Full Text of SB2112 96th General Assembly
SB2112enr 96TH GENERAL ASSEMBLY
|
|
|
SB2112 Enrolled |
|
LRB096 09414 AJO 19571 b |
|
| 1 |
| AN ACT concerning civil law.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Real Estate Timeshare Act of 1999 is amended | 5 |
| by changing Sections 1-10, 1-15, 5-5, 5-15, 5-20, 5-25, 5-30, | 6 |
| 5-40, 5-45, 5-50, 5-55, 5-60, 10-5, 10-15, 10-25, 10-30, 15-5, | 7 |
| 15-10, 15-15, 15-20, 15-25, 15-30, 15-35, 15-40, 15-45, 15-50, | 8 |
| 15-55, 15-60, 15-65, 15-70, 15-80, 20-5, 20-10, 20-15, 20-20, | 9 |
| and 20-25, and by adding Sections 10-45, 10-50, and 10-55 as | 10 |
| follows:
| 11 |
| (765 ILCS 101/1-10)
| 12 |
| Sec. 1-10. Scope of Act.
| 13 |
| (a) This Act applies to all of the following:
| 14 |
| (1) Timeshare plans with an accommodation or component | 15 |
| site in Illinois.
| 16 |
| (2) Timeshare plans without an accommodation or | 17 |
| component site in
Illinois, if those timeshare plans are | 18 |
| sold or offered to be sold to any
individual located within | 19 |
| Illinois.
| 20 |
| (3) Exchange programs as defined in this Act.
| 21 |
| (4) Resale agents as defined in this Act.
| 22 |
| (b) Exemptions. This Act does not apply to the following:
| 23 |
| (1) Timeshare plans, whether or not an accommodation is |
|
|
|
SB2112 Enrolled |
- 2 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| located in
Illinois, consisting of 7 or fewer timeshare | 2 |
| periods, the use of which
extends over any period of less | 3 |
| than 3 years ; or .
| 4 |
| (2) Timeshare plans, whether or not an accommodation is | 5 |
| located in
Illinois, under which the prospective | 6 |
| purchaser's total financial obligation
will be less than | 7 |
| $1,500 during the entire term of the timeshare plan.
| 8 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 9 |
| (765 ILCS 101/1-15)
| 10 |
| Sec. 1-15. Definitions. In this Act, unless the context | 11 |
| otherwise
requires:
| 12 |
| "Accommodation" means any apartment, condominium or | 13 |
| cooperative unit,
cabin, lodge, hotel or motel room, or other | 14 |
| private or commercial structure
containing
toilet facilities | 15 |
| therein that is designed and available, pursuant to
applicable | 16 |
| law, for use
and occupancy as a residence by one or more | 17 |
| individuals, or any unit or berth
on a
commercial cruise line | 18 |
| ship, which is included in the offering of a timeshare
plan.
| 19 |
| "Acquisition agent" means a person who, directly or through | 20 |
| the person's
employees,
agents, or independent contractors, | 21 |
| induces or attempts to induce by means of a
promotion or an | 22 |
| advertisement any
individual located
within the State of | 23 |
| Illinois to attend a sales presentation for a timeshare
plan.
| 24 |
| "Advertisement" means any written, oral, or electronic | 25 |
| communication that is
directed to or targeted to persons within |
|
|
|
SB2112 Enrolled |
- 3 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| the State of Illinois and contains a
promotion,
inducement, or | 2 |
| offer to sell a timeshare plan, including but not limited to
| 3 |
| brochures,
pamphlets, radio and television scripts, electronic | 4 |
| media, telephone and
direct mail
solicitations, and other means | 5 |
| of promotion.
| 6 |
| "Association" means the organized body consisting of the | 7 |
| purchasers of
interests
in a timeshare plan.
| 8 |
| "Assessment" means the share of funds required for the | 9 |
| payment of common
expenses which is assessed from time to time | 10 |
| against each purchaser by the
managing
entity.
| 11 |
| "Commissioner" means the Commissioner of Banks and Real | 12 |
| Estate,
or a natural person authorized by the Commissioner, the | 13 |
| Office of Banks and
Real Estate
Act, or this Act to act in the | 14 |
| Commissioner's stead.
| 15 |
| "Component site" means a specific geographic location | 16 |
| where accommodations
which are part of a multi-site timeshare | 17 |
| plan are located. Separate phases of
a
single
timeshare | 18 |
| property in a specific geographic location and under common
| 19 |
| management
shall be deemed a single component site.
| 20 |
| "Department" means the Department of Financial and | 21 |
| Professional Regulation. | 22 |
| "Developer" means and includes any person or entity, other | 23 |
| than a sales
agent,
acquisition agent, or resale agent, who | 24 |
| creates a timeshare plan or is in the
business of
selling | 25 |
| timeshare interests, or employs agents to do the same, or any | 26 |
| person or
entity who
succeeds to the interest of a developer by |
|
|
|
SB2112 Enrolled |
- 4 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| sale, lease, assignment, mortgage,
or other
transfer, but the | 2 |
| term includes only those persons who offer timeshare
interests | 3 |
| for
disposition in the ordinary course of business.
| 4 |
| "Dispose" or "disposition" means a voluntary transfer or | 5 |
| assignment of any
legal
or equitable interest in a timeshare | 6 |
| plan, other than the transfer, assignment,
or release of
a | 7 |
| security interest.
| 8 |
| "Exchange company" means any person owning or operating, or | 9 |
| both owning and
operating, an exchange program.
| 10 |
| "Exchange program" means any method, arrangement, or | 11 |
| procedure for the
voluntary exchange of timeshare interests or | 12 |
| other property interests. The
term does not
include the | 13 |
| assignment of the right to use and occupy accommodations to
| 14 |
| owners of
timeshare interests within a single-site timeshare | 15 |
| plan. Any method,
arrangement, or
procedure that otherwise | 16 |
| meets this definition, wherein the purchaser's total
| 17 |
| contractual
financial obligation exceeds $3,000 per any | 18 |
| individual, recurring timeshare
period, shall
be regulated as a | 19 |
| timeshare plan in accordance with this Act.
| 20 |
| "Managing entity" means the person who undertakes the | 21 |
| duties,
responsibilities,
and obligations of the management of | 22 |
| a timeshare plan.
| 23 |
| "Managing entity lien" means a lien created pursuant to | 24 |
| Section 10-45. | 25 |
| "Offer" means any inducement, solicitation, or other | 26 |
| attempt, whether by
marketing, advertisement, oral or written |
|
|
|
SB2112 Enrolled |
- 5 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| presentation, or any other means, to
encourage a
person to | 2 |
| acquire a timeshare interest in a timeshare plan, other than as
| 3 |
| security for an
obligation.
| 4 |
| "Person" means a natural person, corporation, limited | 5 |
| liability company,
partnership, joint venture, association, | 6 |
| estate, trust, government,
governmental
subdivision or agency, | 7 |
| or other legal entity, or any combination thereof.
| 8 |
| "Promotion" means a plan or device, including one involving | 9 |
| the possibility
of a
prospective purchaser receiving a | 10 |
| vacation, discount vacation, gift, or prize,
used by a
| 11 |
| developer, or an agent, independent contractor, or employee of | 12 |
| any of the same
on behalf
of the developer, in connection with | 13 |
| the offering and sale of timeshare
interests in a
timeshare | 14 |
| plan.
| 15 |
| "Purchaser" means any person, other than a developer, who | 16 |
| by means of a
voluntary transfer acquires a legal or equitable | 17 |
| interest in a timeshare plan
other than as
security for an | 18 |
| obligation.
| 19 |
| "Purchase contract" means a document pursuant to which a | 20 |
| person becomes
legally obligated to sell, and a purchaser | 21 |
| becomes legally obligated to buy, a
timeshare
interest.
| 22 |
| "Resale agent" means a person who, for another and for | 23 |
| compensation, or with the intention or expectation of receiving | 24 |
| compensation, either directly or indirectly sells, offers to | 25 |
| sell, or advertises to sell within this State any timeshare | 26 |
| interest previously sold to a purchaser or solicits within this |
|
|
|
SB2112 Enrolled |
- 6 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| State any owner of a timeshare interest to list the owner's | 2 |
| timeshare interest, wherever located, for sale. directly or | 3 |
| through the person's employees
or
agents,
sells or offers to | 4 |
| sell a timeshare interest previously sold to a purchaser or
| 5 |
| solicits an
owner of a timeshare interest to list the owner's | 6 |
| timeshare interest for sale.
| 7 |
| "Reservation system" means the method, arrangement, or | 8 |
| procedure by which a
purchaser, in order to reserve the use or | 9 |
| occupancy of any accommodation of a
multi-site
timeshare plan | 10 |
| for one or more timeshare periods, is required to compete with
| 11 |
| other
purchasers in the same multi-site timeshare plan, | 12 |
| regardless of whether the
reservation
system is operated and | 13 |
| maintained by the multi-site timeshare plan managing
entity, an
| 14 |
| exchange company, or any other person. In the event that a | 15 |
| purchaser is
required to use
an exchange program as the | 16 |
| purchaser's principal means of obtaining the right
to use and
| 17 |
| occupy accommodations, that arrangement shall be deemed a | 18 |
| reservation system.
When
an exchange company utilizes a | 19 |
| mechanism for the exchange of use of timeshare
periods
among | 20 |
| members of an exchange program, that utilization is not a | 21 |
| reservation
system of a
multi-site timeshare plan.
| 22 |
| "Sales agent" means a person, other than a resale agent, | 23 |
| who, directly or
through the person's employees,
agents,
or
| 24 |
| independent contractors, sells or offers to sell timeshare | 25 |
| interests in a
timeshare plan to
any individual located in the | 26 |
| State of Illinois.
|
|
|
|
SB2112 Enrolled |
- 7 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| "Timeshare instrument" means one or more documents, by | 2 |
| whatever name
denominated, creating or governing the operation | 3 |
| of a timeshare plan.
| 4 |
| "Secretary" means the Secretary of the Department of | 5 |
| Financial and Professional Regulation, or a natural person | 6 |
| authorized by the Secretary, the Department of Financial and | 7 |
| Professional Regulation, or this Act to act in the Secretary's | 8 |
| stead. | 9 |
| "Timeshare interest" means and includes either:
| 10 |
| (1) a "timeshare estate", which is the right to occupy | 11 |
| a timeshare
property,
coupled with a freehold estate or an | 12 |
| estate for years with a future interest in
a
timeshare | 13 |
| property or a specified portion thereof; or
| 14 |
| (2) a "timeshare use", which is the right to occupy a | 15 |
| timeshare property,
which right is neither coupled with a | 16 |
| freehold interest, nor coupled with an
estate
for years | 17 |
| with a future interest, in a timeshare property.
| 18 |
| "Timeshare period" means the period or periods of time when | 19 |
| the purchaser of
a
timeshare plan is afforded the opportunity | 20 |
| to use the accommodations of a
timeshare
plan.
| 21 |
| "Timeshare plan" means any arrangement, plan, scheme, or | 22 |
| similar device,
other
than an exchange program, whether by | 23 |
| membership agreement, sale, lease, deed,
license,
or | 24 |
| right-to-use agreement or by any other means, whereby a | 25 |
| purchaser, in
exchange for
consideration, receives ownership | 26 |
| rights in or the right to use accommodations
for a
period of |
|
|
|
SB2112 Enrolled |
- 8 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| time less than a full year during any given year, but not | 2 |
| necessarily
for
consecutive years. A timeshare plan may be:
| 3 |
| (1) a "single-site timeshare plan", which is the right | 4 |
| to use
accommodations at a single timeshare property; or
| 5 |
| (2) a "multi-site timeshare plan", which includes:
| 6 |
| (A) a "specific timeshare interest", which is the | 7 |
| right to use
accommodations at a specific timeshare | 8 |
| property, together with use rights
in accommodations | 9 |
| at one or more other component sites created by or
| 10 |
| acquired through the timeshare plan's reservation | 11 |
| system; or
| 12 |
| (B) a "non-specific timeshare interest", which is | 13 |
| the right to use
accommodations at more than one | 14 |
| component site created by or acquired
through the | 15 |
| timeshare plan's reservation system, but including no | 16 |
| specific
right to use any particular accommodations.
| 17 |
| "Timeshare property" means one or more accommodations | 18 |
| subject to the same
timeshare instrument, together with any | 19 |
| other property or rights to property
appurtenant
to those | 20 |
| accommodations.
| 21 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 22 |
| (765 ILCS 101/5-5)
| 23 |
| Sec. 5-5. Exemptions from developer registration. A person | 24 |
| shall not be
required to register as a developer under this Act | 25 |
| if:
|
|
|
|
SB2112 Enrolled |
- 9 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (1) the person is an owner of a timeshare interest who | 2 |
| has acquired the
timeshare
interest for the person's own | 3 |
| use and occupancy and who later offers it for
resale; or
| 4 |
| (2) the person is a managing entity or an association | 5 |
| that is not
otherwise a developer
of a
timeshare plan in | 6 |
| its own right, solely while acting as an association or
| 7 |
| under a contract
with an association to offer or sell a | 8 |
| timeshare interest transferred to the
association
through | 9 |
| foreclosure, deed in lieu of foreclosure, or gratuitous | 10 |
| transfer, if
such acts are
performed in the regular course | 11 |
| of, or as an incident to, the management of the
association | 12 |
| for its own account in the timeshare plan; or
| 13 |
| (3) the person offers a timeshare plan in a national
| 14 |
| publication or by
electronic media, as determined by the | 15 |
| Department Office of Banks and Real Estate and
provided by
| 16 |
| rule, which is not directed to or targeted to any | 17 |
| individual located in
Illinois; or
| 18 |
| (4) the person is conveyed, assigned, or transferred | 19 |
| more than 7 timeshare
periods
from a developer in a single | 20 |
| voluntary or involuntary transaction and
subsequently
| 21 |
| conveys, assigns, or transfers all of the timeshare | 22 |
| interests received from the
developer to
a single purchaser | 23 |
| in a single transaction.
| 24 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 25 |
| (765 ILCS 101/5-15)
|
|
|
|
SB2112 Enrolled |
- 10 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| Sec. 5-15. Developer registration requirements.
| 2 |
| (a) Registration required. Any person who , to any | 3 |
| individual located in
Illinois,
sells, offers to sell, or | 4 |
| attempts to solicit prospective purchasers or to solicit any | 5 |
| individual located in Illinois to
purchase a timeshare
| 6 |
| interest, or any person who creates a timeshare plan with an | 7 |
| accommodation in
the State
of Illinois, shall register as a | 8 |
| developer with the Department Office of Banks and Real
Estate | 9 |
| and shall comply with the provisions of subsection (c) of this | 10 |
| Section.
| 11 |
| (b) Items to be registered. A developer shall be | 12 |
| responsible for
registering with
the Department Office of Banks | 13 |
| and Real Estate , on forms provided by the Department Office of | 14 |
| Banks
and Real
Estate , the following:
| 15 |
| (1) All timeshare plans which have accommodations | 16 |
| located in Illinois or
which are sold or offered for sale | 17 |
| to any individual located in Illinois.
| 18 |
| (2) All sales agents who sell or offer to sell any | 19 |
| timeshare interests in
any
timeshare plan offered by the | 20 |
| developer to any individual located in Illinois.
| 21 |
| (3) All acquisition agents who, by means of inducement, | 22 |
| promotion, or
advertisement, attempt to encourage or | 23 |
| procure prospective purchasers located
in
Illinois to | 24 |
| attend a sales presentation for any timeshare plan offered | 25 |
| by the
developer.
| 26 |
| (4) All managing entities who manage any timeshare plan |
|
|
|
SB2112 Enrolled |
- 11 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| offered or sold
by the developer to any individual located | 2 |
| in Illinois, without limitation as
to
whether the location | 3 |
| of the accommodation site managed is within Illinois.
| 4 |
| (c) Escrow. The developer shall comply with the following | 5 |
| escrow
requirements:
| 6 |
| (1) A developer of a timeshare plan shall deposit into | 7 |
| an escrow account
in a federally insured depository 100% of | 8 |
| all funds which are received during
the
purchaser's | 9 |
| rescission period. The deposit of such funds shall be | 10 |
| evidenced by
an
executed escrow agreement between the | 11 |
| escrow agent and the developer,
which shall include | 12 |
| provisions that:
| 13 |
| (A) funds may be disbursed to the developer by the | 14 |
| escrow agent
from the escrow account only after | 15 |
| expiration of the purchaser's rescission
period and in | 16 |
| accordance with the purchase contract, subject to | 17 |
| paragraph
(2) of this subsection; and
| 18 |
| (B) if a purchaser properly cancels the purchase | 19 |
| contract pursuant to
its
terms, the funds shall be paid | 20 |
| to the purchaser or paid to the developer if the
| 21 |
| purchaser's funds have been previously refunded by the | 22 |
| developer.
| 23 |
| (2) If a developer contracts to sell a timeshare | 24 |
| interest and the
construction of any property in which the | 25 |
| timeshare interest is located has not
been completed, the | 26 |
| developer, upon expiration of the rescission period, shall
|
|
|
|
SB2112 Enrolled |
- 12 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| continue to maintain in an escrow account all funds | 2 |
| received by or on behalf of
the developer from the | 3 |
| purchaser
under his or her purchase
contract. The | 4 |
| Department Office of
Banks
and Real Estate shall establish, | 5 |
| by rule, the types of documentation which
shall be
required | 6 |
| for evidence of completion, including but not limited to a | 7 |
| certificate
of
occupancy, a certificate of substantial | 8 |
| completion, or an inspection by the
Office
of the State | 9 |
| Fire Marshal or the State Fire Marshal's designee or an | 10 |
| equivalent
public safety inspection agency in the | 11 |
| applicable jurisdiction. Funds shall be
released from | 12 |
| escrow as follows:
| 13 |
| (A) If a purchaser properly cancels the purchase | 14 |
| contract pursuant to
its
terms, the funds shall be paid | 15 |
| to the purchaser or paid to the developer if the
| 16 |
| purchaser's funds have been previously refunded by the | 17 |
| developer.
| 18 |
| (B) If a purchaser defaults in the performance of | 19 |
| the purchaser's
obligations under the purchase | 20 |
| contract, the funds shall be paid
to the developer.
| 21 |
| (C) If the funds of a purchaser have not been | 22 |
| previously disbursed
in accordance with the provisions | 23 |
| of this paragraph (2), they may be
disbursed to the | 24 |
| developer by the escrow agent upon the issuance of
| 25 |
| acceptable evidence of completion of construction as | 26 |
| provided herein.
|
|
|
|
SB2112 Enrolled |
- 13 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (3) In lieu of the provisions in paragraphs (1) and | 2 |
| (2), the Department Office of
Banks
and Real Estate may | 3 |
| accept from the developer a surety bond, irrevocable letter
| 4 |
| of
credit, or other financial assurance acceptable to the | 5 |
| Department Office of Banks and Real
Estate , as provided by | 6 |
| rule. Any acceptable financial assurance must be in an
| 7 |
| amount equal to or in excess of the funds which would | 8 |
| otherwise be placed in
escrow, or in an amount equal to the | 9 |
| cost to complete the incomplete property
in
which the | 10 |
| timeshare interest is located.
| 11 |
| (4) The developer shall provide escrow account | 12 |
| information to the
Department Office of Banks and Real | 13 |
| Estate and shall execute in writing an authorization
| 14 |
| consenting to an audit or examination of the account by the | 15 |
| Department Office of Banks and
Real Estate on forms | 16 |
| provided by the Department Office of Banks and Real Estate . | 17 |
| The
developer shall comply with the reconciliation and | 18 |
| records requirements
established by rule by the Department | 19 |
| Office of Banks and Real Estate . The developer
shall
make | 20 |
| documents related to the escrow account or escrow | 21 |
| obligation available to
the Department Office of Banks and | 22 |
| Real Estate upon the Department's Office's request. The | 23 |
| developer
shall maintain any disputed funds in the escrow | 24 |
| account until either:
| 25 |
| (A) receipt of written direction agreed to by | 26 |
| signature of all
parties; or
|
|
|
|
SB2112 Enrolled |
- 14 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (B) deposit of the funds with a court of competent | 2 |
| jurisdiction in
which a civil action regarding the | 3 |
| funds has been filed.
| 4 |
| (d) Comprehensive registration. In registering a timeshare | 5 |
| plan, the
developer shall be responsible for providing | 6 |
| information on the following:
| 7 |
| (1) The developer's legal name, any assumed names used | 8 |
| by the developer,
principal office street address, mailing | 9 |
| address, primary contact
person, and
telephone number;
| 10 |
| (2) The name of the developer's authorized or | 11 |
| registered agent in the
State
of Illinois upon whom claims | 12 |
| can be served or service of process be had, the
agent's | 13 |
| street address in Illinois, and telephone number;
| 14 |
| (3) The name, street address, mailing address, primary | 15 |
| contact person, and
telephone number of any timeshare plan | 16 |
| being registered;
| 17 |
| (4) The name, street address, mailing address and | 18 |
| telephone number of any
sales agent and acquisition agent | 19 |
| utilized by the developer, and any managing
entity of the | 20 |
| timeshare plan;
| 21 |
| (5) A public offering statement which complies with the | 22 |
| requirements of
Sections 5-25; and
| 23 |
| (6) Any other information regarding the developer, | 24 |
| timeshare plan, sales
agents, acquisition agents, or | 25 |
| managing entities as reasonably required by the Department
| 26 |
| Office of Banks and Real Estate and established by rule.
|
|
|
|
SB2112 Enrolled |
- 15 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (e) Abbreviated registration. The Department Office of | 2 |
| Banks and Real Estate
may accept, as provided for by rule, an | 3 |
| abbreviated registration
application of a
developer of a | 4 |
| timeshare plan in which all accommodations are located outside
| 5 |
| of the
State of Illinois. The
developer shall file a written | 6 |
| notice of intent to register under this Section
at least 15 | 7 |
| days prior to submission. A developer of a timeshare plan with | 8 |
| any
accommodation
located in the
State of Illinois may not file | 9 |
| an abbreviated filing, with the exception of a
succeeding
| 10 |
| developer after a merger or acquisition when all of the | 11 |
| developers' timeshare
plans were
registered in Illinois | 12 |
| immediately preceding the merger or acquisition.
| 13 |
| The developer shall provide a certificate of registration | 14 |
| or other evidence
of
registration from the appropriate | 15 |
| regulatory agency of any other jurisdiction
within the
United | 16 |
| States in which some or all of such accommodations are located.
| 17 |
| The other
jurisdiction must have disclosure requirements that | 18 |
| are substantially
equivalent to or
greater than the information | 19 |
| required to be disclosed to purchasers by the
State of | 20 |
| Illinois.
A developer filing an abbreviated registration | 21 |
| application shall provide the
following:
| 22 |
| (1) The developer's legal name, any assumed names used | 23 |
| by the
developer, and the developer's principal office | 24 |
| location, mailing address,
primary
contact person, and | 25 |
| telephone number.
| 26 |
| (2) The name, location, mailing address, primary |
|
|
|
SB2112 Enrolled |
- 16 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| contact person, and
telephone number of the timeshare plan.
| 2 |
| (3) The name of the authorized agent or registered | 3 |
| agent in Illinois upon
whom claims can be served or service | 4 |
| of process can be had, and the address in
Illinois of the | 5 |
| authorized agent or registered agent.
| 6 |
| (4) The names of any sales agent, acquisition agent, | 7 |
| and managing entity,
and their principal office location, | 8 |
| mailing address, and telephone number.
| 9 |
| (5) The certificate of registration or other evidence | 10 |
| of registration
from
any jurisdiction in which the | 11 |
| timeshare plan is approved or accepted.
| 12 |
| (6) A declaration as to whether the timeshare plan is a | 13 |
| single-site
timeshare plan or a multi-site timeshare plan | 14 |
| and, if a multi-site timeshare
plan,
whether it consists of | 15 |
| specific timeshare interests or non-specific timeshare
| 16 |
| interests.
| 17 |
| (7) Disclosure of each jurisdiction in which the
| 18 |
| developer
has
applied
for registration of the timeshare | 19 |
| plan,
and whether the timeshare plan, its developer, or any | 20 |
| of its
acquisition agents, sales agents, or managing | 21 |
| entities utilized were denied
registration or were the | 22 |
| subject of any disciplinary proceeding.
| 23 |
| (8) Copies of any disclosure documents required to be | 24 |
| given to purchasers
or required to be filed with the | 25 |
| jurisdiction in which the timeshare plan is
approved or | 26 |
| accepted as may be requested by the Department Office of |
|
|
|
SB2112 Enrolled |
- 17 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| Banks and Real
Estate .
| 2 |
| (9) The appropriate fee.
| 3 |
| (10) Such other information reasonably required by the | 4 |
| Department Office of Banks
and Real Estate and established | 5 |
| by rule.
| 6 |
| (f) Preliminary permits. Notwithstanding anything in this | 7 |
| Section to the
contrary,
the Department Office of Banks and | 8 |
| Real Estate may grant a 6-month preliminary permit, as
| 9 |
| established by rule, allowing the developer to begin offering | 10 |
| and selling
timeshare
interests while the registration is in | 11 |
| process. To obtain a preliminary
permit,
the
developer shall do | 12 |
| all of the following:
| 13 |
| (1) (Blank). Submit a formal written request to the | 14 |
| Office of Banks and Real
Estate for a preliminary permit.
| 15 |
| (2) Submit an application in form and substance | 16 |
| satisfactory to the Department a substantially complete | 17 |
| application for registration to the
Office of Banks and | 18 |
| Real Estate , including all appropriate fees and exhibits
| 19 |
| required
under this Article.
| 20 |
| (3) Provide evidence acceptable to the Department | 21 |
| Office of Banks and Real
Estate that all funds received by | 22 |
| the developer will be placed into an
independent escrow
| 23 |
| account with instructions that funds will not be released | 24 |
| until a final
registration has been
granted.
| 25 |
| (4) Give to each purchaser and potential purchaser a | 26 |
| copy of the
proposed public offering statement that the |
|
|
|
SB2112 Enrolled |
- 18 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| developer has submitted to the Department
Office of
Banks | 2 |
| and Real Estate with the initial application.
| 3 |
| (5) Give to each purchaser the opportunity to cancel | 4 |
| the purchase
contract
in
accordance with Section 10-10. The | 5 |
| purchaser shall have an additional
opportunity to
cancel | 6 |
| upon the issuance of an approved registration if the | 7 |
| Department Office of Banks and
Real
Estate determines that | 8 |
| there is a substantial difference in the disclosures
| 9 |
| contained in the
final public offering statement and those | 10 |
| given to the purchaser in the
proposed public
offering | 11 |
| statement.
| 12 |
| (g) Alternative registration; letter of credit or other | 13 |
| assurance; recovery.
| 14 |
| (1) Notwithstanding anything in this Act to the | 15 |
| contrary, the Department Office of
Banks and Real Estate | 16 |
| may accept, as established by rule, a registration from
a | 17 |
| developer
for a timeshare plan if the developer provides | 18 |
| all of the following:
| 19 |
| (A) (Blank). A written notice of intent to register | 20 |
| under this Section at least
15 days prior to submission | 21 |
| of the alternative registration.
| 22 |
| (B) An irrevocable letter of credit or other | 23 |
| acceptable assurance, as
established by rule, in an | 24 |
| amount of $1,000,000, from which an Illinois
purchaser
| 25 |
| aggrieved by any act, representation, transaction, or | 26 |
| conduct of a duly
registered
developer or his or her |
|
|
|
SB2112 Enrolled |
- 19 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| acquisition agent, sales agent, managing entity, or
| 2 |
| employee, which
violates any
provision of this Act or | 3 |
| the rules promulgated under this Act, or which
| 4 |
| constitutes
embezzlement of money or property or | 5 |
| results in money or property being
unlawfully
obtained | 6 |
| from any person by false pretenses, artifice, | 7 |
| trickery, or forgery or
by reason of
any fraud, | 8 |
| misrepresentation, discrimination, or deceit by or on | 9 |
| the part of
any developer
or agent or employee of the | 10 |
| developer and which results in actual monetary loss
as
| 11 |
| opposed to a loss in market value, may recover.
| 12 |
| (C) The developer's legal name, any assumed names | 13 |
| used by the
developer, and the developer's principal | 14 |
| office location, mailing address, main
contact
person, | 15 |
| and telephone number.
| 16 |
| (D) The name, location, mailing address, main | 17 |
| contact person, and
telephone number of the timeshare | 18 |
| plan included in the filing.
| 19 |
| (E) The name of the authorized agent or registered | 20 |
| agent in Illinois
upon
whom claims can be served or | 21 |
| service of process can be had, and the
address in | 22 |
| Illinois of the authorized agent or registered agent.
| 23 |
| (F) The names of any sales agent, acquisition | 24 |
| agent, and managing
entity,
and their principal office | 25 |
| location, mailing address, and telephone number.
| 26 |
| (G) A declaration as to whether the timeshare plan |
|
|
|
SB2112 Enrolled |
- 20 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| is a single-site
timeshare plan or a multi-site | 2 |
| timeshare plan and, if a multi-site timeshare
plan, | 3 |
| whether it consists of specific timeshare interests or | 4 |
| non-specific
timeshare interests.
| 5 |
| (H) Disclosure of each jurisdiction in which the
| 6 |
| developer
has
applied
for registration of the | 7 |
| timeshare plan,
and whether the timeshare plan, its | 8 |
| developer, or any of its
acquisition agents, sales | 9 |
| agents, or managing entities utilized were denied
| 10 |
| registration or were the subject of any disciplinary | 11 |
| proceeding.
| 12 |
| (I) The required fee.
| 13 |
| (J) Such other information reasonably required by | 14 |
| the Department Office of Banks
and Real Estate and | 15 |
| established by rule.
| 16 |
| (2) Any letter of credit or other acceptable assurance | 17 |
| shall remain in
effect
with
the Department Office of Banks | 18 |
| and Real Estate for a period of 12 months after the date
| 19 |
| the
developer does not renew or otherwise cancel his or her | 20 |
| registration with the
State of
Illinois or 12 months after | 21 |
| the Department Office of Banks and Real Estate revokes,
| 22 |
| suspends, or
otherwise disciplines such developer or his or | 23 |
| her registration, provided there
is no pending
litigation
| 24 |
| alleging a
violation of any provision of this Act known by | 25 |
| the Department Office of Banks and Real
Estate and
| 26 |
| certified by the developer.
|
|
|
|
SB2112 Enrolled |
- 21 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (3) The Department Office of Banks and Real Estate | 2 |
| shall establish procedures, by
rule, to
satisfy claims by | 3 |
| any Illinois purchaser pursuant to this Section.
| 4 |
| (4) The Department Office of Banks and Real Estate | 5 |
| shall automatically suspend the
registration of any | 6 |
| developer pursuant to Section 15-25 of this Act in
the | 7 |
| event the Department
Office authorizes or directs payment | 8 |
| to an Illinois purchaser from the letter
of credit or
other | 9 |
| acceptable assurance pursuant to this Section and as | 10 |
| established by rule.
| 11 |
| (h) A developer who registers a timeshare plan pursuant to | 12 |
| this
Act
shall
provide the purchaser with a public offering | 13 |
| statement that complies with
Section
5-25 and any disclosures | 14 |
| or other written information required by this Act.
| 15 |
| (i) Nothing contained in this Section shall affect the | 16 |
| Department's Office of Banks
and
Real
Estate's ability to | 17 |
| initiate any disciplinary action against a developer in
| 18 |
| accordance with this Act.
| 19 |
| (j) For purposes of this Section, "Illinois purchaser" | 20 |
| means a person
who,
within the State of Illinois, is solicited, | 21 |
| offered, or sold a timeshare
interest in a timeshare
plan | 22 |
| registered pursuant to this Section.
| 23 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 24 |
| (765 ILCS 101/5-20)
| 25 |
| Sec. 5-20. Developer supervisory duties. The developer |
|
|
|
SB2112 Enrolled |
- 22 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| shall have the
duty
to supervise, manage, and control all | 2 |
| aspects of the offering of the timeshare
plan,
including, but | 3 |
| not limited to, promotion, advertising, contracting, and
| 4 |
| closing.
The
developer shall have responsibility for each | 5 |
| timeshare plan registered with the Department
Office of
Banks | 6 |
| and Real Estate and for the actions of any sales agent, | 7 |
| managing entity,
and
acquisition agent utilized by the | 8 |
| developer in the offering or selling of any
registered
| 9 |
| timeshare plan. Any violation of this Act which occurs during | 10 |
| the offering
activities shall
be deemed to be a violation by | 11 |
| the developer as well as by the acquisition
agent, sales
agent, | 12 |
| or managing entity who actually committed such violation.
| 13 |
| Notwithstanding
anything to the contrary in this Act, the | 14 |
| developer shall be responsible
for the actions
of the | 15 |
| association and managing entity only while they are subject to | 16 |
| the
developer's
control.
| 17 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 18 |
| (765 ILCS 101/5-25)
| 19 |
| Sec. 5-25. Timeshare plan public offering statement | 20 |
| requirements.
| 21 |
| (a) A developer shall prepare a public offering statement, | 22 |
| shall provide the
statement to each purchaser of a timeshare | 23 |
| interest in any timeshare plan at
the time of
purchase, and | 24 |
| shall fully and accurately disclose those facts concerning the
| 25 |
| timeshare
developer and timeshare plan that are required by
|
|
|
|
SB2112 Enrolled |
- 23 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| this Act or by rule.
The public offering statement shall be in | 2 |
| writing and dated and shall require
the purchaser
to certify in | 3 |
| writing the receipt thereof.
| 4 |
| (b) With regard to timeshare interests offered in a | 5 |
| timeshare plan, a public
offering
statement shall fully and | 6 |
| accurately disclose the following:
| 7 |
| (1) The name of the developer and the principal address | 8 |
| of the developer.
| 9 |
| (2) A description of the type of timeshare interests | 10 |
| being offered.
| 11 |
| (3) A general description of the existing and proposed | 12 |
| accommodations and
amenities of the timeshare plan, | 13 |
| including their type and number, personal
property | 14 |
| furnishing the accommodation, any use restrictions, and | 15 |
| any required
fees for use.
| 16 |
| (4) A description of any accommodations and amenities | 17 |
| that are committed
to be
built, including, without | 18 |
| limitation:
| 19 |
| (A) the developer's schedule of commencement and | 20 |
| completion of all
accommodations and amenities; and
| 21 |
| (B) the estimated number of accommodations per | 22 |
| site that may become
subject to the timeshare plan.
| 23 |
| (5) A brief description of the duration, phases, and | 24 |
| operation of the
timeshare
plan.
| 25 |
| (6) The current annual budget, if available, or the | 26 |
| projected annual
budget for the
timeshare plan. The budget |
|
|
|
SB2112 Enrolled |
- 24 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| shall include, without limitation:
| 2 |
| (A) a statement of the amount, or a statement that | 3 |
| there is no amount,
included in the budget as a reserve | 4 |
| for repairs and replacement;
| 5 |
| (B) the projected common expense liability, if | 6 |
| any, by category of
expenditures for the timeshare | 7 |
| plan; and
| 8 |
| (C) a statement of any services or expenses not | 9 |
| reflected in the budget
that the developer provides or | 10 |
| pays.
| 11 |
| (7) Any initial or special fee due from the purchaser | 12 |
| at closing, together
with a
description of the purpose and | 13 |
| method of calculating the fee.
| 14 |
| (8) A description of any liens, defects, or | 15 |
| encumbrances on or affecting
the title
to the timeshare | 16 |
| interests.
| 17 |
| (9) A description of any financing offered by or | 18 |
| available through the
developer.
| 19 |
| (10) A statement that within 5 calendar days after | 20 |
| receipt of the public
offering
statement or after execution | 21 |
| of the
purchase
contract, whichever is later, a purchaser
| 22 |
| may
cancel any
purchase
contract for a timeshare interest | 23 |
| from a developer
together with a statement providing the | 24 |
| name and street address to which the
purchaser should mail | 25 |
| any notice of cancellation.
However, if by agreement of
the | 26 |
| parties by and through the purchase contract, the
purchase
|
|
|
|
SB2112 Enrolled |
- 25 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| contract allows for cancellation
of the purchase
contract
| 2 |
| for a period of time exceeding 5 calendar days, then the | 3 |
| public
offering statement shall include a statement that
| 4 |
| the
cancellation of the
purchase
contract is allowed for | 5 |
| that period of time exceeding 5
calendar
days.
| 6 |
| (11) A statement of any pending suits, adjudications, | 7 |
| or disciplinary
actions
material to the timeshare | 8 |
| interests of which the developer has knowledge.
| 9 |
| (12) Any restrictions on alienation of any number or | 10 |
| portion of any
timeshare
interests.
| 11 |
| (13) A statement describing liability and casualty | 12 |
| insurance for the
timeshare
property.
| 13 |
| (14) Any current or expected fees or charges to be paid | 14 |
| by timeshare
purchasers
for the use of any amenities | 15 |
| related to the timeshare property.
| 16 |
| (15) The extent to which financial arrangements have | 17 |
| been provided for
completion of all promised improvements.
| 18 |
| (16) The developer or managing entity must notify the | 19 |
| Department Office of Banks and
Real
Estate of the extent to | 20 |
| which an accommodation may become subject to a tax or
other | 21 |
| lien arising out of claims against other purchasers in the | 22 |
| same timeshare
plan. The Department Office of Banks and | 23 |
| Real Estate may require the developer or
managing entity to | 24 |
| notify a prospective purchaser of any such potential tax or
| 25 |
| lien
which would materially and adversely affect the | 26 |
| prospective purchaser.
|
|
|
|
SB2112 Enrolled |
- 26 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (17) A statement indicating that the developer and | 2 |
| timeshare plan are
registered
with the State of Illinois.
| 3 |
| (18) If the timeshare plan provides purchasers with the | 4 |
| opportunity to
participate
in an exchange program, a | 5 |
| description of the name and address of the exchange
company | 6 |
| and the method by which a purchaser accesses the exchange | 7 |
| program.
| 8 |
| (19) Such other information reasonably required by the | 9 |
| Department Office of Banks and
Real
Estate and established | 10 |
| by administrative rule necessary for the protection of
| 11 |
| purchasers of timeshare interests in timeshare plans.
| 12 |
| (20) Any other information that the developer, with the | 13 |
| approval of the
Department Office of
Banks and Real Estate , | 14 |
| desires to include in the public offering statement.
| 15 |
| (c) A developer offering a multi-site timeshare plan shall | 16 |
| also fully and
accurately disclose the following information, | 17 |
| which may be disclosed in a
written,
graphic, or tabular form:
| 18 |
| (1) A description of each component site, including the | 19 |
| name and address
of each
component site.
| 20 |
| (2) The number of accommodations and timeshare | 21 |
| periods, expressed in
periods
of 7-day use availability, | 22 |
| committed to the multi-site timeshare plan and
available
| 23 |
| for use by purchasers.
| 24 |
| (3) Each type of accommodation in terms of the number | 25 |
| of bedrooms,
bathrooms,
and sleeping capacity, and a | 26 |
| statement of whether or not the accommodation
contains a |
|
|
|
SB2112 Enrolled |
- 27 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| full kitchen. For purposes of this description, a "full | 2 |
| kitchen"
means a
kitchen having a minimum of a dishwasher, | 3 |
| range, sink, oven, and refrigerator.
| 4 |
| (4) A description of amenities available for use by the | 5 |
| purchaser at each
component site.
| 6 |
| (5) A description of the reservation system, which | 7 |
| shall include the
following:
| 8 |
| (A) The entity responsible for operating the | 9 |
| reservation system.
| 10 |
| (B) A summary of the rules and regulations | 11 |
| governing access to and use
of the reservation system.
| 12 |
| (C) The existence of and an explanation regarding | 13 |
| any priority
reservation
features that affect a | 14 |
| purchaser's ability to make reservations for the use of
| 15 |
| a given accommodation on a first-come, first-served | 16 |
| basis.
| 17 |
| (6) A description of any right to make any additions, | 18 |
| substitutions, or
deletions of
accommodations or | 19 |
| amenities, and a description of the basis upon which
| 20 |
| accommodations and amenities may be added to, substituted | 21 |
| in, or deleted from
the multi-site timeshare plan.
| 22 |
| (7) A description of the purchaser's liability for any | 23 |
| fees associated
with the
multi-site timeshare plan.
| 24 |
| (8) The location and the anticipated relative
use
| 25 |
| demand of each component site in a multi-site timeshare | 26 |
| plan, as well as any
periodic adjustment or amendment to |
|
|
|
SB2112 Enrolled |
- 28 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| the reservation system which may be
needed in order to | 2 |
| respond to actual purchaser use patterns and changes in
| 3 |
| purchaser use demand for the accommodations existing at | 4 |
| that time within the
multi-site timeshare plan.
| 5 |
| (9) Such other information reasonably required by the | 6 |
| Department Office of Banks and
Real
Estate and established | 7 |
| by administrative rule necessary for the protection of
| 8 |
| purchasers of timeshare interests in timeshare plans.
| 9 |
| (10) Any other information that the developer, with the | 10 |
| approval of the
Department Office
of
Banks and Real Estate , | 11 |
| desires to include in the public offering statement.
| 12 |
| (d) If a developer offers a non-specific timeshare interest | 13 |
| in a multi-site
timeshare
plan, the developer shall disclose | 14 |
| the information set forth in subsection (b)
as to each
| 15 |
| component site.
| 16 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 17 |
| (765 ILCS 101/5-30)
| 18 |
| Sec. 5-30. Exchange company registration and disclosure | 19 |
| requirements.
| 20 |
| (a) An Each exchange company offering an exchange program | 21 |
| to purchasers in this
State shall register with the Department | 22 |
| at least 20 calendar days prior to offering an exchange program | 23 |
| to purchasers in this State. Office of Banks and Real Estate by | 24 |
| July 1 of each
year. The
registration shall consist of the | 25 |
| information specified in this Section.
However, an
exchange |
|
|
|
SB2112 Enrolled |
- 29 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| company shall make its initial registration at least 20 | 2 |
| calendar days
prior to
offering membership in an exchange | 3 |
| program to any purchaser in this State.
| 4 |
| (b) If a purchaser is offered the opportunity to become a | 5 |
| member of an
exchange
program, the developer shall deliver to | 6 |
| the purchaser, together with the public
offering
statement and | 7 |
| any other materials required to be furnished under this | 8 |
| Section,
and prior to
the offering or execution of any contract | 9 |
| between the purchaser and the
exchange
company offering | 10 |
| membership in the exchange program, or, if the exchange
company | 11 |
| is
dealing directly with the purchaser, the developer or the | 12 |
| exchange company
shall deliver
to the purchaser, prior to the | 13 |
| initial offering or execution of any contract
between the
| 14 |
| purchaser and the exchange company, the following written | 15 |
| information regarding
the
exchange program, the form and | 16 |
| substance of which shall first be approved by
the Department | 17 |
| Office
of Banks and Real Estate in accordance with this | 18 |
| Section:
| 19 |
| (1) The name and address of the exchange company.
| 20 |
| (2) The names of all officers, directors, and | 21 |
| shareholders of the exchange
company.
| 22 |
| (3) Whether the exchange company or any of its officers | 23 |
| or directors have
any
legal or beneficial interest in any | 24 |
| developer, seller, or managing entity for
any
timeshare | 25 |
| plan participating in the exchange program and, if so, the | 26 |
| identity
of the
timeshare plan and the nature of the |
|
|
|
SB2112 Enrolled |
- 30 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| interest.
| 2 |
| (4) Unless otherwise stated, a statement that the | 3 |
| purchaser's contract
with the
exchange company is a | 4 |
| contract separate and distinct from the purchaser's
| 5 |
| contract with the seller of timeshare interests.
| 6 |
| (5) Whether the purchaser's participation in the | 7 |
| exchange program is
dependent
upon the continued | 8 |
| affiliation of the applicable timeshare plan with the
| 9 |
| exchange
program.
| 10 |
| (6) A statement that the purchaser's participation in | 11 |
| the exchange program
is
voluntary.
| 12 |
| (7) A complete and accurate description of the terms | 13 |
| and conditions of the
purchaser's contractual relationship | 14 |
| with the exchange program and the
procedure
by which | 15 |
| changes thereto may be made.
| 16 |
| (8) A complete and accurate description of the | 17 |
| procedures necessary to
qualify
for and effectuate | 18 |
| exchanges.
| 19 |
| (9) A complete and accurate description of all | 20 |
| limitations, restrictions,
and
priorities employed in the | 21 |
| operation of the exchange program, including but not
| 22 |
| limited to limitations on exchanges based on seasonality, | 23 |
| accommodation size,
or
levels of occupancy, expressed in | 24 |
| conspicuous type, and, in the event that
those
limitations, | 25 |
| restrictions, or priorities are not uniformly applied by | 26 |
| the
exchange
company, a clear description of the manner in |
|
|
|
SB2112 Enrolled |
- 31 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| which they are applied.
| 2 |
| (10) Whether exchanges are arranged on a | 3 |
| space-available basis and whether
any
guarantees of | 4 |
| fulfillment of specific requests for exchanges are made by | 5 |
| the
exchange company.
| 6 |
| (11) Whether and under what circumstances an owner, in | 7 |
| dealing with the
exchange program, may lose the right to | 8 |
| use and occupy an accommodation of the
timeshare plan | 9 |
| during a reserved use period with respect to any properly
| 10 |
| applied-for exchange without being provided with | 11 |
| substitute accommodations by
the exchange program.
| 12 |
| (12) The fees or range of fees for participation by | 13 |
| owners in the exchange
program, a statement of whether any | 14 |
| such fees may be altered by the exchange
company, and the | 15 |
| circumstances under which alterations may be made.
| 16 |
| (13) The name and address of the site of each | 17 |
| accommodation included
within a
timeshare plan | 18 |
| participating in the exchange program.
| 19 |
| (14) The number of accommodations in each timeshare | 20 |
| plan that are
available
for
occupancy and that qualify for | 21 |
| participation in the exchange program, expressed
within | 22 |
| the following numerical groups: 1-5; 6-10; 11-20; 21-50; | 23 |
| and 51 and
over.
| 24 |
| (15) The number of currently enrolled owners for each | 25 |
| timeshare plan
participating in the exchange program, | 26 |
| expressed within the following numerical
groups: 1-100; |
|
|
|
SB2112 Enrolled |
- 32 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| 101-249; 250-499; 500-999; and 1,000 and over; and a | 2 |
| statement
of the criteria used to determine those owners | 3 |
| who are currently enrolled with
the
exchange program.
| 4 |
| (16) The disposition made by the exchange company of | 5 |
| use periods deposited
with the exchange program by owners | 6 |
| enrolled in the exchange program and not
used by the | 7 |
| exchange company in effecting exchanges.
| 8 |
| (17) The following information for the preceding | 9 |
| calendar year, which
shall be
independently audited by a | 10 |
| certified public accountant in accordance with the
| 11 |
| standards of the Accounting Standards Board of the American | 12 |
| Institute of
Certified Public Accountants and reported on | 13 |
| an annual basis on or after August 1 as established by rule | 14 |
| annually no later than August 1 of
each
year :
| 15 |
| (A) The number of owners currently enrolled in the | 16 |
| exchange program.
| 17 |
| (B) The number of timeshare plans that have current | 18 |
| affiliation
agreements with the exchange program.
| 19 |
| (C) The percentage of confirmed exchanges, which | 20 |
| is the number of
exchanges confirmed by the exchange | 21 |
| program divided by the number of
exchanges properly | 22 |
| applied for, together with a complete and accurate
| 23 |
| statement of the criteria used to determine whether an | 24 |
| exchange request
was properly applied for.
| 25 |
| (D) The number of use periods for which the | 26 |
| exchange program has an
outstanding obligation to |
|
|
|
SB2112 Enrolled |
- 33 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| provide an exchange to an owner who
relinquished a use | 2 |
| period during a particular year in exchange for a use
| 3 |
| period in any future year.
| 4 |
| (E) The number of exchanges confirmed by the | 5 |
| exchange program during
the year.
| 6 |
| (F) A statement in conspicuous type to the effect | 7 |
| that the percentage
described in subdivision (17)(C) | 8 |
| of this subsection is a summary of the
exchange | 9 |
| requests entered with the exchange program in the | 10 |
| period
reported and that the percentage does not | 11 |
| indicate the probabilities of an
owner's being | 12 |
| confirmed to any specific choice or range of choices.
| 13 |
| (18) Such other information as may be reasonably | 14 |
| required by the Department Office of
Banks and Real Estate | 15 |
| of any exchange company as established by rule.
| 16 |
| (c) No developer shall have any liability with respect to | 17 |
| any violation of
this Act
arising out of the publication by the | 18 |
| developer of information provided to it
by an
exchange company | 19 |
| pursuant to this Article. No exchange company shall have any
| 20 |
| liability with respect to any violation of this Act arising out | 21 |
| of the use by a
developer of
information relating to an | 22 |
| exchange program other than that provided to the
developer by
| 23 |
| the exchange company.
| 24 |
| (d) All written, visual, and electronic communications | 25 |
| relating to an
exchange
company or an exchange program shall be | 26 |
| filed with the Department Office of Banks and Real
Estate
upon |
|
|
|
SB2112 Enrolled |
- 34 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| its request.
| 2 |
| (e) The failure of an exchange company to observe the | 3 |
| requirements of this
Section, and the use of any unfair or | 4 |
| deceptive act or practice in connection
with the
operation of | 5 |
| an exchange program, is a violation of this Act.
| 6 |
| (f) An exchange company may elect to deny exchange | 7 |
| privileges to any owner
whose use of the accommodations of the | 8 |
| owner's timeshare plan is denied, and no
exchange program or | 9 |
| exchange company shall be liable to any of its members or
any
| 10 |
| third parties on account of any such denial of exchange | 11 |
| privileges.
| 12 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 13 |
| (765 ILCS 101/5-40)
| 14 |
| Sec. 5-40. Resale agent duties. A Whether registered or | 15 |
| exempt from
registration under Section 5-35, a resale agent | 16 |
| shall comply with all of the
following:
| 17 |
| (a) Prior to engaging in any resale activities on behalf of | 18 |
| any owner of a
timeshare interest or accepting anything of | 19 |
| value from any owner of a timeshare interest , a resale agent | 20 |
| shall enter into a listing agreement with
that owner. Every
| 21 |
| listing agreement shall be in writing and signed by both the | 22 |
| resale agent and
the timeshare
interest owner. The requirements | 23 |
| of the written listing agreement shall be
established by
rule, | 24 |
| but at a minimum the listing agreement shall disclose the | 25 |
| following: |
|
|
|
SB2112 Enrolled |
- 35 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (1) The name and address of the resale agent and the | 2 |
| timeshare interest owner. | 3 |
| (2) The term of the listing agreement. | 4 |
| (3) Whether the resale agent's rights under the listing | 5 |
| agreement are exclusive and, if the resale agent's rights | 6 |
| are exclusive, the length of such exclusivity period. | 7 |
| (4) Whether any person other than the timeshare | 8 |
| interest owner may use the timeshare during the period | 9 |
| before the timeshare interest is resold. | 10 |
| (5) Whether any person other than the timeshare | 11 |
| interest owner may rent or exchange the use of the | 12 |
| timeshare interest during the term of the listing | 13 |
| agreement. | 14 |
| (6) The name of any person who will receive any rents, | 15 |
| profits, or other thing of value generated from the use of | 16 |
| the timeshare interest during the period before the | 17 |
| timeshare interest is resold. | 18 |
| (7) A detailed description of any relationship between | 19 |
| the resale agent and any other person who receives any | 20 |
| benefit from the use of the timeshare interest. | 21 |
| (8) A description of any fees or costs that relate to | 22 |
| the listing or sale of the timeshare interest that the | 23 |
| timeshare interest owner (or any other person) must pay to | 24 |
| the resale agent or any third party. If the timeshare | 25 |
| interest owner (or any other person) must pay a fee to the | 26 |
| resale agent or any third party before the sale of the |
|
|
|
SB2112 Enrolled |
- 36 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| timeshare interest, the listing agreement must identify | 2 |
| each of the following: | 3 |
| (A) The amount of each pre-sale fee and to whom | 4 |
| such pre-sale fee must be paid. | 5 |
| (B) The time by which each pre-sale fee must be | 6 |
| paid. | 7 |
| (C) A reasonable description of each pre-sale cost | 8 |
| or fee. | 9 |
| (D) A description and the estimated amount of any | 10 |
| other fees or costs associated with the listing or sale | 11 |
| of the timeshare interest. | 12 |
| (E) The ratio or percentage of the number of | 13 |
| listings of timeshare interests for sale versus the | 14 |
| number of timeshare interests sold by the resale agent | 15 |
| for each of the past 3 years. | 16 |
| (9) A description of the amount or percentage and | 17 |
| procedures for paying any commissions due to the resale | 18 |
| agent upon resale of the timeshare interest. the method of
| 19 |
| compensation, a
definite date of termination, whether any | 20 |
| fees are non-refundable, and whether
the
agreement permits | 21 |
| the timeshare resale agent or any other person to make
any | 22 |
| use
whatsoever of the owner's timeshare interest or receive | 23 |
| any rents or profits
generated
from such use of the | 24 |
| timeshare interest.
| 25 |
| (b) A resale agent shall maintain records as required by | 26 |
| rule. The records
required to be maintained include, but are |
|
|
|
SB2112 Enrolled |
- 37 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| not limited to, all listing
agreements, copies of
disbursement | 2 |
| authorizations in accordance with subsection (c), and resale
| 3 |
| contracts.
| 4 |
| (c) A resale agent who collects any fees prior to a | 5 |
| transfer of an interest
from any
owner shall deposit the fees | 6 |
| in an escrow account. Any fees that are to be
paid to the
| 7 |
| resale agent prior to closing may be disbursed from the escrow | 8 |
| account only
upon receipt
of a disbursement authorization, | 9 |
| signed by the owner, in the following form:
| 10 |
| "I, (name of owner), am the owner of a timeshare | 11 |
| interest in
(name of timeshare
plan). I understand that for | 12 |
| my protection I can require the
entire fee to be held
in | 13 |
| escrow until the closing on the resale of my timeshare | 14 |
| interest, but I am
authorizing a release before the | 15 |
| transfer in the following amount: (amount
written
in words) | 16 |
| ($ (amount in numbers)), for the following purpose or | 17 |
| purposes
(description of purpose or purposes). I | 18 |
| understand that the resale agent is
regulated
by the | 19 |
| Illinois Department of Financial and Professional | 20 |
| Regulation, or its successor agency, Office of Banks and | 21 |
| Real Estate under the Real Estate Timeshare Act of
1999. | 22 |
| The Illinois Department of Financial and Professional | 23 |
| Regulation
Office of Banks and Real Estate requires the | 24 |
| resale agent to obtain this
disbursement authorization | 25 |
| with my signature before disbursement of my funds."
| 26 |
| (d) A resale agent shall utilize a purchase agreement that |
|
|
|
SB2112 Enrolled |
- 38 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| discloses to a
purchaser of a timeshare interest all of the | 2 |
| following:
| 3 |
| (1) A legally sufficient description of the timeshare | 4 |
| interest being
purchased.
| 5 |
| (2) The name and address of the managing entity of the | 6 |
| timeshare property.
| 7 |
| (3) The amount of the most recent current year's | 8 |
| assessment for the common expenses allocated to the
| 9 |
| timeshare interest being purchased including the time | 10 |
| period to which the
assessment relates (e.g., monthly, | 11 |
| quarterly, yearly) and the date on which it is due. If not | 12 |
| included in the
applicable common expense assessment, the | 13 |
| amount of any real or personal
property taxes allocated to | 14 |
| the timeshare interest being purchased.
| 15 |
| (3.5) Whether all assessments and real or personal | 16 |
| property taxes that are due against the timeshare interest | 17 |
| are paid in full and, if not, the amount owed and the | 18 |
| consequences of failure to pay timely any assessment or | 19 |
| real or personal property taxes.
| 20 |
| (4) A complete and accurate disclosure of the terms and | 21 |
| conditions of the
purchase and closing, including the | 22 |
| obligations of the owner, the
purchaser, or both for | 23 |
| closing costs and the title insurance.
| 24 |
| (5) The entity responsible for providing notification | 25 |
| to the managing
entity of the timeshare plan and the | 26 |
| applicable exchange company regarding any
change in the |
|
|
|
SB2112 Enrolled |
- 39 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| ownership of the timeshare interest.
| 2 |
| (6) A statement of the first year in which the | 3 |
| purchaser is entitled to
receive the actual use rights and | 4 |
| occupancy of the timeshare interest, as
determined by the | 5 |
| managing entity of the timeshare plan and any exchange
| 6 |
| company.
| 7 |
| (6.5) The name, address, telephone number, and website | 8 |
| (if applicable) where the governing documents of the | 9 |
| association, if any, and the timeshare instrument may be | 10 |
| obtained, together with the following disclosure: | 11 |
| "There are many important documents relating to | 12 |
| the timeshare plan that you should review before | 13 |
| purchasing a timeshare interest. These may include, | 14 |
| but are not limited to, (a) the declaration of | 15 |
| condominium, (b) the declaration of timeshare plan, | 16 |
| (c) the reciprocal easement and cost sharing | 17 |
| agreement, (d) the declaration of restrictions, | 18 |
| covenants, and conditions, (e) the owners association | 19 |
| articles and bylaws, (f) the current year's operating | 20 |
| and reserve budgets, if any, for the owners | 21 |
| association, and (g) any rules and regulations | 22 |
| affecting the use of the timeshare property or other | 23 |
| facility or amenity available for use by timeshare | 24 |
| interest owners."
| 25 |
| (7) In making the disclosures required by this | 26 |
| subsection (d), the
timeshare resale agent may rely upon |
|
|
|
SB2112 Enrolled |
- 40 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| information provided in writing by the
owner or managing | 2 |
| entity of the timeshare plan.
| 3 |
| (8) The purchaser's 5 calendar day 5-day cancellation | 4 |
| period as required by Section
10-10.
| 5 |
| (9) Any other information determined by the Department | 6 |
| Office of Banks and Real
Estate and established by rule.
| 7 |
| (e) A resale agent must be licensed as a real estate broker | 8 |
| or salesperson pursuant to the Real Estate License Act of 2000 | 9 |
| or its successor Act. | 10 |
| (f) A resale agent is exempt from the duties imposed by | 11 |
| subsections (a) through (d) of this Section if the resale agent | 12 |
| offers an aggregate total of no more than 8 timeshare interests | 13 |
| per calendar year as a resale agent, regardless of (1) whether | 14 |
| those timeshare interests are located in this State and (2) | 15 |
| whether the resale agent offers all, or only some, of those | 16 |
| timeshare interests, in this State. | 17 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 18 |
| (765 ILCS 101/5-45)
| 19 |
| Sec. 5-45.
Amendment to registration information or public | 20 |
| offering
statement. The developer , resale agent, and exchange | 21 |
| company shall amend or
supplement their disclosure documents | 22 |
| and registration information to reflect
any
material change in | 23 |
| any information required by this Act or the rules
implementing | 24 |
| this Act. All such
amendments,
supplements, and changes shall | 25 |
| be filed with the Department Office of Banks and Real
Estate |
|
|
|
SB2112 Enrolled |
- 41 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| within
30 20 calendar days of the material change.
| 2 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 3 |
| (765 ILCS 101/5-50)
| 4 |
| Sec. 5-50. Registration review time frames. Every | 5 |
| registration required
to be
filed with the Department Office of | 6 |
| Banks and Real Estate under this Act shall be reviewed
and
| 7 |
| issued a certificate of registration in accordance with the | 8 |
| following schedule:
| 9 |
| (1) Comprehensive registration. Registration shall be | 10 |
| effective only upon
the
issuance of a certificate of | 11 |
| registration by the Department Office of Banks and Real
| 12 |
| Estate ,
which, in the ordinary course of business, should | 13 |
| occur no more than 60
calendar
days after actual receipt by | 14 |
| the Department Office of Banks and Real Estate of the
| 15 |
| properly
completed application. The Department shall | 16 |
| Office of Banks and Real Estate must provide a list
of | 17 |
| deficiencies in the application, if any, within 60 calendar | 18 |
| days of receipt. The list may be in a written or electronic | 19 |
| format.
| 20 |
| (2) Abbreviated registration. Registration shall be | 21 |
| effective only upon
the
issuance of a certificate of | 22 |
| registration by the Department Office of Banks and Real
| 23 |
| Estate ,
which, in the ordinary course of business, should | 24 |
| occur no more than 30
calendar
days after actual receipt by | 25 |
| the Department Office of Banks and Real Estate of the
|
|
|
|
SB2112 Enrolled |
- 42 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| properly
completed application. The Department shall | 2 |
| Office of Banks and Real Estate must provide a
list of
| 3 |
| deficiencies in the application, if any, within 30 calendar | 4 |
| days of receipt. The list may be in a written or electronic | 5 |
| format.
| 6 |
| (3) Alternative assurance registration. Registration | 7 |
| shall be deemed
effective
only upon the issuance of a | 8 |
| certificate of registration by the Department, which, in | 9 |
| the ordinary course of business, should occur no more than | 10 |
| within 30 15 calendar days after of receipt by the | 11 |
| Department. The Department shall provide a , unless the
| 12 |
| Office of Banks and Real Estate provides to the applicant a | 13 |
| written list of
deficiencies in the application, if any, | 14 |
| within 30 15 calendar days of receipt. The list may be in a | 15 |
| written or electronic format.
| 16 |
| (4) Preliminary permit registration. A preliminary | 17 |
| permit shall be issued only upon the written approval by | 18 |
| the Department, which, in the ordinary course of business, | 19 |
| should occur no more than 30
within 15
calendar days after | 20 |
| actual of receipt of the required documentation by the | 21 |
| Department. The Department shall provide a , unless the
| 22 |
| Office of Banks and Real Estate provides to the applicant a | 23 |
| written list of
deficiencies in the application, if any, | 24 |
| within 30 15 calendar days of receipt. The list may be in a | 25 |
| written or electronic format.
| 26 |
| (5) Exchange company registration. Registration shall |
|
|
|
SB2112 Enrolled |
- 43 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| be effective only upon
the issuance of a certificate of | 2 |
| registration by the Department, which, in the ordinary | 3 |
| course of business, should occur no more than 60 calendar | 4 |
| days after the actual receipt
by the Office of Banks and | 5 |
| Real Estate of a properly completed application by the | 6 |
| Department .
The Department shall
Office of Banks and Real | 7 |
| Estate must provide a list of deficiencies in the
| 8 |
| application, if any, within 60 30 calendar days of receipt. | 9 |
| The list may be in a written or electronic format.
| 10 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 11 |
| (765 ILCS 101/5-55)
| 12 |
| Sec. 5-55. Fees. The Department Office of Banks and Real | 13 |
| Estate shall provide, by
rule,
for fees to be paid by | 14 |
| applicants and registrants to cover the reasonable costs
of the | 15 |
| Department Office
of Banks and Real Estate in administering and | 16 |
| enforcing the provisions of
this Act.
The Department Office of | 17 |
| Banks and Real Estate may also provide, by rule, for general | 18 |
| fees
to cover
the reasonable expenses of carrying out other | 19 |
| functions and responsibilities
under this
Act.
| 20 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 21 |
| (765 ILCS 101/5-60)
| 22 |
| Sec. 5-60. Registration; offer or disposal of interest ; | 23 |
| renewal . | 24 |
| (a) A developer or ,
exchange
company, or resale agent, or |
|
|
|
SB2112 Enrolled |
- 44 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| any of their agents, shall not sell, offer, or
dispose of a
| 2 |
| timeshare interest unless all necessary registrations are | 3 |
| filed and approved by
the Department Office
of Banks and Real | 4 |
| Estate , or while an order revoking or suspending a
registration | 5 |
| is in
effect.
| 6 |
| (b) An applicant for registration under this Act shall | 7 |
| submit the necessary
information to complete the application, | 8 |
| as required by the Department Office of Banks and
Real Estate , | 9 |
| within 6 months from the date the initial registration
| 10 |
| application was received by the Department Office of Banks and | 11 |
| Real Estate . If the
applicant fails to submit the information | 12 |
| necessary to complete the application
as required by the | 13 |
| Department Office of Banks and Real Estate within the six month | 14 |
| period,
said application shall be voided, and a new | 15 |
| registration application with
applicable fees must be | 16 |
| submitted.
| 17 |
| (c) The registration of a developer, exchange company, | 18 |
| individual, or entity registered under this Act shall be | 19 |
| renewed as required by rule. | 20 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 21 |
| (765 ILCS 101/10-5)
| 22 |
| Sec. 10-5. Management and operation provisions.
| 23 |
| (a) Before the first sale of a timeshare interest, the | 24 |
| developer shall
create or
provide for a managing entity, which | 25 |
| shall be either the developer, a separate
manager or
management |
|
|
|
SB2112 Enrolled |
- 45 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| firm, the board of directors of an owners' association, or some
| 2 |
| combination
thereof.
| 3 |
| (b) The duties of the managing entity include, but are not | 4 |
| limited to:
| 5 |
| (1) Management and maintenance of all accommodations | 6 |
| constituting the
timeshare plan.
| 7 |
| (2) Collection of all assessments as provided in the | 8 |
| timeshare instrument.
| 9 |
| (3) Providing to all purchasers each year an itemized | 10 |
| annual budget, which
shall
include all estimated revenues | 11 |
| and expenses.
| 12 |
| (4) Maintenance of all books and records concerning the | 13 |
| timeshare plan.
| 14 |
| (5) Scheduling occupancy of accommodations, when | 15 |
| purchasers are not
entitled
to use specific timeshare | 16 |
| periods, so that all purchasers will be provided the
| 17 |
| opportunity to use and possession of the accommodations of | 18 |
| the timeshare plan
which they have purchased.
| 19 |
| (6) Performing any other functions and duties that are | 20 |
| necessary and
proper to
maintain the accommodations or that | 21 |
| are required by the timeshare instrument.
| 22 |
| (c) If In the event a developer, mortgagee, managing | 23 |
| entity, or association does not pursue nonjudicial foreclosure | 24 |
| as provided in Section 10-50 or 10-55 and instead forecloses | 25 |
| against a timeshare interest pursuant to the Illinois Mortgage | 26 |
| Foreclosure Law, files a
complaint in a
foreclosure proceeding |
|
|
|
SB2112 Enrolled |
- 46 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| involving timeshare interests, the developer, mortgagee, | 2 |
| managing
entity, or
association may join in the same action | 3 |
| multiple defendant obligors and junior
interest holders of | 4 |
| separate timeshare interests, provided:
| 5 |
| (1) the foreclosure proceeding involves a single | 6 |
| timeshare plan;
| 7 |
| (2) the foreclosure proceeding is filed by a single | 8 |
| plaintiff;
| 9 |
| (3) the default and remedy provisions in the written | 10 |
| instruments on which
the
foreclosure proceeding is based | 11 |
| are substantially the same for each defendant;
and
| 12 |
| (4) the nature of the defaults alleged is the same for | 13 |
| each defendant.
| 14 |
| (d) In any foreclosure proceeding involving multiple | 15 |
| defendants filed under
subsection (c), the court shall sever | 16 |
| for separate trial any count of the
complaint in which
a | 17 |
| defense or counterclaim is timely raised by a defendant.
| 18 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 19 |
| (765 ILCS 101/10-15)
| 20 |
| Sec. 10-15. Interests, liens, and encumbrances; | 21 |
| alternative assurances.
| 22 |
| (a) Excluding any encumbrance placed against the | 23 |
| purchaser's timeshare
interest
securing the purchaser's | 24 |
| payment of purchase-money financing for such purchase,
the
| 25 |
| developer shall not be entitled to the release of any funds |
|
|
|
SB2112 Enrolled |
- 47 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| escrowed under
subsection (c)
of Section 5-15 with respect to | 2 |
| each timeshare interest and any other property
or rights to
| 3 |
| property appurtenant to the timeshare interest, including any | 4 |
| amenities
represented to the
purchaser as being part of the | 5 |
| timeshare plan, until the developer has provided
satisfactory | 6 |
| evidence to the Department Office of Banks and Real Estate of | 7 |
| one of the
following:
| 8 |
| (1) The timeshare interest together with any other
| 9 |
| property or rights to property appurtenant to the timeshare | 10 |
| interest, including
any amenities represented
to the
| 11 |
| purchaser as being part of the timeshare plan, are free and | 12 |
| clear of any of the
claims of the developer, any owner of | 13 |
| the underlying fee, a mortgagee, judgment
creditor, or | 14 |
| other lienor, or any other person having an interest in or | 15 |
| lien or
encumbrance against the timeshare interest or | 16 |
| appurtenant property or property
rights.
| 17 |
| (2) The developer, any owner of the underlying fee, a | 18 |
| mortgagee, judgment
creditor, or other lienor, or any other | 19 |
| person having an interest in or lien or
encumbrance against | 20 |
| the timeshare interest or appurtenant property or property
| 21 |
| rights, including any amenities represented to the | 22 |
| purchaser as being part of
the
timeshare plan, has recorded | 23 |
| a subordination and notice to creditors document
in
the | 24 |
| appropriate public records of the jurisdiction in which
the
| 25 |
| timeshare interest is located. The subordination document | 26 |
| shall expressly and
effectively provide that the interest |
|
|
|
SB2112 Enrolled |
- 48 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| holder's right, lien, or encumbrance
shall
not
adversely | 2 |
| affect, and shall be subordinate to, the rights of the | 3 |
| owners of the
timeshare interests in the timeshare plan | 4 |
| regardless of the date of purchase,
from
and after the | 5 |
| effective date of the subordination document.
| 6 |
| (3) The developer, any owner of the underlying fee, a | 7 |
| mortgagee, judgment
creditor, or other lienor, or any other | 8 |
| person having an interest in or lien or
encumbrance against | 9 |
| the timeshare interest or appurtenant property or property
| 10 |
| rights, including any amenities represented to the | 11 |
| purchaser as being part of
the
timeshare plan, has | 12 |
| transferred the subject accommodations or amenities or all
| 13 |
| use
rights therein to a nonprofit organization or owners' | 14 |
| association to be held
for the
use and benefit of the | 15 |
| owners of the timeshare plan, which entity shall act as
a
| 16 |
| fiduciary to the purchasers, provided that the developer | 17 |
| has transferred
control of such entity to the owners or | 18 |
| does not exercise its voting rights in
such
entity with | 19 |
| respect to the subject accommodations or amenities. Prior | 20 |
| to the
transfer, any lien or other encumbrance against the | 21 |
| accommodation or facility
shall be made subject to a | 22 |
| subordination and notice to creditors instrument
pursuant | 23 |
| to paragraph (2).
| 24 |
| (4) Alternative arrangements have been made which are | 25 |
| adequate to protect
the
rights of the purchasers of the | 26 |
| timeshare interests and approved by the Department Office
|
|
|
|
SB2112 Enrolled |
- 49 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| of
Banks and Real Estate .
| 2 |
| (b) Nothing in this Section shall prevent a developer from | 3 |
| accessing any
escrow
funds
if the developer has complied with
| 4 |
| subsection (c)
of Section 5-15.
| 5 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 6 |
| (765 ILCS 101/10-25)
| 7 |
| Sec. 10-25. Liability; material misrepresentation ; | 8 |
| promotions .
| 9 |
| (a) A developer or other person offering a timeshare plan | 10 |
| may not do any of
the
following:
| 11 |
| (1) Misrepresent a fact material to a purchaser's | 12 |
| decision to buy a
timeshare
interest.
| 13 |
| (2) Predict specific or immediate increases in the | 14 |
| value of a timeshare
interest
represented over a period of | 15 |
| time, excluding bona fide pending price increases
by
the | 16 |
| developer.
| 17 |
| (3) Materially misrepresent the qualities or | 18 |
| characteristics of
accommodations
or
the amenities | 19 |
| available to the occupant of those accommodations.
| 20 |
| (4) Misrepresent the length of time accommodations or | 21 |
| amenities will be
available to the purchaser of a timeshare | 22 |
| interest.
| 23 |
| (5) Misrepresent the conditions under which a | 24 |
| purchaser of a timeshare
interest
may exchange the right of | 25 |
| his or her occupancy for the right to occupy other
|
|
|
|
SB2112 Enrolled |
- 50 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| accommodations.
| 2 |
| (b) A developer or other person using a promotion in | 3 |
| connection with the
offering
of a timeshare interest shall | 4 |
| clearly disclose all of the following:
| 5 |
| (1) That the purpose of the promotion is to sell | 6 |
| timeshare interests,
which shall appear in bold face or | 7 |
| other conspicuous type.
| 8 |
| (2) That any person whose name or address is obtained | 9 |
| during the promotion
may
be solicited to purchase a | 10 |
| timeshare interest.
| 11 |
| (3) The name of each developer or other person trying | 12 |
| to sell a timeshare
interest
through the promotion, and the | 13 |
| name of each person paying for the promotion.
| 14 |
| (4) The complete rules of the promotion.
| 15 |
| (5) The method of awarding prizes, gifts, vacations, | 16 |
| discount vacations,
or
other
benefits under the promotion; | 17 |
| a complete and fully detailed description,
including
| 18 |
| approximate retail value, of all prizes, gifts, or benefits | 19 |
| under the
promotion; the
quantity of each prize, gift, or | 20 |
| benefit to be awarded or conferred; and the
date by
which | 21 |
| each prize, gift, or benefit will be awarded or conferred.
| 22 |
| (6) Any other disclosures provided by rule.
| 23 |
| (c) If a person represents that a prize, gift, or benefit | 24 |
| will be awarded in
connection with a promotion, the prize, | 25 |
| gift, or benefit must be awarded or
conferred in
the manner | 26 |
| represented, and on or before the date represented.
|
|
|
|
SB2112 Enrolled |
- 51 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (d) A developer or other person using a promotion in | 2 |
| connection with the offering of a timeshare interest shall | 3 |
| provide the disclosures required by this Section in writing or | 4 |
| electronically to the prospective purchaser at least once | 5 |
| before the earlier of (1) a reasonable period before the | 6 |
| scheduled sales presentation to ensure that the prospective | 7 |
| purchaser receives the disclosures before leaving to attend the | 8 |
| sales presentation or (2) the payment of any nonrefundable | 9 |
| monies by the prospective purchaser in regard to the promotion. | 10 |
| (e) A developer or other person using a promotion in | 11 |
| connection with the offering of a timeshare interest is not | 12 |
| required to provide the disclosures required by this Section in | 13 |
| every advertisement or other written, oral, or electronic | 14 |
| communication provided or made to a prospective purchaser. | 15 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 16 |
| (765 ILCS 101/10-30)
| 17 |
| Sec. 10-30. Records. The managing entity shall keep | 18 |
| detailed financial
records directly related to the operation of | 19 |
| the association. All financial
and other records
shall be made | 20 |
| reasonably available for examination by any purchaser, or the
| 21 |
| authorized
agent of the purchaser, and the Department Office of | 22 |
| Banks and Real Estate . For purposes
of this
Section, the books | 23 |
| and records of the timeshare plan shall be considered
| 24 |
| "reasonably
available" if copies of the requested portions are | 25 |
| delivered to the purchaser
or the
purchaser's agent or the |
|
|
|
SB2112 Enrolled |
- 52 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| Department Office of Banks and Real Estate within 7 days of the
| 2 |
| date the
managing entity receives a written request for the | 3 |
| records signed by the
purchaser or the Department
Office of | 4 |
| Banks and Real Estate . The managing entity may charge the | 5 |
| purchaser
a
reasonable fee for copying the requested | 6 |
| information.
| 7 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 8 |
| (765 ILCS 101/10-45 new) | 9 |
| Sec. 10-45. Managing entity lien created. | 10 |
| (a) A managing entity has a lien on a timeshare interest | 11 |
| for any of the following respectively levied or imposed against | 12 |
| a timeshare interest: | 13 |
| (1) Assessments, which for purposes of this Act unless | 14 |
| the timeshare instrument provides otherwise, shall include | 15 |
| fees, charges, late charges, fines, collection costs, and | 16 |
| interest charged in accordance with the timeshare | 17 |
| instrument; | 18 |
| (2) Reasonable collection and attorneys fees and costs | 19 |
| the managing entity incurs to collect assessments; and | 20 |
| (3) Taxes, interest, penalties, late payment fees or | 21 |
| fines in accordance with applicable law or the timeshare | 22 |
| instrument. | 23 |
| (b) Managing entity liens pursuant to this Section are | 24 |
| created and attached when the charges described in Section | 25 |
| 10-45(a) become due. If such amounts are payable in |
|
|
|
SB2112 Enrolled |
- 53 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| installments, the full amount of such charges is a managing | 2 |
| entity lien from the time that the first installment thereof | 3 |
| becomes due. | 4 |
| (c) Managing entity liens pursuant to this Section are | 5 |
| perfected on the date that the managing entity: | 6 |
| (1) In the case of a timeshare estate, records a notice | 7 |
| of lien against the timeshare estate in the office of the | 8 |
| recorder in the county where the timeshare estate is | 9 |
| located, which notice of lien must identify each of the | 10 |
| following: | 11 |
| (A) The name of the timeshare estate owner; | 12 |
| (B) The name and address of the managing entity; | 13 |
| (C) The description of the timeshare estate in the | 14 |
| same manner required for recording a mortgage against a | 15 |
| timeshare estate; and | 16 |
| (D) The amount of the debt secured by the managing | 17 |
| entity lien. | 18 |
| (2) In the case of a timeshare use, files a notice of | 19 |
| lien against the timeshare use in the filing office of the | 20 |
| Illinois Secretary of State pursuant to Article 9 of the | 21 |
| Uniform Commercial Code, which notice of lien, in addition | 22 |
| to any other filing requirements imposed by Article 9 of | 23 |
| the Uniform Commercial Code, must identify each of the | 24 |
| following: | 25 |
| (A) The name of the timeshare use owner as the | 26 |
| debtor; |
|
|
|
SB2112 Enrolled |
- 54 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (B) The name of the managing entity as the secured | 2 |
| party; | 3 |
| (C) The address of the managing entity; | 4 |
| (D) The timeshare use as the collateral; and | 5 |
| (E) The amount of the debt secured by the managing | 6 |
| entity lien. | 7 |
| (d) The managing entity must send a copy of the recorded or | 8 |
| filed notice of lien on the timeshare interest, as the case may | 9 |
| be, to the last known address of the timeshare interest owner. | 10 |
| (e) A managing entity lien against a timeshare estate, at | 11 |
| the managing entity's option, may (1) be foreclosed as provided | 12 |
| in Section 10-50 or (2) be foreclosed in the same manner as a | 13 |
| mortgage pursuant to the Illinois Mortgage Foreclosure Law. | 14 |
| (f) A managing entity lien against a timeshare use, at the | 15 |
| managing entity's option, may (1) be foreclosed as provided in | 16 |
| Section 10-55 or (2) be enforced in the same manner as a | 17 |
| security interest pursuant to Article 9 of the Uniform | 18 |
| Commercial Code. | 19 |
| (765 ILCS 101/10-50 new) | 20 |
| Sec. 10-50. Nonjudicial foreclosure against timeshare | 21 |
| estates. | 22 |
| (a) Notwithstanding anything in the Illinois Mortgage | 23 |
| Foreclosure Law or other applicable law to the contrary: | 24 |
| (1) The holder of a mortgage against a timeshare estate | 25 |
| may foreclose or otherwise enforce a security interest |
|
|
|
SB2112 Enrolled |
- 55 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| pursuant to this Section 10-50; and | 2 |
| (2) The holder of a managing entity lien against a | 3 |
| timeshare estate may foreclose such managing entity lien | 4 |
| pursuant to this Section 10-50. | 5 |
| (b) Upon default, and after all applicable cure periods | 6 |
| identified in the mortgage (if such default is under a | 7 |
| mortgage) or the timeshare instrument (if default is under a | 8 |
| managing entity lien) have expired, the holder of the mortgage | 9 |
| or managing entity lien must: | 10 |
| (1) Provide written notice of the default to the | 11 |
| timeshare estate owner at the last known address of the | 12 |
| timeshare estate owner by (A) certified mail, return | 13 |
| receipt requested and (B) first-class mail. | 14 |
| (2) Provide the timeshare estate owner an additional | 15 |
| opportunity to cure for a period of at least 30 days | 16 |
| following the later date of the mailing of the notices | 17 |
| pursuant to Sections 10-50(b)(1)(A) and 10-50(b)(1)(B). | 18 |
| (c) If, the timeshare estate owner does not cure the | 19 |
| default before the expiration of the additional cure period | 20 |
| granted pursuant to Section 10-50(b)(2), the holder of the | 21 |
| mortgage or managing entity lien may foreclose the mortgage or | 22 |
| managing entity lien by conducting a public auction that | 23 |
| complies with the following requirements: | 24 |
| (1) The holder of the mortgage or managing entity lien | 25 |
| must provide notice of the public auction as follows: | 26 |
| (A) By publishing notice of the public auction in |
|
|
|
SB2112 Enrolled |
- 56 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| at least each of 3 successive weeks in a newspaper, | 2 |
| whether printed or electronic, of general circulation | 3 |
| in the county where the timeshare estate is located. | 4 |
| The first notice must be published no more than 30 days | 5 |
| before the date of the public auction, which 30-day | 6 |
| period shall be calculated by excluding the date of | 7 |
| publication of the first notice and the date of the | 8 |
| public auction. | 9 |
| (B) By sending written notice identifying the | 10 |
| time, date, and place of the public auction to the last | 11 |
| known address of the owner of record of the timeshare | 12 |
| estate at least 30 days before the date of the public | 13 |
| auction by (i) certified mail, return receipt | 14 |
| requested and (ii) first-class mail. | 15 |
| (C) By sending notice identifying the time, date, | 16 |
| and place of the public auction to all persons known to | 17 |
| have a lien against the timeshare estate at least 30 | 18 |
| days before the date of the public auction by certified | 19 |
| mail, return receipt requested. | 20 |
| (2) The notices given pursuant to Section 10-50(c)(1) | 21 |
| must also contain: | 22 |
| (A) The name of the timeshare estate owner; | 23 |
| (B) A general description of the timeshare estate; | 24 |
| and | 25 |
| (C) The terms of the public auction. | 26 |
| (3) If more than one timeshare estate is to be included |
|
|
|
SB2112 Enrolled |
- 57 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| in the public auction, all such timeshare estates may be | 2 |
| combined into one notice of public auction. | 3 |
| (4) The public notice required by Section | 4 |
| 10-50(c)(1)(A) for foreclosing a mortgage against a | 5 |
| timeshare estate must be printed in substantially the | 6 |
| following form: | 7 |
| NOTICE OF SALE OF TIMESHARE ESTATE OR ESTATES UNDER SECTION | 8 |
| 10-50 OF THE ILLINOIS REAL ESTATE TIMESHARE ACT OF 1999 | 9 |
| By virtue of 765 ILCS 101/10-50 and in execution of a certain | 10 |
| mortgage (or mortgages, if more than one) on the timeshare | 11 |
| estate (or estates, if more than one) given by the owner of the | 12 |
| timeshare estate (or owners, if more than one) set forth below | 13 |
| for breach of the conditions of said mortgage (or mortgages, if | 14 |
| more than one) and for the purpose of foreclosing, the same | 15 |
| will be sold at public auction starting at........... | 16 |
| on............ 20.. at........, Illinois, being all and | 17 |
| singular the premises described in said mortgage (or mortgages, | 18 |
| if more than one). (For each mortgage, list the name and | 19 |
| address of the timeshare estate owner, a general description of | 20 |
| the timeshare estate, and the book and page number of the | 21 |
| mortgage.) | 22 |
| TERMS OF SALE: (State the deposit amount to be paid by the | 23 |
| purchaser at the time and place of the sale and the times for |
|
|
|
SB2112 Enrolled |
- 58 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| payment of the balance or the whole, as the case may be. The | 2 |
| timeshare estates, if more than one, must be sold in individual | 3 |
| lots unless there are no individual bidders, in which case, | 4 |
| they may be sold as a group.) | 5 |
| Other terms may be announced at the public auction. | 6 |
| Signed................................. | 7 |
| Holder of mortgage or authorized agent. | 8 |
| (5) The public notice required by Section | 9 |
| 10-50(c)(1)(A) for foreclosing a managing entity lien | 10 |
| against a timeshare estate must be printed in substantially | 11 |
| the following form: | 12 |
| NOTICE OF SALE OF TIMESHARE ESTATE OR ESTATES UNDER SECTION | 13 |
| 10-50 OF THE ILLINOIS REAL ESTATE TIMESHARE ACT OF 1999 | 14 |
| By virtue of the timeshare instrument of the | 15 |
| ................... (name and address of timeshare property) | 16 |
| and 765 ILCS 101/10-45 establishing a managing entity lien for | 17 |
| failure to pay assessments and other costs on the timeshare | 18 |
| estate (or estates, if more than one) held by the owner of the | 19 |
| timeshare estate (or owners, if more than one) listed below, | 20 |
| the timeshare estate (or estates, if more than one) and for the | 21 |
| purpose of foreclosing, the same will be sold at public auction |
|
|
|
SB2112 Enrolled |
- 59 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| starting at ......... on ........ 20.. at ............., | 2 |
| Illinois. (For each timeshare estate, list the name and address | 3 |
| of the timeshare estate owner, a general description of the | 4 |
| timeshare estate, and the book and page number of the deed.) | 5 |
| TERMS OF SALE: (State the deposit amount to be paid by the | 6 |
| purchaser at the time and place of the sale and the times for | 7 |
| payment of the balance or the whole, as the case may be. The | 8 |
| timeshare estates, if more than one, must be sold in individual | 9 |
| lots unless there are no individual bidders, in which case, | 10 |
| they may be sold as a group.) | 11 |
| Other terms may be announced at the public auction. | 12 |
| Signed ................................ | 13 |
| Managing entity lienholder or authorized agent. | 14 |
| (6) Publishing and sending notices in compliance with | 15 |
| this Section 10-50(c) constitutes sufficient public notice | 16 |
| of the public auction. | 17 |
| (d) Public auctions pursuant to this Section 10-50 must be | 18 |
| conducted as follows: | 19 |
| (1) The public auction must take place within the | 20 |
| county where the timeshare estate is located. | 21 |
| (2) The public auction must be open to the general |
|
|
|
SB2112 Enrolled |
- 60 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| public and conducted by an auctioneer licensed pursuant to | 2 |
| the Auction License Act. | 3 |
| (3) Notwithstanding anything in the Auction License | 4 |
| Act to the contrary, the auctioneer, in his or her | 5 |
| discretion, may waive the reading of the names of the | 6 |
| timeshare estate owners, if more than one, the description | 7 |
| of the timeshare estates, if more than one, and the | 8 |
| recording information of the applicable mortgages or | 9 |
| managing entity liens (as the case may be), if more than | 10 |
| one. | 11 |
| (4) All rights of redemption of the timeshare estate | 12 |
| owner are extinguished upon sale of a timeshare estate at | 13 |
| the public auction. | 14 |
| (5) The holder of the mortgage or managing entity lien, | 15 |
| the developer, the managing entity, and the timeshare | 16 |
| estate owner are not precluded from bidding at the public | 17 |
| auction. | 18 |
| (6) The successful purchaser at the public auction is | 19 |
| not required to complete the purchase of the timeshare | 20 |
| estate if the timeshare estate, at the time the auctioneer | 21 |
| accepts the successful bid, is subject to liens or other | 22 |
| encumbrances, other than those identified in the notice of | 23 |
| public auction and those identified at the auction before | 24 |
| the auctioneer opens bidding on the applicable timeshare | 25 |
| estate. | 26 |
| (7) The purchaser at the public auction takes title to |
|
|
|
SB2112 Enrolled |
- 61 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| the timeshare estate free and clear of any outstanding | 2 |
| assessments owed by the prior timeshare estate owner to the | 3 |
| managing entity. | 4 |
| (e) Upon the sale of a timeshare estate pursuant to this | 5 |
| Section 10-50, the holder of the mortgage or managing entity | 6 |
| lien must provide the purchaser with (1) a foreclosure deed or | 7 |
| other appropriate instrument transferring the mortgage | 8 |
| holder's or managing entity's interest in the timeshare estate | 9 |
| and (2) an affidavit affirming that all requirements of the | 10 |
| foreclosure pursuant to this Section 10-50 have been satisfied. | 11 |
| (f) The timeshare estate is considered sold, and the deed | 12 |
| or other instrument transferring the timeshare estate must | 13 |
| transfer the timeshare estate, subject to municipal or other | 14 |
| taxes and any liens or encumbrances recorded before the | 15 |
| recording of the mortgage or the managing entity lien | 16 |
| foreclosed pursuant to this Section 10-50 (as the case may be), | 17 |
| but not including such managing entity lien. | 18 |
| (g) The purchaser of a timeshare estate at a public auction | 19 |
| pursuant to this Section 10-50 must record the foreclosure deed | 20 |
| or other instrument with the appropriate recorder of deeds | 21 |
| within 30 days after the date the foreclosing mortgage holder | 22 |
| or managing entity (as the case may be) delivers the | 23 |
| foreclosure deed or other instrument to the purchaser. | 24 |
| (h) If the holder of a mortgage or managing entity lien | 25 |
| conducts a nonjudicial foreclosure pursuant to this Section | 26 |
| 10-50, the holder of the mortgage or managing entity lien |
|
|
|
SB2112 Enrolled |
- 62 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| forfeits its right to pursue a claim for any deficiency in the | 2 |
| payment of the obligations of the timeshare estate owner | 3 |
| resulting from the application of the proceeds of the sale to | 4 |
| such obligations. | 5 |
| (i) For purposes of this Section 10-50, obligations to pay | 6 |
| assessments secured by a lien established pursuant to a | 7 |
| timeshare instrument before the effective date of this | 8 |
| amendatory Act of the 96th General Assembly are considered | 9 |
| managing entity liens. | 10 |
| (j) This Section 10-50 applies to the foreclosure of | 11 |
| mortgages and liens considered to be managing entity liens that | 12 |
| arose before or after the effective date of this amendatory Act | 13 |
| of the 96th General Assembly. | 14 |
| (765 ILCS 101/10-55 new) | 15 |
| Sec. 10-55. Foreclosure of lien or security interest on a | 16 |
| timeshare use. | 17 |
| (a) Notwithstanding anything in the Illinois Mortgage | 18 |
| Foreclosure Law or the Uniform Commercial Code to the contrary, | 19 |
| the holder of a managing entity lien on a timeshare use created | 20 |
| by Section 10-45, in the case of the failure to pay assessments | 21 |
| when due, or a security interest against a timeshare use, in | 22 |
| the case of a breach of the security agreement, may do either | 23 |
| of the following: | 24 |
| (1) Enforce the security interest pursuant to Part 6 of | 25 |
| Article 9 of the Uniform Commercial Code, including |
|
|
|
SB2112 Enrolled |
- 63 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (without limitation) accepting the timeshare use in full or | 2 |
| partial satisfaction of the timeshare use owner's | 3 |
| obligation pursuant to Section 9-620 of the Uniform | 4 |
| Commercial Code; or | 5 |
| (2) Nonjudicially foreclose in the same manner as | 6 |
| authorized by Section 10-50 for holders of a mortgage or | 7 |
| managing entity lien against a timeshare estate. | 8 |
| (b) All rights of redemption of a timeshare use owner are | 9 |
| extinguished upon sale of a timeshare use as authorized by | 10 |
| Section 10-55(a). | 11 |
| (c) The holder of the security interest or managing entity | 12 |
| lien, the developer, the managing entity and the timeshare use | 13 |
| owner are not precluded from bidding at the sale of the | 14 |
| timeshare use pursuant to this Section 10-55 and may enter into | 15 |
| agreements for the purchase of one or more timeshare uses | 16 |
| following the completion of the sale proceedings. | 17 |
| (d) The purchaser at the public auction takes title to the | 18 |
| timeshare use free and clear of any outstanding assessments | 19 |
| owed by the prior timeshare use owner to the managing entity.
| 20 |
| (765 ILCS 101/15-5)
| 21 |
| Sec. 15-5. Investigation. The Department Office of Banks | 22 |
| and Real Estate may
investigate the actions or qualifications | 23 |
| of any person or persons holding or
claiming to hold a | 24 |
| certificate of registration under this Act. Such a person
is
| 25 |
| referred to as "the respondent" in this Article.
|
|
|
|
SB2112 Enrolled |
- 64 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 2 |
| (765 ILCS 101/15-10)
| 3 |
| Sec. 15-10.
Disciplinary hearings; record; appointment of | 4 |
| administrative
law judge.
| 5 |
| (a) The Department Office of Banks and Real Estate has the | 6 |
| authority to conduct hearings
before an administrative law | 7 |
| judge on proceedings to revoke, suspend, place on
probation, | 8 |
| reprimand, or refuse to issue or renew registrants registered | 9 |
| under
this
Act, or to impose a civil penalty not to exceed | 10 |
| $25,000 upon any registrant
registered under this Act.
| 11 |
| (b) The Department Office of Banks and Real Estate , at its | 12 |
| expense, shall preserve a
record
of all proceedings at the | 13 |
| formal hearing of any case involving the refusal to
issue
or | 14 |
| the revocation, suspension, or other discipline of a | 15 |
| registrant. The
notice of
hearing, complaint, and all other | 16 |
| documents in the nature of pleadings and
written
motions filed | 17 |
| in the proceedings, the transcript of testimony, the report of
| 18 |
| the
Board, and the orders of the Department Office of Banks and | 19 |
| Real Estate shall be the
record of
proceeding. At all hearings | 20 |
| or prehearing conferences, the Department Office of Banks and
| 21 |
| Real Estate and the respondent shall be entitled to have a | 22 |
| court reporter in
attendance for purposes of transcribing the | 23 |
| proceeding or prehearing
conference.
| 24 |
| (c) The Secretary Commissioner has the authority to appoint | 25 |
| any attorney duly
licensed
to practice law in the State of |
|
|
|
SB2112 Enrolled |
- 65 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| Illinois to serve as an administrative law
judge in
any action | 2 |
| for refusal to issue or renew a certificate of registration or | 3 |
| to
discipline
a registrant or person holding a certificate of | 4 |
| registration. The
administrative law
judge has full authority | 5 |
| to conduct the hearing. The administrative law judge
shall
| 6 |
| report his or her findings and recommendations to the Secretary | 7 |
| Commissioner . If the Secretary
Commissioner disagrees with the | 8 |
| recommendation of the administrative law
judge, the Secretary | 9 |
| Commissioner may issue an order in contravention of the
| 10 |
| recommendation.
| 11 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 12 |
| (765 ILCS 101/15-15)
| 13 |
| Sec. 15-15. Notice of proposed disciplinary action; | 14 |
| hearing.
| 15 |
| (a) Before taking any disciplinary action with regard to | 16 |
| any registrant,
the
Department Office of Banks and Real Estate | 17 |
| shall:
| 18 |
| (1) notify the respondent in writing, at least 30 | 19 |
| calendar days prior to
the
date
set for the hearing, of any | 20 |
| charges made, the time and place for the hearing of
the
| 21 |
| charges, and that testimony at the hearing will be heard | 22 |
| under oath; and
| 23 |
| (2) inform the respondent that upon failure to file an | 24 |
| answer and request
a
hearing before the date originally set | 25 |
| for the hearing, default will be taken
against
the |
|
|
|
SB2112 Enrolled |
- 66 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| respondent and the respondent's registration may be | 2 |
| suspended or revoked,
or the respondent may be
otherwise | 3 |
| disciplined, as the Department Office of Banks and Real | 4 |
| Estate may deem
proper.
| 5 |
| (b) If the respondent fails to file an answer after | 6 |
| receiving notice, the
respondent's registration may, in the | 7 |
| discretion of the Department Office of Banks and
Real
Estate , | 8 |
| be revoked or suspended, or the respondent may be
otherwise
| 9 |
| disciplined as deemed proper,
without
a hearing, if the act or | 10 |
| acts charged constitute sufficient grounds for that
action
| 11 |
| under this Act.
| 12 |
| (c) At the time and place fixed in the notice, the | 13 |
| Department Office of Banks and Real
Estate shall proceed to | 14 |
| hearing of the charges. Both the respondent and the
complainant | 15 |
| shall be accorded ample opportunity to present in person, or by
| 16 |
| counsel, statements, testimony, evidence, and argument that | 17 |
| may be pertinent to
the charges or any defense to the charges.
| 18 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 19 |
| (765 ILCS 101/15-20)
| 20 |
| Sec. 15-20. Disciplinary consent orders. Notwithstanding | 21 |
| any other
provisions of this Act concerning
the conduct of | 22 |
| hearings and recommendations for disciplinary actions, the
| 23 |
| Department Office
of Banks and Real Estate has the authority to | 24 |
| negotiate agreements with
registrants
and applicants resulting | 25 |
| in disciplinary consent orders. Any such consent
order
may |
|
|
|
SB2112 Enrolled |
- 67 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| provide for any form of discipline provided for in the Act. Any | 2 |
| such
consent
order shall provide that it is not entered into as | 3 |
| a result of any coercion by
the Department
Office of Banks and | 4 |
| Real Estate . Any such consent order shall be accepted by
| 5 |
| signature or rejected by the Secretary Commissioner in a timely | 6 |
| manner.
| 7 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 8 |
| (765 ILCS 101/15-25)
| 9 |
| Sec. 15-25. Disciplinary action; civil penalty. The | 10 |
| Department Office
of
Banks and Real Estate may refuse to issue | 11 |
| or renew any registration, or revoke
or suspend
any | 12 |
| registration or
place on probation or administrative | 13 |
| supervision, or reprimand any
registrant, or impose a civil | 14 |
| penalty not to exceed $25,000, for any one or
any
combination | 15 |
| of the following causes:
| 16 |
| (1) A registrant's disregard or violation of any | 17 |
| provision of this Act or
of
the
rules adopted by the | 18 |
| Department Office of Banks and Real Estate to enforce this | 19 |
| Act.
| 20 |
| (2) A conviction of the registrant or any principal of | 21 |
| the registrant of
(i) a
felony under the laws of any U.S. | 22 |
| jurisdiction, (ii) a misdemeanor under the
laws
of any U.S. | 23 |
| jurisdiction if an essential element of the offense is | 24 |
| dishonesty,
or (iii)
a crime under the laws of any U.S. | 25 |
| jurisdiction if the crime relates directly
to the
practice |
|
|
|
SB2112 Enrolled |
- 68 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| of the profession regulated by this Act.
| 2 |
| (3) A registrant's making any misrepresentation for | 3 |
| the purpose of
obtaining a
registration or certificate of | 4 |
| registration.
| 5 |
| (4) A registrant's discipline by another U.S. | 6 |
| jurisdiction, state agency,
or
foreign nation regarding | 7 |
| the practice of the profession regulated by this Act,
if at
| 8 |
| least one of the grounds for the discipline is the same as | 9 |
| or substantially
equivalent to one of those set forth in | 10 |
| this Act.
| 11 |
| (5) A finding by the Department Office of Banks and | 12 |
| Real Estate that the registrant,
after
having his or her | 13 |
| registration placed on probationary status, has violated | 14 |
| the
terms
of probation.
| 15 |
| (6) A registrant's practicing or attempting to | 16 |
| practice under a name other
than the name as shown on his | 17 |
| or her registration or any other legally
authorized
name.
| 18 |
| (7) A registrant's failure to file a return, or to pay | 19 |
| the tax, penalty, or
interest
shown in a filed return, or | 20 |
| to pay any final assessment of tax, penalty, or
interest,
| 21 |
| as required by any tax Act administered by the Illinois | 22 |
| Department of Revenue,
until the requirements of any such | 23 |
| tax Act are satisfied.
| 24 |
| (8) A registrant's engaging in dishonorable, | 25 |
| unethical, or unprofessional
conduct of a character likely | 26 |
| to deceive, defraud, or harm the public.
|
|
|
|
SB2112 Enrolled |
- 69 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (9) A registrant's aiding or abetting another person or | 2 |
| persons in
disregarding
or violating any provision of this | 3 |
| Act or of the rules adopted by the Department Office of
| 4 |
| Banks and Real Estate to enforce this Act.
| 5 |
| (10) Any representation in any document or information | 6 |
| filed with the
Department Office
of Banks and Real Estate | 7 |
| which is false or misleading.
| 8 |
| (11) A registrant's disseminating or causing to be | 9 |
| disseminated any false
or
misleading promotional materials | 10 |
| or advertisements in connection with a
timeshare plan.
| 11 |
| (12) A registrant's concealing, diverting, or | 12 |
| disposing of any funds or
assets
of
any person in a manner | 13 |
| that impairs the rights of purchasers of timeshare
| 14 |
| interests in the timeshare plan.
| 15 |
| (13) A registrant's failure to perform any stipulation | 16 |
| or agreement made to
induce the Department Office of Banks | 17 |
| and Real Estate to issue an order relating to the
timeshare | 18 |
| plan.
| 19 |
| (14) A registrant's engaging in any act that | 20 |
| constitutes a violation of
Section
3-102, 3-103, 3-104, or | 21 |
| 3-105 of the Illinois Human Rights Act.
| 22 |
| (15) A registrant's failure to provide information | 23 |
| requested in writing by
the Department
Office of Banks and | 24 |
| Real Estate , within 30 days of the request, either as the
| 25 |
| result
of a formal or informal complaint to the Department | 26 |
| Office of Banks and Real Estate or as
a
result of a random |
|
|
|
SB2112 Enrolled |
- 70 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| audit conducted by the Department Office of Banks and Real | 2 |
| Estate ,
which
would indicate a violation of this Act.
| 3 |
| (16) A registrant's failure to account for or remit any | 4 |
| escrow funds coming
into
his or her possession which | 5 |
| belonged to others.
| 6 |
| (17) A registrant's failure to make available to | 7 |
| Department Office of Banks and Real
Estate
personnel during | 8 |
| normal business hours all escrow records and related | 9 |
| documents
maintained in connection therewith, within 24 | 10 |
| hours after a request from the Department
Office
of Banks | 11 |
| and Real Estate personnel.
| 12 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 13 |
| (765 ILCS 101/15-30)
| 14 |
| Sec. 15-30. Subpoenas; attendance of witnesses; oaths.
| 15 |
| (a) The Department Office of Banks and Real Estate has the | 16 |
| power to issue subpoenas ad
testificandum and to bring before | 17 |
| it any persons, and to take testimony either
orally or by | 18 |
| deposition, or both, with the same fees and mileage and in the
| 19 |
| same
manner as prescribed in civil cases in the courts of this | 20 |
| State. The Department Office of
Banks
and Real Estate has the | 21 |
| power to issue subpoenas duces tecum and to bring
before
it any | 22 |
| documents, papers, files, books, and records, with the same | 23 |
| costs and in
the
same manner as prescribed in civil cases in | 24 |
| the courts of this State.
| 25 |
| (b) Upon application of the Department Office of Banks and |
|
|
|
SB2112 Enrolled |
- 71 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| Real Estate or its designee
or
of the applicant, registrant, or | 2 |
| person holding a certificate of registration
against
whom | 3 |
| proceedings under this Act are pending, any circuit court may | 4 |
| enter an
order compelling the enforcement of any subpoena | 5 |
| issued by the Department Office of Banks
and Real Estate in | 6 |
| connection with any hearing or investigation.
| 7 |
| (c) The Secretary Commissioner and the designated | 8 |
| administrative law judge have power
to administer oaths to | 9 |
| witnesses at any hearing that the Department Office of Banks | 10 |
| and
Real
Estate is authorized to conduct and any other oaths | 11 |
| authorized in any Act
administered by the Department Office of | 12 |
| Banks and Real Estate .
| 13 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 14 |
| (765 ILCS 101/15-35)
| 15 |
| Sec. 15-35.
Administrative law judge's findings of fact, | 16 |
| conclusions of
law,
and recommendations. At the conclusion of | 17 |
| the hearing, the administrative law
judge shall present to the | 18 |
| Secretary Commissioner a written report of the administrative
| 19 |
| law
judge's findings of fact, conclusions of law, and | 20 |
| recommendations regarding
discipline or a civil penalty. The | 21 |
| report shall contain a finding of whether
or not the respondent
| 22 |
| violated this Act or failed to comply with conditions
required
| 23 |
| in this Act. The administrative law judge shall specify the | 24 |
| nature of the
violation
or failure to comply.
| 25 |
| If the Secretary Commissioner disagrees in any regard with |
|
|
|
SB2112 Enrolled |
- 72 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| the report of the
administrative law judge, the Secretary | 2 |
| Commissioner may issue an order in contravention
of the report. | 3 |
| The Secretary Commissioner shall provide a written report to | 4 |
| the
administrative law judge on any deviation and shall specify | 5 |
| with particularity
the
reasons for that action in the final | 6 |
| order.
| 7 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 8 |
| (765 ILCS 101/15-40)
| 9 |
| Sec. 15-40. Rehearing. After any hearing involving | 10 |
| disciplinary action
against a
registrant, a copy of the | 11 |
| administrative law judge's report shall be served on
the
| 12 |
| respondent by the Department Office of Banks and Real Estate , | 13 |
| either personally or as
provided in this Act for the service of | 14 |
| the notice of hearing. Within 20
calendar
days after the | 15 |
| service, the respondent may present to the Department Office of | 16 |
| Banks and
Real
Estate a motion in writing for a rehearing. The | 17 |
| motion shall specify the
particular grounds for rehearing.
If | 18 |
| the respondent orders a transcript of the record from the | 19 |
| reporting service
and pays for it within the time for filing a | 20 |
| motion for rehearing, the 20
calendar
day period within which a | 21 |
| motion for rehearing may be filed shall commence upon
the | 22 |
| delivery of the transcript to the respondent.
| 23 |
| If no motion for rehearing is filed, then upon the | 24 |
| expiration of the time
specified for filing a motion, or if a | 25 |
| motion for rehearing is denied, then
upon
denial, the Secretary |
|
|
|
SB2112 Enrolled |
- 73 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| Commissioner may enter an order in accordance with the
| 2 |
| recommendations of the administrative law judge, except as | 3 |
| otherwise provided
in this Article.
Whenever the Secretary | 4 |
| Commissioner is not satisfied that substantial justice has been
| 5 |
| done in the hearing or in the administrative law judge's | 6 |
| report,
the Secretary Commissioner
may order a rehearing by the | 7 |
| same or some other duly qualified administrative
law judge.
| 8 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 9 |
| (765 ILCS 101/15-45)
| 10 |
| Sec. 15-45. Order or certified copy. An order or a | 11 |
| certified copy of
an
order, over the seal of the Department | 12 |
| Office of Banks and Real Estate and purporting to
be
signed by | 13 |
| the Secretary Commissioner , shall be prima facie proof of the | 14 |
| following:
| 15 |
| (1) That the signature is the genuine signature of the | 16 |
| Secretary Commissioner .
| 17 |
| (2) That the Secretary Commissioner is duly appointed | 18 |
| and qualified.
| 19 |
| (3) That the administrative law judge is duly appointed | 20 |
| and qualified.
| 21 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 22 |
| (765 ILCS 101/15-50)
| 23 |
| Sec. 15-50. Restoration of certificate of registration. At | 24 |
| any time
after the
suspension or revocation of any certificate |
|
|
|
SB2112 Enrolled |
- 74 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| of registration, the Department Office of
Banks and
Real Estate | 2 |
| may restore the certificate of registration to the respondent
| 3 |
| upon
the written recommendation of the Secretary Commissioner , | 4 |
| unless after an
investigation and a hearing the Secretary | 5 |
| Commissioner determines that
restoration is not in the public | 6 |
| interest.
| 7 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 8 |
| (765 ILCS 101/15-55)
| 9 |
| Sec. 15-55. Surrender of certificate of registration. Upon | 10 |
| the
revocation or
suspension of a certificate of registration, | 11 |
| the registrant shall immediately
surrender the certificate of | 12 |
| registration to the Department Office of Banks and Real
Estate . | 13 |
| If
the registrant fails to do so, the Department Office of | 14 |
| Banks and Real Estate has the
right to
seize the certificate of | 15 |
| registration.
| 16 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 17 |
| (765 ILCS 101/15-60)
| 18 |
| Sec. 15-60. Administrative Review Law. All final | 19 |
| administrative
decisions
of the Department Office of Banks and | 20 |
| Real Estate under this Act are subject to judicial
review
under | 21 |
| the Administrative Review Law and the rules implementing that | 22 |
| Law. The
term "administrative decision" is defined as in | 23 |
| Section 3-101 of the Code of
Civil
Procedure.
Proceedings for | 24 |
| judicial review shall be commenced in the circuit court of the
|
|
|
|
SB2112 Enrolled |
- 75 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| county in which the party applying for review resides, but if | 2 |
| the party
is not a
resident of this State, the venue shall be | 3 |
| in Cook or Sangamon County.
| 4 |
| Pending the court's final decision on administrative | 5 |
| review, the acts,
orders,
sanctions, and rulings of the | 6 |
| Department Office of Banks and Real Estate regarding any
| 7 |
| registration shall remain in full force and effect unless | 8 |
| modified or stayed
by
court order pending a final judicial | 9 |
| decision.
| 10 |
| The Department Office of Banks and Real
Estate
shall not be | 11 |
| required to certify any record to the court or file any answer
| 12 |
| in court
or otherwise appear in any court in a judicial review | 13 |
| proceeding unless
there is
filed in the court, with the | 14 |
| complaint, a receipt from the Department Office of Banks and
| 15 |
| Real
Estate acknowledging payment of the costs of furnishing | 16 |
| and certifying the
record.
Failure on the part of the plaintiff | 17 |
| to file a receipt in the court is grounds
for
dismissal of the | 18 |
| action.
| 19 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 20 |
| (765 ILCS 101/15-65)
| 21 |
| Sec. 15-65. Public interest, safety, or welfare; summary | 22 |
| suspension. The Secretary
Commissioner may temporarily
suspend | 23 |
| any registration pursuant to this Act, without hearing, | 24 |
| simultaneously
with the institution of proceedings for a | 25 |
| hearing provided for in this Section,
if the
Secretary |
|
|
|
SB2112 Enrolled |
- 76 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| Commissioner finds that the evidence indicates that the public | 2 |
| interest,
safety, or
welfare imperatively requires emergency | 3 |
| action. If the Secretary Commissioner
temporarily
suspends any | 4 |
| registration without a hearing, a hearing must be held within | 5 |
| 30
calendar days after the suspension. The person whose | 6 |
| registration is suspended
may seek a continuance of the | 7 |
| hearing, during which the suspension shall remain
in effect. | 8 |
| The proceeding shall be concluded without appreciable delay.
| 9 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 10 |
| (765 ILCS 101/15-70)
| 11 |
| Sec. 15-70. Non-registered practice; civil penalty; | 12 |
| injunction.
| 13 |
| (a) Any person who practices, offers to practice, attempts | 14 |
| to practice, or
holds
himself or herself out to practice as a | 15 |
| registrant under this Act without being
registered under this | 16 |
| Act shall, in addition to any other penalty provided by
law,
| 17 |
| pay a civil penalty to the Department Office of Banks and Real | 18 |
| Estate in an amount not to
exceed $25,000 for each offense as | 19 |
| determined by the Department Office of Banks and Real
Estate . | 20 |
| The civil penalty shall be assessed by the Department Office of | 21 |
| Banks and Real
Estate
after a hearing is held in accordance | 22 |
| with the provisions set forth in this Act
regarding the | 23 |
| provision of a hearing for the discipline of a registrant.
| 24 |
| (b) The Department Office of Banks and Real Estate has the | 25 |
| authority and power to
investigate any and all non-registered |
|
|
|
SB2112 Enrolled |
- 77 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| activity.
| 2 |
| (c) A civil penalty imposed under subsection (a) shall be | 3 |
| paid within 60
days after the effective date
of
the
order | 4 |
| imposing the civil penalty. The order shall constitute a | 5 |
| judgment and
may
be filed, and execution may be had thereon, in | 6 |
| the same manner as any judgment
from any
court of record.
| 7 |
| (d) Engaging in timeshare practices
in Illinois by any | 8 |
| entity not holding a valid and current
certificate of
| 9 |
| registration
under
this Act is declared to be inimical to the | 10 |
| public welfare, to constitute a
public
nuisance, and to cause | 11 |
| irreparable harm to the public welfare. The Secretary
| 12 |
| Commissioner ,
the Attorney General, the State's Attorney of any | 13 |
| county in the State, or any
person may maintain an action in | 14 |
| the name of the People of the State of
Illinois,
and may apply | 15 |
| for injunctive relief in any circuit court to enjoin such | 16 |
| entity
from
engaging in such practice. Upon the filing of a | 17 |
| verified petition in the
court, the
court, if satisfied by | 18 |
| affidavit or otherwise that such entity has been engaged
in
| 19 |
| such practice without a valid and current
certificate of
| 20 |
| registration, may enter a temporary
restraining order without | 21 |
| notice or bond, enjoining the defendant from such
further
| 22 |
| practice. Only the showing of nonregistration, by affidavit or | 23 |
| otherwise, is
necessary in order for a temporary injunction to | 24 |
| issue. A copy of the verified
complaint shall be served upon | 25 |
| the defendant and the proceedings shall
thereafter
be conducted | 26 |
| as in other civil cases except as modified by this Section. If |
|
|
|
SB2112 Enrolled |
- 78 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| it
is
established that the defendant has been or is engaged in | 2 |
| such unlawful
practice,
the court may enter an order or | 3 |
| judgment perpetually enjoining the defendant
from
further | 4 |
| practice. In all proceedings hereunder, the court, in its | 5 |
| discretion,
may
apportion the costs among the parties | 6 |
| interested in the action, including cost
of
filing the | 7 |
| complaint, service of process, witness fees and expenses, court
| 8 |
| reporter
charges and reasonable attorneys' fees. In the case of | 9 |
| a violation of any
injunctive
order entered under the | 10 |
| provisions of this Section, the court may summarily try
and | 11 |
| punish the offender for contempt of court. Proceedings for an | 12 |
| injunction
under this Section shall be in addition to, and not | 13 |
| in lieu of, all penalties
and other
remedies provided in this | 14 |
| Act.
| 15 |
| (Source: P.A. 91-585, eff. 1-1-00 .)
| 16 |
| (765 ILCS 101/15-80)
| 17 |
| Sec. 15-80. Cease and desist orders. The Department Office | 18 |
| of Banks and Real
Estate
may issue a cease and desist order to | 19 |
| any person who engages in any activity
prohibited by this Act. | 20 |
| Any person in violation of a cease and desist order
entered
by | 21 |
| the Department Office of Banks and Real Estate is subject to | 22 |
| all of the remedies
provided
by law.
| 23 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 24 |
| (765 ILCS 101/20-5)
|
|
|
|
SB2112 Enrolled |
- 79 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| Sec. 20-5. Administration of Act. The Department Office of | 2 |
| Banks and Real Estate
shall exercise the powers and duties | 3 |
| prescribed by the Civil Administrative
Code
of Illinois and | 4 |
| shall exercise other powers and duties necessary for
| 5 |
| effectuating the
purposes of this Act. The Department Office of | 6 |
| Banks and Real Estate may contract with
third
parties for | 7 |
| services necessary for the proper administration of this Act. | 8 |
| The Department
Office
of Banks and Real Estate has the | 9 |
| authority to establish public policies and
procedures | 10 |
| necessary for the administration of this Act.
| 11 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 12 |
| (765 ILCS 101/20-10)
| 13 |
| Sec. 20-10. Administrative rules. The Department Office of | 14 |
| Banks and Real Estate
shall adopt rules for the implementation | 15 |
| and enforcement of this Act.
| 16 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 17 |
| (765 ILCS 101/20-15)
| 18 |
| Sec. 20-15. Real Estate License Administration Fund.
| 19 |
| All fees collected for registration and for civil penalties | 20 |
| pursuant to this
Act and administrative rules adopted under | 21 |
| this Act shall be deposited into
the Real Estate License | 22 |
| Administration Fund. The moneys deposited in the Real
Estate | 23 |
| License Administration Fund shall be appropriated to the | 24 |
| Department Office of Banks
and Real Estate for expenses for the |
|
|
|
SB2112 Enrolled |
- 80 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| administration and enforcement of this
Act.
| 2 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 3 |
| (765 ILCS 101/20-20)
| 4 |
| Sec. 20-20. Forms. The Department Office of Banks and Real | 5 |
| Estate may prescribe
forms
and procedures for submitting | 6 |
| information to the Department Office of Banks and Real
Estate .
| 7 |
| (Source: P.A. 91-585, eff. 1-1-00.)
| 8 |
| (765 ILCS 101/20-25)
| 9 |
| Sec. 20-25. Site inspections. The Department Office of | 10 |
| Banks and Real Estate shall
thoroughly investigate all matters | 11 |
| relating to an application for registration
under this Act and | 12 |
| may
require a personal inspection of any developer, timeshare | 13 |
| plan, accommodation,
exchange company, or resale company and | 14 |
| any offices where any of the foregoing
may transact
business. | 15 |
| All reasonable expenses incurred by the Department Office of | 16 |
| Banks and Real
Estate in
investigating such matters shall be | 17 |
| borne by the registrant, and the registrant
shall
reimburse the | 18 |
| Department Office of Banks and Real Estate for those expenses | 19 |
| within 30
calendar days of receipt of notice of
the expenses | 20 |
| from the Department Office . The Department
Office of Banks and | 21 |
| Real Estate may require a deposit sufficient to cover the
| 22 |
| expenses
prior to incurring the expenses.
| 23 |
| (Source: P.A. 91-585, eff. 1-1-00.)
|
|
|
|
SB2112 Enrolled |
- 81 - |
LRB096 09414 AJO 19571 b |
|
| 1 |
| (765 ILCS 101/5-35 rep.)
| 2 |
| Section 10. The Real Estate Timeshare Act of 1999 is | 3 |
| amended by repealing Section 5-35. | 4 |
| Section 97. Severability. The provisions of this Act are | 5 |
| severable under Section 1.31 of the Statute on Statutes.
| 6 |
| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.
|
|