Public Act 096-0738
 
SB2112 Enrolled LRB096 09414 AJO 19571 b

    AN ACT concerning civil law.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Real Estate Timeshare Act of 1999 is amended
by changing Sections 1-10, 1-15, 5-5, 5-15, 5-20, 5-25, 5-30,
5-40, 5-45, 5-50, 5-55, 5-60, 10-5, 10-15, 10-25, 10-30, 15-5,
15-10, 15-15, 15-20, 15-25, 15-30, 15-35, 15-40, 15-45, 15-50,
15-55, 15-60, 15-65, 15-70, 15-80, 20-5, 20-10, 20-15, 20-20,
and 20-25, and by adding Sections 10-45, 10-50, and 10-55 as
follows:
 
    (765 ILCS 101/1-10)
    Sec. 1-10. Scope of Act.
    (a) This Act applies to all of the following:
        (1) Timeshare plans with an accommodation or component
    site in Illinois.
        (2) Timeshare plans without an accommodation or
    component site in Illinois, if those timeshare plans are
    sold or offered to be sold to any individual located within
    Illinois.
        (3) Exchange programs as defined in this Act.
        (4) Resale agents as defined in this Act.
    (b) Exemptions. This Act does not apply to the following:
        (1) Timeshare plans, whether or not an accommodation is
    located in Illinois, consisting of 7 or fewer timeshare
    periods, the use of which extends over any period of less
    than 3 years; or .
        (2) Timeshare plans, whether or not an accommodation is
    located in Illinois, under which the prospective
    purchaser's total financial obligation will be less than
    $1,500 during the entire term of the timeshare plan.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/1-15)
    Sec. 1-15. Definitions. In this Act, unless the context
otherwise requires:
    "Accommodation" means any apartment, condominium or
cooperative unit, cabin, lodge, hotel or motel room, or other
private or commercial structure containing toilet facilities
therein that is designed and available, pursuant to applicable
law, for use and occupancy as a residence by one or more
individuals, or any unit or berth on a commercial cruise line
ship, which is included in the offering of a timeshare plan.
    "Acquisition agent" means a person who, directly or through
the person's employees, agents, or independent contractors,
induces or attempts to induce by means of a promotion or an
advertisement any individual located within the State of
Illinois to attend a sales presentation for a timeshare plan.
    "Advertisement" means any written, oral, or electronic
communication that is directed to or targeted to persons within
the State of Illinois and contains a promotion, inducement, or
offer to sell a timeshare plan, including but not limited to
brochures, pamphlets, radio and television scripts, electronic
media, telephone and direct mail solicitations, and other means
of promotion.
    "Association" means the organized body consisting of the
purchasers of interests in a timeshare plan.
    "Assessment" means the share of funds required for the
payment of common expenses which is assessed from time to time
against each purchaser by the managing entity.
    "Commissioner" means the Commissioner of Banks and Real
Estate, or a natural person authorized by the Commissioner, the
Office of Banks and Real Estate Act, or this Act to act in the
Commissioner's stead.
    "Component site" means a specific geographic location
where accommodations which are part of a multi-site timeshare
plan are located. Separate phases of a single timeshare
property in a specific geographic location and under common
management shall be deemed a single component site.
    "Department" means the Department of Financial and
Professional Regulation.
    "Developer" means and includes any person or entity, other
than a sales agent, acquisition agent, or resale agent, who
creates a timeshare plan or is in the business of selling
timeshare interests, or employs agents to do the same, or any
person or entity who succeeds to the interest of a developer by
sale, lease, assignment, mortgage, or other transfer, but the
term includes only those persons who offer timeshare interests
for disposition in the ordinary course of business.
    "Dispose" or "disposition" means a voluntary transfer or
assignment of any legal or equitable interest in a timeshare
plan, other than the transfer, assignment, or release of a
security interest.
    "Exchange company" means any person owning or operating, or
both owning and operating, an exchange program.
    "Exchange program" means any method, arrangement, or
procedure for the voluntary exchange of timeshare interests or
other property interests. The term does not include the
assignment of the right to use and occupy accommodations to
owners of timeshare interests within a single-site timeshare
plan. Any method, arrangement, or procedure that otherwise
meets this definition, wherein the purchaser's total
contractual financial obligation exceeds $3,000 per any
individual, recurring timeshare period, shall be regulated as a
timeshare plan in accordance with this Act.
    "Managing entity" means the person who undertakes the
duties, responsibilities, and obligations of the management of
a timeshare plan.
    "Managing entity lien" means a lien created pursuant to
Section 10-45.
    "Offer" means any inducement, solicitation, or other
attempt, whether by marketing, advertisement, oral or written
presentation, or any other means, to encourage a person to
acquire a timeshare interest in a timeshare plan, other than as
security for an obligation.
    "Person" means a natural person, corporation, limited
liability company, partnership, joint venture, association,
estate, trust, government, governmental subdivision or agency,
or other legal entity, or any combination thereof.
    "Promotion" means a plan or device, including one involving
the possibility of a prospective purchaser receiving a
vacation, discount vacation, gift, or prize, used by a
developer, or an agent, independent contractor, or employee of
any of the same on behalf of the developer, in connection with
the offering and sale of timeshare interests in a timeshare
plan.
    "Purchaser" means any person, other than a developer, who
by means of a voluntary transfer acquires a legal or equitable
interest in a timeshare plan other than as security for an
obligation.
    "Purchase contract" means a document pursuant to which a
person becomes legally obligated to sell, and a purchaser
becomes legally obligated to buy, a timeshare interest.
    "Resale agent" means a person who, for another and for
compensation, or with the intention or expectation of receiving
compensation, either directly or indirectly sells, offers to
sell, or advertises to sell within this State any timeshare
interest previously sold to a purchaser or solicits within this
State any owner of a timeshare interest to list the owner's
timeshare interest, wherever located, for sale. directly or
through the person's employees or agents, sells or offers to
sell a timeshare interest previously sold to a purchaser or
solicits an owner of a timeshare interest to list the owner's
timeshare interest for sale.
    "Reservation system" means the method, arrangement, or
procedure by which a purchaser, in order to reserve the use or
occupancy of any accommodation of a multi-site timeshare plan
for one or more timeshare periods, is required to compete with
other purchasers in the same multi-site timeshare plan,
regardless of whether the reservation system is operated and
maintained by the multi-site timeshare plan managing entity, an
exchange company, or any other person. In the event that a
purchaser is required to use an exchange program as the
purchaser's principal means of obtaining the right to use and
occupy accommodations, that arrangement shall be deemed a
reservation system. When an exchange company utilizes a
mechanism for the exchange of use of timeshare periods among
members of an exchange program, that utilization is not a
reservation system of a multi-site timeshare plan.    
    "Sales agent" means a person, other than a resale agent,
who, directly or through the person's employees, agents, or
independent contractors, sells or offers to sell timeshare
interests in a timeshare plan to any individual located in the
State of Illinois.
    "Timeshare instrument" means one or more documents, by
whatever name denominated, creating or governing the operation
of a timeshare plan.
    "Secretary" means the Secretary of the Department of
Financial and Professional Regulation, or a natural person
authorized by the Secretary, the Department of Financial and
Professional Regulation, or this Act to act in the Secretary's
stead.
    "Timeshare interest" means and includes either:
        (1) a "timeshare estate", which is the right to occupy
    a timeshare property, coupled with a freehold estate or an
    estate for years with a future interest in a timeshare
    property or a specified portion thereof; or
        (2) a "timeshare use", which is the right to occupy a
    timeshare property, which right is neither coupled with a
    freehold interest, nor coupled with an estate for years
    with a future interest, in a timeshare property.
    "Timeshare period" means the period or periods of time when
the purchaser of a timeshare plan is afforded the opportunity
to use the accommodations of a timeshare plan.
    "Timeshare plan" means any arrangement, plan, scheme, or
similar device, other than an exchange program, whether by
membership agreement, sale, lease, deed, license, or
right-to-use agreement or by any other means, whereby a
purchaser, in exchange for consideration, receives ownership
rights in or the right to use accommodations for a period of
time less than a full year during any given year, but not
necessarily for consecutive years. A timeshare plan may be:
        (1) a "single-site timeshare plan", which is the right
    to use accommodations at a single timeshare property; or
        (2) a "multi-site timeshare plan", which includes:
            (A) a "specific timeshare interest", which is the
        right to use accommodations at a specific timeshare
        property, together with use rights in accommodations
        at one or more other component sites created by or
        acquired through the timeshare plan's reservation
        system; or
            (B) a "non-specific timeshare interest", which is
        the right to use accommodations at more than one
        component site created by or acquired through the
        timeshare plan's reservation system, but including no
        specific right to use any particular accommodations.
    "Timeshare property" means one or more accommodations
subject to the same timeshare instrument, together with any
other property or rights to property appurtenant to those
accommodations.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (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
        (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
        (3) the person offers a timeshare plan in a national
    publication or by electronic media, as determined by the
    Department Office of Banks and Real Estate and provided by
    rule, which is not directed to or targeted to any
    individual located in Illinois; or
        (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.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/5-15)
    Sec. 5-15. Developer registration requirements.
    (a) Registration required. Any person who, to any
individual located in Illinois, 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 Office of Banks and Real Estate
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 Office of Banks
and Real Estate, on forms provided by the Department Office of
Banks and Real Estate, 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.
        (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.
        (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.
        (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.
    (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:
            (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
            (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.
        (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 Office of Banks and Real Estate 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:
            (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.
            (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.
            (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.
        (3) In lieu of the provisions in paragraphs (1) and
    (2), the Department Office of Banks and Real Estate may
    accept from the developer a surety bond, irrevocable letter
    of credit, or other financial assurance acceptable to the
    Department Office of Banks and Real Estate, 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.
        (4) The developer shall provide escrow account
    information to the Department Office of Banks and Real
    Estate and shall execute in writing an authorization
    consenting to an audit or examination of the account by the
    Department Office of Banks and Real Estate on forms
    provided by the Department Office of Banks and Real Estate.
    The developer shall comply with the reconciliation and
    records requirements established by rule by the Department
    Office of Banks and Real Estate. The developer shall make
    documents related to the escrow account or escrow
    obligation available to the Department Office of Banks and
    Real Estate upon the Department's Office's request. The
    developer shall maintain any disputed funds in the escrow
    account until either:
            (A) receipt of written direction agreed to by
        signature of all parties; or
            (B) deposit of the funds with a court of competent
        jurisdiction in which a civil action regarding the
        funds has been filed.
    (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;
        (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;
        (3) The name, street address, mailing address, primary
    contact person, and telephone number of any timeshare plan
    being registered;
        (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;
        (5) A public offering statement which complies with the
    requirements of Sections 5-25; and
        (6) Any other information regarding the developer,
    timeshare plan, sales agents, acquisition agents, or
    managing entities as reasonably required by the Department
    Office of Banks and Real Estate and established by rule.
    (e) Abbreviated registration. The Department Office of
Banks and Real Estate 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. The developer shall file a written
notice of intent to register under this Section at least 15
days prior to submission. 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.
        (2) The name, location, mailing address, primary
    contact person, and telephone number of the timeshare plan.
        (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.
        (4) The names of any sales agent, acquisition agent,
    and managing entity, and their principal office location,
    mailing address, and telephone number.
        (5) The certificate of registration or other evidence
    of registration from any jurisdiction in which the
    timeshare plan is approved or accepted.
        (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.
        (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.
        (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 Office of
    Banks and Real Estate.
        (9) The appropriate fee.
        (10) Such other information reasonably required by the
    Department Office of Banks and Real Estate and established
    by rule.
    (f) Preliminary permits. Notwithstanding anything in this
Section to the contrary, the Department Office of Banks and
Real Estate 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). Submit a formal written request to the
    Office of Banks and Real Estate for a preliminary permit.
        (2) Submit an application in form and substance
    satisfactory to the Department a substantially complete
    application for registration to the Office of Banks and
    Real Estate, including all appropriate fees and exhibits
    required under this Article.
        (3) Provide evidence acceptable to the Department
    Office of Banks and Real Estate 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.
        (4) Give to each purchaser and potential purchaser a
    copy of the proposed public offering statement that the
    developer has submitted to the Department Office of Banks
    and Real Estate with the initial application.
        (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 Office of Banks and Real Estate 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.
    (g) Alternative registration; letter of credit or other
assurance; recovery.
        (1) Notwithstanding anything in this Act to the
    contrary, the Department Office of Banks and Real Estate
    may accept, as established by rule, a registration from a
    developer for a timeshare plan if the developer provides
    all of the following:
            (A) (Blank). A written notice of intent to register
        under this Section at least 15 days prior to submission
        of the alternative registration.
            (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.
            (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.
            (D) The name, location, mailing address, main
        contact person, and telephone number of the timeshare
        plan included in the filing.
            (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.
            (F) The names of any sales agent, acquisition
        agent, and managing entity, and their principal office
        location, mailing address, and telephone number.
            (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.
            (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.
            (I) The required fee.
            (J) Such other information reasonably required by
        the Department Office of Banks and Real Estate and
        established by rule.
        (2) Any letter of credit or other acceptable assurance
    shall remain in effect with the Department Office of Banks
    and Real Estate 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 Office of Banks and Real Estate 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 Office of Banks and Real Estate and
    certified by the developer.
        (3) The Department Office of Banks and Real Estate
    shall establish procedures, by rule, to satisfy claims by
    any Illinois purchaser pursuant to this Section.
        (4) The Department Office of Banks and Real Estate
    shall automatically suspend the registration of any
    developer pursuant to Section 15-25 of this Act in the
    event the Department Office 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.
    (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 Office of Banks and Real Estate'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. 91-585, eff. 1-1-00.)
 
    (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 Office of Banks
and Real Estate 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. 91-585, eff. 1-1-00.)
 
    (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.
        (2) A description of the type of timeshare interests
    being offered.
        (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.
        (4) A description of any accommodations and amenities
    that are committed to be built, including, without
    limitation:
            (A) the developer's schedule of commencement and
        completion of all accommodations and amenities; and
            (B) the estimated number of accommodations per
        site that may become subject to the timeshare plan.
        (5) A brief description of the duration, phases, and
    operation of the timeshare plan.
        (6) The current annual budget, if available, or the
    projected annual budget for the timeshare plan. The budget
    shall include, without limitation:
            (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;
            (B) the projected common expense liability, if
        any, by category of expenditures for the timeshare
        plan; and
            (C) a statement of any services or expenses not
        reflected in the budget that the developer provides or
        pays.
        (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.
        (8) A description of any liens, defects, or
    encumbrances on or affecting the title to the timeshare
    interests.
        (9) A description of any financing offered by or
    available through the developer.
        (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.
        (11) A statement of any pending suits, adjudications,
    or disciplinary actions material to the timeshare
    interests of which the developer has knowledge.
        (12) Any restrictions on alienation of any number or
    portion of any timeshare interests.
        (13) A statement describing liability and casualty
    insurance for the timeshare property.
        (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.
        (15) The extent to which financial arrangements have
    been provided for completion of all promised improvements.
        (16) The developer or managing entity must notify the
    Department Office of Banks and Real Estate 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 Office of Banks and
    Real Estate 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.
        (17) A statement indicating that the developer and
    timeshare plan are registered with the State of Illinois.
        (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.
        (19) Such other information reasonably required by the
    Department Office of Banks and Real Estate and established
    by administrative rule necessary for the protection of
    purchasers of timeshare interests in timeshare plans.
        (20) Any other information that the developer, with the
    approval of the Department Office of Banks and Real Estate,
    desires to include in the public offering statement.
    (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.
        (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.
        (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.
        (4) A description of amenities available for use by the
    purchaser at each component site.
        (5) A description of the reservation system, which
    shall include the following:
            (A) The entity responsible for operating the
        reservation system.
            (B) A summary of the rules and regulations
        governing access to and use of the reservation system.
            (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.
        (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.
        (7) A description of the purchaser's liability for any
    fees associated with the multi-site timeshare plan.
        (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.
        (9) Such other information reasonably required by the
    Department Office of Banks and Real Estate and established
    by administrative rule necessary for the protection of
    purchasers of timeshare interests in timeshare plans.
        (10) Any other information that the developer, with the
    approval of the Department Office of Banks and Real Estate,
    desires to include in the public offering statement.
    (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. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/5-30)
    Sec. 5-30. Exchange company registration and disclosure
requirements.
    (a) An Each exchange company offering an exchange program
to purchasers in this State shall register with the Department
at least 20 calendar days prior to offering an exchange program
to purchasers in this State. Office of Banks and Real Estate by
July 1 of each year. The registration shall consist of the
information specified in this Section. However, an exchange
company shall make its initial registration at least 20
calendar days prior to offering membership in an exchange
program to any purchaser 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
Office of Banks and Real Estate 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.
        (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.
        (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.
        (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.
        (6) A statement that the purchaser's participation in
    the exchange program is voluntary.
        (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.
        (8) A complete and accurate description of the
    procedures necessary to qualify for and effectuate
    exchanges.
        (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.
        (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.
        (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.
        (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.
        (13) The name and address of the site of each
    accommodation included within a timeshare plan
    participating in the exchange program.
        (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.
        (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.
        (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.
        (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
    annually no later than August 1 of each year:
            (A) The number of owners currently enrolled in the
        exchange program.
            (B) The number of timeshare plans that have current
        affiliation agreements with the exchange program.
            (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.
            (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.
            (E) The number of exchanges confirmed by the
        exchange program during the year.
            (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.
        (18) Such other information as may be reasonably
    required by the Department Office of Banks and Real Estate
    of any exchange company as established by rule.
    (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 Office of Banks and Real Estate 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. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/5-40)
    Sec. 5-40. Resale agent duties. A Whether registered or
exempt from registration under Section 5-35, 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.
        (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.
        (4) Whether any person other than the timeshare
    interest owner may use the timeshare during the period
    before the timeshare interest is resold.
        (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.
        (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.
        (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.
        (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:
            (A) The amount of each pre-sale fee and to whom
        such pre-sale fee must be paid.
            (B) The time by which each pre-sale fee must be
        paid.
            (C) A reasonable description of each pre-sale cost
        or fee.
            (D) A description and the estimated amount of any
        other fees or costs associated with the listing or sale
        of the timeshare interest.
            (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.
        (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. the method of
    compensation, a definite date of termination, whether any
    fees are non-refundable, and whether the agreement permits
    the timeshare resale agent or any other person to make any
    use whatsoever of the owner's timeshare interest or receive
    any rents or profits generated from such use of the
    timeshare interest.
    (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, Office of Banks and
    Real Estate under the Real Estate Timeshare Act of 1999.
    The Illinois Department of Financial and Professional
    Regulation Office of Banks and Real Estate requires the
    resale agent to obtain this disbursement authorization
    with my signature before disbursement of my funds."
    (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.
        (2) The name and address of the managing entity of the
    timeshare property.
        (3) The amount of the most recent current year's
    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.
        (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.
        (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.
        (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.
        (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.
        (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:
            "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."
        (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.
        (8) The purchaser's 5 calendar day 5-day cancellation
    period as required by Section 10-10.
        (9) Any other information determined by the Department
    Office of Banks and Real Estate and established by rule.
    (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. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/5-45)
    Sec. 5-45. Amendment to registration information or public
offering statement. The developer, resale agent, 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 Office of Banks and Real Estate
within 30 20 calendar days of the material change.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/5-50)
    Sec. 5-50. Registration review time frames. Every
registration required to be filed with the Department Office of
Banks and Real Estate 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 Office of Banks and Real
    Estate, which, in the ordinary course of business, should
    occur no more than 60 calendar days after actual receipt by
    the Department Office of Banks and Real Estate of the
    properly completed application. The Department shall
    Office of Banks and Real Estate must 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.
        (2) Abbreviated registration. Registration shall be
    effective only upon the issuance of a certificate of
    registration by the Department Office of Banks and Real
    Estate, which, in the ordinary course of business, should
    occur no more than 30 calendar days after actual receipt by
    the Department Office of Banks and Real Estate of the
    properly completed application. The Department shall
    Office of Banks and Real Estate must 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.
        (3) Alternative assurance registration. Registration
    shall be deemed 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
    within 30 15 calendar days after of receipt by the
    Department. The Department shall provide a , unless the
    Office of Banks and Real Estate provides to the applicant a
    written list of deficiencies in the application, if any,
    within 30 15 calendar days of receipt. The list may be in a
    written or electronic format.
        (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 within 15 calendar days after
    actual of receipt of the required documentation by the
    Department. The Department shall provide a , unless the
    Office of Banks and Real Estate provides to the applicant a
    written list of deficiencies in the application, if any,
    within 30 15 calendar days of receipt. The list may be in a
    written or electronic format.
        (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 by the Office of Banks and
    Real Estate of a properly completed application by the
    Department. The Department shall Office of Banks and Real
    Estate must provide a list of deficiencies in the
    application, if any, within 60 30 calendar days of receipt.
    The list may be in a written or electronic format.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/5-55)
    Sec. 5-55. Fees. The Department Office of Banks and Real
Estate shall provide, by rule, for fees to be paid by
applicants and registrants to cover the reasonable costs of the
Department Office of Banks and Real Estate in administering and
enforcing the provisions of this Act. The Department Office of
Banks and Real Estate 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. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/5-60)
    Sec. 5-60. Registration; offer or disposal of interest;
renewal.
    (a) A developer or , exchange company, or resale agent, 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 Office of Banks and Real
Estate, 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 Office of Banks and Real Estate,
within 6 months from the date the initial registration
application was received by the Department Office of Banks and
Real Estate. If the applicant fails to submit the information
necessary to complete the application as required by the
Department Office of Banks and Real Estate 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. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/10-5)
    Sec. 10-5. Management and operation provisions.
    (a) Before the first sale of a timeshare interest, the
developer shall create or provide for a managing entity, which
shall be either the developer, a separate manager or management
firm, the board of directors of an owners' association, or some
combination thereof.
    (b) The duties of the managing entity include, but are not
limited to:
        (1) Management and maintenance of all accommodations
    constituting the timeshare plan.
        (2) Collection of all assessments as provided in the
    timeshare instrument.
        (3) Providing to all purchasers each year an itemized
    annual budget, which shall include all estimated revenues
    and expenses.
        (4) Maintenance of all books and records concerning the
    timeshare plan.
        (5) Scheduling occupancy of accommodations, when
    purchasers are not entitled to use specific timeshare
    periods, so that all purchasers will be provided the
    opportunity to use and possession of the accommodations of
    the timeshare plan which they have purchased.
        (6) Performing any other functions and duties that are
    necessary and proper to maintain the accommodations or that
    are required by the timeshare instrument.
    (c) If In the event a developer, mortgagee, managing
entity, or association does not pursue nonjudicial foreclosure
as provided in Section 10-50 or 10-55 and instead forecloses
against a timeshare interest pursuant to the Illinois Mortgage
Foreclosure Law, files a complaint in a foreclosure proceeding
involving timeshare interests, the developer, mortgagee,
managing entity, or association may join in the same action
multiple defendant obligors and junior interest holders of
separate timeshare interests, provided:
        (1) the foreclosure proceeding involves a single
    timeshare plan;
        (2) the foreclosure proceeding is filed by a single
    plaintiff;
        (3) the default and remedy provisions in the written
    instruments on which the foreclosure proceeding is based
    are substantially the same for each defendant; and
        (4) the nature of the defaults alleged is the same for
    each defendant.
    (d) In any foreclosure proceeding involving multiple
defendants filed under subsection (c), the court shall sever
for separate trial any count of the complaint in which a
defense or counterclaim is timely raised by a defendant.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/10-15)
    Sec. 10-15. Interests, liens, and encumbrances;
alternative assurances.
    (a) Excluding any encumbrance placed against the
purchaser's timeshare interest securing the purchaser's
payment of purchase-money financing for such purchase, the
developer shall not be entitled to the release of any funds
escrowed under subsection (c) of Section 5-15 with respect to
each timeshare interest and any other property or rights to
property appurtenant to the timeshare interest, including any
amenities represented to the purchaser as being part of the
timeshare plan, until the developer has provided satisfactory
evidence to the Department Office of Banks and Real Estate of
one of the following:
        (1) The timeshare interest together with any other
    property or rights to property appurtenant to the timeshare
    interest, including any amenities represented to the
    purchaser as being part of the timeshare plan, are free and
    clear of any of the claims of the developer, any owner of
    the underlying fee, a mortgagee, judgment creditor, or
    other lienor, or any other person having an interest in or
    lien or encumbrance against the timeshare interest or
    appurtenant property or property rights.
        (2) The developer, any owner of the underlying fee, a
    mortgagee, judgment creditor, or other lienor, or any other
    person having an interest in or lien or encumbrance against
    the timeshare interest or appurtenant property or property
    rights, including any amenities represented to the
    purchaser as being part of the timeshare plan, has recorded
    a subordination and notice to creditors document in the
    appropriate public records of the jurisdiction in which the
    timeshare interest is located. The subordination document
    shall expressly and effectively provide that the interest
    holder's right, lien, or encumbrance shall not adversely
    affect, and shall be subordinate to, the rights of the
    owners of the timeshare interests in the timeshare plan
    regardless of the date of purchase, from and after the
    effective date of the subordination document.
        (3) The developer, any owner of the underlying fee, a
    mortgagee, judgment creditor, or other lienor, or any other
    person having an interest in or lien or encumbrance against
    the timeshare interest or appurtenant property or property
    rights, including any amenities represented to the
    purchaser as being part of the timeshare plan, has
    transferred the subject accommodations or amenities or all
    use rights therein to a nonprofit organization or owners'
    association to be held for the use and benefit of the
    owners of the timeshare plan, which entity shall act as a
    fiduciary to the purchasers, provided that the developer
    has transferred control of such entity to the owners or
    does not exercise its voting rights in such entity with
    respect to the subject accommodations or amenities. Prior
    to the transfer, any lien or other encumbrance against the
    accommodation or facility shall be made subject to a
    subordination and notice to creditors instrument pursuant
    to paragraph (2).
        (4) Alternative arrangements have been made which are
    adequate to protect the rights of the purchasers of the
    timeshare interests and approved by the Department Office
    of Banks and Real Estate.
    (b) Nothing in this Section shall prevent a developer from
accessing any escrow funds if the developer has complied with
subsection (c) of Section 5-15.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/10-25)
    Sec. 10-25. Liability; material misrepresentation;
promotions.
    (a) A developer or other person offering a timeshare plan
may not do any of the following:
        (1) Misrepresent a fact material to a purchaser's
    decision to buy a timeshare interest.
        (2) Predict specific or immediate increases in the
    value of a timeshare interest represented over a period of
    time, excluding bona fide pending price increases by the
    developer.
        (3) Materially misrepresent the qualities or
    characteristics of accommodations or the amenities
    available to the occupant of those accommodations.
        (4) Misrepresent the length of time accommodations or
    amenities will be available to the purchaser of a timeshare
    interest.
        (5) Misrepresent the conditions under which a
    purchaser of a timeshare interest may exchange the right of
    his or her occupancy for the right to occupy other
    accommodations.
    (b) A developer or other person using a promotion in
connection with the offering of a timeshare interest shall
clearly disclose all of the following:
        (1) That the purpose of the promotion is to sell
    timeshare interests, which shall appear in bold face or
    other conspicuous type.
        (2) That any person whose name or address is obtained
    during the promotion may be solicited to purchase a
    timeshare interest.
        (3) The name of each developer or other person trying
    to sell a timeshare interest through the promotion, and the
    name of each person paying for the promotion.
        (4) The complete rules of the promotion.
        (5) The method of awarding prizes, gifts, vacations,
    discount vacations, or other benefits under the promotion;
    a complete and fully detailed description, including
    approximate retail value, of all prizes, gifts, or benefits
    under the promotion; the quantity of each prize, gift, or
    benefit to be awarded or conferred; and the date by which
    each prize, gift, or benefit will be awarded or conferred.
        (6) Any other disclosures provided by rule.
    (c) If a person represents that a prize, gift, or benefit
will be awarded in connection with a promotion, the prize,
gift, or benefit must be awarded or conferred in the manner
represented, and on or before the date represented.
    (d) A developer or other person using a promotion in
connection with the offering of a timeshare interest shall
provide the disclosures required by this Section in writing or
electronically to the prospective purchaser at least once
before the earlier of (1) a reasonable period before the
scheduled sales presentation to ensure that the prospective
purchaser receives the disclosures before leaving to attend the
sales presentation or (2) the payment of any nonrefundable
monies by the prospective purchaser in regard to the promotion.
    (e) A developer or other person using a promotion in
connection with the offering of a timeshare interest is not
required to provide the disclosures required by this Section in
every advertisement or other written, oral, or electronic
communication provided or made to a prospective purchaser.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/10-30)
    Sec. 10-30. Records. The managing entity shall keep
detailed financial records directly related to the operation of
the association. All financial and other records shall be made
reasonably available for examination by any purchaser, or the
authorized agent of the purchaser, and the Department Office of
Banks and Real Estate. For purposes of this Section, the books
and records of the timeshare plan shall be considered
"reasonably available" if copies of the requested portions are
delivered to the purchaser or the purchaser's agent or the
Department Office of Banks and Real Estate within 7 days of the
date the managing entity receives a written request for the
records signed by the purchaser or the Department Office of
Banks and Real Estate. The managing entity may charge the
purchaser a reasonable fee for copying the requested
information.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/10-45 new)
    Sec. 10-45. Managing entity lien created.
    (a) A managing entity has a lien on a timeshare interest
for any of the following respectively levied or imposed against
a timeshare interest:
        (1) Assessments, which for purposes of this Act unless
    the timeshare instrument provides otherwise, shall include
    fees, charges, late charges, fines, collection costs, and
    interest charged in accordance with the timeshare
    instrument;
        (2) Reasonable collection and attorneys fees and costs
    the managing entity incurs to collect assessments; and
        (3) Taxes, interest, penalties, late payment fees or
    fines in accordance with applicable law or the timeshare
    instrument.
    (b) Managing entity liens pursuant to this Section are
created and attached when the charges described in Section
10-45(a) become due. If such amounts are payable in
installments, the full amount of such charges is a managing
entity lien from the time that the first installment thereof
becomes due.
    (c) Managing entity liens pursuant to this Section are
perfected on the date that the managing entity:
        (1) In the case of a timeshare estate, records a notice
    of lien against the timeshare estate in the office of the
    recorder in the county where the timeshare estate is
    located, which notice of lien must identify each of the
    following:
            (A) The name of the timeshare estate owner;
            (B) The name and address of the managing entity;
            (C) The description of the timeshare estate in the
        same manner required for recording a mortgage against a
        timeshare estate; and
            (D) The amount of the debt secured by the managing
        entity lien.
        (2) In the case of a timeshare use, files a notice of
    lien against the timeshare use in the filing office of the
    Illinois Secretary of State pursuant to Article 9 of the
    Uniform Commercial Code, which notice of lien, in addition
    to any other filing requirements imposed by Article 9 of
    the Uniform Commercial Code, must identify each of the
    following:
            (A) The name of the timeshare use owner as the
        debtor;
            (B) The name of the managing entity as the secured
        party;
            (C) The address of the managing entity;
            (D) The timeshare use as the collateral; and
            (E) The amount of the debt secured by the managing
        entity lien.
    (d) The managing entity must send a copy of the recorded or
filed notice of lien on the timeshare interest, as the case may
be, to the last known address of the timeshare interest owner.
    (e) A managing entity lien against a timeshare estate, at
the managing entity's option, may (1) be foreclosed as provided
in Section 10-50 or (2) be foreclosed in the same manner as a
mortgage pursuant to the Illinois Mortgage Foreclosure Law.
    (f) A managing entity lien against a timeshare use, at the
managing entity's option, may (1) be foreclosed as provided in
Section 10-55 or (2) be enforced in the same manner as a
security interest pursuant to Article 9 of the Uniform
Commercial Code.
 
    (765 ILCS 101/10-50 new)
    Sec. 10-50. Nonjudicial foreclosure against timeshare
estates.
    (a) Notwithstanding anything in the Illinois Mortgage
Foreclosure Law or other applicable law to the contrary:
        (1) The holder of a mortgage against a timeshare estate
    may foreclose or otherwise enforce a security interest
    pursuant to this Section 10-50; and
        (2) The holder of a managing entity lien against a
    timeshare estate may foreclose such managing entity lien
    pursuant to this Section 10-50.
    (b) Upon default, and after all applicable cure periods
identified in the mortgage (if such default is under a
mortgage) or the timeshare instrument (if default is under a
managing entity lien) have expired, the holder of the mortgage
or managing entity lien must:
        (1) Provide written notice of the default to the
    timeshare estate owner at the last known address of the
    timeshare estate owner by (A) certified mail, return
    receipt requested and (B) first-class mail.
        (2) Provide the timeshare estate owner an additional
    opportunity to cure for a period of at least 30 days
    following the later date of the mailing of the notices
    pursuant to Sections 10-50(b)(1)(A) and 10-50(b)(1)(B).
    (c) If, the timeshare estate owner does not cure the
default before the expiration of the additional cure period
granted pursuant to Section 10-50(b)(2), the holder of the
mortgage or managing entity lien may foreclose the mortgage or
managing entity lien by conducting a public auction that
complies with the following requirements:
        (1) The holder of the mortgage or managing entity lien
    must provide notice of the public auction as follows:
            (A) By publishing notice of the public auction in
        at least each of 3 successive weeks in a newspaper,
        whether printed or electronic, of general circulation
        in the county where the timeshare estate is located.
        The first notice must be published no more than 30 days
        before the date of the public auction, which 30-day
        period shall be calculated by excluding the date of
        publication of the first notice and the date of the
        public auction.
            (B) By sending written notice identifying the
        time, date, and place of the public auction to the last
        known address of the owner of record of the timeshare
        estate at least 30 days before the date of the public
        auction by (i) certified mail, return receipt
        requested and (ii) first-class mail.
            (C) By sending notice identifying the time, date,
        and place of the public auction to all persons known to
        have a lien against the timeshare estate at least 30
        days before the date of the public auction by certified
        mail, return receipt requested.
        (2) The notices given pursuant to Section 10-50(c)(1)
    must also contain:
            (A) The name of the timeshare estate owner;
            (B) A general description of the timeshare estate;
        and
            (C) The terms of the public auction.
        (3) If more than one timeshare estate is to be included
    in the public auction, all such timeshare estates may be
    combined into one notice of public auction.
        (4) The public notice required by Section
    10-50(c)(1)(A) for foreclosing a mortgage against a
    timeshare estate must be printed in substantially the
    following form:
 
NOTICE OF SALE OF TIMESHARE ESTATE OR ESTATES UNDER SECTION
10-50 OF THE ILLINOIS REAL ESTATE TIMESHARE ACT OF 1999
 
By virtue of 765 ILCS 101/10-50 and in execution of a certain
mortgage (or mortgages, if more than one) on the timeshare
estate (or estates, if more than one) given by the owner of the
timeshare estate (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 same
will be sold at public auction starting at...........
on............ 20.. at........, Illinois, 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 timeshare estate owner, a general description of
the timeshare 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
timeshare estates, if more than one, must be sold in individual
lots unless there are no individual bidders, in which case,
they may be sold as a group.)
 
Other terms may be announced at the public auction.
 
Signed.................................
 
Holder of mortgage or authorized agent.
        (5) The public notice required by Section
    10-50(c)(1)(A) for foreclosing a managing entity lien
    against a timeshare estate must be printed in substantially
    the following form:
 
NOTICE OF SALE OF TIMESHARE ESTATE OR ESTATES UNDER SECTION
10-50 OF THE ILLINOIS REAL ESTATE TIMESHARE ACT OF 1999
 
By virtue of the timeshare instrument of the
................... (name and address of timeshare property)
and 765 ILCS 101/10-45 establishing a managing entity lien for
failure to pay assessments and other costs on the timeshare
estate (or estates, if more than one) held by the owner of the
timeshare estate (or owners, if more than one) listed below,
the timeshare estate (or estates, if more than one) and for the
purpose of foreclosing, the same will be sold at public auction
starting at ......... on ........ 20.. at .............,
Illinois. (For each timeshare estate, list the name and address
of the timeshare estate owner, a general description of the
timeshare estate, and the book and page number of the deed.)
 
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
timeshare estates, if more than one, must be sold in individual
lots unless there are no individual bidders, in which case,
they may be sold as a group.)
 
Other terms may be announced at the public auction.
 
Signed ................................
 
Managing entity lienholder or authorized agent.
 
        (6) Publishing and sending notices in compliance with
    this Section 10-50(c) constitutes sufficient public notice
    of the public auction.
    (d) Public auctions pursuant to this Section 10-50 must be
conducted as follows:
        (1) The public auction must take place within the
    county where the timeshare estate is located.
        (2) The public auction must be open to the general
    public and conducted by an auctioneer licensed pursuant to
    the Auction License Act.
        (3) Notwithstanding anything in the Auction License
    Act to the contrary, the auctioneer, in his or her
    discretion, may waive the reading of the names of the
    timeshare estate owners, if more than one, the description
    of the timeshare estates, if more than one, and the
    recording information of the applicable mortgages or
    managing entity liens (as the case may be), if more than
    one.
        (4) All rights of redemption of the timeshare estate
    owner are extinguished upon sale of a timeshare estate at
    the public auction.
        (5) The holder of the mortgage or managing entity lien,
    the developer, the managing entity, and the timeshare
    estate owner are not precluded from bidding at the public
    auction.
        (6) The successful purchaser at the public auction is
    not required to complete the purchase of the timeshare
    estate if the timeshare estate, at the time the auctioneer
    accepts the successful bid, is subject to liens or other
    encumbrances, other than those identified in the notice of
    public auction and those identified at the auction before
    the auctioneer opens bidding on the applicable timeshare
    estate.
        (7) The purchaser at the public auction takes title to
    the timeshare estate free and clear of any outstanding
    assessments owed by the prior timeshare estate owner to the
    managing entity.
    (e) Upon the sale of a timeshare estate pursuant to this
Section 10-50, the holder of the mortgage or managing entity
lien must provide the purchaser with (1) a foreclosure deed or
other appropriate instrument transferring the mortgage
holder's or managing entity's interest in the timeshare estate
and (2) an affidavit affirming that all requirements of the
foreclosure pursuant to this Section 10-50 have been satisfied.
    (f) The timeshare estate is considered sold, and the deed
or other instrument transferring the timeshare estate must
transfer the timeshare estate, subject to municipal or other
taxes and any liens or encumbrances recorded before the
recording of the mortgage or the managing entity lien
foreclosed pursuant to this Section 10-50 (as the case may be),
but not including such managing entity lien.
    (g) The purchaser of a timeshare estate at a public auction
pursuant to this Section 10-50 must record the foreclosure deed
or other instrument with the appropriate recorder of deeds
within 30 days after the date the foreclosing mortgage holder
or managing entity (as the case may be) delivers the
foreclosure deed or other instrument to the purchaser.
    (h) If the holder of a mortgage or managing entity lien
conducts a nonjudicial foreclosure pursuant to this Section
10-50, the holder of the mortgage or managing entity lien
forfeits its right to pursue a claim for any deficiency in the
payment of the obligations of the timeshare estate owner
resulting from the application of the proceeds of the sale to
such obligations.
    (i) For purposes of this Section 10-50, obligations to pay
assessments secured by a lien established pursuant to a
timeshare instrument before the effective date of this
amendatory Act of the 96th General Assembly are considered
managing entity liens.
    (j) This Section 10-50 applies to the foreclosure of
mortgages and liens considered to be managing entity liens that
arose before or after the effective date of this amendatory Act
of the 96th General Assembly.
 
    (765 ILCS 101/10-55 new)
    Sec. 10-55. Foreclosure of lien or security interest on a
timeshare use.
    (a) Notwithstanding anything in the Illinois Mortgage
Foreclosure Law or the Uniform Commercial Code to the contrary,
the holder of a managing entity lien on a timeshare use created
by Section 10-45, in the case of the failure to pay assessments
when due, or a security interest against a timeshare use, in
the case of a breach of the security agreement, may do either
of the following:
        (1) Enforce the security interest pursuant to Part 6 of
    Article 9 of the Uniform Commercial Code, including
    (without limitation) accepting the timeshare use in full or
    partial satisfaction of the timeshare use owner's
    obligation pursuant to Section 9-620 of the Uniform
    Commercial Code; or
        (2) Nonjudicially foreclose in the same manner as
    authorized by Section 10-50 for holders of a mortgage or
    managing entity lien against a timeshare estate.
    (b) All rights of redemption of a timeshare use owner are
extinguished upon sale of a timeshare use as authorized by
Section 10-55(a).
    (c) The holder of the security interest or managing entity
lien, the developer, the managing entity and the timeshare use
owner are not precluded from bidding at the sale of the
timeshare use pursuant to this Section 10-55 and may enter into
agreements for the purchase of one or more timeshare uses
following the completion of the sale proceedings.
    (d) The purchaser at the public auction takes title to the
timeshare use free and clear of any outstanding assessments
owed by the prior timeshare use owner to the managing entity.
 
    (765 ILCS 101/15-5)
    Sec. 15-5. Investigation. The Department Office of Banks
and Real Estate may investigate the actions or qualifications
of any person or persons holding or claiming to hold a
certificate of registration under this Act. Such a person is
referred to as "the respondent" in this Article.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-10)
    Sec. 15-10. Disciplinary hearings; record; appointment of
administrative law judge.
    (a) The Department Office of Banks and Real Estate has the
authority to conduct hearings before an administrative law
judge on proceedings to revoke, suspend, place on probation,
reprimand, or refuse to issue or renew registrants registered
under this Act, or to impose a civil penalty not to exceed
$25,000 upon any registrant registered under this Act.
    (b) The Department Office of Banks and Real Estate, at its
expense, shall preserve a record of all proceedings at the
formal hearing of any case involving the refusal to issue or
the revocation, suspension, or other discipline of a
registrant. The notice of hearing, complaint, and all other
documents in the nature of pleadings and written motions filed
in the proceedings, the transcript of testimony, the report of
the Board, and the orders of the Department Office of Banks and
Real Estate shall be the record of proceeding. At all hearings
or prehearing conferences, the Department Office of Banks and
Real Estate and the respondent shall be entitled to have a
court reporter in attendance for purposes of transcribing the
proceeding or prehearing conference.
    (c) The Secretary Commissioner has the authority to appoint
any attorney duly licensed to practice law in the State of
Illinois to serve as an administrative law judge in any action
for refusal to issue or renew a certificate of registration or
to discipline a registrant or person holding a certificate of
registration. The administrative law judge has full authority
to conduct the hearing. The administrative law judge shall
report his or her findings and recommendations to the Secretary
Commissioner. If the Secretary Commissioner disagrees with the
recommendation of the administrative law judge, the Secretary
Commissioner may issue an order in contravention of the
recommendation.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-15)
    Sec. 15-15. Notice of proposed disciplinary action;
hearing.
    (a) Before taking any disciplinary action with regard to
any registrant, the Department Office of Banks and Real Estate
shall:
        (1) notify the respondent in writing, at least 30
    calendar days prior to the date set for the hearing, of any
    charges made, the time and place for the hearing of the
    charges, and that testimony at the hearing will be heard
    under oath; and
        (2) inform the respondent that upon failure to file an
    answer and request a hearing before the date originally set
    for the hearing, default will be taken against the
    respondent and the respondent's registration may be
    suspended or revoked, or the respondent may be otherwise
    disciplined, as the Department Office of Banks and Real
    Estate may deem proper.
    (b) If the respondent fails to file an answer after
receiving notice, the respondent's registration may, in the
discretion of the Department Office of Banks and Real Estate,
be revoked or suspended, or the respondent may be otherwise
disciplined as deemed proper, without a hearing, if the act or
acts charged constitute sufficient grounds for that action
under this Act.
    (c) At the time and place fixed in the notice, the
Department Office of Banks and Real Estate shall proceed to
hearing of the charges. Both the respondent and the complainant
shall be accorded ample opportunity to present in person, or by
counsel, statements, testimony, evidence, and argument that
may be pertinent to the charges or any defense to the charges.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-20)
    Sec. 15-20. Disciplinary consent orders. Notwithstanding
any other provisions of this Act concerning the conduct of
hearings and recommendations for disciplinary actions, the
Department Office of Banks and Real Estate has the authority to
negotiate agreements with registrants and applicants resulting
in disciplinary consent orders. Any such consent order may
provide for any form of discipline provided for in the Act. Any
such consent order shall provide that it is not entered into as
a result of any coercion by the Department Office of Banks and
Real Estate. Any such consent order shall be accepted by
signature or rejected by the Secretary Commissioner in a timely
manner.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-25)
    Sec. 15-25. Disciplinary action; civil penalty. The
Department Office of Banks and Real Estate may refuse to issue
or renew any registration, or revoke or suspend any
registration or place on probation or administrative
supervision, or reprimand any registrant, or impose a civil
penalty not to exceed $25,000, for any one or any combination
of the following causes:
        (1) A registrant's disregard or violation of any
    provision of this Act or of the rules adopted by the
    Department Office of Banks and Real Estate to enforce this
    Act.
        (2) A conviction of the registrant or any principal of
    the registrant of (i) a felony under the laws of any U.S.
    jurisdiction, (ii) a misdemeanor under the laws of any U.S.
    jurisdiction if an essential element of the offense is
    dishonesty, or (iii) a crime under the laws of any U.S.
    jurisdiction if the crime relates directly to the practice
    of the profession regulated by this Act.
        (3) A registrant's making any misrepresentation for
    the purpose of obtaining a registration or certificate of
    registration.
        (4) A registrant's discipline by another U.S.
    jurisdiction, state agency, or foreign nation regarding
    the practice of the profession regulated by this Act, if at
    least one of the grounds for the discipline is the same as
    or substantially equivalent to one of those set forth in
    this Act.
        (5) A finding by the Department Office of Banks and
    Real Estate that the registrant, after having his or her
    registration placed on probationary status, has violated
    the terms of probation.
        (6) A registrant's practicing or attempting to
    practice under a name other than the name as shown on his
    or her registration or any other legally authorized name.
        (7) A registrant's failure to file a return, or to pay
    the tax, penalty, or interest shown in a filed return, or
    to pay any final assessment of tax, penalty, or interest,
    as required by any tax Act administered by the Illinois
    Department of Revenue, until the requirements of any such
    tax Act are satisfied.
        (8) A registrant's engaging in dishonorable,
    unethical, or unprofessional conduct of a character likely
    to deceive, defraud, or harm the public.
        (9) A registrant's aiding or abetting another person or
    persons in disregarding or violating any provision of this
    Act or of the rules adopted by the Department Office of
    Banks and Real Estate to enforce this Act.
        (10) Any representation in any document or information
    filed with the Department Office of Banks and Real Estate
    which is false or misleading.
        (11) A registrant's disseminating or causing to be
    disseminated any false or misleading promotional materials
    or advertisements in connection with a timeshare plan.
        (12) A registrant's concealing, diverting, or
    disposing of any funds or assets of any person in a manner
    that impairs the rights of purchasers of timeshare
    interests in the timeshare plan.
        (13) A registrant's failure to perform any stipulation
    or agreement made to induce the Department Office of Banks
    and Real Estate to issue an order relating to the timeshare
    plan.
        (14) A registrant's engaging in any act that
    constitutes a violation of Section 3-102, 3-103, 3-104, or
    3-105 of the Illinois Human Rights Act.
        (15) A registrant's failure to provide information
    requested in writing by the Department Office of Banks and
    Real Estate, within 30 days of the request, either as the
    result of a formal or informal complaint to the Department
    Office of Banks and Real Estate or as a result of a random
    audit conducted by the Department Office of Banks and Real
    Estate, which would indicate a violation of this Act.
        (16) A registrant's failure to account for or remit any
    escrow funds coming into his or her possession which
    belonged to others.
        (17) A registrant's failure to make available to
    Department Office of Banks and Real Estate personnel during
    normal business hours all escrow records and related
    documents maintained in connection therewith, within 24
    hours after a request from the Department Office of Banks
    and Real Estate personnel.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-30)
    Sec. 15-30. Subpoenas; attendance of witnesses; oaths.
    (a) The Department Office of Banks and Real Estate has the
power to issue subpoenas ad testificandum and to bring before
it any persons, and to take testimony either orally or by
deposition, or both, with the same fees and mileage and in the
same manner as prescribed in civil cases in the courts of this
State. The Department Office of Banks and Real Estate has the
power to issue subpoenas duces tecum and to bring before it any
documents, papers, files, books, and records, with the same
costs and in the same manner as prescribed in civil cases in
the courts of this State.
    (b) Upon application of the Department Office of Banks and
Real Estate or its designee or of the applicant, registrant, or
person holding a certificate of registration against whom
proceedings under this Act are pending, any circuit court may
enter an order compelling the enforcement of any subpoena
issued by the Department Office of Banks and Real Estate in
connection with any hearing or investigation.
    (c) The Secretary Commissioner and the designated
administrative law judge have power to administer oaths to
witnesses at any hearing that the Department Office of Banks
and Real Estate is authorized to conduct and any other oaths
authorized in any Act administered by the Department Office of
Banks and Real Estate.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-35)
    Sec. 15-35. Administrative law judge's findings of fact,
conclusions of law, and recommendations. At the conclusion of
the hearing, the administrative law judge shall present to the
Secretary Commissioner a written report of the administrative
law judge's findings of fact, conclusions of law, and
recommendations regarding discipline or a civil penalty. The
report shall contain a finding of whether or not the respondent
violated this Act or failed to comply with conditions required
in this Act. The administrative law judge shall specify the
nature of the violation or failure to comply.
    If the Secretary Commissioner disagrees in any regard with
the report of the administrative law judge, the Secretary
Commissioner may issue an order in contravention of the report.
The Secretary Commissioner shall provide a written report to
the administrative law judge on any deviation and shall specify
with particularity the reasons for that action in the final
order.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-40)
    Sec. 15-40. Rehearing. After any hearing involving
disciplinary action against a registrant, a copy of the
administrative law judge's report shall be served on the
respondent by the Department Office of Banks and Real Estate,
either personally or as provided in this Act for the service of
the notice of hearing. Within 20 calendar days after the
service, the respondent may present to the Department Office of
Banks and Real Estate a motion in writing for a rehearing. The
motion shall specify the particular grounds for rehearing. If
the respondent orders a transcript of the record from the
reporting service and pays for it within the time for filing a
motion for rehearing, the 20 calendar day period within which a
motion for rehearing may be filed shall commence upon the
delivery of the transcript to the respondent.
    If no motion for rehearing is filed, then upon the
expiration of the time specified for filing a motion, or if a
motion for rehearing is denied, then upon denial, the Secretary
Commissioner may enter an order in accordance with the
recommendations of the administrative law judge, except as
otherwise provided in this Article. Whenever the Secretary
Commissioner is not satisfied that substantial justice has been
done in the hearing or in the administrative law judge's
report, the Secretary Commissioner may order a rehearing by the
same or some other duly qualified administrative law judge.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-45)
    Sec. 15-45. Order or certified copy. An order or a
certified copy of an order, over the seal of the Department
Office of Banks and Real Estate and purporting to be signed by
the Secretary Commissioner, shall be prima facie proof of the
following:
        (1) That the signature is the genuine signature of the
    Secretary Commissioner.
        (2) That the Secretary Commissioner is duly appointed
    and qualified.
        (3) That the administrative law judge is duly appointed
    and qualified.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-50)
    Sec. 15-50. Restoration of certificate of registration. At
any time after the suspension or revocation of any certificate
of registration, the Department Office of Banks and Real Estate
may restore the certificate of registration to the respondent
upon the written recommendation of the Secretary Commissioner,
unless after an investigation and a hearing the Secretary
Commissioner determines that restoration is not in the public
interest.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-55)
    Sec. 15-55. Surrender of certificate of registration. Upon
the revocation or suspension of a certificate of registration,
the registrant shall immediately surrender the certificate of
registration to the Department Office of Banks and Real Estate.
If the registrant fails to do so, the Department Office of
Banks and Real Estate has the right to seize the certificate of
registration.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-60)
    Sec. 15-60. Administrative Review Law. All final
administrative decisions of the Department Office of Banks and
Real Estate under this Act are subject to judicial review under
the Administrative Review Law and the rules implementing that
Law. The term "administrative decision" is defined as in
Section 3-101 of the Code of Civil Procedure. Proceedings for
judicial review shall be commenced in the circuit court of the
county in which the party applying for review resides, but if
the party is not a resident of this State, the venue shall be
in Cook or Sangamon County.
    Pending the court's final decision on administrative
review, the acts, orders, sanctions, and rulings of the
Department Office of Banks and Real Estate regarding any
registration shall remain in full force and effect unless
modified or stayed by court order pending a final judicial
decision.
    The Department Office of Banks and Real Estate shall not be
required to certify any record to the court or file any answer
in court or otherwise appear in any court in a judicial review
proceeding unless there is filed in the court, with the
complaint, a receipt from the Department Office of Banks and
Real Estate acknowledging payment of the costs of furnishing
and certifying the record. Failure on the part of the plaintiff
to file a receipt in the court is grounds for dismissal of the
action.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-65)
    Sec. 15-65. Public interest, safety, or welfare; summary
suspension. The Secretary Commissioner may temporarily suspend
any registration pursuant to this Act, without hearing,
simultaneously with the institution of proceedings for a
hearing provided for in this Section, if the Secretary
Commissioner finds that the evidence indicates that the public
interest, safety, or welfare imperatively requires emergency
action. If the Secretary Commissioner temporarily suspends any
registration without a hearing, a hearing must be held within
30 calendar days after the suspension. The person whose
registration is suspended may seek a continuance of the
hearing, during which the suspension shall remain in effect.
The proceeding shall be concluded without appreciable delay.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-70)
    Sec. 15-70. Non-registered practice; civil penalty;
injunction.
    (a) Any person who practices, offers to practice, attempts
to practice, or holds himself or herself out to practice as a
registrant under this Act without being registered under this
Act shall, in addition to any other penalty provided by law,
pay a civil penalty to the Department Office of Banks and Real
Estate in an amount not to exceed $25,000 for each offense as
determined by the Department Office of Banks and Real Estate.
The civil penalty shall be assessed by the Department Office of
Banks and Real Estate after a hearing is held in accordance
with the provisions set forth in this Act regarding the
provision of a hearing for the discipline of a registrant.
    (b) The Department Office of Banks and Real Estate has the
authority and power to investigate any and all non-registered
activity.
    (c) A civil penalty imposed under subsection (a) shall be
paid within 60 days after the effective date of the order
imposing the civil penalty. The order shall constitute a
judgment and may be filed, and execution may be had thereon, in
the same manner as any judgment from any court of record.
    (d) Engaging in timeshare practices in Illinois by any
entity not holding a valid and current certificate of
registration under this Act is declared to be inimical to the
public welfare, to constitute a public nuisance, and to cause
irreparable harm to the public welfare. The Secretary
Commissioner, the Attorney General, the State's Attorney of any
county in the State, or any person may maintain an action in
the name of the People of the State of Illinois, and may apply
for injunctive relief in any circuit court to enjoin such
entity from engaging in such practice. Upon the filing of a
verified petition in the court, the court, if satisfied by
affidavit or otherwise that such entity has been engaged in
such practice without a valid and current certificate of
registration, may enter a temporary restraining order without
notice or bond, enjoining the defendant from such further
practice. Only the showing of nonregistration, by affidavit or
otherwise, is necessary in order for a temporary injunction to
issue. A copy of the verified complaint shall be served upon
the defendant and the proceedings shall thereafter be conducted
as in other civil cases except as modified by this Section. If
it is established that the defendant has been or is engaged in
such unlawful practice, the court may enter an order or
judgment perpetually enjoining the defendant from further
practice. In all proceedings hereunder, the court, in its
discretion, may apportion the costs among the parties
interested in the action, including cost of filing the
complaint, service of process, witness fees and expenses, court
reporter charges and reasonable attorneys' fees. In the case of
a violation of any injunctive order entered under the
provisions of this Section, the court may summarily try and
punish the offender for contempt of court. Proceedings for an
injunction under this Section shall be in addition to, and not
in lieu of, all penalties and other remedies provided in this
Act.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/15-80)
    Sec. 15-80. Cease and desist orders. The Department Office
of Banks and Real Estate may issue a cease and desist order to
any person who engages in any activity prohibited by this Act.
Any person in violation of a cease and desist order entered by
the Department Office of Banks and Real Estate is subject to
all of the remedies provided by law.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/20-5)
    Sec. 20-5. Administration of Act. The Department Office of
Banks and Real Estate shall exercise the powers and duties
prescribed by the Civil Administrative Code of Illinois and
shall exercise other powers and duties necessary for
effectuating the purposes of this Act. The Department Office of
Banks and Real Estate may contract with third parties for
services necessary for the proper administration of this Act.
The Department Office of Banks and Real Estate has the
authority to establish public policies and procedures
necessary for the administration of this Act.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/20-10)
    Sec. 20-10. Administrative rules. The Department Office of
Banks and Real Estate shall adopt rules for the implementation
and enforcement of this Act.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/20-15)
    Sec. 20-15. Real Estate License Administration Fund.
    All fees collected for registration and for civil penalties
pursuant to this Act and administrative rules adopted under
this Act shall be deposited into the Real Estate License
Administration Fund. The moneys deposited in the Real Estate
License Administration Fund shall be appropriated to the
Department Office of Banks and Real Estate for expenses for the
administration and enforcement of this Act.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/20-20)
    Sec. 20-20. Forms. The Department Office of Banks and Real
Estate may prescribe forms and procedures for submitting
information to the Department Office of Banks and Real Estate.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/20-25)
    Sec. 20-25. Site inspections. The Department Office of
Banks and Real Estate shall thoroughly investigate all matters
relating to an application for registration under this Act and
may require a personal inspection of any developer, timeshare
plan, accommodation, exchange company, or resale company and
any offices where any of the foregoing may transact business.
All reasonable expenses incurred by the Department Office of
Banks and Real Estate in investigating such matters shall be
borne by the registrant, and the registrant shall reimburse the
Department Office of Banks and Real Estate for those expenses
within 30 calendar days of receipt of notice of the expenses
from the Department Office. The Department Office of Banks and
Real Estate may require a deposit sufficient to cover the
expenses prior to incurring the expenses.
(Source: P.A. 91-585, eff. 1-1-00.)
 
    (765 ILCS 101/5-35 rep.)
    Section 10. The Real Estate Timeshare Act of 1999 is
amended by repealing Section 5-35.
 
    Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.