SB2112ham002 96TH GENERAL ASSEMBLY

Rep. Dan Reitz

Filed: 5/14/2009

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2112

2     AMENDMENT NO. ______. Amend Senate Bill 2112, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
 
5     "Section 5. The Real Estate Timeshare Act of 1999 is
6 amended by changing Sections 1-10, 1-15, 5-5, 5-15, 5-20, 5-25,
7 5-30, 5-40, 5-45, 5-50, 5-55, 5-60, 10-5, 10-15, 10-25, 10-30,
8 15-5, 15-10, 15-15, 15-20, 15-25, 15-30, 15-35, 15-40, 15-45,
9 15-50, 15-55, 15-60, 15-65, 15-70, 15-80, 20-5, 20-10, 20-15,
10 20-20, and 20-25, and by adding Sections 10-45, 10-50, and
11 10-55 as follows:
 
12     (765 ILCS 101/1-10)
13     Sec. 1-10. Scope of Act.
14     (a) This Act applies to all of the following:
15         (1) Timeshare plans with an accommodation or component
16     site in Illinois.

 

 

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1         (2) Timeshare plans without an accommodation or
2     component site in Illinois, if those timeshare plans are
3     sold or offered to be sold to any individual located within
4     Illinois.
5         (3) Exchange programs as defined in this Act.
6         (4) Resale agents as defined in this Act.
7     (b) Exemptions. This Act does not apply to the following:
8         (1) Timeshare plans, whether or not an accommodation is
9     located in Illinois, consisting of 7 or fewer timeshare
10     periods, the use of which extends over any period of less
11     than 3 years; or .
12         (2) Timeshare plans, whether or not an accommodation is
13     located in Illinois, under which the prospective
14     purchaser's total financial obligation will be less than
15     $1,500 during the entire term of the timeshare plan.
16 (Source: P.A. 91-585, eff. 1-1-00.)
 
17     (765 ILCS 101/1-15)
18     Sec. 1-15. Definitions. In this Act, unless the context
19 otherwise requires:
20     "Accommodation" means any apartment, condominium or
21 cooperative unit, cabin, lodge, hotel or motel room, or other
22 private or commercial structure containing toilet facilities
23 therein that is designed and available, pursuant to applicable
24 law, for use and occupancy as a residence by one or more
25 individuals, or any unit or berth on a commercial cruise line

 

 

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1 ship, which is included in the offering of a timeshare plan.
2     "Acquisition agent" means a person who, directly or through
3 the person's employees, agents, or independent contractors,
4 induces or attempts to induce by means of a promotion or an
5 advertisement any individual located within the State of
6 Illinois to attend a sales presentation for a timeshare plan.
7     "Advertisement" means any written, oral, or electronic
8 communication that is directed to or targeted to persons within
9 the State of Illinois and contains a promotion, inducement, or
10 offer to sell a timeshare plan, including but not limited to
11 brochures, pamphlets, radio and television scripts, electronic
12 media, telephone and direct mail solicitations, and other means
13 of promotion.
14     "Association" means the organized body consisting of the
15 purchasers of interests in a timeshare plan.
16     "Assessment" means the share of funds required for the
17 payment of common expenses which is assessed from time to time
18 against each purchaser by the managing entity.
19     "Commissioner" means the Commissioner of Banks and Real
20 Estate, or a natural person authorized by the Commissioner, the
21 Office of Banks and Real Estate Act, or this Act to act in the
22 Commissioner's stead.
23     "Component site" means a specific geographic location
24 where accommodations which are part of a multi-site timeshare
25 plan are located. Separate phases of a single timeshare
26 property in a specific geographic location and under common

 

 

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1 management shall be deemed a single component site.
2     "Department" means the Department of Financial and
3 Professional Regulation.
4     "Developer" means and includes any person or entity, other
5 than a sales agent, acquisition agent, or resale agent, who
6 creates a timeshare plan or is in the business of selling
7 timeshare interests, or employs agents to do the same, or any
8 person or entity who succeeds to the interest of a developer by
9 sale, lease, assignment, mortgage, or other transfer, but the
10 term includes only those persons who offer timeshare interests
11 for disposition in the ordinary course of business.
12     "Dispose" or "disposition" means a voluntary transfer or
13 assignment of any legal or equitable interest in a timeshare
14 plan, other than the transfer, assignment, or release of a
15 security interest.
16     "Exchange company" means any person owning or operating, or
17 both owning and operating, an exchange program.
18     "Exchange program" means any method, arrangement, or
19 procedure for the voluntary exchange of timeshare interests or
20 other property interests. The term does not include the
21 assignment of the right to use and occupy accommodations to
22 owners of timeshare interests within a single-site timeshare
23 plan. Any method, arrangement, or procedure that otherwise
24 meets this definition, wherein the purchaser's total
25 contractual financial obligation exceeds $3,000 per any
26 individual, recurring timeshare period, shall be regulated as a

 

 

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1 timeshare plan in accordance with this Act.
2     "Managing entity" means the person who undertakes the
3 duties, responsibilities, and obligations of the management of
4 a timeshare plan.
5     "Managing entity lien" means a lien created pursuant to
6 Section 10-45.
7     "Offer" means any inducement, solicitation, or other
8 attempt, whether by marketing, advertisement, oral or written
9 presentation, or any other means, to encourage a person to
10 acquire a timeshare interest in a timeshare plan, other than as
11 security for an obligation.
12     "Person" means a natural person, corporation, limited
13 liability company, partnership, joint venture, association,
14 estate, trust, government, governmental subdivision or agency,
15 or other legal entity, or any combination thereof.
16     "Promotion" means a plan or device, including one involving
17 the possibility of a prospective purchaser receiving a
18 vacation, discount vacation, gift, or prize, used by a
19 developer, or an agent, independent contractor, or employee of
20 any of the same on behalf of the developer, in connection with
21 the offering and sale of timeshare interests in a timeshare
22 plan.
23     "Purchaser" means any person, other than a developer, who
24 by means of a voluntary transfer acquires a legal or equitable
25 interest in a timeshare plan other than as security for an
26 obligation.

 

 

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1     "Purchase contract" means a document pursuant to which a
2 person becomes legally obligated to sell, and a purchaser
3 becomes legally obligated to buy, a timeshare interest.
4     "Resale agent" means a person who, for another and for
5 compensation, or with the intention or expectation of receiving
6 compensation, either directly or indirectly sells, offers to
7 sell, or advertises to sell within this State any timeshare
8 interest previously sold to a purchaser or solicits within this
9 State any owner of a timeshare interest to list the owner's
10 timeshare interest, wherever located, for sale. directly or
11 through the person's employees or agents, sells or offers to
12 sell a timeshare interest previously sold to a purchaser or
13 solicits an owner of a timeshare interest to list the owner's
14 timeshare interest for sale.
15     "Reservation system" means the method, arrangement, or
16 procedure by which a purchaser, in order to reserve the use or
17 occupancy of any accommodation of a multi-site timeshare plan
18 for one or more timeshare periods, is required to compete with
19 other purchasers in the same multi-site timeshare plan,
20 regardless of whether the reservation system is operated and
21 maintained by the multi-site timeshare plan managing entity, an
22 exchange company, or any other person. In the event that a
23 purchaser is required to use an exchange program as the
24 purchaser's principal means of obtaining the right to use and
25 occupy accommodations, that arrangement shall be deemed a
26 reservation system. When an exchange company utilizes a

 

 

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1 mechanism for the exchange of use of timeshare periods among
2 members of an exchange program, that utilization is not a
3 reservation system of a multi-site timeshare plan.    
4     "Sales agent" means a person, other than a resale agent,
5 who, directly or through the person's employees, agents, or
6 independent contractors, sells or offers to sell timeshare
7 interests in a timeshare plan to any individual located in the
8 State of Illinois.
9     "Timeshare instrument" means one or more documents, by
10 whatever name denominated, creating or governing the operation
11 of a timeshare plan.
12     "Secretary" means the Secretary of the Department of
13 Financial and Professional Regulation, or a natural person
14 authorized by the Secretary, the Department of Financial and
15 Professional Regulation, or this Act to act in the Secretary's
16 stead.
17     "Timeshare interest" means and includes either:
18         (1) a "timeshare estate", which is the right to occupy
19     a timeshare property, coupled with a freehold estate or an
20     estate for years with a future interest in a timeshare
21     property or a specified portion thereof; or
22         (2) a "timeshare use", which is the right to occupy a
23     timeshare property, which right is neither coupled with a
24     freehold interest, nor coupled with an estate for years
25     with a future interest, in a timeshare property.
26     "Timeshare period" means the period or periods of time when

 

 

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1 the purchaser of a timeshare plan is afforded the opportunity
2 to use the accommodations of a timeshare plan.
3     "Timeshare plan" means any arrangement, plan, scheme, or
4 similar device, other than an exchange program, whether by
5 membership agreement, sale, lease, deed, license, or
6 right-to-use agreement or by any other means, whereby a
7 purchaser, in exchange for consideration, receives ownership
8 rights in or the right to use accommodations for a period of
9 time less than a full year during any given year, but not
10 necessarily for consecutive years. A timeshare plan may be:
11         (1) a "single-site timeshare plan", which is the right
12     to use accommodations at a single timeshare property; or
13         (2) a "multi-site timeshare plan", which includes:
14             (A) a "specific timeshare interest", which is the
15         right to use accommodations at a specific timeshare
16         property, together with use rights in accommodations
17         at one or more other component sites created by or
18         acquired through the timeshare plan's reservation
19         system; or
20             (B) a "non-specific timeshare interest", which is
21         the right to use accommodations at more than one
22         component site created by or acquired through the
23         timeshare plan's reservation system, but including no
24         specific right to use any particular accommodations.
25     "Timeshare property" means one or more accommodations
26 subject to the same timeshare instrument, together with any

 

 

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1 other property or rights to property appurtenant to those
2 accommodations.
3 (Source: P.A. 91-585, eff. 1-1-00.)
 
4     (765 ILCS 101/5-5)
5     Sec. 5-5. Exemptions from developer registration. A person
6 shall not be required to register as a developer under this Act
7 if:
8         (1) the person is an owner of a timeshare interest who
9     has acquired the timeshare interest for the person's own
10     use and occupancy and who later offers it for resale; or
11         (2) the person is a managing entity or an association
12     that is not otherwise a developer of a timeshare plan in
13     its own right, solely while acting as an association or
14     under a contract with an association to offer or sell a
15     timeshare interest transferred to the association through
16     foreclosure, deed in lieu of foreclosure, or gratuitous
17     transfer, if such acts are performed in the regular course
18     of, or as an incident to, the management of the association
19     for its own account in the timeshare plan; or
20         (3) the person offers a timeshare plan in a national
21     publication or by electronic media, as determined by the
22     Department Office of Banks and Real Estate and provided by
23     rule, which is not directed to or targeted to any
24     individual located in Illinois; or
25         (4) the person is conveyed, assigned, or transferred

 

 

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1     more than 7 timeshare periods from a developer in a single
2     voluntary or involuntary transaction and subsequently
3     conveys, assigns, or transfers all of the timeshare
4     interests received from the developer to a single purchaser
5     in a single transaction.
6 (Source: P.A. 91-585, eff. 1-1-00.)
 
7     (765 ILCS 101/5-15)
8     Sec. 5-15. Developer registration requirements.
9     (a) Registration required. Any person who, to any
10 individual located in Illinois, sells, offers to sell, or
11 attempts to solicit prospective purchasers or to solicit any
12 individual located in Illinois to purchase a timeshare
13 interest, or any person who creates a timeshare plan with an
14 accommodation in the State of Illinois, shall register as a
15 developer with the Department Office of Banks and Real Estate
16 and shall comply with the provisions of subsection (c) of this
17 Section.
18     (b) Items to be registered. A developer shall be
19 responsible for registering with the Department Office of Banks
20 and Real Estate, on forms provided by the Department Office of
21 Banks and Real Estate, the following:
22         (1) All timeshare plans which have accommodations
23     located in Illinois or which are sold or offered for sale
24     to any individual located in Illinois.
25         (2) All sales agents who sell or offer to sell any

 

 

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1     timeshare interests in any timeshare plan offered by the
2     developer to any individual located in Illinois.
3         (3) All acquisition agents who, by means of inducement,
4     promotion, or advertisement, attempt to encourage or
5     procure prospective purchasers located in Illinois to
6     attend a sales presentation for any timeshare plan offered
7     by the developer.
8         (4) All managing entities who manage any timeshare plan
9     offered or sold by the developer to any individual located
10     in Illinois, without limitation as to whether the location
11     of the accommodation site managed is within Illinois.
12     (c) Escrow. The developer shall comply with the following
13 escrow requirements:
14         (1) A developer of a timeshare plan shall deposit into
15     an escrow account in a federally insured depository 100% of
16     all funds which are received during the purchaser's
17     rescission period. The deposit of such funds shall be
18     evidenced by an executed escrow agreement between the
19     escrow agent and the developer, which shall include
20     provisions that:
21             (A) funds may be disbursed to the developer by the
22         escrow agent from the escrow account only after
23         expiration of the purchaser's rescission period and in
24         accordance with the purchase contract, subject to
25         paragraph (2) of this subsection; and
26             (B) if a purchaser properly cancels the purchase

 

 

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1         contract pursuant to its terms, the funds shall be paid
2         to the purchaser or paid to the developer if the
3         purchaser's funds have been previously refunded by the
4         developer.
5         (2) If a developer contracts to sell a timeshare
6     interest and the construction of any property in which the
7     timeshare interest is located has not been completed, the
8     developer, upon expiration of the rescission period, shall
9     continue to maintain in an escrow account all funds
10     received by or on behalf of the developer from the
11     purchaser under his or her purchase contract. The
12     Department Office of Banks and Real Estate shall establish,
13     by rule, the types of documentation which shall be required
14     for evidence of completion, including but not limited to a
15     certificate of occupancy, a certificate of substantial
16     completion, or an inspection by the Office of the State
17     Fire Marshal or the State Fire Marshal's designee or an
18     equivalent public safety inspection agency in the
19     applicable jurisdiction. Funds shall be released from
20     escrow as follows:
21             (A) If a purchaser properly cancels the purchase
22         contract pursuant to its terms, the funds shall be paid
23         to the purchaser or paid to the developer if the
24         purchaser's funds have been previously refunded by the
25         developer.
26             (B) If a purchaser defaults in the performance of

 

 

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1         the purchaser's obligations under the purchase
2         contract, the funds shall be paid to the developer.
3             (C) If the funds of a purchaser have not been
4         previously disbursed in accordance with the provisions
5         of this paragraph (2), they may be disbursed to the
6         developer by the escrow agent upon the issuance of
7         acceptable evidence of completion of construction as
8         provided herein.
9         (3) In lieu of the provisions in paragraphs (1) and
10     (2), the Department Office of Banks and Real Estate may
11     accept from the developer a surety bond, irrevocable letter
12     of credit, or other financial assurance acceptable to the
13     Department Office of Banks and Real Estate, as provided by
14     rule. Any acceptable financial assurance must be in an
15     amount equal to or in excess of the funds which would
16     otherwise be placed in escrow, or in an amount equal to the
17     cost to complete the incomplete property in which the
18     timeshare interest is located.
19         (4) The developer shall provide escrow account
20     information to the Department Office of Banks and Real
21     Estate and shall execute in writing an authorization
22     consenting to an audit or examination of the account by the
23     Department Office of Banks and Real Estate on forms
24     provided by the Department Office of Banks and Real Estate.
25     The developer shall comply with the reconciliation and
26     records requirements established by rule by the Department

 

 

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1     Office of Banks and Real Estate. The developer shall make
2     documents related to the escrow account or escrow
3     obligation available to the Department Office of Banks and
4     Real Estate upon the Department's Office's request. The
5     developer shall maintain any disputed funds in the escrow
6     account until either:
7             (A) receipt of written direction agreed to by
8         signature of all parties; or
9             (B) deposit of the funds with a court of competent
10         jurisdiction in which a civil action regarding the
11         funds has been filed.
12     (d) Comprehensive registration. In registering a timeshare
13 plan, the developer shall be responsible for providing
14 information on the following:
15         (1) The developer's legal name, any assumed names used
16     by the developer, principal office street address, mailing
17     address, primary contact person, and telephone number;
18         (2) The name of the developer's authorized or
19     registered agent in the State of Illinois upon whom claims
20     can be served or service of process be had, the agent's
21     street address in Illinois, and telephone number;
22         (3) The name, street address, mailing address, primary
23     contact person, and telephone number of any timeshare plan
24     being registered;
25         (4) The name, street address, mailing address and
26     telephone number of any sales agent and acquisition agent

 

 

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1     utilized by the developer, and any managing entity of the
2     timeshare plan;
3         (5) A public offering statement which complies with the
4     requirements of Sections 5-25; and
5         (6) Any other information regarding the developer,
6     timeshare plan, sales agents, acquisition agents, or
7     managing entities as reasonably required by the Department
8     Office of Banks and Real Estate and established by rule.
9     (e) Abbreviated registration. The Department Office of
10 Banks and Real Estate may accept, as provided for by rule, an
11 abbreviated registration application of a developer of a
12 timeshare plan in which all accommodations are located outside
13 of the State of Illinois. The developer shall file a written
14 notice of intent to register under this Section at least 15
15 days prior to submission. A developer of a timeshare plan with
16 any accommodation located in the State of Illinois may not file
17 an abbreviated filing, with the exception of a succeeding
18 developer after a merger or acquisition when all of the
19 developers' timeshare plans were registered in Illinois
20 immediately preceding the merger or acquisition.
21     The developer shall provide a certificate of registration
22 or other evidence of registration from the appropriate
23 regulatory agency of any other jurisdiction within the United
24 States in which some or all of such accommodations are located.
25 The other jurisdiction must have disclosure requirements that
26 are substantially equivalent to or greater than the information

 

 

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1 required to be disclosed to purchasers by the State of
2 Illinois. A developer filing an abbreviated registration
3 application shall provide the following:
4         (1) The developer's legal name, any assumed names used
5     by the developer, and the developer's principal office
6     location, mailing address, primary contact person, and
7     telephone number.
8         (2) The name, location, mailing address, primary
9     contact person, and telephone number of the timeshare plan.
10         (3) The name of the authorized agent or registered
11     agent in Illinois upon whom claims can be served or service
12     of process can be had, and the address in Illinois of the
13     authorized agent or registered agent.
14         (4) The names of any sales agent, acquisition agent,
15     and managing entity, and their principal office location,
16     mailing address, and telephone number.
17         (5) The certificate of registration or other evidence
18     of registration from any jurisdiction in which the
19     timeshare plan is approved or accepted.
20         (6) A declaration as to whether the timeshare plan is a
21     single-site timeshare plan or a multi-site timeshare plan
22     and, if a multi-site timeshare plan, whether it consists of
23     specific timeshare interests or non-specific timeshare
24     interests.
25         (7) Disclosure of each jurisdiction in which the
26     developer has applied for registration of the timeshare

 

 

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1     plan, and whether the timeshare plan, its developer, or any
2     of its acquisition agents, sales agents, or managing
3     entities utilized were denied registration or were the
4     subject of any disciplinary proceeding.
5         (8) Copies of any disclosure documents required to be
6     given to purchasers or required to be filed with the
7     jurisdiction in which the timeshare plan is approved or
8     accepted as may be requested by the Department Office of
9     Banks and Real Estate.
10         (9) The appropriate fee.
11         (10) Such other information reasonably required by the
12     Department Office of Banks and Real Estate and established
13     by rule.
14     (f) Preliminary permits. Notwithstanding anything in this
15 Section to the contrary, the Department Office of Banks and
16 Real Estate may grant a 6-month preliminary permit, as
17 established by rule, allowing the developer to begin offering
18 and selling timeshare interests while the registration is in
19 process. To obtain a preliminary permit, the developer shall do
20 all of the following:
21         (1) (Blank). Submit a formal written request to the
22     Office of Banks and Real Estate for a preliminary permit.
23         (2) Submit an application in form and substance
24     satisfactory to the Department a substantially complete
25     application for registration to the Office of Banks and
26     Real Estate, including all appropriate fees and exhibits

 

 

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1     required under this Article.
2         (3) Provide evidence acceptable to the Department
3     Office of Banks and Real Estate that all funds received by
4     the developer will be placed into an independent escrow
5     account with instructions that funds will not be released
6     until a final registration has been granted.
7         (4) Give to each purchaser and potential purchaser a
8     copy of the proposed public offering statement that the
9     developer has submitted to the Department Office of Banks
10     and Real Estate with the initial application.
11         (5) Give to each purchaser the opportunity to cancel
12     the purchase contract in accordance with Section 10-10. The
13     purchaser shall have an additional opportunity to cancel
14     upon the issuance of an approved registration if the
15     Department Office of Banks and Real Estate determines that
16     there is a substantial difference in the disclosures
17     contained in the final public offering statement and those
18     given to the purchaser in the proposed public offering
19     statement.
20     (g) Alternative registration; letter of credit or other
21 assurance; recovery.
22         (1) Notwithstanding anything in this Act to the
23     contrary, the Department Office of Banks and Real Estate
24     may accept, as established by rule, a registration from a
25     developer for a timeshare plan if the developer provides
26     all of the following:

 

 

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1             (A) (Blank). A written notice of intent to register
2         under this Section at least 15 days prior to submission
3         of the alternative registration.
4             (B) An irrevocable letter of credit or other
5         acceptable assurance, as established by rule, in an
6         amount of $1,000,000, from which an Illinois purchaser
7         aggrieved by any act, representation, transaction, or
8         conduct of a duly registered developer or his or her
9         acquisition agent, sales agent, managing entity, or
10         employee, which violates any provision of this Act or
11         the rules promulgated under this Act, or which
12         constitutes embezzlement of money or property or
13         results in money or property being unlawfully obtained
14         from any person by false pretenses, artifice,
15         trickery, or forgery or by reason of any fraud,
16         misrepresentation, discrimination, or deceit by or on
17         the part of any developer or agent or employee of the
18         developer and which results in actual monetary loss as
19         opposed to a loss in market value, may recover.
20             (C) The developer's legal name, any assumed names
21         used by the developer, and the developer's principal
22         office location, mailing address, main contact person,
23         and telephone number.
24             (D) The name, location, mailing address, main
25         contact person, and telephone number of the timeshare
26         plan included in the filing.

 

 

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1             (E) The name of the authorized agent or registered
2         agent in Illinois upon whom claims can be served or
3         service of process can be had, and the address in
4         Illinois of the authorized agent or registered agent.
5             (F) The names of any sales agent, acquisition
6         agent, and managing entity, and their principal office
7         location, mailing address, and telephone number.
8             (G) A declaration as to whether the timeshare plan
9         is a single-site timeshare plan or a multi-site
10         timeshare plan and, if a multi-site timeshare plan,
11         whether it consists of specific timeshare interests or
12         non-specific timeshare interests.
13             (H) Disclosure of each jurisdiction in which the
14         developer has applied for registration of the
15         timeshare plan, and whether the timeshare plan, its
16         developer, or any of its acquisition agents, sales
17         agents, or managing entities utilized were denied
18         registration or were the subject of any disciplinary
19         proceeding.
20             (I) The required fee.
21             (J) Such other information reasonably required by
22         the Department Office of Banks and Real Estate and
23         established by rule.
24         (2) Any letter of credit or other acceptable assurance
25     shall remain in effect with the Department Office of Banks
26     and Real Estate for a period of 12 months after the date

 

 

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1     the developer does not renew or otherwise cancel his or her
2     registration with the State of Illinois or 12 months after
3     the Department Office of Banks and Real Estate revokes,
4     suspends, or otherwise disciplines such developer or his or
5     her registration, provided there is no pending litigation
6     alleging a violation of any provision of this Act known by
7     the Department Office of Banks and Real Estate and
8     certified by the developer.
9         (3) The Department Office of Banks and Real Estate
10     shall establish procedures, by rule, to satisfy claims by
11     any Illinois purchaser pursuant to this Section.
12         (4) The Department Office of Banks and Real Estate
13     shall automatically suspend the registration of any
14     developer pursuant to Section 15-25 of this Act in the
15     event the Department Office authorizes or directs payment
16     to an Illinois purchaser from the letter of credit or other
17     acceptable assurance pursuant to this Section and as
18     established by rule.
19     (h) A developer who registers a timeshare plan pursuant to
20 this Act shall provide the purchaser with a public offering
21 statement that complies with Section 5-25 and any disclosures
22 or other written information required by this Act.
23     (i) Nothing contained in this Section shall affect the
24 Department's Office of Banks and Real Estate's ability to
25 initiate any disciplinary action against a developer in
26 accordance with this Act.

 

 

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1     (j) For purposes of this Section, "Illinois purchaser"
2 means a person who, within the State of Illinois, is solicited,
3 offered, or sold a timeshare interest in a timeshare plan
4 registered pursuant to this Section.
5 (Source: P.A. 91-585, eff. 1-1-00.)
 
6     (765 ILCS 101/5-20)
7     Sec. 5-20. Developer supervisory duties. The developer
8 shall have the duty to supervise, manage, and control all
9 aspects of the offering of the timeshare plan, including, but
10 not limited to, promotion, advertising, contracting, and
11 closing. The developer shall have responsibility for each
12 timeshare plan registered with the Department Office of Banks
13 and Real Estate and for the actions of any sales agent,
14 managing entity, and acquisition agent utilized by the
15 developer in the offering or selling of any registered
16 timeshare plan. Any violation of this Act which occurs during
17 the offering activities shall be deemed to be a violation by
18 the developer as well as by the acquisition agent, sales agent,
19 or managing entity who actually committed such violation.
20 Notwithstanding anything to the contrary in this Act, the
21 developer shall be responsible for the actions of the
22 association and managing entity only while they are subject to
23 the developer's control.
24 (Source: P.A. 91-585, eff. 1-1-00.)
 

 

 

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1     (765 ILCS 101/5-25)
2     Sec. 5-25. Timeshare plan public offering statement
3 requirements.
4     (a) A developer shall prepare a public offering statement,
5 shall provide the statement to each purchaser of a timeshare
6 interest in any timeshare plan at the time of purchase, and
7 shall fully and accurately disclose those facts concerning the
8 timeshare developer and timeshare plan that are required by
9 this Act or by rule. The public offering statement shall be in
10 writing and dated and shall require the purchaser to certify in
11 writing the receipt thereof.
12     (b) With regard to timeshare interests offered in a
13 timeshare plan, a public offering statement shall fully and
14 accurately disclose the following:
15         (1) The name of the developer and the principal address
16     of the developer.
17         (2) A description of the type of timeshare interests
18     being offered.
19         (3) A general description of the existing and proposed
20     accommodations and amenities of the timeshare plan,
21     including their type and number, personal property
22     furnishing the accommodation, any use restrictions, and
23     any required fees for use.
24         (4) A description of any accommodations and amenities
25     that are committed to be built, including, without
26     limitation:

 

 

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1             (A) the developer's schedule of commencement and
2         completion of all accommodations and amenities; and
3             (B) the estimated number of accommodations per
4         site that may become subject to the timeshare plan.
5         (5) A brief description of the duration, phases, and
6     operation of the timeshare plan.
7         (6) The current annual budget, if available, or the
8     projected annual budget for the timeshare plan. The budget
9     shall include, without limitation:
10             (A) a statement of the amount, or a statement that
11         there is no amount, included in the budget as a reserve
12         for repairs and replacement;
13             (B) the projected common expense liability, if
14         any, by category of expenditures for the timeshare
15         plan; and
16             (C) a statement of any services or expenses not
17         reflected in the budget that the developer provides or
18         pays.
19         (7) Any initial or special fee due from the purchaser
20     at closing, together with a description of the purpose and
21     method of calculating the fee.
22         (8) A description of any liens, defects, or
23     encumbrances on or affecting the title to the timeshare
24     interests.
25         (9) A description of any financing offered by or
26     available through the developer.

 

 

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1         (10) A statement that within 5 calendar days after
2     receipt of the public offering statement or after execution
3     of the purchase contract, whichever is later, a purchaser
4     may cancel any purchase contract for a timeshare interest
5     from a developer together with a statement providing the
6     name and street address to which the purchaser should mail
7     any notice of cancellation. However, if by agreement of the
8     parties by and through the purchase contract, the purchase
9     contract allows for cancellation of the purchase contract
10     for a period of time exceeding 5 calendar days, then the
11     public offering statement shall include a statement that
12     the cancellation of the purchase contract is allowed for
13     that period of time exceeding 5 calendar days.
14         (11) A statement of any pending suits, adjudications,
15     or disciplinary actions material to the timeshare
16     interests of which the developer has knowledge.
17         (12) Any restrictions on alienation of any number or
18     portion of any timeshare interests.
19         (13) A statement describing liability and casualty
20     insurance for the timeshare property.
21         (14) Any current or expected fees or charges to be paid
22     by timeshare purchasers for the use of any amenities
23     related to the timeshare property.
24         (15) The extent to which financial arrangements have
25     been provided for completion of all promised improvements.
26         (16) The developer or managing entity must notify the

 

 

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1     Department Office of Banks and Real Estate of the extent to
2     which an accommodation may become subject to a tax or other
3     lien arising out of claims against other purchasers in the
4     same timeshare plan. The Department Office of Banks and
5     Real Estate may require the developer or managing entity to
6     notify a prospective purchaser of any such potential tax or
7     lien which would materially and adversely affect the
8     prospective purchaser.
9         (17) A statement indicating that the developer and
10     timeshare plan are registered with the State of Illinois.
11         (18) If the timeshare plan provides purchasers with the
12     opportunity to participate in an exchange program, a
13     description of the name and address of the exchange company
14     and the method by which a purchaser accesses the exchange
15     program.
16         (19) Such other information reasonably required by the
17     Department Office of Banks and Real Estate and established
18     by administrative rule necessary for the protection of
19     purchasers of timeshare interests in timeshare plans.
20         (20) Any other information that the developer, with the
21     approval of the Department Office of Banks and Real Estate,
22     desires to include in the public offering statement.
23     (c) A developer offering a multi-site timeshare plan shall
24 also fully and accurately disclose the following information,
25 which may be disclosed in a written, graphic, or tabular form:
26         (1) A description of each component site, including the

 

 

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1     name and address of each component site.
2         (2) The number of accommodations and timeshare
3     periods, expressed in periods of 7-day use availability,
4     committed to the multi-site timeshare plan and available
5     for use by purchasers.
6         (3) Each type of accommodation in terms of the number
7     of bedrooms, bathrooms, and sleeping capacity, and a
8     statement of whether or not the accommodation contains a
9     full kitchen. For purposes of this description, a "full
10     kitchen" means a kitchen having a minimum of a dishwasher,
11     range, sink, oven, and refrigerator.
12         (4) A description of amenities available for use by the
13     purchaser at each component site.
14         (5) A description of the reservation system, which
15     shall include the following:
16             (A) The entity responsible for operating the
17         reservation system.
18             (B) A summary of the rules and regulations
19         governing access to and use of the reservation system.
20             (C) The existence of and an explanation regarding
21         any priority reservation features that affect a
22         purchaser's ability to make reservations for the use of
23         a given accommodation on a first-come, first-served
24         basis.
25         (6) A description of any right to make any additions,
26     substitutions, or deletions of accommodations or

 

 

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1     amenities, and a description of the basis upon which
2     accommodations and amenities may be added to, substituted
3     in, or deleted from the multi-site timeshare plan.
4         (7) A description of the purchaser's liability for any
5     fees associated with the multi-site timeshare plan.
6         (8) The location and the anticipated relative use
7     demand of each component site in a multi-site timeshare
8     plan, as well as any periodic adjustment or amendment to
9     the reservation system which may be needed in order to
10     respond to actual purchaser use patterns and changes in
11     purchaser use demand for the accommodations existing at
12     that time within the multi-site timeshare plan.
13         (9) Such other information reasonably required by the
14     Department Office of Banks and Real Estate and established
15     by administrative rule necessary for the protection of
16     purchasers of timeshare interests in timeshare plans.
17         (10) Any other information that the developer, with the
18     approval of the Department Office of Banks and Real Estate,
19     desires to include in the public offering statement.
20     (d) If a developer offers a non-specific timeshare interest
21 in a multi-site timeshare plan, the developer shall disclose
22 the information set forth in subsection (b) as to each
23 component site.
24 (Source: P.A. 91-585, eff. 1-1-00.)
 
25     (765 ILCS 101/5-30)

 

 

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1     Sec. 5-30. Exchange company registration and disclosure
2 requirements.
3     (a) An Each exchange company offering an exchange program
4 to purchasers in this State shall register with the Department
5 at least 20 calendar days prior to offering an exchange program
6 to purchasers in this State. Office of Banks and Real Estate by
7 July 1 of each year. The registration shall consist of the
8 information specified in this Section. However, an exchange
9 company shall make its initial registration at least 20
10 calendar days prior to offering membership in an exchange
11 program to any purchaser in this State.
12     (b) If a purchaser is offered the opportunity to become a
13 member of an exchange program, the developer shall deliver to
14 the purchaser, together with the public offering statement and
15 any other materials required to be furnished under this
16 Section, and prior to the offering or execution of any contract
17 between the purchaser and the exchange company offering
18 membership in the exchange program, or, if the exchange company
19 is dealing directly with the purchaser, the developer or the
20 exchange company shall deliver to the purchaser, prior to the
21 initial offering or execution of any contract between the
22 purchaser and the exchange company, the following written
23 information regarding the exchange program, the form and
24 substance of which shall first be approved by the Department
25 Office of Banks and Real Estate in accordance with this
26 Section:

 

 

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1         (1) The name and address of the exchange company.
2         (2) The names of all officers, directors, and
3     shareholders of the exchange company.
4         (3) Whether the exchange company or any of its officers
5     or directors have any legal or beneficial interest in any
6     developer, seller, or managing entity for any timeshare
7     plan participating in the exchange program and, if so, the
8     identity of the timeshare plan and the nature of the
9     interest.
10         (4) Unless otherwise stated, a statement that the
11     purchaser's contract with the exchange company is a
12     contract separate and distinct from the purchaser's
13     contract with the seller of timeshare interests.
14         (5) Whether the purchaser's participation in the
15     exchange program is dependent upon the continued
16     affiliation of the applicable timeshare plan with the
17     exchange program.
18         (6) A statement that the purchaser's participation in
19     the exchange program is voluntary.
20         (7) A complete and accurate description of the terms
21     and conditions of the purchaser's contractual relationship
22     with the exchange program and the procedure by which
23     changes thereto may be made.
24         (8) A complete and accurate description of the
25     procedures necessary to qualify for and effectuate
26     exchanges.

 

 

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1         (9) A complete and accurate description of all
2     limitations, restrictions, and priorities employed in the
3     operation of the exchange program, including but not
4     limited to limitations on exchanges based on seasonality,
5     accommodation size, or levels of occupancy, expressed in
6     conspicuous type, and, in the event that those limitations,
7     restrictions, or priorities are not uniformly applied by
8     the exchange company, a clear description of the manner in
9     which they are applied.
10         (10) Whether exchanges are arranged on a
11     space-available basis and whether any guarantees of
12     fulfillment of specific requests for exchanges are made by
13     the exchange company.
14         (11) Whether and under what circumstances an owner, in
15     dealing with the exchange program, may lose the right to
16     use and occupy an accommodation of the timeshare plan
17     during a reserved use period with respect to any properly
18     applied-for exchange without being provided with
19     substitute accommodations by the exchange program.
20         (12) The fees or range of fees for participation by
21     owners in the exchange program, a statement of whether any
22     such fees may be altered by the exchange company, and the
23     circumstances under which alterations may be made.
24         (13) The name and address of the site of each
25     accommodation included within a timeshare plan
26     participating in the exchange program.

 

 

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1         (14) The number of accommodations in each timeshare
2     plan that are available for occupancy and that qualify for
3     participation in the exchange program, expressed within
4     the following numerical groups: 1-5; 6-10; 11-20; 21-50;
5     and 51 and over.
6         (15) The number of currently enrolled owners for each
7     timeshare plan participating in the exchange program,
8     expressed within the following numerical groups: 1-100;
9     101-249; 250-499; 500-999; and 1,000 and over; and a
10     statement of the criteria used to determine those owners
11     who are currently enrolled with the exchange program.
12         (16) The disposition made by the exchange company of
13     use periods deposited with the exchange program by owners
14     enrolled in the exchange program and not used by the
15     exchange company in effecting exchanges.
16         (17) The following information for the preceding
17     calendar year, which shall be independently audited by a
18     certified public accountant in accordance with the
19     standards of the Accounting Standards Board of the American
20     Institute of Certified Public Accountants and reported on
21     an annual basis on or after August 1 as established by rule
22     annually no later than August 1 of each year:
23             (A) The number of owners currently enrolled in the
24         exchange program.
25             (B) The number of timeshare plans that have current
26         affiliation agreements with the exchange program.

 

 

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1             (C) The percentage of confirmed exchanges, which
2         is the number of exchanges confirmed by the exchange
3         program divided by the number of exchanges properly
4         applied for, together with a complete and accurate
5         statement of the criteria used to determine whether an
6         exchange request was properly applied for.
7             (D) The number of use periods for which the
8         exchange program has an outstanding obligation to
9         provide an exchange to an owner who relinquished a use
10         period during a particular year in exchange for a use
11         period in any future year.
12             (E) The number of exchanges confirmed by the
13         exchange program during the year.
14             (F) A statement in conspicuous type to the effect
15         that the percentage described in subdivision (17)(C)
16         of this subsection is a summary of the exchange
17         requests entered with the exchange program in the
18         period reported and that the percentage does not
19         indicate the probabilities of an owner's being
20         confirmed to any specific choice or range of choices.
21         (18) Such other information as may be reasonably
22     required by the Department Office of Banks and Real Estate
23     of any exchange company as established by rule.
24     (c) No developer shall have any liability with respect to
25 any violation of this Act arising out of the publication by the
26 developer of information provided to it by an exchange company

 

 

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1 pursuant to this Article. No exchange company shall have any
2 liability with respect to any violation of this Act arising out
3 of the use by a developer of information relating to an
4 exchange program other than that provided to the developer by
5 the exchange company.
6     (d) All written, visual, and electronic communications
7 relating to an exchange company or an exchange program shall be
8 filed with the Department Office of Banks and Real Estate upon
9 its request.
10     (e) The failure of an exchange company to observe the
11 requirements of this Section, and the use of any unfair or
12 deceptive act or practice in connection with the operation of
13 an exchange program, is a violation of this Act.
14     (f) An exchange company may elect to deny exchange
15 privileges to any owner whose use of the accommodations of the
16 owner's timeshare plan is denied, and no exchange program or
17 exchange company shall be liable to any of its members or any
18 third parties on account of any such denial of exchange
19 privileges.
20 (Source: P.A. 91-585, eff. 1-1-00.)
 
21     (765 ILCS 101/5-40)
22     Sec. 5-40. Resale agent duties. A Whether registered or
23 exempt from registration under Section 5-35, a resale agent
24 shall comply with all of the following:
25     (a) Prior to engaging in any resale activities on behalf of

 

 

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1 any owner of a timeshare interest or accepting anything of
2 value from any owner of a timeshare interest, a resale agent
3 shall enter into a listing agreement with that owner. Every
4 listing agreement shall be in writing and signed by both the
5 resale agent and the timeshare interest owner. The requirements
6 of the written listing agreement shall be established by rule,
7 but at a minimum the listing agreement shall disclose the
8 following:
9         (1) The name and address of the resale agent and the
10     timeshare interest owner.
11         (2) The term of the listing agreement.
12         (3) Whether the resale agent's rights under the listing
13     agreement are exclusive and, if the resale agent's rights
14     are exclusive, the length of such exclusivity period.
15         (4) Whether any person other than the timeshare
16     interest owner may use the timeshare during the period
17     before the timeshare interest is resold.
18         (5) Whether any person other than the timeshare
19     interest owner may rent or exchange the use of the
20     timeshare interest during the term of the listing
21     agreement.
22         (6) The name of any person who will receive any rents,
23     profits, or other thing of value generated from the use of
24     the timeshare interest during the period before the
25     timeshare interest is resold.
26         (7) A detailed description of any relationship between

 

 

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1     the resale agent and any other person who receives any
2     benefit from the use of the timeshare interest.
3         (8) A description of any fees or costs that relate to
4     the listing or sale of the timeshare interest that the
5     timeshare interest owner (or any other person) must pay to
6     the resale agent or any third party. If the timeshare
7     interest owner (or any other person) must pay a fee to the
8     resale agent or any third party before the sale of the
9     timeshare interest, the listing agreement must identify
10     each of the following:
11             (A) The amount of each pre-sale fee and to whom
12         such pre-sale fee must be paid.
13             (B) The time by which each pre-sale fee must be
14         paid.
15             (C) A reasonable description of each pre-sale cost
16         or fee.
17             (D) A description and the estimated amount of any
18         other fees or costs associated with the listing or sale
19         of the timeshare interest.
20             (E) The ratio or percentage of the number of
21         listings of timeshare interests for sale versus the
22         number of timeshare interests sold by the resale agent
23         for each of the past 3 years.
24         (9) A description of the amount or percentage and
25     procedures for paying any commissions due to the resale
26     agent upon resale of the timeshare interest. the method of

 

 

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1     compensation, a definite date of termination, whether any
2     fees are non-refundable, and whether the agreement permits
3     the timeshare resale agent or any other person to make any
4     use whatsoever of the owner's timeshare interest or receive
5     any rents or profits generated from such use of the
6     timeshare interest.
7     (b) A resale agent shall maintain records as required by
8 rule. The records required to be maintained include, but are
9 not limited to, all listing agreements, copies of disbursement
10 authorizations in accordance with subsection (c), and resale
11 contracts.
12     (c) A resale agent who collects any fees prior to a
13 transfer of an interest from any owner shall deposit the fees
14 in an escrow account. Any fees that are to be paid to the
15 resale agent prior to closing may be disbursed from the escrow
16 account only upon receipt of a disbursement authorization,
17 signed by the owner, in the following form:
18         "I, (name of owner), am the owner of a timeshare
19     interest in (name of timeshare plan). I understand that for
20     my protection I can require the entire fee to be held in
21     escrow until the closing on the resale of my timeshare
22     interest, but I am authorizing a release before the
23     transfer in the following amount: (amount written in words)
24     ($ (amount in numbers)), for the following purpose or
25     purposes (description of purpose or purposes). I
26     understand that the resale agent is regulated by the

 

 

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1     Illinois Department of Financial and Professional
2     Regulation, or its successor agency, Office of Banks and
3     Real Estate under the Real Estate Timeshare Act of 1999.
4     The Illinois Department of Financial and Professional
5     Regulation Office of Banks and Real Estate requires the
6     resale agent to obtain this disbursement authorization
7     with my signature before disbursement of my funds."
8     (d) A resale agent shall utilize a purchase agreement that
9 discloses to a purchaser of a timeshare interest all of the
10 following:
11         (1) A legally sufficient description of the timeshare
12     interest being purchased.
13         (2) The name and address of the managing entity of the
14     timeshare property.
15         (3) The amount of the most recent current year's
16     assessment for the common expenses allocated to the
17     timeshare interest being purchased including the time
18     period to which the assessment relates (e.g., monthly,
19     quarterly, yearly) and the date on which it is due. If not
20     included in the applicable common expense assessment, the
21     amount of any real or personal property taxes allocated to
22     the timeshare interest being purchased.
23         (3.5) Whether all assessments and real or personal
24     property taxes that are due against the timeshare interest
25     are paid in full and, if not, the amount owed and the
26     consequences of failure to pay timely any assessment or

 

 

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1     real or personal property taxes.
2         (4) A complete and accurate disclosure of the terms and
3     conditions of the purchase and closing, including the
4     obligations of the owner, the purchaser, or both for
5     closing costs and the title insurance.
6         (5) The entity responsible for providing notification
7     to the managing entity of the timeshare plan and the
8     applicable exchange company regarding any change in the
9     ownership of the timeshare interest.
10         (6) A statement of the first year in which the
11     purchaser is entitled to receive the actual use rights and
12     occupancy of the timeshare interest, as determined by the
13     managing entity of the timeshare plan and any exchange
14     company.
15         (6.5) The name, address, telephone number, and website
16     (if applicable) where the governing documents of the
17     association, if any, and the timeshare instrument may be
18     obtained, together with the following disclosure:
19             "There are many important documents relating to
20         the timeshare plan that you should review before
21         purchasing a timeshare interest. These may include,
22         but are not limited to, (a) the declaration of
23         condominium, (b) the declaration of timeshare plan,
24         (c) the reciprocal easement and cost sharing
25         agreement, (d) the declaration of restrictions,
26         covenants, and conditions, (e) the owners association

 

 

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1         articles and bylaws, (f) the current year's operating
2         and reserve budgets, if any, for the owners
3         association, and (g) any rules and regulations
4         affecting the use of the timeshare property or other
5         facility or amenity available for use by timeshare
6         interest owners."
7         (7) In making the disclosures required by this
8     subsection (d), the timeshare resale agent may rely upon
9     information provided in writing by the owner or managing
10     entity of the timeshare plan.
11         (8) The purchaser's 5 calendar day 5-day cancellation
12     period as required by Section 10-10.
13         (9) Any other information determined by the Department
14     Office of Banks and Real Estate and established by rule.
15     (e) A resale agent must be licensed as a real estate broker
16 or salesperson pursuant to the Real Estate License Act of 2000
17 or its successor Act.
18     (f) A resale agent is exempt from the duties imposed by
19 subsections (a) through (d) of this Section if the resale agent
20 offers an aggregate total of no more than 8 timeshare interests
21 per calendar year as a resale agent, regardless of (1) whether
22 those timeshare interests are located in this State and (2)
23 whether the resale agent offers all, or only some, of those
24 timeshare interests, in this State.
25 (Source: P.A. 91-585, eff. 1-1-00.)
 

 

 

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1     (765 ILCS 101/5-45)
2     Sec. 5-45. Amendment to registration information or public
3 offering statement. The developer, resale agent, and exchange
4 company shall amend or supplement their disclosure documents
5 and registration information to reflect any material change in
6 any information required by this Act or the rules implementing
7 this Act. All such amendments, supplements, and changes shall
8 be filed with the Department Office of Banks and Real Estate
9 within 30 20 calendar days of the material change.
10 (Source: P.A. 91-585, eff. 1-1-00.)
 
11     (765 ILCS 101/5-50)
12     Sec. 5-50. Registration review time frames. Every
13 registration required to be filed with the Department Office of
14 Banks and Real Estate under this Act shall be reviewed and
15 issued a certificate of registration in accordance with the
16 following schedule:
17         (1) Comprehensive registration. Registration shall be
18     effective only upon the issuance of a certificate of
19     registration by the Department Office of Banks and Real
20     Estate, which, in the ordinary course of business, should
21     occur no more than 60 calendar days after actual receipt by
22     the Department Office of Banks and Real Estate of the
23     properly completed application. The Department shall
24     Office of Banks and Real Estate must provide a list of
25     deficiencies in the application, if any, within 60 calendar

 

 

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1     days of receipt. The list may be in a written or electronic
2     format.
3         (2) Abbreviated registration. Registration shall be
4     effective only upon the issuance of a certificate of
5     registration by the Department Office of Banks and Real
6     Estate, which, in the ordinary course of business, should
7     occur no more than 30 calendar days after actual receipt by
8     the Department Office of Banks and Real Estate of the
9     properly completed application. The Department shall
10     Office of Banks and Real Estate must provide a list of
11     deficiencies in the application, if any, within 30 calendar
12     days of receipt. The list may be in a written or electronic
13     format.
14         (3) Alternative assurance registration. Registration
15     shall be deemed effective only upon the issuance of a
16     certificate of registration by the Department, which, in
17     the ordinary course of business, should occur no more than
18     within 30 15 calendar days after of receipt by the
19     Department. The Department shall provide a , unless the
20     Office of Banks and Real Estate provides to the applicant a
21     written list of deficiencies in the application, if any,
22     within 30 15 calendar days of receipt. The list may be in a
23     written or electronic format.
24         (4) Preliminary permit registration. A preliminary
25     permit shall be issued only upon the written approval by
26     the Department, which, in the ordinary course of business,

 

 

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1     should occur no more than 30 within 15 calendar days after
2     actual of receipt of the required documentation by the
3     Department. The Department shall provide a , unless the
4     Office of Banks and Real Estate provides to the applicant a
5     written list of deficiencies in the application, if any,
6     within 30 15 calendar days of receipt. The list may be in a
7     written or electronic format.
8         (5) Exchange company registration. Registration shall
9     be effective only upon the issuance of a certificate of
10     registration by the Department, which, in the ordinary
11     course of business, should occur no more than 60 calendar
12     days after the actual receipt by the Office of Banks and
13     Real Estate of a properly completed application by the
14     Department. The Department shall Office of Banks and Real
15     Estate must provide a list of deficiencies in the
16     application, if any, within 60 30 calendar days of receipt.
17     The list may be in a written or electronic format.
18 (Source: P.A. 91-585, eff. 1-1-00.)
 
19     (765 ILCS 101/5-55)
20     Sec. 5-55. Fees. The Department Office of Banks and Real
21 Estate shall provide, by rule, for fees to be paid by
22 applicants and registrants to cover the reasonable costs of the
23 Department Office of Banks and Real Estate in administering and
24 enforcing the provisions of this Act. The Department Office of
25 Banks and Real Estate may also provide, by rule, for general

 

 

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1 fees to cover the reasonable expenses of carrying out other
2 functions and responsibilities under this Act.
3 (Source: P.A. 91-585, eff. 1-1-00.)
 
4     (765 ILCS 101/5-60)
5     Sec. 5-60. Registration; offer or disposal of interest;
6 renewal.
7     (a) A developer or , exchange company, or resale agent, or
8 any of their agents, shall not sell, offer, or dispose of a
9 timeshare interest unless all necessary registrations are
10 filed and approved by the Department Office of Banks and Real
11 Estate, or while an order revoking or suspending a registration
12 is in effect.
13     (b) An applicant for registration under this Act shall
14 submit the necessary information to complete the application,
15 as required by the Department Office of Banks and Real Estate,
16 within 6 months from the date the initial registration
17 application was received by the Department Office of Banks and
18 Real Estate. If the applicant fails to submit the information
19 necessary to complete the application as required by the
20 Department Office of Banks and Real Estate within the six month
21 period, said application shall be voided, and a new
22 registration application with applicable fees must be
23 submitted.
24     (c) The registration of a developer, exchange company,
25 individual, or entity registered under this Act shall be

 

 

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1 renewed as required by rule.
2 (Source: P.A. 91-585, eff. 1-1-00.)
 
3     (765 ILCS 101/10-5)
4     Sec. 10-5. Management and operation provisions.
5     (a) Before the first sale of a timeshare interest, the
6 developer shall create or provide for a managing entity, which
7 shall be either the developer, a separate manager or management
8 firm, the board of directors of an owners' association, or some
9 combination thereof.
10     (b) The duties of the managing entity include, but are not
11 limited to:
12         (1) Management and maintenance of all accommodations
13     constituting the timeshare plan.
14         (2) Collection of all assessments as provided in the
15     timeshare instrument.
16         (3) Providing to all purchasers each year an itemized
17     annual budget, which shall include all estimated revenues
18     and expenses.
19         (4) Maintenance of all books and records concerning the
20     timeshare plan.
21         (5) Scheduling occupancy of accommodations, when
22     purchasers are not entitled to use specific timeshare
23     periods, so that all purchasers will be provided the
24     opportunity to use and possession of the accommodations of
25     the timeshare plan which they have purchased.

 

 

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1         (6) Performing any other functions and duties that are
2     necessary and proper to maintain the accommodations or that
3     are required by the timeshare instrument.
4     (c) If In the event a developer, mortgagee, managing
5 entity, or association does not pursue nonjudicial foreclosure
6 as provided in Section 10-50 or 10-55 and instead forecloses
7 against a timeshare interest pursuant to the Illinois Mortgage
8 Foreclosure Law, files a complaint in a foreclosure proceeding
9 involving timeshare interests, the developer, mortgagee,
10 managing entity, or association may join in the same action
11 multiple defendant obligors and junior interest holders of
12 separate timeshare interests, provided:
13         (1) the foreclosure proceeding involves a single
14     timeshare plan;
15         (2) the foreclosure proceeding is filed by a single
16     plaintiff;
17         (3) the default and remedy provisions in the written
18     instruments on which the foreclosure proceeding is based
19     are substantially the same for each defendant; and
20         (4) the nature of the defaults alleged is the same for
21     each defendant.
22     (d) In any foreclosure proceeding involving multiple
23 defendants filed under subsection (c), the court shall sever
24 for separate trial any count of the complaint in which a
25 defense or counterclaim is timely raised by a defendant.
26 (Source: P.A. 91-585, eff. 1-1-00.)
 

 

 

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1     (765 ILCS 101/10-15)
2     Sec. 10-15. Interests, liens, and encumbrances;
3 alternative assurances.
4     (a) Excluding any encumbrance placed against the
5 purchaser's timeshare interest securing the purchaser's
6 payment of purchase-money financing for such purchase, the
7 developer shall not be entitled to the release of any funds
8 escrowed under subsection (c) of Section 5-15 with respect to
9 each timeshare interest and any other property or rights to
10 property appurtenant to the timeshare interest, including any
11 amenities represented to the purchaser as being part of the
12 timeshare plan, until the developer has provided satisfactory
13 evidence to the Department Office of Banks and Real Estate of
14 one of the following:
15         (1) The timeshare interest together with any other
16     property or rights to property appurtenant to the timeshare
17     interest, including any amenities represented to the
18     purchaser as being part of the timeshare plan, are free and
19     clear of any of the claims of the developer, any owner of
20     the underlying fee, a mortgagee, judgment creditor, or
21     other lienor, or any other person having an interest in or
22     lien or encumbrance against the timeshare interest or
23     appurtenant property or property rights.
24         (2) The developer, any owner of the underlying fee, a
25     mortgagee, judgment creditor, or other lienor, or any other

 

 

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1     person having an interest in or lien or encumbrance against
2     the timeshare interest or appurtenant property or property
3     rights, including any amenities represented to the
4     purchaser as being part of the timeshare plan, has recorded
5     a subordination and notice to creditors document in the
6     appropriate public records of the jurisdiction in which the
7     timeshare interest is located. The subordination document
8     shall expressly and effectively provide that the interest
9     holder's right, lien, or encumbrance shall not adversely
10     affect, and shall be subordinate to, the rights of the
11     owners of the timeshare interests in the timeshare plan
12     regardless of the date of purchase, from and after the
13     effective date of the subordination document.
14         (3) The developer, any owner of the underlying fee, a
15     mortgagee, judgment creditor, or other lienor, or any other
16     person having an interest in or lien or encumbrance against
17     the timeshare interest or appurtenant property or property
18     rights, including any amenities represented to the
19     purchaser as being part of the timeshare plan, has
20     transferred the subject accommodations or amenities or all
21     use rights therein to a nonprofit organization or owners'
22     association to be held for the use and benefit of the
23     owners of the timeshare plan, which entity shall act as a
24     fiduciary to the purchasers, provided that the developer
25     has transferred control of such entity to the owners or
26     does not exercise its voting rights in such entity with

 

 

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1     respect to the subject accommodations or amenities. Prior
2     to the transfer, any lien or other encumbrance against the
3     accommodation or facility shall be made subject to a
4     subordination and notice to creditors instrument pursuant
5     to paragraph (2).
6         (4) Alternative arrangements have been made which are
7     adequate to protect the rights of the purchasers of the
8     timeshare interests and approved by the Department Office
9     of Banks and Real Estate.
10     (b) Nothing in this Section shall prevent a developer from
11 accessing any escrow funds if the developer has complied with
12 subsection (c) of Section 5-15.
13 (Source: P.A. 91-585, eff. 1-1-00.)
 
14     (765 ILCS 101/10-25)
15     Sec. 10-25. Liability; material misrepresentation;
16 promotions.
17     (a) A developer or other person offering a timeshare plan
18 may not do any of the following:
19         (1) Misrepresent a fact material to a purchaser's
20     decision to buy a timeshare interest.
21         (2) Predict specific or immediate increases in the
22     value of a timeshare interest represented over a period of
23     time, excluding bona fide pending price increases by the
24     developer.
25         (3) Materially misrepresent the qualities or

 

 

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1     characteristics of accommodations or the amenities
2     available to the occupant of those accommodations.
3         (4) Misrepresent the length of time accommodations or
4     amenities will be available to the purchaser of a timeshare
5     interest.
6         (5) Misrepresent the conditions under which a
7     purchaser of a timeshare interest may exchange the right of
8     his or her occupancy for the right to occupy other
9     accommodations.
10     (b) A developer or other person using a promotion in
11 connection with the offering of a timeshare interest shall
12 clearly disclose all of the following:
13         (1) That the purpose of the promotion is to sell
14     timeshare interests, which shall appear in bold face or
15     other conspicuous type.
16         (2) That any person whose name or address is obtained
17     during the promotion may be solicited to purchase a
18     timeshare interest.
19         (3) The name of each developer or other person trying
20     to sell a timeshare interest through the promotion, and the
21     name of each person paying for the promotion.
22         (4) The complete rules of the promotion.
23         (5) The method of awarding prizes, gifts, vacations,
24     discount vacations, or other benefits under the promotion;
25     a complete and fully detailed description, including
26     approximate retail value, of all prizes, gifts, or benefits

 

 

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1     under the promotion; the quantity of each prize, gift, or
2     benefit to be awarded or conferred; and the date by which
3     each prize, gift, or benefit will be awarded or conferred.
4         (6) Any other disclosures provided by rule.
5     (c) If a person represents that a prize, gift, or benefit
6 will be awarded in connection with a promotion, the prize,
7 gift, or benefit must be awarded or conferred in the manner
8 represented, and on or before the date represented.
9     (d) A developer or other person using a promotion in
10 connection with the offering of a timeshare interest shall
11 provide the disclosures required by this Section in writing or
12 electronically to the prospective purchaser at least once
13 before the earlier of (1) a reasonable period before the
14 scheduled sales presentation to ensure that the prospective
15 purchaser receives the disclosures before leaving to attend the
16 sales presentation or (2) the payment of any nonrefundable
17 monies by the prospective purchaser in regard to the promotion.
18     (e) A developer or other person using a promotion in
19 connection with the offering of a timeshare interest is not
20 required to provide the disclosures required by this Section in
21 every advertisement or other written, oral, or electronic
22 communication provided or made to a prospective purchaser.
23 (Source: P.A. 91-585, eff. 1-1-00.)
 
24     (765 ILCS 101/10-30)
25     Sec. 10-30. Records. The managing entity shall keep

 

 

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1 detailed financial records directly related to the operation of
2 the association. All financial and other records shall be made
3 reasonably available for examination by any purchaser, or the
4 authorized agent of the purchaser, and the Department Office of
5 Banks and Real Estate. For purposes of this Section, the books
6 and records of the timeshare plan shall be considered
7 "reasonably available" if copies of the requested portions are
8 delivered to the purchaser or the purchaser's agent or the
9 Department Office of Banks and Real Estate within 7 days of the
10 date the managing entity receives a written request for the
11 records signed by the purchaser or the Department Office of
12 Banks and Real Estate. The managing entity may charge the
13 purchaser a reasonable fee for copying the requested
14 information.
15 (Source: P.A. 91-585, eff. 1-1-00.)
 
16     (765 ILCS 101/10-45 new)
17     Sec. 10-45. Managing entity lien created.
18     (a) A managing entity has a lien on a timeshare interest
19 for any of the following respectively levied or imposed against
20 a timeshare interest:
21         (1) Assessments, which for purposes of this Act unless
22     the timeshare instrument provides otherwise, shall include
23     fees, charges, late charges, fines, collection costs, and
24     interest charged in accordance with the timeshare
25     instrument;

 

 

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1         (2) Reasonable collection and attorneys fees and costs
2     the managing entity incurs to collect assessments; and
3         (3) Taxes, interest, penalties, late payment fees or
4     fines in accordance with applicable law or the timeshare
5     instrument.
6     (b) Managing entity liens pursuant to this Section are
7 created and attached when the charges described in Section
8 10-45(a) become due. If such amounts are payable in
9 installments, the full amount of such charges is a managing
10 entity lien from the time that the first installment thereof
11 becomes due.
12     (c) Managing entity liens pursuant to this Section are
13 perfected on the date that the managing entity:
14         (1) In the case of a timeshare estate, records a notice
15     of lien against the timeshare estate in the office of the
16     recorder in the county where the timeshare estate is
17     located, which notice of lien must identify each of the
18     following:
19             (A) The name of the timeshare estate owner;
20             (B) The name and address of the managing entity;
21             (C) The description of the timeshare estate in the
22         same manner required for recording a mortgage against a
23         timeshare estate; and
24             (D) The amount of the debt secured by the managing
25         entity lien.
26         (2) In the case of a timeshare use, files a notice of

 

 

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1     lien against the timeshare use in the filing office of the
2     Illinois Secretary of State pursuant to Article 9 of the
3     Uniform Commercial Code, which notice of lien, in addition
4     to any other filing requirements imposed by Article 9 of
5     the Uniform Commercial Code, must identify each of the
6     following:
7             (A) The name of the timeshare use owner as the
8         debtor;
9             (B) The name of the managing entity as the secured
10         party;
11             (C) The address of the managing entity;
12             (D) The timeshare use as the collateral; and
13             (E) The amount of the debt secured by the managing
14         entity lien.
15     (d) The managing entity must send a copy of the recorded or
16 filed notice of lien on the timeshare interest, as the case may
17 be, to the last known address of the timeshare interest owner.
18     (e) A managing entity lien against a timeshare estate, at
19 the managing entity's option, may (1) be foreclosed as provided
20 in Section 10-50 or (2) be foreclosed in the same manner as a
21 mortgage pursuant to the Illinois Mortgage Foreclosure Law.
22     (f) A managing entity lien against a timeshare use, at the
23 managing entity's option, may (1) be foreclosed as provided in
24 Section 10-55 or (2) be enforced in the same manner as a
25 security interest pursuant to Article 9 of the Uniform
26 Commercial Code.
 

 

 

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1     (765 ILCS 101/10-50 new)
2     Sec. 10-50. Nonjudicial foreclosure against timeshare
3 estates.
4     (a) Notwithstanding anything in the Illinois Mortgage
5 Foreclosure Law or other applicable law to the contrary:
6         (1) The holder of a mortgage against a timeshare estate
7     may foreclose or otherwise enforce a security interest
8     pursuant to this Section 10-50; and
9         (2) The holder of a managing entity lien against a
10     timeshare estate may foreclose such managing entity lien
11     pursuant to this Section 10-50.
12     (b) Upon default, and after all applicable cure periods
13 identified in the mortgage (if such default is under a
14 mortgage) or the timeshare instrument (if default is under a
15 managing entity lien) have expired, the holder of the mortgage
16 or managing entity lien must:
17         (1) Provide written notice of the default to the
18     timeshare estate owner at the last known address of the
19     timeshare estate owner by (A) certified mail, return
20     receipt requested and (B) first-class mail.
21         (2) Provide the timeshare estate owner an additional
22     opportunity to cure for a period of at least 30 days
23     following the later date of the mailing of the notices
24     pursuant to Sections 10-50(b)(1)(A) and 10-50(b)(1)(B).
25     (c) If, the timeshare estate owner does not cure the

 

 

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1 default before the expiration of the additional cure period
2 granted pursuant to Section 10-50(b)(2), the holder of the
3 mortgage or managing entity lien may foreclose the mortgage or
4 managing entity lien by conducting a public auction that
5 complies with the following requirements:
6         (1) The holder of the mortgage or managing entity lien
7     must provide notice of the public auction as follows:
8             (A) By publishing notice of the public auction in
9         at least each of 3 successive weeks in a newspaper,
10         whether printed or electronic, of general circulation
11         in the county where the timeshare estate is located.
12         The first notice must be published no more than 30 days
13         before the date of the public auction, which 30-day
14         period shall be calculated by excluding the date of
15         publication of the first notice and the date of the
16         public auction.
17             (B) By sending written notice identifying the
18         time, date, and place of the public auction to the last
19         known address of the owner of record of the timeshare
20         estate at least 30 days before the date of the public
21         auction by (i) certified mail, return receipt
22         requested and (ii) first-class mail.
23             (C) By sending notice identifying the time, date,
24         and place of the public auction to all persons known to
25         have a lien against the timeshare estate at least 30
26         days before the date of the public auction by certified

 

 

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1         mail, return receipt requested.
2         (2) The notices given pursuant to Section 10-50(c)(1)
3     must also contain:
4             (A) The name of the timeshare estate owner;
5             (B) A general description of the timeshare estate;
6         and
7             (C) The terms of the public auction.
8         (3) If more than one timeshare estate is to be included
9     in the public auction, all such timeshare estates may be
10     combined into one notice of public auction.
11         (4) The public notice required by Section
12     10-50(c)(1)(A) for foreclosing a mortgage against a
13     timeshare estate must be printed in substantially the
14     following form:
 
15 NOTICE OF SALE OF TIMESHARE ESTATE OR ESTATES UNDER SECTION
16 10-50 OF THE ILLINOIS REAL ESTATE TIMESHARE ACT OF 1999
 
17 By virtue of 765 ILCS 101/10-50 and in execution of a certain
18 mortgage (or mortgages, if more than one) on the timeshare
19 estate (or estates, if more than one) given by the owner of the
20 timeshare estate (or owners, if more than one) set forth below
21 for breach of the conditions of said mortgage (or mortgages, if
22 more than one) and for the purpose of foreclosing, the same
23 will be sold at public auction starting at...........
24 on............ 20.. at........, Illinois, being all and

 

 

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1 singular the premises described in said mortgage (or mortgages,
2 if more than one). (For each mortgage, list the name and
3 address of the timeshare estate owner, a general description of
4 the timeshare estate, and the book and page number of the
5 mortgage.)
 
6 TERMS OF SALE: (State the deposit amount to be paid by the
7 purchaser at the time and place of the sale and the times for
8 payment of the balance or the whole, as the case may be. The
9 timeshare estates, if more than one, must be sold in individual
10 lots unless there are no individual bidders, in which case,
11 they may be sold as a group.)
 
12 Other terms may be announced at the public auction.
 
13 Signed.................................
 
14 Holder of mortgage or authorized agent.
15         (5) The public notice required by Section
16     10-50(c)(1)(A) for foreclosing a managing entity lien
17     against a timeshare estate must be printed in substantially
18     the following form:
 
19 NOTICE OF SALE OF TIMESHARE ESTATE OR ESTATES UNDER SECTION
20 10-50 OF THE ILLINOIS REAL ESTATE TIMESHARE ACT OF 1999
 

 

 

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1 By virtue of the timeshare instrument of the
2 ................... (name and address of timeshare property)
3 and 765 ILCS 101/10-45 establishing a managing entity lien for
4 failure to pay assessments and other costs on the timeshare
5 estate (or estates, if more than one) held by the owner of the
6 timeshare estate (or owners, if more than one) listed below,
7 the timeshare estate (or estates, if more than one) and for the
8 purpose of foreclosing, the same will be sold at public auction
9 starting at ......... on ........ 20.. at .............,
10 Illinois. (For each timeshare estate, list the name and address
11 of the timeshare estate owner, a general description of the
12 timeshare estate, and the book and page number of the deed.)
 
13 TERMS OF SALE: (State the deposit amount to be paid by the
14 purchaser at the time and place of the sale and the times for
15 payment of the balance or the whole, as the case may be. The
16 timeshare estates, if more than one, must be sold in individual
17 lots unless there are no individual bidders, in which case,
18 they may be sold as a group.)
 
19 Other terms may be announced at the public auction.
 
20 Signed ................................
 
21 Managing entity lienholder or authorized agent.
 

 

 

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1         (6) Publishing and sending notices in compliance with
2     this Section 10-50(c) constitutes sufficient public notice
3     of the public auction.
4     (d) Public auctions pursuant to this Section 10-50 must be
5 conducted as follows:
6         (1) The public auction must take place within the
7     county where the timeshare estate is located.
8         (2) The public auction must be open to the general
9     public and conducted by an auctioneer licensed pursuant to
10     the Auction License Act.
11         (3) Notwithstanding anything in the Auction License
12     Act to the contrary, the auctioneer, in his or her
13     discretion, may waive the reading of the names of the
14     timeshare estate owners, if more than one, the description
15     of the timeshare estates, if more than one, and the
16     recording information of the applicable mortgages or
17     managing entity liens (as the case may be), if more than
18     one.
19         (4) All rights of redemption of the timeshare estate
20     owner are extinguished upon sale of a timeshare estate at
21     the public auction.
22         (5) The holder of the mortgage or managing entity lien,
23     the developer, the managing entity, and the timeshare
24     estate owner are not precluded from bidding at the public
25     auction.
26         (6) The successful purchaser at the public auction is

 

 

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1     not required to complete the purchase of the timeshare
2     estate if the timeshare estate, at the time the auctioneer
3     accepts the successful bid, is subject to liens or other
4     encumbrances, other than those identified in the notice of
5     public auction and those identified at the auction before
6     the auctioneer opens bidding on the applicable timeshare
7     estate.
8         (7) The purchaser at the public auction takes title to
9     the timeshare estate free and clear of any outstanding
10     assessments owed by the prior timeshare estate owner to the
11     managing entity.
12     (e) Upon the sale of a timeshare estate pursuant to this
13 Section 10-50, the holder of the mortgage or managing entity
14 lien must provide the purchaser with (1) a foreclosure deed or
15 other appropriate instrument transferring the mortgage
16 holder's or managing entity's interest in the timeshare estate
17 and (2) an affidavit affirming that all requirements of the
18 foreclosure pursuant to this Section 10-50 have been satisfied.
19     (f) The timeshare estate is considered sold, and the deed
20 or other instrument transferring the timeshare estate must
21 transfer the timeshare estate, subject to municipal or other
22 taxes and any liens or encumbrances recorded before the
23 recording of the mortgage or the managing entity lien
24 foreclosed pursuant to this Section 10-50 (as the case may be),
25 but not including such managing entity lien.
26     (g) The purchaser of a timeshare estate at a public auction

 

 

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1 pursuant to this Section 10-50 must record the foreclosure deed
2 or other instrument with the appropriate recorder of deeds
3 within 30 days after the date the foreclosing mortgage holder
4 or managing entity (as the case may be) delivers the
5 foreclosure deed or other instrument to the purchaser.
6     (h) If the holder of a mortgage or managing entity lien
7 conducts a nonjudicial foreclosure pursuant to this Section
8 10-50, the holder of the mortgage or managing entity lien
9 forfeits its right to pursue a claim for any deficiency in the
10 payment of the obligations of the timeshare estate owner
11 resulting from the application of the proceeds of the sale to
12 such obligations.
13     (i) For purposes of this Section 10-50, obligations to pay
14 assessments secured by a lien established pursuant to a
15 timeshare instrument before the effective date of this
16 amendatory Act of the 96th General Assembly are considered
17 managing entity liens.
18     (j) This Section 10-50 applies to the foreclosure of
19 mortgages and liens considered to be managing entity liens that
20 arose before or after the effective date of this amendatory Act
21 of the 96th General Assembly.
 
22     (765 ILCS 101/10-55 new)
23     Sec. 10-55. Foreclosure of lien or security interest on a
24 timeshare use.
25     (a) Notwithstanding anything in the Illinois Mortgage

 

 

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1 Foreclosure Law or the Uniform Commercial Code to the contrary,
2 the holder of a managing entity lien on a timeshare use created
3 by Section 10-45, in the case of the failure to pay assessments
4 when due, or a security interest against a timeshare use, in
5 the case of a breach of the security agreement, may do either
6 of the following:
7         (1) Enforce the security interest pursuant to Part 6 of
8     Article 9 of the Uniform Commercial Code, including
9     (without limitation) accepting the timeshare use in full or
10     partial satisfaction of the timeshare use owner's
11     obligation pursuant to Section 9-620 of the Uniform
12     Commercial Code; or
13         (2) Nonjudicially foreclose in the same manner as
14     authorized by Section 10-50 for holders of a mortgage or
15     managing entity lien against a timeshare estate.
16     (b) All rights of redemption of a timeshare use owner are
17 extinguished upon sale of a timeshare use as authorized by
18 Section 10-55(a).
19     (c) The holder of the security interest or managing entity
20 lien, the developer, the managing entity and the timeshare use
21 owner are not precluded from bidding at the sale of the
22 timeshare use pursuant to this Section 10-55 and may enter into
23 agreements for the purchase of one or more timeshare uses
24 following the completion of the sale proceedings.
25     (d) The purchaser at the public auction takes title to the
26 timeshare use free and clear of any outstanding assessments

 

 

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1 owed by the prior timeshare use owner to the managing entity.
 
2     (765 ILCS 101/15-5)
3     Sec. 15-5. Investigation. The Department Office of Banks
4 and Real Estate may investigate the actions or qualifications
5 of any person or persons holding or claiming to hold a
6 certificate of registration under this Act. Such a person is
7 referred to as "the respondent" in this Article.
8 (Source: P.A. 91-585, eff. 1-1-00.)
 
9     (765 ILCS 101/15-10)
10     Sec. 15-10. Disciplinary hearings; record; appointment of
11 administrative law judge.
12     (a) The Department Office of Banks and Real Estate has the
13 authority to conduct hearings before an administrative law
14 judge on proceedings to revoke, suspend, place on probation,
15 reprimand, or refuse to issue or renew registrants registered
16 under this Act, or to impose a civil penalty not to exceed
17 $25,000 upon any registrant registered under this Act.
18     (b) The Department Office of Banks and Real Estate, at its
19 expense, shall preserve a record of all proceedings at the
20 formal hearing of any case involving the refusal to issue or
21 the revocation, suspension, or other discipline of a
22 registrant. The notice of hearing, complaint, and all other
23 documents in the nature of pleadings and written motions filed
24 in the proceedings, the transcript of testimony, the report of

 

 

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1 the Board, and the orders of the Department Office of Banks and
2 Real Estate shall be the record of proceeding. At all hearings
3 or prehearing conferences, the Department Office of Banks and
4 Real Estate and the respondent shall be entitled to have a
5 court reporter in attendance for purposes of transcribing the
6 proceeding or prehearing conference.
7     (c) The Secretary Commissioner has the authority to appoint
8 any attorney duly licensed to practice law in the State of
9 Illinois to serve as an administrative law judge in any action
10 for refusal to issue or renew a certificate of registration or
11 to discipline a registrant or person holding a certificate of
12 registration. The administrative law judge has full authority
13 to conduct the hearing. The administrative law judge shall
14 report his or her findings and recommendations to the Secretary
15 Commissioner. If the Secretary Commissioner disagrees with the
16 recommendation of the administrative law judge, the Secretary
17 Commissioner may issue an order in contravention of the
18 recommendation.
19 (Source: P.A. 91-585, eff. 1-1-00.)
 
20     (765 ILCS 101/15-15)
21     Sec. 15-15. Notice of proposed disciplinary action;
22 hearing.
23     (a) Before taking any disciplinary action with regard to
24 any registrant, the Department Office of Banks and Real Estate
25 shall:

 

 

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1         (1) notify the respondent in writing, at least 30
2     calendar days prior to the date set for the hearing, of any
3     charges made, the time and place for the hearing of the
4     charges, and that testimony at the hearing will be heard
5     under oath; and
6         (2) inform the respondent that upon failure to file an
7     answer and request a hearing before the date originally set
8     for the hearing, default will be taken against the
9     respondent and the respondent's registration may be
10     suspended or revoked, or the respondent may be otherwise
11     disciplined, as the Department Office of Banks and Real
12     Estate may deem proper.
13     (b) If the respondent fails to file an answer after
14 receiving notice, the respondent's registration may, in the
15 discretion of the Department Office of Banks and Real Estate,
16 be revoked or suspended, or the respondent may be otherwise
17 disciplined as deemed proper, without a hearing, if the act or
18 acts charged constitute sufficient grounds for that action
19 under this Act.
20     (c) At the time and place fixed in the notice, the
21 Department Office of Banks and Real Estate shall proceed to
22 hearing of the charges. Both the respondent and the complainant
23 shall be accorded ample opportunity to present in person, or by
24 counsel, statements, testimony, evidence, and argument that
25 may be pertinent to the charges or any defense to the charges.
26 (Source: P.A. 91-585, eff. 1-1-00.)
 

 

 

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1     (765 ILCS 101/15-20)
2     Sec. 15-20. Disciplinary consent orders. Notwithstanding
3 any other provisions of this Act concerning the conduct of
4 hearings and recommendations for disciplinary actions, the
5 Department Office of Banks and Real Estate has the authority to
6 negotiate agreements with registrants and applicants resulting
7 in disciplinary consent orders. Any such consent order may
8 provide for any form of discipline provided for in the Act. Any
9 such consent order shall provide that it is not entered into as
10 a result of any coercion by the Department Office of Banks and
11 Real Estate. Any such consent order shall be accepted by
12 signature or rejected by the Secretary Commissioner in a timely
13 manner.
14 (Source: P.A. 91-585, eff. 1-1-00.)
 
15     (765 ILCS 101/15-25)
16     Sec. 15-25. Disciplinary action; civil penalty. The
17 Department Office of Banks and Real Estate may refuse to issue
18 or renew any registration, or revoke or suspend any
19 registration or place on probation or administrative
20 supervision, or reprimand any registrant, or impose a civil
21 penalty not to exceed $25,000, for any one or any combination
22 of the following causes:
23         (1) A registrant's disregard or violation of any
24     provision of this Act or of the rules adopted by the

 

 

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1     Department Office of Banks and Real Estate to enforce this
2     Act.
3         (2) A conviction of the registrant or any principal of
4     the registrant of (i) a felony under the laws of any U.S.
5     jurisdiction, (ii) a misdemeanor under the laws of any U.S.
6     jurisdiction if an essential element of the offense is
7     dishonesty, or (iii) a crime under the laws of any U.S.
8     jurisdiction if the crime relates directly to the practice
9     of the profession regulated by this Act.
10         (3) A registrant's making any misrepresentation for
11     the purpose of obtaining a registration or certificate of
12     registration.
13         (4) A registrant's discipline by another U.S.
14     jurisdiction, state agency, or foreign nation regarding
15     the practice of the profession regulated by this Act, if at
16     least one of the grounds for the discipline is the same as
17     or substantially equivalent to one of those set forth in
18     this Act.
19         (5) A finding by the Department Office of Banks and
20     Real Estate that the registrant, after having his or her
21     registration placed on probationary status, has violated
22     the terms of probation.
23         (6) A registrant's practicing or attempting to
24     practice under a name other than the name as shown on his
25     or her registration or any other legally authorized name.
26         (7) A registrant's failure to file a return, or to pay

 

 

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1     the tax, penalty, or interest shown in a filed return, or
2     to pay any final assessment of tax, penalty, or interest,
3     as required by any tax Act administered by the Illinois
4     Department of Revenue, until the requirements of any such
5     tax Act are satisfied.
6         (8) A registrant's engaging in dishonorable,
7     unethical, or unprofessional conduct of a character likely
8     to deceive, defraud, or harm the public.
9         (9) A registrant's aiding or abetting another person or
10     persons in disregarding or violating any provision of this
11     Act or of the rules adopted by the Department Office of
12     Banks and Real Estate to enforce this Act.
13         (10) Any representation in any document or information
14     filed with the Department Office of Banks and Real Estate
15     which is false or misleading.
16         (11) A registrant's disseminating or causing to be
17     disseminated any false or misleading promotional materials
18     or advertisements in connection with a timeshare plan.
19         (12) A registrant's concealing, diverting, or
20     disposing of any funds or assets of any person in a manner
21     that impairs the rights of purchasers of timeshare
22     interests in the timeshare plan.
23         (13) A registrant's failure to perform any stipulation
24     or agreement made to induce the Department Office of Banks
25     and Real Estate to issue an order relating to the timeshare
26     plan.

 

 

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1         (14) A registrant's engaging in any act that
2     constitutes a violation of Section 3-102, 3-103, 3-104, or
3     3-105 of the Illinois Human Rights Act.
4         (15) A registrant's failure to provide information
5     requested in writing by the Department Office of Banks and
6     Real Estate, within 30 days of the request, either as the
7     result of a formal or informal complaint to the Department
8     Office of Banks and Real Estate or as a result of a random
9     audit conducted by the Department Office of Banks and Real
10     Estate, which would indicate a violation of this Act.
11         (16) A registrant's failure to account for or remit any
12     escrow funds coming into his or her possession which
13     belonged to others.
14         (17) A registrant's failure to make available to
15     Department Office of Banks and Real Estate personnel during
16     normal business hours all escrow records and related
17     documents maintained in connection therewith, within 24
18     hours after a request from the Department Office of Banks
19     and Real Estate personnel.
20 (Source: P.A. 91-585, eff. 1-1-00.)
 
21     (765 ILCS 101/15-30)
22     Sec. 15-30. Subpoenas; attendance of witnesses; oaths.
23     (a) The Department Office of Banks and Real Estate has the
24 power to issue subpoenas ad testificandum and to bring before
25 it any persons, and to take testimony either orally or by

 

 

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1 deposition, or both, with the same fees and mileage and in the
2 same manner as prescribed in civil cases in the courts of this
3 State. The Department Office of Banks and Real Estate has the
4 power to issue subpoenas duces tecum and to bring before it any
5 documents, papers, files, books, and records, with the same
6 costs and in the same manner as prescribed in civil cases in
7 the courts of this State.
8     (b) Upon application of the Department Office of Banks and
9 Real Estate or its designee or of the applicant, registrant, or
10 person holding a certificate of registration against whom
11 proceedings under this Act are pending, any circuit court may
12 enter an order compelling the enforcement of any subpoena
13 issued by the Department Office of Banks and Real Estate in
14 connection with any hearing or investigation.
15     (c) The Secretary Commissioner and the designated
16 administrative law judge have power to administer oaths to
17 witnesses at any hearing that the Department Office of Banks
18 and Real Estate is authorized to conduct and any other oaths
19 authorized in any Act administered by the Department Office of
20 Banks and Real Estate.
21 (Source: P.A. 91-585, eff. 1-1-00.)
 
22     (765 ILCS 101/15-35)
23     Sec. 15-35. Administrative law judge's findings of fact,
24 conclusions of law, and recommendations. At the conclusion of
25 the hearing, the administrative law judge shall present to the

 

 

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1 Secretary Commissioner a written report of the administrative
2 law judge's findings of fact, conclusions of law, and
3 recommendations regarding discipline or a civil penalty. The
4 report shall contain a finding of whether or not the respondent
5 violated this Act or failed to comply with conditions required
6 in this Act. The administrative law judge shall specify the
7 nature of the violation or failure to comply.
8     If the Secretary Commissioner disagrees in any regard with
9 the report of the administrative law judge, the Secretary
10 Commissioner may issue an order in contravention of the report.
11 The Secretary Commissioner shall provide a written report to
12 the administrative law judge on any deviation and shall specify
13 with particularity the reasons for that action in the final
14 order.
15 (Source: P.A. 91-585, eff. 1-1-00.)
 
16     (765 ILCS 101/15-40)
17     Sec. 15-40. Rehearing. After any hearing involving
18 disciplinary action against a registrant, a copy of the
19 administrative law judge's report shall be served on the
20 respondent by the Department Office of Banks and Real Estate,
21 either personally or as provided in this Act for the service of
22 the notice of hearing. Within 20 calendar days after the
23 service, the respondent may present to the Department Office of
24 Banks and Real Estate a motion in writing for a rehearing. The
25 motion shall specify the particular grounds for rehearing. If

 

 

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1 the respondent orders a transcript of the record from the
2 reporting service and pays for it within the time for filing a
3 motion for rehearing, the 20 calendar day period within which a
4 motion for rehearing may be filed shall commence upon the
5 delivery of the transcript to the respondent.
6     If no motion for rehearing is filed, then upon the
7 expiration of the time specified for filing a motion, or if a
8 motion for rehearing is denied, then upon denial, the Secretary
9 Commissioner may enter an order in accordance with the
10 recommendations of the administrative law judge, except as
11 otherwise provided in this Article. Whenever the Secretary
12 Commissioner is not satisfied that substantial justice has been
13 done in the hearing or in the administrative law judge's
14 report, the Secretary Commissioner may order a rehearing by the
15 same or some other duly qualified administrative law judge.
16 (Source: P.A. 91-585, eff. 1-1-00.)
 
17     (765 ILCS 101/15-45)
18     Sec. 15-45. Order or certified copy. An order or a
19 certified copy of an order, over the seal of the Department
20 Office of Banks and Real Estate and purporting to be signed by
21 the Secretary Commissioner, shall be prima facie proof of the
22 following:
23         (1) That the signature is the genuine signature of the
24     Secretary Commissioner.
25         (2) That the Secretary Commissioner is duly appointed

 

 

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1     and qualified.
2         (3) That the administrative law judge is duly appointed
3     and qualified.
4 (Source: P.A. 91-585, eff. 1-1-00.)
 
5     (765 ILCS 101/15-50)
6     Sec. 15-50. Restoration of certificate of registration. At
7 any time after the suspension or revocation of any certificate
8 of registration, the Department Office of Banks and Real Estate
9 may restore the certificate of registration to the respondent
10 upon the written recommendation of the Secretary Commissioner,
11 unless after an investigation and a hearing the Secretary
12 Commissioner determines that restoration is not in the public
13 interest.
14 (Source: P.A. 91-585, eff. 1-1-00.)
 
15     (765 ILCS 101/15-55)
16     Sec. 15-55. Surrender of certificate of registration. Upon
17 the revocation or suspension of a certificate of registration,
18 the registrant shall immediately surrender the certificate of
19 registration to the Department Office of Banks and Real Estate.
20 If the registrant fails to do so, the Department Office of
21 Banks and Real Estate has the right to seize the certificate of
22 registration.
23 (Source: P.A. 91-585, eff. 1-1-00.)
 

 

 

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1     (765 ILCS 101/15-60)
2     Sec. 15-60. Administrative Review Law. All final
3 administrative decisions of the Department Office of Banks and
4 Real Estate under this Act are subject to judicial review under
5 the Administrative Review Law and the rules implementing that
6 Law. The term "administrative decision" is defined as in
7 Section 3-101 of the Code of Civil Procedure. Proceedings for
8 judicial review shall be commenced in the circuit court of the
9 county in which the party applying for review resides, but if
10 the party is not a resident of this State, the venue shall be
11 in Cook or Sangamon County.
12     Pending the court's final decision on administrative
13 review, the acts, orders, sanctions, and rulings of the
14 Department Office of Banks and Real Estate regarding any
15 registration shall remain in full force and effect unless
16 modified or stayed by court order pending a final judicial
17 decision.
18     The Department Office of Banks and Real Estate shall not be
19 required to certify any record to the court or file any answer
20 in court or otherwise appear in any court in a judicial review
21 proceeding unless there is filed in the court, with the
22 complaint, a receipt from the Department Office of Banks and
23 Real Estate acknowledging payment of the costs of furnishing
24 and certifying the record. Failure on the part of the plaintiff
25 to file a receipt in the court is grounds for dismissal of the
26 action.

 

 

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1 (Source: P.A. 91-585, eff. 1-1-00.)
 
2     (765 ILCS 101/15-65)
3     Sec. 15-65. Public interest, safety, or welfare; summary
4 suspension. The Secretary Commissioner may temporarily suspend
5 any registration pursuant to this Act, without hearing,
6 simultaneously with the institution of proceedings for a
7 hearing provided for in this Section, if the Secretary
8 Commissioner finds that the evidence indicates that the public
9 interest, safety, or welfare imperatively requires emergency
10 action. If the Secretary Commissioner temporarily suspends any
11 registration without a hearing, a hearing must be held within
12 30 calendar days after the suspension. The person whose
13 registration is suspended may seek a continuance of the
14 hearing, during which the suspension shall remain in effect.
15 The proceeding shall be concluded without appreciable delay.
16 (Source: P.A. 91-585, eff. 1-1-00.)
 
17     (765 ILCS 101/15-70)
18     Sec. 15-70. Non-registered practice; civil penalty;
19 injunction.
20     (a) Any person who practices, offers to practice, attempts
21 to practice, or holds himself or herself out to practice as a
22 registrant under this Act without being registered under this
23 Act shall, in addition to any other penalty provided by law,
24 pay a civil penalty to the Department Office of Banks and Real

 

 

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1 Estate in an amount not to exceed $25,000 for each offense as
2 determined by the Department Office of Banks and Real Estate.
3 The civil penalty shall be assessed by the Department Office of
4 Banks and Real Estate after a hearing is held in accordance
5 with the provisions set forth in this Act regarding the
6 provision of a hearing for the discipline of a registrant.
7     (b) The Department Office of Banks and Real Estate has the
8 authority and power to investigate any and all non-registered
9 activity.
10     (c) A civil penalty imposed under subsection (a) shall be
11 paid within 60 days after the effective date of the order
12 imposing the civil penalty. The order shall constitute a
13 judgment and may be filed, and execution may be had thereon, in
14 the same manner as any judgment from any court of record.
15     (d) Engaging in timeshare practices in Illinois by any
16 entity not holding a valid and current certificate of
17 registration under this Act is declared to be inimical to the
18 public welfare, to constitute a public nuisance, and to cause
19 irreparable harm to the public welfare. The Secretary
20 Commissioner, the Attorney General, the State's Attorney of any
21 county in the State, or any person may maintain an action in
22 the name of the People of the State of Illinois, and may apply
23 for injunctive relief in any circuit court to enjoin such
24 entity from engaging in such practice. Upon the filing of a
25 verified petition in the court, the court, if satisfied by
26 affidavit or otherwise that such entity has been engaged in

 

 

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1 such practice without a valid and current certificate of
2 registration, may enter a temporary restraining order without
3 notice or bond, enjoining the defendant from such further
4 practice. Only the showing of nonregistration, by affidavit or
5 otherwise, is necessary in order for a temporary injunction to
6 issue. A copy of the verified complaint shall be served upon
7 the defendant and the proceedings shall thereafter be conducted
8 as in other civil cases except as modified by this Section. If
9 it is established that the defendant has been or is engaged in
10 such unlawful practice, the court may enter an order or
11 judgment perpetually enjoining the defendant from further
12 practice. In all proceedings hereunder, the court, in its
13 discretion, may apportion the costs among the parties
14 interested in the action, including cost of filing the
15 complaint, service of process, witness fees and expenses, court
16 reporter charges and reasonable attorneys' fees. In the case of
17 a violation of any injunctive order entered under the
18 provisions of this Section, the court may summarily try and
19 punish the offender for contempt of court. Proceedings for an
20 injunction under this Section shall be in addition to, and not
21 in lieu of, all penalties and other remedies provided in this
22 Act.
23 (Source: P.A. 91-585, eff. 1-1-00.)
 
24     (765 ILCS 101/15-80)
25     Sec. 15-80. Cease and desist orders. The Department Office

 

 

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1 of Banks and Real Estate may issue a cease and desist order to
2 any person who engages in any activity prohibited by this Act.
3 Any person in violation of a cease and desist order entered by
4 the Department Office of Banks and Real Estate is subject to
5 all of the remedies provided by law.
6 (Source: P.A. 91-585, eff. 1-1-00.)
 
7     (765 ILCS 101/20-5)
8     Sec. 20-5. Administration of Act. The Department Office of
9 Banks and Real Estate shall exercise the powers and duties
10 prescribed by the Civil Administrative Code of Illinois and
11 shall exercise other powers and duties necessary for
12 effectuating the purposes of this Act. The Department Office of
13 Banks and Real Estate may contract with third parties for
14 services necessary for the proper administration of this Act.
15 The Department Office of Banks and Real Estate has the
16 authority to establish public policies and procedures
17 necessary for the administration of this Act.
18 (Source: P.A. 91-585, eff. 1-1-00.)
 
19     (765 ILCS 101/20-10)
20     Sec. 20-10. Administrative rules. The Department Office of
21 Banks and Real Estate shall adopt rules for the implementation
22 and enforcement of this Act.
23 (Source: P.A. 91-585, eff. 1-1-00.)
 

 

 

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1     (765 ILCS 101/20-15)
2     Sec. 20-15. Real Estate License Administration Fund.
3     All fees collected for registration and for civil penalties
4 pursuant to this Act and administrative rules adopted under
5 this Act shall be deposited into the Real Estate License
6 Administration Fund. The moneys deposited in the Real Estate
7 License Administration Fund shall be appropriated to the
8 Department Office of Banks and Real Estate for expenses for the
9 administration and enforcement of this Act.
10 (Source: P.A. 91-585, eff. 1-1-00.)
 
11     (765 ILCS 101/20-20)
12     Sec. 20-20. Forms. The Department Office of Banks and Real
13 Estate may prescribe forms and procedures for submitting
14 information to the Department Office of Banks and Real Estate.
15 (Source: P.A. 91-585, eff. 1-1-00.)
 
16     (765 ILCS 101/20-25)
17     Sec. 20-25. Site inspections. The Department Office of
18 Banks and Real Estate shall thoroughly investigate all matters
19 relating to an application for registration under this Act and
20 may require a personal inspection of any developer, timeshare
21 plan, accommodation, exchange company, or resale company and
22 any offices where any of the foregoing may transact business.
23 All reasonable expenses incurred by the Department Office of
24 Banks and Real Estate in investigating such matters shall be

 

 

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1 borne by the registrant, and the registrant shall reimburse the
2 Department Office of Banks and Real Estate for those expenses
3 within 30 calendar days of receipt of notice of the expenses
4 from the Department Office. The Department Office of Banks and
5 Real Estate may require a deposit sufficient to cover the
6 expenses prior to incurring the expenses.
7 (Source: P.A. 91-585, eff. 1-1-00.)
 
8     (765 ILCS 101/5-35 rep.)
9     Section 10. The Real Estate Timeshare Act of 1999 is
10 amended by repealing Section 5-35.
 
11     Section 97. Severability. The provisions of this Act are
12 severable under Section 1.31 of the Statute on Statutes.
 
13     Section 99. Effective date. This Act takes effect upon
14 becoming law.".