailing address, and telephone number.
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(5) The certificate of registration or other
| | evidence of registration from any jurisdiction in which the timeshare plan is approved or accepted.
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(6) A declaration as to whether the timeshare plan
| | is a single-site timeshare plan or a multi-site timeshare plan and, if a multi-site timeshare plan, whether it consists of specific timeshare interests or non-specific timeshare interests.
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(7) Disclosure of each jurisdiction in which the
| | developer has applied for registration of the timeshare plan, and whether the timeshare plan, its developer, or any of its acquisition agents, sales agents, or managing entities utilized were denied registration or were the subject of any disciplinary proceeding.
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(8) Copies of any disclosure documents required to
| | be given to purchasers or required to be filed with the jurisdiction in which the timeshare plan is approved or accepted as may be requested by the Department.
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(9) The appropriate fee.
(10) Such other information reasonably required by
| | the Department and established by rule.
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(f) Preliminary permits. Notwithstanding anything in this Section to the
contrary,
the Department may grant a 6-month preliminary permit, as
established by rule, allowing the developer to begin offering and selling
timeshare
interests while the registration is in process. To obtain a preliminary
permit,
the
developer shall do all of the following:
(1) (Blank).
(2) Submit an application in form and substance
| | satisfactory to the Department for registration, including all appropriate fees and exhibits required under this Article.
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(3) Provide evidence acceptable to the Department
| | that all funds received by the developer will be placed into an independent escrow account with instructions that funds will not be released until a final registration has been granted.
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(4) Give to each purchaser and potential purchaser a
| | copy of the proposed public offering statement that the developer has submitted to the Department with the initial application.
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(5) Give to each purchaser the opportunity to cancel
| | the purchase contract in accordance with Section 10-10. The purchaser shall have an additional opportunity to cancel upon the issuance of an approved registration if the Department determines that there is a substantial difference in the disclosures contained in the final public offering statement and those given to the purchaser in the proposed public offering statement.
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(g) Alternative registration; letter of credit or other assurance; recovery.
(1) Notwithstanding anything in this Act to the
| | contrary, the Department may accept, as established by rule, a registration from a developer for a timeshare plan if the developer provides all of the following:
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(A) (Blank).
(B) An irrevocable letter of credit or other
| | acceptable assurance, as established by rule, in an amount of $1,000,000, from which an Illinois purchaser aggrieved by any act, representation, transaction, or conduct of a duly registered developer or his or her acquisition agent, sales agent, managing entity, or employee, which violates any provision of this Act or the rules promulgated under this Act, or which constitutes embezzlement of money or property or results in money or property being unlawfully obtained from any person by false pretenses, artifice, trickery, or forgery or by reason of any fraud, misrepresentation, discrimination, or deceit by or on the part of any developer or agent or employee of the developer and which results in actual monetary loss as opposed to a loss in market value, may recover.
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(C) The developer's legal name, any assumed
| | names used by the developer, and the developer's principal office location, mailing address, main contact person, and telephone number.
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(D) The name, location, mailing address, main
| | contact person, and telephone number of the timeshare plan included in the filing.
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(E) The name of the authorized agent or
| | registered agent in Illinois upon whom claims can be served or service of process can be had, and the address in Illinois of the authorized agent or registered agent.
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(F) The names of any sales agent, acquisition
| | agent, and managing entity, and their principal office location, mailing address, and telephone number.
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(G) A declaration as to whether the timeshare
| | plan is a single-site timeshare plan or a multi-site timeshare plan and, if a multi-site timeshare plan, whether it consists of specific timeshare interests or non-specific timeshare interests.
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(H) Disclosure of each jurisdiction in which the
| | developer has applied for registration of the timeshare plan, and whether the timeshare plan, its developer, or any of its acquisition agents, sales agents, or managing entities utilized were denied registration or were the subject of any disciplinary proceeding.
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(I) The required fee.
(J) Such other information reasonably required by
| | the Department and established by rule.
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(2) Any letter of credit or other acceptable
| | assurance shall remain in effect with the Department for a period of 12 months after the date the developer does not renew or otherwise cancel his or her registration with the State of Illinois or 12 months after the Department revokes, suspends, or otherwise disciplines such developer or his or her registration, provided there is no pending litigation alleging a violation of any provision of this Act known by the Department and certified by the developer.
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(3) The Department shall establish procedures, by
| | rule, to satisfy claims by any Illinois purchaser pursuant to this Section.
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(4) The Department shall automatically suspend the
| | registration of any developer pursuant to Section 15-25 of this Act in the event the Department authorizes or directs payment to an Illinois purchaser from the letter of credit or other acceptable assurance pursuant to this Section and as established by rule.
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(h) A developer who registers a timeshare plan pursuant to this
Act
shall
provide the purchaser with a public offering statement that complies with
Section
5-25 and any disclosures or other written information required by this Act.
(i) Nothing contained in this Section shall affect the Department's ability to initiate any disciplinary action against a developer in
accordance with this Act.
(j) For purposes of this Section, "Illinois purchaser" means a person
who,
within the State of Illinois, is solicited, offered, or sold a timeshare
interest in a timeshare
plan registered pursuant to this Section.
(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-20)
Sec. 5-20. Developer supervisory duties. The developer shall have the
duty
to supervise, manage, and control all aspects of the offering of the timeshare
plan,
including, but not limited to, promotion, advertising, contracting, and
closing.
The
developer shall have responsibility for each timeshare plan registered with the Department
and for the actions of any sales agent, managing entity,
and
acquisition agent utilized by the developer in the offering or selling of any
registered
timeshare plan. Any violation of this Act which occurs during the offering
activities shall
be deemed to be a violation by the developer as well as by the acquisition
agent, sales
agent, or managing entity who actually committed such violation.
Notwithstanding
anything to the contrary in this Act, the developer shall be responsible
for the actions
of the association and managing entity only while they are subject to the
developer's
control.
(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-25)
Sec. 5-25. Timeshare plan public offering statement requirements.
(a) A developer shall prepare a public offering statement, shall provide the
statement to each purchaser of a timeshare interest in any timeshare plan at
the time of
purchase, and shall fully and accurately disclose those facts concerning the
timeshare
developer and timeshare plan that are required by
this Act or by rule.
The public offering statement shall be in writing and dated and shall require
the purchaser
to certify in writing the receipt thereof.
(b) With regard to timeshare interests offered in a timeshare plan, a public
offering
statement shall fully and accurately disclose the following:
(1) The name of the developer and the principal
| | address of the developer.
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(2) A description of the type of timeshare interests
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(3) A general description of the existing and
| | proposed accommodations and amenities of the timeshare plan, including their type and number, personal property furnishing the accommodation, any use restrictions, and any required fees for use.
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(4) A description of any accommodations and
| | amenities that are committed to be built, including, without limitation:
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(A) the developer's schedule of commencement and
| | completion of all accommodations and amenities; and
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(B) the estimated number of accommodations per
| | site that may become subject to the timeshare plan.
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(5) A brief description of the duration, phases, and
| | operation of the timeshare plan.
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(6) The current annual budget, if available, or the
| | projected annual budget for the timeshare plan. The budget shall include, without limitation:
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(A) a statement of the amount, or a statement
| | that there is no amount, included in the budget as a reserve for repairs and replacement;
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(B) the projected common expense liability, if
| | any, by category of expenditures for the timeshare plan; and
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(C) a statement of any services or expenses not
| | reflected in the budget that the developer provides or pays.
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(7) Any initial or special fee due from the purchaser
| | at closing, together with a description of the purpose and method of calculating the fee.
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(8) A description of any liens, defects, or
| | encumbrances on or affecting the title to the timeshare interests.
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(9) A description of any financing offered by or
| | available through the developer.
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(10) A statement that within 5 calendar days after
| | receipt of the public offering statement or after execution of the purchase contract, whichever is later, a purchaser may cancel any purchase contract for a timeshare interest from a developer together with a statement providing the name and street address to which the purchaser should mail any notice of cancellation. However, if by agreement of the parties by and through the purchase contract, the purchase contract allows for cancellation of the purchase contract for a period of time exceeding 5 calendar days, then the public offering statement shall include a statement that the cancellation of the purchase contract is allowed for that period of time exceeding 5 calendar days.
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(11) A statement of any pending suits, adjudications,
| | or disciplinary actions material to the timeshare interests of which the developer has knowledge.
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(12) Any restrictions on alienation of any number or
| | portion of any timeshare interests.
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(13) A statement describing liability and casualty
| | insurance for the timeshare property.
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(14) Any current or expected fees or charges to be
| | paid by timeshare purchasers for the use of any amenities related to the timeshare property.
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(15) The extent to which financial arrangements have
| | been provided for completion of all promised improvements.
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(16) The developer or managing entity must notify the
| | Department of the extent to which an accommodation may become subject to a tax or other lien arising out of claims against other purchasers in the same timeshare plan. The Department may require the developer or managing entity to notify a prospective purchaser of any such potential tax or lien which would materially and adversely affect the prospective purchaser.
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(17) A statement indicating that the developer and
| | timeshare plan are registered with the State of Illinois.
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(18) If the 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.
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(19) Such other information reasonably required by
| | the Department and established by administrative rule necessary for the protection of purchasers of timeshare interests in timeshare plans.
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(20) Any other information that the developer, with
| | the approval of the Department, desires to include in the public offering statement.
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(c) A developer offering a multi-site timeshare plan shall also fully and
accurately disclose the following information, which may be disclosed in a
written,
graphic, or tabular form:
(1) A description of each component site, including
| | the name and address of each component site.
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(2) The number of accommodations and timeshare
| | periods, expressed in periods of 7-day use availability, committed to the multi-site timeshare plan and available for use by purchasers.
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(3) Each type of accommodation in terms of the number
| | of bedrooms, bathrooms, and sleeping capacity, and a statement of whether or not the accommodation contains a full kitchen. For purposes of this description, a "full kitchen" means a kitchen having a minimum of a dishwasher, range, sink, oven, and refrigerator.
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(4) A description of amenities available for use by
| | the purchaser at each component site.
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(5) A description of the reservation system, which
| | shall include the following:
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(A) The entity responsible for operating the
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(B) A summary of the rules and regulations
| | governing access to and use of the reservation system.
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(C) 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 on a first-come, first-served basis.
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(6) A description of any right to make any additions,
| | substitutions, or deletions of accommodations or amenities, and a description of the basis upon which accommodations and amenities may be added to, substituted in, or deleted from the multi-site timeshare plan.
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(7) A description of the purchaser's liability for
| | any fees associated with the multi-site timeshare plan.
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(8) The location and the anticipated relative use
| | demand of each component site in a multi-site timeshare plan, as well as any periodic adjustment or amendment to the reservation system which may be needed in order to respond to actual purchaser use patterns and changes in purchaser use demand for the accommodations existing at that time within the multi-site timeshare plan.
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(9) Such other information reasonably required by the
| | Department and established by administrative rule necessary for the protection of purchasers of timeshare interests in timeshare plans.
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(10) Any other information that the developer, with
| | the approval of the Department, desires to include in the public offering statement.
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(d) If a developer offers a non-specific timeshare interest in a multi-site
timeshare
plan, the developer shall disclose the information set forth in subsection (b)
as to each
component site.
(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-30)
Sec. 5-30. Exchange company registration and disclosure requirements.
(a) An exchange company shall register with the Department at least 20 calendar days prior to offering an exchange program to purchasers in this State.
(b) If a purchaser is offered the opportunity to become a member of an
exchange
program, the developer shall deliver to the purchaser, together with the public
offering
statement and any other materials required to be furnished under this Section,
and prior to
the offering or execution of any contract between the purchaser and the
exchange
company offering membership in the exchange program, or, if the exchange
company is
dealing directly with the purchaser, the developer or the exchange company
shall deliver
to the purchaser, prior to the initial offering or execution of any contract
between the
purchaser and the exchange company, the following written information regarding
the
exchange program, the form and substance of which shall first be approved by
the Department in accordance with this Section:
(1) The name and address of the exchange company.
(2) The names of all officers, directors, and
| | shareholders of the exchange company.
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(3) Whether the exchange company or any of its
| | officers or directors have any legal or beneficial interest in any developer, seller, or managing entity for any timeshare plan participating in the exchange program and, if so, the identity of the timeshare plan and the nature of the interest.
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(4) Unless otherwise stated, a statement that the
| | purchaser's contract with the exchange company is a contract separate and distinct from the purchaser's contract with the seller of timeshare interests.
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(5) Whether the purchaser's participation in the
| | exchange program is dependent upon the continued affiliation of the applicable timeshare plan with the exchange program.
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(6) A statement that the purchaser's participation
| | in the exchange program is voluntary.
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(7) A complete and accurate description of the terms
| | and conditions of the purchaser's contractual relationship with the exchange program and the procedure by which changes thereto may be made.
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(8) A complete and accurate description of the
| | procedures necessary to qualify for and effectuate exchanges.
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(9) A complete and accurate description of all
| | limitations, restrictions, and priorities employed in the operation of the exchange program, including but not limited to limitations on exchanges based on seasonality, accommodation size, or levels of occupancy, expressed in conspicuous type, and, in the event that those limitations, restrictions, or priorities are not uniformly applied by the exchange company, a clear description of the manner in which they are applied.
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(10) Whether exchanges are arranged on a
| | space-available basis and whether any guarantees of fulfillment of specific requests for exchanges are made by the exchange company.
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(11) Whether and under what circumstances an owner,
| | in dealing with the exchange program, may lose the right to use and occupy an accommodation of the timeshare plan during a reserved use period with respect to any properly applied-for exchange without being provided with substitute accommodations by the exchange program.
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(12) The fees or range of fees for participation by
| | owners in the exchange program, a statement of whether any such fees may be altered by the exchange company, and the circumstances under which alterations may be made.
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(13) The name and address of the site of each
| | accommodation included within a timeshare plan participating in the exchange program.
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(14) The number of accommodations in each timeshare
| | plan that are available for occupancy and that qualify for participation in the exchange program, expressed within the following numerical groups: 1-5; 6-10; 11-20; 21-50; and 51 and over.
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(15) The number of currently enrolled owners for
| | each timeshare plan participating in the exchange program, expressed within the following numerical groups: 1-100; 101-249; 250-499; 500-999; and 1,000 and over; and a statement of the criteria used to determine those owners who are currently enrolled with the exchange program.
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(16) The disposition made by the exchange company of
| | use periods deposited with the exchange program by owners enrolled in the exchange program and not used by the exchange company in effecting exchanges.
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(17) The following information for the preceding
| | calendar year, which shall be independently audited by a certified public accountant in accordance with the standards of the Accounting Standards Board of the American Institute of Certified Public Accountants and reported on an annual basis on or after August 1 as established by rule:
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(A) The number of owners currently enrolled in
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(B) The number of timeshare plans that have
| | current affiliation agreements with the exchange program.
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(C) The percentage of confirmed exchanges, which
| | is the number of exchanges confirmed by the exchange program divided by the number of exchanges properly applied for, together with a complete and accurate statement of the criteria used to determine whether an exchange request was properly applied for.
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(D) The number of use periods for which the
| | exchange program has an outstanding obligation to provide an exchange to an owner who relinquished a use period during a particular year in exchange for a use period in any future year.
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(E) The number of exchanges confirmed by the
| | exchange program during the year.
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(F) A statement in conspicuous type to the
| | effect that the percentage described in subdivision (17)(C) of this subsection is a summary of the exchange requests entered with the exchange program in the period reported and that the percentage does not indicate the probabilities of an owner's being confirmed to any specific choice or range of choices.
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(18) Such other information as may be reasonably
| | required by the Department of any exchange company as established by rule.
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(c) No developer shall have any liability with respect to any violation of
this Act
arising out of the publication by the developer of information provided to it
by an
exchange company pursuant to this Article. No exchange company shall have any
liability with respect to any violation of this Act arising out of the use by a
developer of
information relating to an exchange program other than that provided to the
developer by
the exchange company.
(d) All written, visual, and electronic communications relating to an
exchange
company or an exchange program shall be filed with the Department
upon its request.
(e) The failure of an exchange company to observe the requirements of this
Section, and the use of any unfair or deceptive act or practice in connection
with the
operation of an exchange program, is a violation of this Act.
(f) An exchange company may elect to deny exchange privileges to any owner
whose use of the accommodations of the owner's timeshare plan is denied, and no
exchange program or exchange company shall be liable to any of its members or
any
third parties on account of any such denial of exchange privileges.
(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-35)
Sec. 5-35. (Repealed).
(Source: P.A. 91-585, eff. 1-1-00. Repealed by P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-40)
Sec. 5-40. Resale agent duties. A resale agent shall comply with all of the
following:
(a) Prior to engaging in any resale activities on behalf of any owner of a
timeshare interest or accepting anything of value from any owner of a timeshare interest, a resale agent shall enter into a listing agreement with
that owner. Every
listing agreement shall be in writing and signed by both the resale agent and
the timeshare
interest owner. The requirements of the written listing agreement shall be
established by
rule, but at a minimum the listing agreement shall disclose the following:
(1) The name and address of the resale agent and the
| | timeshare interest owner.
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| (2) The term of the listing agreement.
(3) Whether the resale agent's rights under the
| | listing agreement are exclusive and, if the resale agent's rights are exclusive, the length of such exclusivity period.
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| (4) Whether any person other than the timeshare
| | interest owner may use the timeshare during the period before the timeshare interest is resold.
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| (5) Whether any person other than the timeshare
| | interest owner may rent or exchange the use of the timeshare interest during the term of the listing agreement.
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| (6) The name of any person who will receive any
| | rents, profits, or other thing of value generated from the use of the timeshare interest during the period before the timeshare interest is resold.
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| (7) A detailed description of any relationship
| | between the resale agent and any other person who receives any benefit from the use of the timeshare interest.
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| (8) A description of any fees or costs that relate to
| | the listing or sale of the timeshare interest that the timeshare interest owner (or any other person) must pay to the resale agent or any third party. If the timeshare interest owner (or any other person) must pay a fee to the resale agent or any third party before the sale of the timeshare interest, the listing agreement must identify each of the following:
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| (A) The amount of each pre-sale fee and to whom
| | such pre-sale fee must be paid.
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| (B) The time by which each pre-sale fee must be
| | (C) A reasonable description of each pre-sale
| | (D) A description and the estimated amount of any
| | other fees or costs associated with the listing or sale of the timeshare interest.
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| (E) The ratio or percentage of the number of
| | listings of timeshare interests for sale versus the number of timeshare interests sold by the resale agent for each of the past 3 years.
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| (9) A description of the amount or percentage and
| | procedures for paying any commissions due to the resale agent upon resale of the timeshare interest.
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(b) A resale agent shall maintain records as required by rule. The records
required to be maintained include, but are not limited to, all listing
agreements, copies of
disbursement authorizations in accordance with subsection (c), and resale
contracts.
(c) A resale agent who collects any fees prior to a transfer of an interest
from any
owner shall deposit the fees in an escrow account. Any fees that are to be
paid to the
resale agent prior to closing may be disbursed from the escrow account only
upon receipt
of a disbursement authorization, signed by the owner, in the following form:
"I, (name of owner), am the owner of a timeshare
| | interest in (name of timeshare plan). I understand that for my protection I can require the entire fee to be held in escrow until the closing on the resale of my timeshare interest, but I am authorizing a release before the transfer in the following amount: (amount written in words) ($ (amount in numbers)), for the following purpose or purposes (description of purpose or purposes). I understand that the resale agent is regulated by the Illinois Department of Financial and Professional Regulation, or its successor agency, under the Real Estate Timeshare Act of 1999. The Illinois Department of Financial and Professional Regulation requires the resale agent to obtain this disbursement authorization with my signature before disbursement of my funds."
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(d) A resale agent shall utilize a purchase agreement that discloses to a
purchaser of a timeshare interest all of the following:
(1) A legally sufficient description of the timeshare
| | interest being purchased.
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(2) The name and address of the managing entity of
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(3) The amount of the most recent assessment for the
| | common expenses allocated to the timeshare interest being purchased including the time period to which the assessment relates (e.g., monthly, quarterly, yearly) and the date on which it is due. If not included in the applicable common expense assessment, the amount of any real or personal property taxes allocated to the timeshare interest being purchased.
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(3.5) Whether all assessments and real or
| | personal property taxes that are due against the timeshare interest are paid in full and, if not, the amount owed and the consequences of failure to pay timely any assessment or real or personal property taxes.
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(4) A complete and accurate disclosure of the terms
| | and conditions of the purchase and closing, including the obligations of the owner, the purchaser, or both for closing costs and the title insurance.
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(5) The entity responsible for providing notification
| | to the managing entity of the timeshare plan and the applicable exchange company regarding any change in the ownership of the timeshare interest.
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(6) A statement of the first year in which the
| | purchaser is entitled to receive the actual use rights and occupancy of the timeshare interest, as determined by the managing entity of the timeshare plan and any exchange company.
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(6.5) The name, address, telephone number, and
| | website (if applicable) where the governing documents of the association, if any, and the timeshare instrument may be obtained, together with the following disclosure:
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| "There are many important documents relating to
| | the timeshare plan that you should review before purchasing a timeshare interest. These may include, but are not limited to, (a) the declaration of condominium, (b) the declaration of timeshare plan, (c) the reciprocal easement and cost sharing agreement, (d) the declaration of restrictions, covenants, and conditions, (e) the owners association articles and bylaws, (f) the current year's operating and reserve budgets, if any, for the owners association, and (g) any rules and regulations affecting the use of the timeshare property or other facility or amenity available for use by timeshare interest owners."
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(7) In making the disclosures required by this
| | subsection (d), the timeshare resale agent may rely upon information provided in writing by the owner or managing entity of the timeshare plan.
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(8) The purchaser's 5 calendar day cancellation
| | period as required by Section 10-10.
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(9) Any other information determined by the
| | Department and established by rule.
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(e) A resale agent must be licensed as a real estate broker or salesperson pursuant to the Real Estate License Act of 2000 or its successor Act.
(f) A resale agent is exempt from the duties imposed by subsections (a) through (d) of this Section if the resale agent offers an aggregate total of no more than 8 timeshare interests per calendar year as a resale agent, regardless of (1) whether those timeshare interests are located in this State and (2) whether the resale agent offers all, or only some, of those timeshare interests, in this State.
(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-45)
Sec. 5-45. Amendment to registration information or public offering
statement. The developer and exchange company shall amend or
supplement their disclosure documents and registration information to reflect
any
material change in any information required by this Act or the rules
implementing this Act. All such
amendments,
supplements, and changes shall be filed with the Department within
30 calendar days of the material change.
(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-50)
Sec. 5-50. Registration review time frames. Every registration required
to be
filed with the Department under this Act shall be reviewed
and
issued a certificate of registration in accordance with the following schedule:
(1) Comprehensive registration. Registration shall
| | be effective only upon the issuance of a certificate of registration by the Department, which, in the ordinary course of business, should occur no more than 60 calendar days after actual receipt by the Department of the properly completed application. The Department shall provide a list of deficiencies in the application, if any, within 60 calendar days of receipt. The list may be in a written or electronic format.
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(2) Abbreviated registration. Registration shall be
| | effective only upon the issuance of a certificate of registration by the Department, which, in the ordinary course of business, should occur no more than 30 calendar days after actual receipt by the Department of the properly completed application. The Department shall provide a list of deficiencies in the application, if any, within 30 calendar days of receipt. The list may be in a written or electronic format.
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(3) Alternative assurance registration. Registration
| | shall be effective only upon the issuance of a certificate of registration by the Department, which, in the ordinary course of business, should occur no more than 30 calendar days after receipt by the Department. The Department shall provide a list of deficiencies in the application, if any, within 30 calendar days of receipt. The list may be in a written or electronic format.
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(4) Preliminary permit registration. A preliminary
| | permit shall be issued only upon the written approval by the Department, which, in the ordinary course of business, should occur no more than 30 calendar days after actual receipt of the required documentation by the Department. The Department shall provide a list of deficiencies in the application, if any, within 30 calendar days of receipt. The list may be in a written or electronic format.
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(5) Exchange company registration. Registration
| | shall be effective only upon the issuance of a certificate of registration by the Department, which, in the ordinary course of business, should occur no more than 60 calendar days after the actual receipt of a properly completed application by the Department. The Department shall provide a list of deficiencies in the application, if any, within 60 calendar days of receipt. The list may be in a written or electronic format.
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(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-55)
Sec. 5-55. Fees. The Department shall provide, by
rule,
for fees to be paid by applicants and registrants to cover the reasonable costs
of the Department in administering and enforcing the provisions of
this Act.
The Department may also provide, by rule, for general fees
to cover
the reasonable expenses of carrying out other functions and responsibilities
under this
Act.
(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-60)
Sec. 5-60. Registration; offer or disposal of interest; renewal.
(a) A developer or
exchange
company, or any of their agents, shall not sell, offer, or
dispose of a
timeshare interest unless all necessary registrations are filed and approved by
the Department, or while an order revoking or suspending a
registration is in
effect.
(b) An applicant for registration under this Act shall submit the necessary
information to complete the application, as required by the Department, within 6 months from the date the initial registration
application was received by the Department. If the
applicant fails to submit the information necessary to complete the application
as required by the Department within the six month period,
said application shall be voided, and a new registration application with
applicable fees must be submitted.
(c) The registration of a developer, exchange company, individual, or entity registered under this Act shall be renewed as required by rule.
(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/5-65)
Sec. 5-65.
Securities.
The offer or disposition of a timeshare interest
in a
timeshare plan which satisfies all the requirements of this Act shall not be
deemed to
constitute the offer and sale of a security under the Illinois Securities Law
of 1953.
(Source: P.A. 91-585, eff. 1-1-00.)
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