Bill Text: IL SB2112 | 2009-2010 | 96th General Assembly | Enrolled
Bill Title: Amends the Real Estate Timeshare Act of 1999. Provides a description of the Act's scope. Provides that a resale agent is a person who for another and for compensation, or with the intention or expectation of receiving compensation, either directly or indirectly, sells or offers to sell (instead of directly or through an employee or agent sells or offers to sell a timeshare). Provides definition of "managing entity lien". Provides that the minimum requirements of a timeshare sale listing agreement include the use, rental, or exchange of the unit while listed; designation of any rental fees recipient; disclosure of any relationship between the resale agent and any person receiving a benefit from use of the timeshare; any pre-sale fees; the resale agent's prior experience; commissions; and other items (instead of requiring only disclosure of the resale agent's compensation, certain terms of the use or rental of the timeshare, and the length of the term of the listing contract). Provides for disclosures, in addition to those required, to a prospective purchaser of a timeshare that include the status of assessments and real estate or personal property taxes and the location of documents about the timeshare. Provides that a timeshare resale agent shall be a licensed real estate broker unless exempt from licensure by the Real Estate License Act of 2000 or because of selling no more than 8 timeshares per year. Provides for a managing entity lien. Provides procedures, including notices and auctions, for the nonjudicial foreclosure against time share estates and the foreclosure of a lien or security interest on a timeshare use under the Act or under the Uniform Commercial Code. Repeals certain provisions of existing law regarding resale agent registration requirements. Makes other changes. Provides for severability of the amendatory provisions. Effective immediately.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Passed) 2009-08-25 - Public Act . . . . . . . . . 96-0738 [SB2112 Detail]
Download: Illinois-2009-SB2112-Enrolled.html
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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Real Estate Timeshare Act of 1999 is amended | ||||||
5 | by changing Sections 1-10, 1-15, 5-5, 5-15, 5-20, 5-25, 5-30, | ||||||
6 | 5-40, 5-45, 5-50, 5-55, 5-60, 10-5, 10-15, 10-25, 10-30, 15-5, | ||||||
7 | 15-10, 15-15, 15-20, 15-25, 15-30, 15-35, 15-40, 15-45, 15-50, | ||||||
8 | 15-55, 15-60, 15-65, 15-70, 15-80, 20-5, 20-10, 20-15, 20-20, | ||||||
9 | and 20-25, and by adding Sections 10-45, 10-50, and 10-55 as | ||||||
10 | follows:
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11 | (765 ILCS 101/1-10)
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12 | Sec. 1-10. Scope of Act.
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13 | (a) This Act applies to all of the following:
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14 | (1) Timeshare plans with an accommodation or component | ||||||
15 | site in Illinois.
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16 | (2) Timeshare plans without an accommodation or | ||||||
17 | component site in
Illinois, if those timeshare plans are | ||||||
18 | sold or offered to be sold to any
individual located within | ||||||
19 | Illinois.
| ||||||
20 | (3) Exchange programs as defined in this Act.
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21 | (4) Resale agents as defined in this Act.
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22 | (b) Exemptions. This Act does not apply to the following:
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23 | (1) Timeshare plans, whether or not an accommodation is |
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1 | located in
Illinois, consisting of 7 or fewer timeshare | ||||||
2 | periods, the use of which
extends over any period of less | ||||||
3 | than 3 years ; or .
| ||||||
4 | (2) Timeshare plans, whether or not an accommodation is | ||||||
5 | located in
Illinois, under which the prospective | ||||||
6 | purchaser's total financial obligation
will be less than | ||||||
7 | $1,500 during the entire term of the timeshare plan.
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8 | (Source: P.A. 91-585, eff. 1-1-00.)
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9 | (765 ILCS 101/1-15)
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10 | Sec. 1-15. Definitions. In this Act, unless the context | ||||||
11 | otherwise
requires:
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12 | "Accommodation" means any apartment, condominium or | ||||||
13 | cooperative unit,
cabin, lodge, hotel or motel room, or other | ||||||
14 | private or commercial structure
containing
toilet facilities | ||||||
15 | therein that is designed and available, pursuant to
applicable | ||||||
16 | law, for use
and occupancy as a residence by one or more | ||||||
17 | individuals, or any unit or berth
on a
commercial cruise line | ||||||
18 | ship, which is included in the offering of a timeshare
plan.
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19 | "Acquisition agent" means a person who, directly or through | ||||||
20 | the person's
employees,
agents, or independent contractors, | ||||||
21 | induces or attempts to induce by means of a
promotion or an | ||||||
22 | advertisement any
individual located
within the State of | ||||||
23 | Illinois to attend a sales presentation for a timeshare
plan.
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24 | "Advertisement" means any written, oral, or electronic | ||||||
25 | communication that is
directed to or targeted to persons within |
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1 | the State of Illinois and contains a
promotion,
inducement, or | ||||||
2 | offer to sell a timeshare plan, including but not limited to
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3 | brochures,
pamphlets, radio and television scripts, electronic | ||||||
4 | media, telephone and
direct mail
solicitations, and other means | ||||||
5 | of promotion.
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6 | "Association" means the organized body consisting of the | ||||||
7 | purchasers of
interests
in a timeshare plan.
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8 | "Assessment" means the share of funds required for the | ||||||
9 | payment of common
expenses which is assessed from time to time | ||||||
10 | against each purchaser by the
managing
entity.
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11 | "Commissioner" means the Commissioner of Banks and Real | ||||||
12 | Estate,
or a natural person authorized by the Commissioner, the | ||||||
13 | Office of Banks and
Real Estate
Act, or this Act to act in the | ||||||
14 | Commissioner's stead.
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15 | "Component site" means a specific geographic location | ||||||
16 | where accommodations
which are part of a multi-site timeshare | ||||||
17 | plan are located. Separate phases of
a
single
timeshare | ||||||
18 | property in a specific geographic location and under common
| ||||||
19 | management
shall be deemed a single component site.
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20 | "Department" means the Department of Financial and | ||||||
21 | Professional Regulation. | ||||||
22 | "Developer" means and includes any person or entity, other | ||||||
23 | than a sales
agent,
acquisition agent, or resale agent, who | ||||||
24 | creates a timeshare plan or is in the
business of
selling | ||||||
25 | timeshare interests, or employs agents to do the same, or any | ||||||
26 | person or
entity who
succeeds to the interest of a developer by |
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1 | sale, lease, assignment, mortgage,
or other
transfer, but the | ||||||
2 | term includes only those persons who offer timeshare
interests | ||||||
3 | for
disposition in the ordinary course of business.
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4 | "Dispose" or "disposition" means a voluntary transfer or | ||||||
5 | assignment of any
legal
or equitable interest in a timeshare | ||||||
6 | plan, other than the transfer, assignment,
or release of
a | ||||||
7 | security interest.
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8 | "Exchange company" means any person owning or operating, or | ||||||
9 | both owning and
operating, an exchange program.
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10 | "Exchange program" means any method, arrangement, or | ||||||
11 | procedure for the
voluntary exchange of timeshare interests or | ||||||
12 | other property interests. The
term does not
include the | ||||||
13 | assignment of the right to use and occupy accommodations to
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14 | owners of
timeshare interests within a single-site timeshare | ||||||
15 | plan. Any method,
arrangement, or
procedure that otherwise | ||||||
16 | meets this definition, wherein the purchaser's total
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17 | contractual
financial obligation exceeds $3,000 per any | ||||||
18 | individual, recurring timeshare
period, shall
be regulated as a | ||||||
19 | timeshare plan in accordance with this Act.
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20 | "Managing entity" means the person who undertakes the | ||||||
21 | duties,
responsibilities,
and obligations of the management of | ||||||
22 | a timeshare plan.
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23 | "Managing entity lien" means a lien created pursuant to | ||||||
24 | Section 10-45. | ||||||
25 | "Offer" means any inducement, solicitation, or other | ||||||
26 | attempt, whether by
marketing, advertisement, oral or written |
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1 | presentation, or any other means, to
encourage a
person to | ||||||
2 | acquire a timeshare interest in a timeshare plan, other than as
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3 | security for an
obligation.
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4 | "Person" means a natural person, corporation, limited | ||||||
5 | liability company,
partnership, joint venture, association, | ||||||
6 | estate, trust, government,
governmental
subdivision or agency, | ||||||
7 | or other legal entity, or any combination thereof.
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8 | "Promotion" means a plan or device, including one involving | ||||||
9 | the possibility
of a
prospective purchaser receiving a | ||||||
10 | vacation, discount vacation, gift, or prize,
used by a
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11 | developer, or an agent, independent contractor, or employee of | ||||||
12 | any of the same
on behalf
of the developer, in connection with | ||||||
13 | the offering and sale of timeshare
interests in a
timeshare | ||||||
14 | plan.
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15 | "Purchaser" means any person, other than a developer, who | ||||||
16 | by means of a
voluntary transfer acquires a legal or equitable | ||||||
17 | interest in a timeshare plan
other than as
security for an | ||||||
18 | obligation.
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19 | "Purchase contract" means a document pursuant to which a | ||||||
20 | person becomes
legally obligated to sell, and a purchaser | ||||||
21 | becomes legally obligated to buy, a
timeshare
interest.
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22 | "Resale agent" means a person who, for another and for | ||||||
23 | compensation, or with the intention or expectation of receiving | ||||||
24 | compensation, either directly or indirectly sells, offers to | ||||||
25 | sell, or advertises to sell within this State any timeshare | ||||||
26 | interest previously sold to a purchaser or solicits within this |
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1 | State any owner of a timeshare interest to list the owner's | ||||||
2 | timeshare interest, wherever located, for sale. directly or | ||||||
3 | through the person's employees
or
agents,
sells or offers to | ||||||
4 | sell a timeshare interest previously sold to a purchaser or
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5 | solicits an
owner of a timeshare interest to list the owner's | ||||||
6 | timeshare interest for sale.
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7 | "Reservation system" means the method, arrangement, or | ||||||
8 | procedure by which a
purchaser, in order to reserve the use or | ||||||
9 | occupancy of any accommodation of a
multi-site
timeshare plan | ||||||
10 | for one or more timeshare periods, is required to compete with
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11 | other
purchasers in the same multi-site timeshare plan, | ||||||
12 | regardless of whether the
reservation
system is operated and | ||||||
13 | maintained by the multi-site timeshare plan managing
entity, an
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14 | exchange company, or any other person. In the event that a | ||||||
15 | purchaser is
required to use
an exchange program as the | ||||||
16 | purchaser's principal means of obtaining the right
to use and
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17 | occupy accommodations, that arrangement shall be deemed a | ||||||
18 | reservation system.
When
an exchange company utilizes a | ||||||
19 | mechanism for the exchange of use of timeshare
periods
among | ||||||
20 | members of an exchange program, that utilization is not a | ||||||
21 | reservation
system of a
multi-site timeshare plan.
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22 | "Sales agent" means a person, other than a resale agent, | ||||||
23 | who, directly or
through the person's employees,
agents,
or
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24 | independent contractors, sells or offers to sell timeshare | ||||||
25 | interests in a
timeshare plan to
any individual located in the | ||||||
26 | State of Illinois.
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1 | "Timeshare instrument" means one or more documents, by | ||||||
2 | whatever name
denominated, creating or governing the operation | ||||||
3 | of a timeshare plan.
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4 | "Secretary" means the Secretary of the Department of | ||||||
5 | Financial and Professional Regulation, or a natural person | ||||||
6 | authorized by the Secretary, the Department of Financial and | ||||||
7 | Professional Regulation, or this Act to act in the Secretary's | ||||||
8 | stead. | ||||||
9 | "Timeshare interest" means and includes either:
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10 | (1) a "timeshare estate", which is the right to occupy | ||||||
11 | a timeshare
property,
coupled with a freehold estate or an | ||||||
12 | estate for years with a future interest in
a
timeshare | ||||||
13 | property or a specified portion thereof; or
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14 | (2) a "timeshare use", which is the right to occupy a | ||||||
15 | timeshare property,
which right is neither coupled with a | ||||||
16 | freehold interest, nor coupled with an
estate
for years | ||||||
17 | with a future interest, in a timeshare property.
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18 | "Timeshare period" means the period or periods of time when | ||||||
19 | the purchaser of
a
timeshare plan is afforded the opportunity | ||||||
20 | to use the accommodations of a
timeshare
plan.
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21 | "Timeshare plan" means any arrangement, plan, scheme, or | ||||||
22 | similar device,
other
than an exchange program, whether by | ||||||
23 | membership agreement, sale, lease, deed,
license,
or | ||||||
24 | right-to-use agreement or by any other means, whereby a | ||||||
25 | purchaser, in
exchange for
consideration, receives ownership | ||||||
26 | rights in or the right to use accommodations
for a
period of |
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1 | time less than a full year during any given year, but not | ||||||
2 | necessarily
for
consecutive years. A timeshare plan may be:
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3 | (1) a "single-site timeshare plan", which is the right | ||||||
4 | to use
accommodations at a single timeshare property; or
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5 | (2) a "multi-site timeshare plan", which includes:
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6 | (A) a "specific timeshare interest", which is the | ||||||
7 | right to use
accommodations at a specific timeshare | ||||||
8 | property, together with use rights
in accommodations | ||||||
9 | at one or more other component sites created by or
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10 | acquired through the timeshare plan's reservation | ||||||
11 | system; or
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12 | (B) a "non-specific timeshare interest", which is | ||||||
13 | the right to use
accommodations at more than one | ||||||
14 | component site created by or acquired
through the | ||||||
15 | timeshare plan's reservation system, but including no | ||||||
16 | specific
right to use any particular accommodations.
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17 | "Timeshare property" means one or more accommodations | ||||||
18 | subject to the same
timeshare instrument, together with any | ||||||
19 | other property or rights to property
appurtenant
to those | ||||||
20 | accommodations.
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21 | (Source: P.A. 91-585, eff. 1-1-00.)
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22 | (765 ILCS 101/5-5)
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23 | Sec. 5-5. Exemptions from developer registration. A person | ||||||
24 | shall not be
required to register as a developer under this Act | ||||||
25 | if:
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1 | (1) the person is an owner of a timeshare interest who | ||||||
2 | has acquired the
timeshare
interest for the person's own | ||||||
3 | use and occupancy and who later offers it for
resale; or
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4 | (2) the person is a managing entity or an association | ||||||
5 | that is not
otherwise a developer
of a
timeshare plan in | ||||||
6 | its own right, solely while acting as an association or
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7 | under a contract
with an association to offer or sell a | ||||||
8 | timeshare interest transferred to the
association
through | ||||||
9 | foreclosure, deed in lieu of foreclosure, or gratuitous | ||||||
10 | transfer, if
such acts are
performed in the regular course | ||||||
11 | of, or as an incident to, the management of the
association | ||||||
12 | for its own account in the timeshare plan; or
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13 | (3) the person offers a timeshare plan in a national
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14 | publication or by
electronic media, as determined by the | ||||||
15 | Department Office of Banks and Real Estate and
provided by
| ||||||
16 | rule, which is not directed to or targeted to any | ||||||
17 | individual located in
Illinois; or
| ||||||
18 | (4) the person is conveyed, assigned, or transferred | ||||||
19 | more than 7 timeshare
periods
from a developer in a single | ||||||
20 | voluntary or involuntary transaction and
subsequently
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21 | conveys, assigns, or transfers all of the timeshare | ||||||
22 | interests received from the
developer to
a single purchaser | ||||||
23 | in a single transaction.
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24 | (Source: P.A. 91-585, eff. 1-1-00.)
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25 | (765 ILCS 101/5-15)
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1 | Sec. 5-15. Developer registration requirements.
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2 | (a) Registration required. Any person who , to any | ||||||
3 | individual located in
Illinois,
sells, offers to sell, or | ||||||
4 | attempts to solicit prospective purchasers or to solicit any | ||||||
5 | individual located in Illinois to
purchase a timeshare
| ||||||
6 | interest, or any person who creates a timeshare plan with an | ||||||
7 | accommodation in
the State
of Illinois, shall register as a | ||||||
8 | developer with the Department Office of Banks and Real
Estate | ||||||
9 | and shall comply with the provisions of subsection (c) of this | ||||||
10 | Section.
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11 | (b) Items to be registered. A developer shall be | ||||||
12 | responsible for
registering with
the Department Office of Banks | ||||||
13 | and Real Estate , on forms provided by the Department Office of | ||||||
14 | Banks
and Real
Estate , the following:
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15 | (1) All timeshare plans which have accommodations | ||||||
16 | located in Illinois or
which are sold or offered for sale | ||||||
17 | to any individual located in Illinois.
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18 | (2) All sales agents who sell or offer to sell any | ||||||
19 | timeshare interests in
any
timeshare plan offered by the | ||||||
20 | developer to any individual located in Illinois.
| ||||||
21 | (3) All acquisition agents who, by means of inducement, | ||||||
22 | promotion, or
advertisement, attempt to encourage or | ||||||
23 | procure prospective purchasers located
in
Illinois to | ||||||
24 | attend a sales presentation for any timeshare plan offered | ||||||
25 | by the
developer.
| ||||||
26 | (4) All managing entities who manage any timeshare plan |
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1 | offered or sold
by the developer to any individual located | ||||||
2 | in Illinois, without limitation as
to
whether the location | ||||||
3 | of the accommodation site managed is within Illinois.
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4 | (c) Escrow. The developer shall comply with the following | ||||||
5 | escrow
requirements:
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6 | (1) A developer of a timeshare plan shall deposit into | ||||||
7 | an escrow account
in a federally insured depository 100% of | ||||||
8 | all funds which are received during
the
purchaser's | ||||||
9 | rescission period. The deposit of such funds shall be | ||||||
10 | evidenced by
an
executed escrow agreement between the | ||||||
11 | escrow agent and the developer,
which shall include | ||||||
12 | provisions that:
| ||||||
13 | (A) funds may be disbursed to the developer by the | ||||||
14 | escrow agent
from the escrow account only after | ||||||
15 | expiration of the purchaser's rescission
period and in | ||||||
16 | accordance with the purchase contract, subject to | ||||||
17 | paragraph
(2) of this subsection; and
| ||||||
18 | (B) if a purchaser properly cancels the purchase | ||||||
19 | contract pursuant to
its
terms, the funds shall be paid | ||||||
20 | to the purchaser or paid to the developer if the
| ||||||
21 | purchaser's funds have been previously refunded by the | ||||||
22 | developer.
| ||||||
23 | (2) If a developer contracts to sell a timeshare | ||||||
24 | interest and the
construction of any property in which the | ||||||
25 | timeshare interest is located has not
been completed, the | ||||||
26 | developer, upon expiration of the rescission period, shall
|
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1 | continue to maintain in an escrow account all funds | ||||||
2 | received by or on behalf of
the developer from the | ||||||
3 | purchaser
under his or her purchase
contract. The | ||||||
4 | Department Office of
Banks
and Real Estate shall establish, | ||||||
5 | by rule, the types of documentation which
shall be
required | ||||||
6 | for evidence of completion, including but not limited to a | ||||||
7 | certificate
of
occupancy, a certificate of substantial | ||||||
8 | completion, or an inspection by the
Office
of the State | ||||||
9 | Fire Marshal or the State Fire Marshal's designee or an | ||||||
10 | equivalent
public safety inspection agency in the | ||||||
11 | applicable jurisdiction. Funds shall be
released from | ||||||
12 | escrow as follows:
| ||||||
13 | (A) If a purchaser properly cancels the purchase | ||||||
14 | contract pursuant to
its
terms, the funds shall be paid | ||||||
15 | to the purchaser or paid to the developer if the
| ||||||
16 | purchaser's funds have been previously refunded by the | ||||||
17 | developer.
| ||||||
18 | (B) If a purchaser defaults in the performance of | ||||||
19 | the purchaser's
obligations under the purchase | ||||||
20 | contract, the funds shall be paid
to the developer.
| ||||||
21 | (C) If the funds of a purchaser have not been | ||||||
22 | previously disbursed
in accordance with the provisions | ||||||
23 | of this paragraph (2), they may be
disbursed to the | ||||||
24 | developer by the escrow agent upon the issuance of
| ||||||
25 | acceptable evidence of completion of construction as | ||||||
26 | provided herein.
|
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| |||||||
1 | (3) In lieu of the provisions in paragraphs (1) and | ||||||
2 | (2), the Department Office of
Banks
and Real Estate may | ||||||
3 | accept from the developer a surety bond, irrevocable letter
| ||||||
4 | of
credit, or other financial assurance acceptable to the | ||||||
5 | Department Office of Banks and Real
Estate , as provided by | ||||||
6 | rule. Any acceptable financial assurance must be in an
| ||||||
7 | amount equal to or in excess of the funds which would | ||||||
8 | otherwise be placed in
escrow, or in an amount equal to the | ||||||
9 | cost to complete the incomplete property
in
which the | ||||||
10 | timeshare interest is located.
| ||||||
11 | (4) The developer shall provide escrow account | ||||||
12 | information to the
Department Office of Banks and Real | ||||||
13 | Estate and shall execute in writing an authorization
| ||||||
14 | consenting to an audit or examination of the account by the | ||||||
15 | Department Office of Banks and
Real Estate on forms | ||||||
16 | provided by the Department Office of Banks and Real Estate . | ||||||
17 | The
developer shall comply with the reconciliation and | ||||||
18 | records requirements
established by rule by the Department | ||||||
19 | Office of Banks and Real Estate . The developer
shall
make | ||||||
20 | documents related to the escrow account or escrow | ||||||
21 | obligation available to
the Department Office of Banks and | ||||||
22 | Real Estate upon the Department's Office's request. The | ||||||
23 | developer
shall maintain any disputed funds in the escrow | ||||||
24 | account until either:
| ||||||
25 | (A) receipt of written direction agreed to by | ||||||
26 | signature of all
parties; or
|
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| |||||||
1 | (B) deposit of the funds with a court of competent | ||||||
2 | jurisdiction in
which a civil action regarding the | ||||||
3 | funds has been filed.
| ||||||
4 | (d) Comprehensive registration. In registering a timeshare | ||||||
5 | plan, the
developer shall be responsible for providing | ||||||
6 | information on the following:
| ||||||
7 | (1) The developer's legal name, any assumed names used | ||||||
8 | by the developer,
principal office street address, mailing | ||||||
9 | address, primary contact
person, and
telephone number;
| ||||||
10 | (2) The name of the developer's authorized or | ||||||
11 | registered agent in the
State
of Illinois upon whom claims | ||||||
12 | can be served or service of process be had, the
agent's | ||||||
13 | street address in Illinois, and telephone number;
| ||||||
14 | (3) The name, street address, mailing address, primary | ||||||
15 | contact person, and
telephone number of any timeshare plan | ||||||
16 | being registered;
| ||||||
17 | (4) The name, street address, mailing address and | ||||||
18 | telephone number of any
sales agent and acquisition agent | ||||||
19 | utilized by the developer, and any managing
entity of the | ||||||
20 | timeshare plan;
| ||||||
21 | (5) A public offering statement which complies with the | ||||||
22 | requirements of
Sections 5-25; and
| ||||||
23 | (6) Any other information regarding the developer, | ||||||
24 | timeshare plan, sales
agents, acquisition agents, or | ||||||
25 | managing entities as reasonably required by the Department
| ||||||
26 | Office of Banks and Real Estate and established by rule.
|
| |||||||
| |||||||
1 | (e) Abbreviated registration. The Department Office of | ||||||
2 | Banks and Real Estate
may accept, as provided for by rule, an | ||||||
3 | abbreviated registration
application of a
developer of a | ||||||
4 | timeshare plan in which all accommodations are located outside
| ||||||
5 | of the
State of Illinois. The
developer shall file a written | ||||||
6 | notice of intent to register under this Section
at least 15 | ||||||
7 | days prior to submission. A developer of a timeshare plan with | ||||||
8 | any
accommodation
located in the
State of Illinois may not file | ||||||
9 | an abbreviated filing, with the exception of a
succeeding
| ||||||
10 | developer after a merger or acquisition when all of the | ||||||
11 | developers' timeshare
plans were
registered in Illinois | ||||||
12 | immediately preceding the merger or acquisition.
| ||||||
13 | The developer shall provide a certificate of registration | ||||||
14 | or other evidence
of
registration from the appropriate | ||||||
15 | regulatory agency of any other jurisdiction
within the
United | ||||||
16 | States in which some or all of such accommodations are located.
| ||||||
17 | The other
jurisdiction must have disclosure requirements that | ||||||
18 | are substantially
equivalent to or
greater than the information | ||||||
19 | required to be disclosed to purchasers by the
State of | ||||||
20 | Illinois.
A developer filing an abbreviated registration | ||||||
21 | application shall provide the
following:
| ||||||
22 | (1) The developer's legal name, any assumed names used | ||||||
23 | by the
developer, and the developer's principal office | ||||||
24 | location, mailing address,
primary
contact person, and | ||||||
25 | telephone number.
| ||||||
26 | (2) The name, location, mailing address, primary |
| |||||||
| |||||||
1 | contact person, and
telephone number of the timeshare plan.
| ||||||
2 | (3) The name of the authorized agent or registered | ||||||
3 | agent in Illinois upon
whom claims can be served or service | ||||||
4 | of process can be had, and the address in
Illinois of the | ||||||
5 | authorized agent or registered agent.
| ||||||
6 | (4) The names of any sales agent, acquisition agent, | ||||||
7 | and managing entity,
and their principal office location, | ||||||
8 | mailing address, and telephone number.
| ||||||
9 | (5) The certificate of registration or other evidence | ||||||
10 | of registration
from
any jurisdiction in which the | ||||||
11 | timeshare plan is approved or accepted.
| ||||||
12 | (6) A declaration as to whether the timeshare plan is a | ||||||
13 | single-site
timeshare plan or a multi-site timeshare plan | ||||||
14 | and, if a multi-site timeshare
plan,
whether it consists of | ||||||
15 | specific timeshare interests or non-specific timeshare
| ||||||
16 | interests.
| ||||||
17 | (7) Disclosure of each jurisdiction in which the
| ||||||
18 | developer
has
applied
for registration of the timeshare | ||||||
19 | plan,
and whether the timeshare plan, its developer, or any | ||||||
20 | of its
acquisition agents, sales agents, or managing | ||||||
21 | entities utilized were denied
registration or were the | ||||||
22 | subject of any disciplinary proceeding.
| ||||||
23 | (8) Copies of any disclosure documents required to be | ||||||
24 | given to purchasers
or required to be filed with the | ||||||
25 | jurisdiction in which the timeshare plan is
approved or | ||||||
26 | accepted as may be requested by the Department Office of |
| |||||||
| |||||||
1 | Banks and Real
Estate .
| ||||||
2 | (9) The appropriate fee.
| ||||||
3 | (10) Such other information reasonably required by the | ||||||
4 | Department Office of Banks
and Real Estate and established | ||||||
5 | by rule.
| ||||||
6 | (f) Preliminary permits. Notwithstanding anything in this | ||||||
7 | Section to the
contrary,
the Department Office of Banks and | ||||||
8 | Real Estate may grant a 6-month preliminary permit, as
| ||||||
9 | established by rule, allowing the developer to begin offering | ||||||
10 | and selling
timeshare
interests while the registration is in | ||||||
11 | process. To obtain a preliminary
permit,
the
developer shall do | ||||||
12 | all of the following:
| ||||||
13 | (1) (Blank). Submit a formal written request to the | ||||||
14 | Office of Banks and Real
Estate for a preliminary permit.
| ||||||
15 | (2) Submit an application in form and substance | ||||||
16 | satisfactory to the Department a substantially complete | ||||||
17 | application for registration to the
Office of Banks and | ||||||
18 | Real Estate , including all appropriate fees and exhibits
| ||||||
19 | required
under this Article.
| ||||||
20 | (3) Provide evidence acceptable to the Department | ||||||
21 | Office of Banks and Real
Estate that all funds received by | ||||||
22 | the developer will be placed into an
independent escrow
| ||||||
23 | account with instructions that funds will not be released | ||||||
24 | until a final
registration has been
granted.
| ||||||
25 | (4) Give to each purchaser and potential purchaser a | ||||||
26 | copy of the
proposed public offering statement that the |
| |||||||
| |||||||
1 | developer has submitted to the Department
Office of
Banks | ||||||
2 | and Real Estate with the initial application.
| ||||||
3 | (5) Give to each purchaser the opportunity to cancel | ||||||
4 | the purchase
contract
in
accordance with Section 10-10. The | ||||||
5 | purchaser shall have an additional
opportunity to
cancel | ||||||
6 | upon the issuance of an approved registration if the | ||||||
7 | Department Office of Banks and
Real
Estate determines that | ||||||
8 | there is a substantial difference in the disclosures
| ||||||
9 | contained in the
final public offering statement and those | ||||||
10 | given to the purchaser in the
proposed public
offering | ||||||
11 | statement.
| ||||||
12 | (g) Alternative registration; letter of credit or other | ||||||
13 | assurance; recovery.
| ||||||
14 | (1) Notwithstanding anything in this Act to the | ||||||
15 | contrary, the Department Office of
Banks and Real Estate | ||||||
16 | may accept, as established by rule, a registration from
a | ||||||
17 | developer
for a timeshare plan if the developer provides | ||||||
18 | all of the following:
| ||||||
19 | (A) (Blank). A written notice of intent to register | ||||||
20 | under this Section at least
15 days prior to submission | ||||||
21 | of the alternative registration.
| ||||||
22 | (B) An irrevocable letter of credit or other | ||||||
23 | acceptable assurance, as
established by rule, in an | ||||||
24 | amount of $1,000,000, from which an Illinois
purchaser
| ||||||
25 | aggrieved by any act, representation, transaction, or | ||||||
26 | conduct of a duly
registered
developer or his or her |
| |||||||
| |||||||
1 | acquisition agent, sales agent, managing entity, or
| ||||||
2 | employee, which
violates any
provision of this Act or | ||||||
3 | the rules promulgated under this Act, or which
| ||||||
4 | constitutes
embezzlement of money or property or | ||||||
5 | results in money or property being
unlawfully
obtained | ||||||
6 | from any person by false pretenses, artifice, | ||||||
7 | trickery, or forgery or
by reason of
any fraud, | ||||||
8 | misrepresentation, discrimination, or deceit by or on | ||||||
9 | the part of
any developer
or agent or employee of the | ||||||
10 | developer and which results in actual monetary loss
as
| ||||||
11 | opposed to a loss in market value, may recover.
| ||||||
12 | (C) The developer's legal name, any assumed names | ||||||
13 | used by the
developer, and the developer's principal | ||||||
14 | office location, mailing address, main
contact
person, | ||||||
15 | and telephone number.
| ||||||
16 | (D) The name, location, mailing address, main | ||||||
17 | contact person, and
telephone number of the timeshare | ||||||
18 | plan included in the filing.
| ||||||
19 | (E) The name of the authorized agent or registered | ||||||
20 | agent in Illinois
upon
whom claims can be served or | ||||||
21 | service of process can be had, and the
address in | ||||||
22 | Illinois of the authorized agent or registered agent.
| ||||||
23 | (F) The names of any sales agent, acquisition | ||||||
24 | agent, and managing
entity,
and their principal office | ||||||
25 | location, mailing address, and telephone number.
| ||||||
26 | (G) A declaration as to whether the timeshare plan |
| |||||||
| |||||||
1 | is a single-site
timeshare plan or a multi-site | ||||||
2 | timeshare plan and, if a multi-site timeshare
plan, | ||||||
3 | whether it consists of specific timeshare interests or | ||||||
4 | non-specific
timeshare interests.
| ||||||
5 | (H) Disclosure of each jurisdiction in which the
| ||||||
6 | developer
has
applied
for registration of the | ||||||
7 | timeshare plan,
and whether the timeshare plan, its | ||||||
8 | developer, or any of its
acquisition agents, sales | ||||||
9 | agents, or managing entities utilized were denied
| ||||||
10 | registration or were the subject of any disciplinary | ||||||
11 | proceeding.
| ||||||
12 | (I) The required fee.
| ||||||
13 | (J) Such other information reasonably required by | ||||||
14 | the Department Office of Banks
and Real Estate and | ||||||
15 | established by rule.
| ||||||
16 | (2) Any letter of credit or other acceptable assurance | ||||||
17 | shall remain in
effect
with
the Department Office of Banks | ||||||
18 | and Real Estate for a period of 12 months after the date
| ||||||
19 | the
developer does not renew or otherwise cancel his or her | ||||||
20 | registration with the
State of
Illinois or 12 months after | ||||||
21 | the Department Office of Banks and Real Estate revokes,
| ||||||
22 | suspends, or
otherwise disciplines such developer or his or | ||||||
23 | her registration, provided there
is no pending
litigation
| ||||||
24 | alleging a
violation of any provision of this Act known by | ||||||
25 | the Department Office of Banks and Real
Estate and
| ||||||
26 | certified by the developer.
|
| |||||||
| |||||||
1 | (3) The Department Office of Banks and Real Estate | ||||||
2 | shall establish procedures, by
rule, to
satisfy claims by | ||||||
3 | any Illinois purchaser pursuant to this Section.
| ||||||
4 | (4) The Department Office of Banks and Real Estate | ||||||
5 | shall automatically suspend the
registration of any | ||||||
6 | developer pursuant to Section 15-25 of this Act in
the | ||||||
7 | event the Department
Office authorizes or directs payment | ||||||
8 | to an Illinois purchaser from the letter
of credit or
other | ||||||
9 | acceptable assurance pursuant to this Section and as | ||||||
10 | established by rule.
| ||||||
11 | (h) A developer who registers a timeshare plan pursuant to | ||||||
12 | this
Act
shall
provide the purchaser with a public offering | ||||||
13 | statement that complies with
Section
5-25 and any disclosures | ||||||
14 | or other written information required by this Act.
| ||||||
15 | (i) Nothing contained in this Section shall affect the | ||||||
16 | Department's Office of Banks
and
Real
Estate's ability to | ||||||
17 | initiate any disciplinary action against a developer in
| ||||||
18 | accordance with this Act.
| ||||||
19 | (j) For purposes of this Section, "Illinois purchaser" | ||||||
20 | means a person
who,
within the State of Illinois, is solicited, | ||||||
21 | offered, or sold a timeshare
interest in a timeshare
plan | ||||||
22 | registered pursuant to this Section.
| ||||||
23 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
24 | (765 ILCS 101/5-20)
| ||||||
25 | Sec. 5-20. Developer supervisory duties. The developer |
| |||||||
| |||||||
1 | shall have the
duty
to supervise, manage, and control all | ||||||
2 | aspects of the offering of the timeshare
plan,
including, but | ||||||
3 | not limited to, promotion, advertising, contracting, and
| ||||||
4 | closing.
The
developer shall have responsibility for each | ||||||
5 | timeshare plan registered with the Department
Office of
Banks | ||||||
6 | and Real Estate and for the actions of any sales agent, | ||||||
7 | managing entity,
and
acquisition agent utilized by the | ||||||
8 | developer in the offering or selling of any
registered
| ||||||
9 | timeshare plan. Any violation of this Act which occurs during | ||||||
10 | the offering
activities shall
be deemed to be a violation by | ||||||
11 | the developer as well as by the acquisition
agent, sales
agent, | ||||||
12 | or managing entity who actually committed such violation.
| ||||||
13 | Notwithstanding
anything to the contrary in this Act, the | ||||||
14 | developer shall be responsible
for the actions
of the | ||||||
15 | association and managing entity only while they are subject to | ||||||
16 | the
developer's
control.
| ||||||
17 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
18 | (765 ILCS 101/5-25)
| ||||||
19 | Sec. 5-25. Timeshare plan public offering statement | ||||||
20 | requirements.
| ||||||
21 | (a) A developer shall prepare a public offering statement, | ||||||
22 | shall provide the
statement to each purchaser of a timeshare | ||||||
23 | interest in any timeshare plan at
the time of
purchase, and | ||||||
24 | shall fully and accurately disclose those facts concerning the
| ||||||
25 | timeshare
developer and timeshare plan that are required by
|
| |||||||
| |||||||
1 | this Act or by rule.
The public offering statement shall be in | ||||||
2 | writing and dated and shall require
the purchaser
to certify in | ||||||
3 | writing the receipt thereof.
| ||||||
4 | (b) With regard to timeshare interests offered in a | ||||||
5 | timeshare plan, a public
offering
statement shall fully and | ||||||
6 | accurately disclose the following:
| ||||||
7 | (1) The name of the developer and the principal address | ||||||
8 | of the developer.
| ||||||
9 | (2) A description of the type of timeshare interests | ||||||
10 | being offered.
| ||||||
11 | (3) A general description of the existing and proposed | ||||||
12 | accommodations and
amenities of the timeshare plan, | ||||||
13 | including their type and number, personal
property | ||||||
14 | furnishing the accommodation, any use restrictions, and | ||||||
15 | any required
fees for use.
| ||||||
16 | (4) A description of any accommodations and amenities | ||||||
17 | that are committed
to be
built, including, without | ||||||
18 | limitation:
| ||||||
19 | (A) the developer's schedule of commencement and | ||||||
20 | completion of all
accommodations and amenities; and
| ||||||
21 | (B) the estimated number of accommodations per | ||||||
22 | site that may become
subject to the timeshare plan.
| ||||||
23 | (5) A brief description of the duration, phases, and | ||||||
24 | operation of the
timeshare
plan.
| ||||||
25 | (6) The current annual budget, if available, or the | ||||||
26 | projected annual
budget for the
timeshare plan. The budget |
| |||||||
| |||||||
1 | shall include, without limitation:
| ||||||
2 | (A) a statement of the amount, or a statement that | ||||||
3 | there is no amount,
included in the budget as a reserve | ||||||
4 | for repairs and replacement;
| ||||||
5 | (B) the projected common expense liability, if | ||||||
6 | any, by category of
expenditures for the timeshare | ||||||
7 | plan; and
| ||||||
8 | (C) a statement of any services or expenses not | ||||||
9 | reflected in the budget
that the developer provides or | ||||||
10 | pays.
| ||||||
11 | (7) Any initial or special fee due from the purchaser | ||||||
12 | at closing, together
with a
description of the purpose and | ||||||
13 | method of calculating the fee.
| ||||||
14 | (8) A description of any liens, defects, or | ||||||
15 | encumbrances on or affecting
the title
to the timeshare | ||||||
16 | interests.
| ||||||
17 | (9) A description of any financing offered by or | ||||||
18 | available through the
developer.
| ||||||
19 | (10) A statement that within 5 calendar days after | ||||||
20 | receipt of the public
offering
statement or after execution | ||||||
21 | of the
purchase
contract, whichever is later, a purchaser
| ||||||
22 | may
cancel any
purchase
contract for a timeshare interest | ||||||
23 | from a developer
together with a statement providing the | ||||||
24 | name and street address to which the
purchaser should mail | ||||||
25 | any notice of cancellation.
However, if by agreement of
the | ||||||
26 | parties by and through the purchase contract, the
purchase
|
| |||||||
| |||||||
1 | contract allows for cancellation
of the purchase
contract
| ||||||
2 | for a period of time exceeding 5 calendar days, then the | ||||||
3 | public
offering statement shall include a statement that
| ||||||
4 | the
cancellation of the
purchase
contract is allowed for | ||||||
5 | that period of time exceeding 5
calendar
days.
| ||||||
6 | (11) A statement of any pending suits, adjudications, | ||||||
7 | or disciplinary
actions
material to the timeshare | ||||||
8 | interests of which the developer has knowledge.
| ||||||
9 | (12) Any restrictions on alienation of any number or | ||||||
10 | portion of any
timeshare
interests.
| ||||||
11 | (13) A statement describing liability and casualty | ||||||
12 | insurance for the
timeshare
property.
| ||||||
13 | (14) Any current or expected fees or charges to be paid | ||||||
14 | by timeshare
purchasers
for the use of any amenities | ||||||
15 | related to the timeshare property.
| ||||||
16 | (15) The extent to which financial arrangements have | ||||||
17 | been provided for
completion of all promised improvements.
| ||||||
18 | (16) The developer or managing entity must notify the | ||||||
19 | Department Office of Banks and
Real
Estate of the extent to | ||||||
20 | which an accommodation may become subject to a tax or
other | ||||||
21 | lien arising out of claims against other purchasers in the | ||||||
22 | same timeshare
plan. The Department Office of Banks and | ||||||
23 | Real Estate may require the developer or
managing entity to | ||||||
24 | notify a prospective purchaser of any such potential tax or
| ||||||
25 | lien
which would materially and adversely affect the | ||||||
26 | prospective purchaser.
|
| |||||||
| |||||||
1 | (17) A statement indicating that the developer and | ||||||
2 | timeshare plan are
registered
with the State of Illinois.
| ||||||
3 | (18) If the timeshare plan provides purchasers with the | ||||||
4 | opportunity to
participate
in an exchange program, a | ||||||
5 | description of the name and address of the exchange
company | ||||||
6 | and the method by which a purchaser accesses the exchange | ||||||
7 | program.
| ||||||
8 | (19) Such other information reasonably required by the | ||||||
9 | Department Office of Banks and
Real
Estate and established | ||||||
10 | by administrative rule necessary for the protection of
| ||||||
11 | purchasers of timeshare interests in timeshare plans.
| ||||||
12 | (20) Any other information that the developer, with the | ||||||
13 | approval of the
Department Office of
Banks and Real Estate , | ||||||
14 | desires to include in the public offering statement.
| ||||||
15 | (c) A developer offering a multi-site timeshare plan shall | ||||||
16 | also fully and
accurately disclose the following information, | ||||||
17 | which may be disclosed in a
written,
graphic, or tabular form:
| ||||||
18 | (1) A description of each component site, including the | ||||||
19 | name and address
of each
component site.
| ||||||
20 | (2) The number of accommodations and timeshare | ||||||
21 | periods, expressed in
periods
of 7-day use availability, | ||||||
22 | committed to the multi-site timeshare plan and
available
| ||||||
23 | for use by purchasers.
| ||||||
24 | (3) Each type of accommodation in terms of the number | ||||||
25 | of bedrooms,
bathrooms,
and sleeping capacity, and a | ||||||
26 | statement of whether or not the accommodation
contains a |
| |||||||
| |||||||
1 | full kitchen. For purposes of this description, a "full | ||||||
2 | kitchen"
means a
kitchen having a minimum of a dishwasher, | ||||||
3 | range, sink, oven, and refrigerator.
| ||||||
4 | (4) A description of amenities available for use by the | ||||||
5 | purchaser at each
component site.
| ||||||
6 | (5) A description of the reservation system, which | ||||||
7 | shall include the
following:
| ||||||
8 | (A) The entity responsible for operating the | ||||||
9 | reservation system.
| ||||||
10 | (B) A summary of the rules and regulations | ||||||
11 | governing access to and use
of the reservation system.
| ||||||
12 | (C) The existence of and an explanation regarding | ||||||
13 | any priority
reservation
features that affect a | ||||||
14 | purchaser's ability to make reservations for the use of
| ||||||
15 | a given accommodation on a first-come, first-served | ||||||
16 | basis.
| ||||||
17 | (6) A description of any right to make any additions, | ||||||
18 | substitutions, or
deletions of
accommodations or | ||||||
19 | amenities, and a description of the basis upon which
| ||||||
20 | accommodations and amenities may be added to, substituted | ||||||
21 | in, or deleted from
the multi-site timeshare plan.
| ||||||
22 | (7) A description of the purchaser's liability for any | ||||||
23 | fees associated
with the
multi-site timeshare plan.
| ||||||
24 | (8) The location and the anticipated relative
use
| ||||||
25 | demand of each component site in a multi-site timeshare | ||||||
26 | plan, as well as any
periodic adjustment or amendment to |
| |||||||
| |||||||
1 | the reservation system which may be
needed in order to | ||||||
2 | respond to actual purchaser use patterns and changes in
| ||||||
3 | purchaser use demand for the accommodations existing at | ||||||
4 | that time within the
multi-site timeshare plan.
| ||||||
5 | (9) Such other information reasonably required by the | ||||||
6 | Department Office of Banks and
Real
Estate and established | ||||||
7 | by administrative rule necessary for the protection of
| ||||||
8 | purchasers of timeshare interests in timeshare plans.
| ||||||
9 | (10) Any other information that the developer, with the | ||||||
10 | approval of the
Department Office
of
Banks and Real Estate , | ||||||
11 | desires to include in the public offering statement.
| ||||||
12 | (d) If a developer offers a non-specific timeshare interest | ||||||
13 | in a multi-site
timeshare
plan, the developer shall disclose | ||||||
14 | the information set forth in subsection (b)
as to each
| ||||||
15 | component site.
| ||||||
16 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
17 | (765 ILCS 101/5-30)
| ||||||
18 | Sec. 5-30. Exchange company registration and disclosure | ||||||
19 | requirements.
| ||||||
20 | (a) An Each exchange company offering an exchange program | ||||||
21 | to purchasers in this
State shall register with the Department | ||||||
22 | at least 20 calendar days prior to offering an exchange program | ||||||
23 | to purchasers in this State. Office of Banks and Real Estate by | ||||||
24 | July 1 of each
year. The
registration shall consist of the | ||||||
25 | information specified in this Section.
However, an
exchange |
| |||||||
| |||||||
1 | company shall make its initial registration at least 20 | ||||||
2 | calendar days
prior to
offering membership in an exchange | ||||||
3 | program to any purchaser in this State.
| ||||||
4 | (b) If a purchaser is offered the opportunity to become a | ||||||
5 | member of an
exchange
program, the developer shall deliver to | ||||||
6 | the purchaser, together with the public
offering
statement and | ||||||
7 | any other materials required to be furnished under this | ||||||
8 | Section,
and prior to
the offering or execution of any contract | ||||||
9 | between the purchaser and the
exchange
company offering | ||||||
10 | membership in the exchange program, or, if the exchange
company | ||||||
11 | is
dealing directly with the purchaser, the developer or the | ||||||
12 | exchange company
shall deliver
to the purchaser, prior to the | ||||||
13 | initial offering or execution of any contract
between the
| ||||||
14 | purchaser and the exchange company, the following written | ||||||
15 | information regarding
the
exchange program, the form and | ||||||
16 | substance of which shall first be approved by
the Department | ||||||
17 | Office
of Banks and Real Estate in accordance with this | ||||||
18 | Section:
| ||||||
19 | (1) The name and address of the exchange company.
| ||||||
20 | (2) The names of all officers, directors, and | ||||||
21 | shareholders of the exchange
company.
| ||||||
22 | (3) Whether the exchange company or any of its officers | ||||||
23 | or directors have
any
legal or beneficial interest in any | ||||||
24 | developer, seller, or managing entity for
any
timeshare | ||||||
25 | plan participating in the exchange program and, if so, the | ||||||
26 | identity
of the
timeshare plan and the nature of the |
| |||||||
| |||||||
1 | interest.
| ||||||
2 | (4) Unless otherwise stated, a statement that the | ||||||
3 | purchaser's contract
with the
exchange company is a | ||||||
4 | contract separate and distinct from the purchaser's
| ||||||
5 | contract with the seller of timeshare interests.
| ||||||
6 | (5) Whether the purchaser's participation in the | ||||||
7 | exchange program is
dependent
upon the continued | ||||||
8 | affiliation of the applicable timeshare plan with the
| ||||||
9 | exchange
program.
| ||||||
10 | (6) A statement that the purchaser's participation in | ||||||
11 | the exchange program
is
voluntary.
| ||||||
12 | (7) A complete and accurate description of the terms | ||||||
13 | and conditions of the
purchaser's contractual relationship | ||||||
14 | with the exchange program and the
procedure
by which | ||||||
15 | changes thereto may be made.
| ||||||
16 | (8) A complete and accurate description of the | ||||||
17 | procedures necessary to
qualify
for and effectuate | ||||||
18 | exchanges.
| ||||||
19 | (9) A complete and accurate description of all | ||||||
20 | limitations, restrictions,
and
priorities employed in the | ||||||
21 | operation of the exchange program, including but not
| ||||||
22 | limited to limitations on exchanges based on seasonality, | ||||||
23 | accommodation size,
or
levels of occupancy, expressed in | ||||||
24 | conspicuous type, and, in the event that
those
limitations, | ||||||
25 | restrictions, or priorities are not uniformly applied by | ||||||
26 | the
exchange
company, a clear description of the manner in |
| |||||||
| |||||||
1 | which they are applied.
| ||||||
2 | (10) Whether exchanges are arranged on a | ||||||
3 | space-available basis and whether
any
guarantees of | ||||||
4 | fulfillment of specific requests for exchanges are made by | ||||||
5 | the
exchange company.
| ||||||
6 | (11) Whether and under what circumstances an owner, in | ||||||
7 | dealing with the
exchange program, may lose the right to | ||||||
8 | use and occupy an accommodation of the
timeshare plan | ||||||
9 | during a reserved use period with respect to any properly
| ||||||
10 | applied-for exchange without being provided with | ||||||
11 | substitute accommodations by
the exchange program.
| ||||||
12 | (12) The fees or range of fees for participation by | ||||||
13 | owners in the exchange
program, a statement of whether any | ||||||
14 | such fees may be altered by the exchange
company, and the | ||||||
15 | circumstances under which alterations may be made.
| ||||||
16 | (13) The name and address of the site of each | ||||||
17 | accommodation included
within a
timeshare plan | ||||||
18 | participating in the exchange program.
| ||||||
19 | (14) The number of accommodations in each timeshare | ||||||
20 | plan that are
available
for
occupancy and that qualify for | ||||||
21 | participation in the exchange program, expressed
within | ||||||
22 | the following numerical groups: 1-5; 6-10; 11-20; 21-50; | ||||||
23 | and 51 and
over.
| ||||||
24 | (15) The number of currently enrolled owners for each | ||||||
25 | timeshare plan
participating in the exchange program, | ||||||
26 | expressed within the following numerical
groups: 1-100; |
| |||||||
| |||||||
1 | 101-249; 250-499; 500-999; and 1,000 and over; and a | ||||||
2 | statement
of the criteria used to determine those owners | ||||||
3 | who are currently enrolled with
the
exchange program.
| ||||||
4 | (16) The disposition made by the exchange company of | ||||||
5 | use periods deposited
with the exchange program by owners | ||||||
6 | enrolled in the exchange program and not
used by the | ||||||
7 | exchange company in effecting exchanges.
| ||||||
8 | (17) The following information for the preceding | ||||||
9 | calendar year, which
shall be
independently audited by a | ||||||
10 | certified public accountant in accordance with the
| ||||||
11 | standards of the Accounting Standards Board of the American | ||||||
12 | Institute of
Certified Public Accountants and reported on | ||||||
13 | an annual basis on or after August 1 as established by rule | ||||||
14 | annually no later than August 1 of
each
year :
| ||||||
15 | (A) The number of owners currently enrolled in the | ||||||
16 | exchange program.
| ||||||
17 | (B) The number of timeshare plans that have current | ||||||
18 | affiliation
agreements with the exchange program.
| ||||||
19 | (C) The percentage of confirmed exchanges, which | ||||||
20 | is the number of
exchanges confirmed by the exchange | ||||||
21 | program divided by the number of
exchanges properly | ||||||
22 | applied for, together with a complete and accurate
| ||||||
23 | statement of the criteria used to determine whether an | ||||||
24 | exchange request
was properly applied for.
| ||||||
25 | (D) The number of use periods for which the | ||||||
26 | exchange program has an
outstanding obligation to |
| |||||||
| |||||||
1 | provide an exchange to an owner who
relinquished a use | ||||||
2 | period during a particular year in exchange for a use
| ||||||
3 | period in any future year.
| ||||||
4 | (E) The number of exchanges confirmed by the | ||||||
5 | exchange program during
the year.
| ||||||
6 | (F) A statement in conspicuous type to the effect | ||||||
7 | that the percentage
described in subdivision (17)(C) | ||||||
8 | of this subsection is a summary of the
exchange | ||||||
9 | requests entered with the exchange program in the | ||||||
10 | period
reported and that the percentage does not | ||||||
11 | indicate the probabilities of an
owner's being | ||||||
12 | confirmed to any specific choice or range of choices.
| ||||||
13 | (18) Such other information as may be reasonably | ||||||
14 | required by the Department Office of
Banks and Real Estate | ||||||
15 | of any exchange company as established by rule.
| ||||||
16 | (c) No developer shall have any liability with respect to | ||||||
17 | any violation of
this Act
arising out of the publication by the | ||||||
18 | developer of information provided to it
by an
exchange company | ||||||
19 | pursuant to this Article. No exchange company shall have any
| ||||||
20 | liability with respect to any violation of this Act arising out | ||||||
21 | of the use by a
developer of
information relating to an | ||||||
22 | exchange program other than that provided to the
developer by
| ||||||
23 | the exchange company.
| ||||||
24 | (d) All written, visual, and electronic communications | ||||||
25 | relating to an
exchange
company or an exchange program shall be | ||||||
26 | filed with the Department Office of Banks and Real
Estate
upon |
| |||||||
| |||||||
1 | its request.
| ||||||
2 | (e) The failure of an exchange company to observe the | ||||||
3 | requirements of this
Section, and the use of any unfair or | ||||||
4 | deceptive act or practice in connection
with the
operation of | ||||||
5 | an exchange program, is a violation of this Act.
| ||||||
6 | (f) An exchange company may elect to deny exchange | ||||||
7 | privileges to any owner
whose use of the accommodations of the | ||||||
8 | owner's timeshare plan is denied, and no
exchange program or | ||||||
9 | exchange company shall be liable to any of its members or
any
| ||||||
10 | third parties on account of any such denial of exchange | ||||||
11 | privileges.
| ||||||
12 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
13 | (765 ILCS 101/5-40)
| ||||||
14 | Sec. 5-40. Resale agent duties. A Whether registered or | ||||||
15 | exempt from
registration under Section 5-35, a resale agent | ||||||
16 | shall comply with all of the
following:
| ||||||
17 | (a) Prior to engaging in any resale activities on behalf of | ||||||
18 | any owner of a
timeshare interest or accepting anything of | ||||||
19 | value from any owner of a timeshare interest , a resale agent | ||||||
20 | shall enter into a listing agreement with
that owner. Every
| ||||||
21 | listing agreement shall be in writing and signed by both the | ||||||
22 | resale agent and
the timeshare
interest owner. The requirements | ||||||
23 | of the written listing agreement shall be
established by
rule, | ||||||
24 | but at a minimum the listing agreement shall disclose the | ||||||
25 | following: |
| |||||||
| |||||||
1 | (1) The name and address of the resale agent and the | ||||||
2 | timeshare interest owner. | ||||||
3 | (2) The term of the listing agreement. | ||||||
4 | (3) Whether the resale agent's rights under the listing | ||||||
5 | agreement are exclusive and, if the resale agent's rights | ||||||
6 | are exclusive, the length of such exclusivity period. | ||||||
7 | (4) Whether any person other than the timeshare | ||||||
8 | interest owner may use the timeshare during the period | ||||||
9 | before the timeshare interest is resold. | ||||||
10 | (5) Whether any person other than the timeshare | ||||||
11 | interest owner may rent or exchange the use of the | ||||||
12 | timeshare interest during the term of the listing | ||||||
13 | agreement. | ||||||
14 | (6) The name of any person who will receive any rents, | ||||||
15 | profits, or other thing of value generated from the use of | ||||||
16 | the timeshare interest during the period before the | ||||||
17 | timeshare interest is resold. | ||||||
18 | (7) A detailed description of any relationship between | ||||||
19 | the resale agent and any other person who receives any | ||||||
20 | benefit from the use of the timeshare interest. | ||||||
21 | (8) A description of any fees or costs that relate to | ||||||
22 | the listing or sale of the timeshare interest that the | ||||||
23 | timeshare interest owner (or any other person) must pay to | ||||||
24 | the resale agent or any third party. If the timeshare | ||||||
25 | interest owner (or any other person) must pay a fee to the | ||||||
26 | resale agent or any third party before the sale of the |
| |||||||
| |||||||
1 | timeshare interest, the listing agreement must identify | ||||||
2 | each of the following: | ||||||
3 | (A) The amount of each pre-sale fee and to whom | ||||||
4 | such pre-sale fee must be paid. | ||||||
5 | (B) The time by which each pre-sale fee must be | ||||||
6 | paid. | ||||||
7 | (C) A reasonable description of each pre-sale cost | ||||||
8 | or fee. | ||||||
9 | (D) A description and the estimated amount of any | ||||||
10 | other fees or costs associated with the listing or sale | ||||||
11 | of the timeshare interest. | ||||||
12 | (E) The ratio or percentage of the number of | ||||||
13 | listings of timeshare interests for sale versus the | ||||||
14 | number of timeshare interests sold by the resale agent | ||||||
15 | for each of the past 3 years. | ||||||
16 | (9) A description of the amount or percentage and | ||||||
17 | procedures for paying any commissions due to the resale | ||||||
18 | agent upon resale of the timeshare interest. the method of
| ||||||
19 | compensation, a
definite date of termination, whether any | ||||||
20 | fees are non-refundable, and whether
the
agreement permits | ||||||
21 | the timeshare resale agent or any other person to make
any | ||||||
22 | use
whatsoever of the owner's timeshare interest or receive | ||||||
23 | any rents or profits
generated
from such use of the | ||||||
24 | timeshare interest.
| ||||||
25 | (b) A resale agent shall maintain records as required by | ||||||
26 | rule. The records
required to be maintained include, but are |
| |||||||
| |||||||
1 | not limited to, all listing
agreements, copies of
disbursement | ||||||
2 | authorizations in accordance with subsection (c), and resale
| ||||||
3 | contracts.
| ||||||
4 | (c) A resale agent who collects any fees prior to a | ||||||
5 | transfer of an interest
from any
owner shall deposit the fees | ||||||
6 | in an escrow account. Any fees that are to be
paid to the
| ||||||
7 | resale agent prior to closing may be disbursed from the escrow | ||||||
8 | account only
upon receipt
of a disbursement authorization, | ||||||
9 | signed by the owner, in the following form:
| ||||||
10 | "I, (name of owner), am the owner of a timeshare | ||||||
11 | interest in
(name of timeshare
plan). I understand that for | ||||||
12 | my protection I can require the
entire fee to be held
in | ||||||
13 | escrow until the closing on the resale of my timeshare | ||||||
14 | interest, but I am
authorizing a release before the | ||||||
15 | transfer in the following amount: (amount
written
in words) | ||||||
16 | ($ (amount in numbers)), for the following purpose or | ||||||
17 | purposes
(description of purpose or purposes). I | ||||||
18 | understand that the resale agent is
regulated
by the | ||||||
19 | Illinois Department of Financial and Professional | ||||||
20 | Regulation, or its successor agency, Office of Banks and | ||||||
21 | Real Estate under the Real Estate Timeshare Act of
1999. | ||||||
22 | The Illinois Department of Financial and Professional | ||||||
23 | Regulation
Office of Banks and Real Estate requires the | ||||||
24 | resale agent to obtain this
disbursement authorization | ||||||
25 | with my signature before disbursement of my funds."
| ||||||
26 | (d) A resale agent shall utilize a purchase agreement that |
| |||||||
| |||||||
1 | discloses to a
purchaser of a timeshare interest all of the | ||||||
2 | following:
| ||||||
3 | (1) A legally sufficient description of the timeshare | ||||||
4 | interest being
purchased.
| ||||||
5 | (2) The name and address of the managing entity of the | ||||||
6 | timeshare property.
| ||||||
7 | (3) The amount of the most recent current year's | ||||||
8 | assessment for the common expenses allocated to the
| ||||||
9 | timeshare interest being purchased including the time | ||||||
10 | period to which the
assessment relates (e.g., monthly, | ||||||
11 | quarterly, yearly) and the date on which it is due. If not | ||||||
12 | included in the
applicable common expense assessment, the | ||||||
13 | amount of any real or personal
property taxes allocated to | ||||||
14 | the timeshare interest being purchased.
| ||||||
15 | (3.5) Whether all assessments and real or personal | ||||||
16 | property taxes that are due against the timeshare interest | ||||||
17 | are paid in full and, if not, the amount owed and the | ||||||
18 | consequences of failure to pay timely any assessment or | ||||||
19 | real or personal property taxes.
| ||||||
20 | (4) A complete and accurate disclosure of the terms and | ||||||
21 | conditions of the
purchase and closing, including the | ||||||
22 | obligations of the owner, the
purchaser, or both for | ||||||
23 | closing costs and the title insurance.
| ||||||
24 | (5) The entity responsible for providing notification | ||||||
25 | to the managing
entity of the timeshare plan and the | ||||||
26 | applicable exchange company regarding any
change in the |
| |||||||
| |||||||
1 | ownership of the timeshare interest.
| ||||||
2 | (6) A statement of the first year in which the | ||||||
3 | purchaser is entitled to
receive the actual use rights and | ||||||
4 | occupancy of the timeshare interest, as
determined by the | ||||||
5 | managing entity of the timeshare plan and any exchange
| ||||||
6 | company.
| ||||||
7 | (6.5) The name, address, telephone number, and website | ||||||
8 | (if applicable) where the governing documents of the | ||||||
9 | association, if any, and the timeshare instrument may be | ||||||
10 | obtained, together with the following disclosure: | ||||||
11 | "There are many important documents relating to | ||||||
12 | the timeshare plan that you should review before | ||||||
13 | purchasing a timeshare interest. These may include, | ||||||
14 | but are not limited to, (a) the declaration of | ||||||
15 | condominium, (b) the declaration of timeshare plan, | ||||||
16 | (c) the reciprocal easement and cost sharing | ||||||
17 | agreement, (d) the declaration of restrictions, | ||||||
18 | covenants, and conditions, (e) the owners association | ||||||
19 | articles and bylaws, (f) the current year's operating | ||||||
20 | and reserve budgets, if any, for the owners | ||||||
21 | association, and (g) any rules and regulations | ||||||
22 | affecting the use of the timeshare property or other | ||||||
23 | facility or amenity available for use by timeshare | ||||||
24 | interest owners."
| ||||||
25 | (7) In making the disclosures required by this | ||||||
26 | subsection (d), the
timeshare resale agent may rely upon |
| |||||||
| |||||||
1 | information provided in writing by the
owner or managing | ||||||
2 | entity of the timeshare plan.
| ||||||
3 | (8) The purchaser's 5 calendar day 5-day cancellation | ||||||
4 | period as required by Section
10-10.
| ||||||
5 | (9) Any other information determined by the Department | ||||||
6 | Office of Banks and Real
Estate and established by rule.
| ||||||
7 | (e) A resale agent must be licensed as a real estate broker | ||||||
8 | or salesperson pursuant to the Real Estate License Act of 2000 | ||||||
9 | or its successor Act. | ||||||
10 | (f) A resale agent is exempt from the duties imposed by | ||||||
11 | subsections (a) through (d) of this Section if the resale agent | ||||||
12 | offers an aggregate total of no more than 8 timeshare interests | ||||||
13 | per calendar year as a resale agent, regardless of (1) whether | ||||||
14 | those timeshare interests are located in this State and (2) | ||||||
15 | whether the resale agent offers all, or only some, of those | ||||||
16 | timeshare interests, in this State. | ||||||
17 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
18 | (765 ILCS 101/5-45)
| ||||||
19 | Sec. 5-45.
Amendment to registration information or public | ||||||
20 | offering
statement. The developer , resale agent, and exchange | ||||||
21 | company shall amend or
supplement their disclosure documents | ||||||
22 | and registration information to reflect
any
material change in | ||||||
23 | any information required by this Act or the rules
implementing | ||||||
24 | this Act. All such
amendments,
supplements, and changes shall | ||||||
25 | be filed with the Department Office of Banks and Real
Estate |
| |||||||
| |||||||
1 | within
30 20 calendar days of the material change.
| ||||||
2 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
3 | (765 ILCS 101/5-50)
| ||||||
4 | Sec. 5-50. Registration review time frames. Every | ||||||
5 | registration required
to be
filed with the Department Office of | ||||||
6 | Banks and Real Estate under this Act shall be reviewed
and
| ||||||
7 | issued a certificate of registration in accordance with the | ||||||
8 | following schedule:
| ||||||
9 | (1) Comprehensive registration. Registration shall be | ||||||
10 | effective only upon
the
issuance of a certificate of | ||||||
11 | registration by the Department Office of Banks and Real
| ||||||
12 | Estate ,
which, in the ordinary course of business, should | ||||||
13 | occur no more than 60
calendar
days after actual receipt by | ||||||
14 | the Department Office of Banks and Real Estate of the
| ||||||
15 | properly
completed application. The Department shall | ||||||
16 | Office of Banks and Real Estate must provide a list
of | ||||||
17 | deficiencies in the application, if any, within 60 calendar | ||||||
18 | days of receipt. The list may be in a written or electronic | ||||||
19 | format.
| ||||||
20 | (2) Abbreviated registration. Registration shall be | ||||||
21 | effective only upon
the
issuance of a certificate of | ||||||
22 | registration by the Department Office of Banks and Real
| ||||||
23 | Estate ,
which, in the ordinary course of business, should | ||||||
24 | occur no more than 30
calendar
days after actual receipt by | ||||||
25 | the Department Office of Banks and Real Estate of the
|
| |||||||
| |||||||
1 | properly
completed application. The Department shall | ||||||
2 | Office of Banks and Real Estate must provide a
list of
| ||||||
3 | deficiencies in the application, if any, within 30 calendar | ||||||
4 | days of receipt. The list may be in a written or electronic | ||||||
5 | format.
| ||||||
6 | (3) Alternative assurance registration. Registration | ||||||
7 | shall be deemed
effective
only upon the issuance of a | ||||||
8 | certificate of registration by the Department, which, in | ||||||
9 | the ordinary course of business, should occur no more than | ||||||
10 | within 30 15 calendar days after of receipt by the | ||||||
11 | Department. The Department shall provide a , unless the
| ||||||
12 | Office of Banks and Real Estate provides to the applicant a | ||||||
13 | written list of
deficiencies in the application, if any, | ||||||
14 | within 30 15 calendar days of receipt. The list may be in a | ||||||
15 | written or electronic format.
| ||||||
16 | (4) Preliminary permit registration. A preliminary | ||||||
17 | permit shall be issued only upon the written approval by | ||||||
18 | the Department, which, in the ordinary course of business, | ||||||
19 | should occur no more than 30
within 15
calendar days after | ||||||
20 | actual of receipt of the required documentation by the | ||||||
21 | Department. The Department shall provide a , unless the
| ||||||
22 | Office of Banks and Real Estate provides to the applicant a | ||||||
23 | written list of
deficiencies in the application, if any, | ||||||
24 | within 30 15 calendar days of receipt. The list may be in a | ||||||
25 | written or electronic format.
| ||||||
26 | (5) Exchange company registration. Registration shall |
| |||||||
| |||||||
1 | be effective only upon
the issuance of a certificate of | ||||||
2 | registration by the Department, which, in the ordinary | ||||||
3 | course of business, should occur no more than 60 calendar | ||||||
4 | days after the actual receipt
by the Office of Banks and | ||||||
5 | Real Estate of a properly completed application by the | ||||||
6 | Department .
The Department shall
Office of Banks and Real | ||||||
7 | Estate must provide a list of deficiencies in the
| ||||||
8 | application, if any, within 60 30 calendar days of receipt. | ||||||
9 | The list may be in a written or electronic format.
| ||||||
10 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
11 | (765 ILCS 101/5-55)
| ||||||
12 | Sec. 5-55. Fees. The Department Office of Banks and Real | ||||||
13 | Estate shall provide, by
rule,
for fees to be paid by | ||||||
14 | applicants and registrants to cover the reasonable costs
of the | ||||||
15 | Department Office
of Banks and Real Estate in administering and | ||||||
16 | enforcing the provisions of
this Act.
The Department Office of | ||||||
17 | Banks and Real Estate may also provide, by rule, for general | ||||||
18 | fees
to cover
the reasonable expenses of carrying out other | ||||||
19 | functions and responsibilities
under this
Act.
| ||||||
20 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
21 | (765 ILCS 101/5-60)
| ||||||
22 | Sec. 5-60. Registration; offer or disposal of interest ; | ||||||
23 | renewal . | ||||||
24 | (a) A developer or ,
exchange
company, or resale agent, or |
| |||||||
| |||||||
1 | any of their agents, shall not sell, offer, or
dispose of a
| ||||||
2 | timeshare interest unless all necessary registrations are | ||||||
3 | filed and approved by
the Department Office
of Banks and Real | ||||||
4 | Estate , or while an order revoking or suspending a
registration | ||||||
5 | is in
effect.
| ||||||
6 | (b) An applicant for registration under this Act shall | ||||||
7 | submit the necessary
information to complete the application, | ||||||
8 | as required by the Department Office of Banks and
Real Estate , | ||||||
9 | within 6 months from the date the initial registration
| ||||||
10 | application was received by the Department Office of Banks and | ||||||
11 | Real Estate . If the
applicant fails to submit the information | ||||||
12 | necessary to complete the application
as required by the | ||||||
13 | Department Office of Banks and Real Estate within the six month | ||||||
14 | period,
said application shall be voided, and a new | ||||||
15 | registration application with
applicable fees must be | ||||||
16 | submitted.
| ||||||
17 | (c) The registration of a developer, exchange company, | ||||||
18 | individual, or entity registered under this Act shall be | ||||||
19 | renewed as required by rule. | ||||||
20 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
21 | (765 ILCS 101/10-5)
| ||||||
22 | Sec. 10-5. Management and operation provisions.
| ||||||
23 | (a) Before the first sale of a timeshare interest, the | ||||||
24 | developer shall
create or
provide for a managing entity, which | ||||||
25 | shall be either the developer, a separate
manager or
management |
| |||||||
| |||||||
1 | firm, the board of directors of an owners' association, or some
| ||||||
2 | combination
thereof.
| ||||||
3 | (b) The duties of the managing entity include, but are not | ||||||
4 | limited to:
| ||||||
5 | (1) Management and maintenance of all accommodations | ||||||
6 | constituting the
timeshare plan.
| ||||||
7 | (2) Collection of all assessments as provided in the | ||||||
8 | timeshare instrument.
| ||||||
9 | (3) Providing to all purchasers each year an itemized | ||||||
10 | annual budget, which
shall
include all estimated revenues | ||||||
11 | and expenses.
| ||||||
12 | (4) Maintenance of all books and records concerning the | ||||||
13 | timeshare plan.
| ||||||
14 | (5) Scheduling occupancy of accommodations, when | ||||||
15 | purchasers are not
entitled
to use specific timeshare | ||||||
16 | periods, so that all purchasers will be provided the
| ||||||
17 | opportunity to use and possession of the accommodations of | ||||||
18 | the timeshare plan
which they have purchased.
| ||||||
19 | (6) Performing any other functions and duties that are | ||||||
20 | necessary and
proper to
maintain the accommodations or that | ||||||
21 | are required by the timeshare instrument.
| ||||||
22 | (c) If In the event a developer, mortgagee, managing | ||||||
23 | entity, or association does not pursue nonjudicial foreclosure | ||||||
24 | as provided in Section 10-50 or 10-55 and instead forecloses | ||||||
25 | against a timeshare interest pursuant to the Illinois Mortgage | ||||||
26 | Foreclosure Law, files a
complaint in a
foreclosure proceeding |
| |||||||
| |||||||
1 | involving timeshare interests, the developer, mortgagee, | ||||||
2 | managing
entity, or
association may join in the same action | ||||||
3 | multiple defendant obligors and junior
interest holders of | ||||||
4 | separate timeshare interests, provided:
| ||||||
5 | (1) the foreclosure proceeding involves a single | ||||||
6 | timeshare plan;
| ||||||
7 | (2) the foreclosure proceeding is filed by a single | ||||||
8 | plaintiff;
| ||||||
9 | (3) the default and remedy provisions in the written | ||||||
10 | instruments on which
the
foreclosure proceeding is based | ||||||
11 | are substantially the same for each defendant;
and
| ||||||
12 | (4) the nature of the defaults alleged is the same for | ||||||
13 | each defendant.
| ||||||
14 | (d) In any foreclosure proceeding involving multiple | ||||||
15 | defendants filed under
subsection (c), the court shall sever | ||||||
16 | for separate trial any count of the
complaint in which
a | ||||||
17 | defense or counterclaim is timely raised by a defendant.
| ||||||
18 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
19 | (765 ILCS 101/10-15)
| ||||||
20 | Sec. 10-15. Interests, liens, and encumbrances; | ||||||
21 | alternative assurances.
| ||||||
22 | (a) Excluding any encumbrance placed against the | ||||||
23 | purchaser's timeshare
interest
securing the purchaser's | ||||||
24 | payment of purchase-money financing for such purchase,
the
| ||||||
25 | developer shall not be entitled to the release of any funds |
| |||||||
| |||||||
1 | escrowed under
subsection (c)
of Section 5-15 with respect to | ||||||
2 | each timeshare interest and any other property
or rights to
| ||||||
3 | property appurtenant to the timeshare interest, including any | ||||||
4 | amenities
represented to the
purchaser as being part of the | ||||||
5 | timeshare plan, until the developer has provided
satisfactory | ||||||
6 | evidence to the Department Office of Banks and Real Estate of | ||||||
7 | one of the
following:
| ||||||
8 | (1) The timeshare interest together with any other
| ||||||
9 | property or rights to property appurtenant to the timeshare | ||||||
10 | interest, including
any amenities represented
to the
| ||||||
11 | purchaser as being part of the timeshare plan, are free and | ||||||
12 | clear of any of the
claims of the developer, any owner of | ||||||
13 | the underlying fee, a mortgagee, judgment
creditor, or | ||||||
14 | other lienor, or any other person having an interest in or | ||||||
15 | lien or
encumbrance against the timeshare interest or | ||||||
16 | appurtenant property or property
rights.
| ||||||
17 | (2) The developer, any owner of the underlying fee, a | ||||||
18 | mortgagee, judgment
creditor, or other lienor, or any other | ||||||
19 | person having an interest in or lien or
encumbrance against | ||||||
20 | the timeshare interest or appurtenant property or property
| ||||||
21 | rights, including any amenities represented to the | ||||||
22 | purchaser as being part of
the
timeshare plan, has recorded | ||||||
23 | a subordination and notice to creditors document
in
the | ||||||
24 | appropriate public records of the jurisdiction in which
the
| ||||||
25 | timeshare interest is located. The subordination document | ||||||
26 | shall expressly and
effectively provide that the interest |
| |||||||
| |||||||
1 | holder's right, lien, or encumbrance
shall
not
adversely | ||||||
2 | affect, and shall be subordinate to, the rights of the | ||||||
3 | owners of the
timeshare interests in the timeshare plan | ||||||
4 | regardless of the date of purchase,
from
and after the | ||||||
5 | effective date of the subordination document.
| ||||||
6 | (3) The developer, any owner of the underlying fee, a | ||||||
7 | mortgagee, judgment
creditor, or other lienor, or any other | ||||||
8 | person having an interest in or lien or
encumbrance against | ||||||
9 | the timeshare interest or appurtenant property or property
| ||||||
10 | rights, including any amenities represented to the | ||||||
11 | purchaser as being part of
the
timeshare plan, has | ||||||
12 | transferred the subject accommodations or amenities or all
| ||||||
13 | use
rights therein to a nonprofit organization or owners' | ||||||
14 | association to be held
for the
use and benefit of the | ||||||
15 | owners of the timeshare plan, which entity shall act as
a
| ||||||
16 | fiduciary to the purchasers, provided that the developer | ||||||
17 | has transferred
control of such entity to the owners or | ||||||
18 | does not exercise its voting rights in
such
entity with | ||||||
19 | respect to the subject accommodations or amenities. Prior | ||||||
20 | to the
transfer, any lien or other encumbrance against the | ||||||
21 | accommodation or facility
shall be made subject to a | ||||||
22 | subordination and notice to creditors instrument
pursuant | ||||||
23 | to paragraph (2).
| ||||||
24 | (4) Alternative arrangements have been made which are | ||||||
25 | adequate to protect
the
rights of the purchasers of the | ||||||
26 | timeshare interests and approved by the Department Office
|
| |||||||
| |||||||
1 | of
Banks and Real Estate .
| ||||||
2 | (b) Nothing in this Section shall prevent a developer from | ||||||
3 | accessing any
escrow
funds
if the developer has complied with
| ||||||
4 | subsection (c)
of Section 5-15.
| ||||||
5 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
6 | (765 ILCS 101/10-25)
| ||||||
7 | Sec. 10-25. Liability; material misrepresentation ; | ||||||
8 | promotions .
| ||||||
9 | (a) A developer or other person offering a timeshare plan | ||||||
10 | may not do any of
the
following:
| ||||||
11 | (1) Misrepresent a fact material to a purchaser's | ||||||
12 | decision to buy a
timeshare
interest.
| ||||||
13 | (2) Predict specific or immediate increases in the | ||||||
14 | value of a timeshare
interest
represented over a period of | ||||||
15 | time, excluding bona fide pending price increases
by
the | ||||||
16 | developer.
| ||||||
17 | (3) Materially misrepresent the qualities or | ||||||
18 | characteristics of
accommodations
or
the amenities | ||||||
19 | available to the occupant of those accommodations.
| ||||||
20 | (4) Misrepresent the length of time accommodations or | ||||||
21 | amenities will be
available to the purchaser of a timeshare | ||||||
22 | interest.
| ||||||
23 | (5) Misrepresent the conditions under which a | ||||||
24 | purchaser of a timeshare
interest
may exchange the right of | ||||||
25 | his or her occupancy for the right to occupy other
|
| |||||||
| |||||||
1 | accommodations.
| ||||||
2 | (b) A developer or other person using a promotion in | ||||||
3 | connection with the
offering
of a timeshare interest shall | ||||||
4 | clearly disclose all of the following:
| ||||||
5 | (1) That the purpose of the promotion is to sell | ||||||
6 | timeshare interests,
which shall appear in bold face or | ||||||
7 | other conspicuous type.
| ||||||
8 | (2) That any person whose name or address is obtained | ||||||
9 | during the promotion
may
be solicited to purchase a | ||||||
10 | timeshare interest.
| ||||||
11 | (3) The name of each developer or other person trying | ||||||
12 | to sell a timeshare
interest
through the promotion, and the | ||||||
13 | name of each person paying for the promotion.
| ||||||
14 | (4) The complete rules of the promotion.
| ||||||
15 | (5) The method of awarding prizes, gifts, vacations, | ||||||
16 | discount vacations,
or
other
benefits under the promotion; | ||||||
17 | a complete and fully detailed description,
including
| ||||||
18 | approximate retail value, of all prizes, gifts, or benefits | ||||||
19 | under the
promotion; the
quantity of each prize, gift, or | ||||||
20 | benefit to be awarded or conferred; and the
date by
which | ||||||
21 | each prize, gift, or benefit will be awarded or conferred.
| ||||||
22 | (6) Any other disclosures provided by rule.
| ||||||
23 | (c) If a person represents that a prize, gift, or benefit | ||||||
24 | will be awarded in
connection with a promotion, the prize, | ||||||
25 | gift, or benefit must be awarded or
conferred in
the manner | ||||||
26 | represented, and on or before the date represented.
|
| |||||||
| |||||||
1 | (d) A developer or other person using a promotion in | ||||||
2 | connection with the offering of a timeshare interest shall | ||||||
3 | provide the disclosures required by this Section in writing or | ||||||
4 | electronically to the prospective purchaser at least once | ||||||
5 | before the earlier of (1) a reasonable period before the | ||||||
6 | scheduled sales presentation to ensure that the prospective | ||||||
7 | purchaser receives the disclosures before leaving to attend the | ||||||
8 | sales presentation or (2) the payment of any nonrefundable | ||||||
9 | monies by the prospective purchaser in regard to the promotion. | ||||||
10 | (e) A developer or other person using a promotion in | ||||||
11 | connection with the offering of a timeshare interest is not | ||||||
12 | required to provide the disclosures required by this Section in | ||||||
13 | every advertisement or other written, oral, or electronic | ||||||
14 | communication provided or made to a prospective purchaser. | ||||||
15 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
16 | (765 ILCS 101/10-30)
| ||||||
17 | Sec. 10-30. Records. The managing entity shall keep | ||||||
18 | detailed financial
records directly related to the operation of | ||||||
19 | the association. All financial
and other records
shall be made | ||||||
20 | reasonably available for examination by any purchaser, or the
| ||||||
21 | authorized
agent of the purchaser, and the Department Office of | ||||||
22 | Banks and Real Estate . For purposes
of this
Section, the books | ||||||
23 | and records of the timeshare plan shall be considered
| ||||||
24 | "reasonably
available" if copies of the requested portions are | ||||||
25 | delivered to the purchaser
or the
purchaser's agent or the |
| |||||||
| |||||||
1 | Department Office of Banks and Real Estate within 7 days of the
| ||||||
2 | date the
managing entity receives a written request for the | ||||||
3 | records signed by the
purchaser or the Department
Office of | ||||||
4 | Banks and Real Estate . The managing entity may charge the | ||||||
5 | purchaser
a
reasonable fee for copying the requested | ||||||
6 | information.
| ||||||
7 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
8 | (765 ILCS 101/10-45 new) | ||||||
9 | Sec. 10-45. Managing entity lien created. | ||||||
10 | (a) A managing entity has a lien on a timeshare interest | ||||||
11 | for any of the following respectively levied or imposed against | ||||||
12 | a timeshare interest: | ||||||
13 | (1) Assessments, which for purposes of this Act unless | ||||||
14 | the timeshare instrument provides otherwise, shall include | ||||||
15 | fees, charges, late charges, fines, collection costs, and | ||||||
16 | interest charged in accordance with the timeshare | ||||||
17 | instrument; | ||||||
18 | (2) Reasonable collection and attorneys fees and costs | ||||||
19 | the managing entity incurs to collect assessments; and | ||||||
20 | (3) Taxes, interest, penalties, late payment fees or | ||||||
21 | fines in accordance with applicable law or the timeshare | ||||||
22 | instrument. | ||||||
23 | (b) Managing entity liens pursuant to this Section are | ||||||
24 | created and attached when the charges described in Section | ||||||
25 | 10-45(a) become due. If such amounts are payable in |
| |||||||
| |||||||
1 | installments, the full amount of such charges is a managing | ||||||
2 | entity lien from the time that the first installment thereof | ||||||
3 | becomes due. | ||||||
4 | (c) Managing entity liens pursuant to this Section are | ||||||
5 | perfected on the date that the managing entity: | ||||||
6 | (1) In the case of a timeshare estate, records a notice | ||||||
7 | of lien against the timeshare estate in the office of the | ||||||
8 | recorder in the county where the timeshare estate is | ||||||
9 | located, which notice of lien must identify each of the | ||||||
10 | following: | ||||||
11 | (A) The name of the timeshare estate owner; | ||||||
12 | (B) The name and address of the managing entity; | ||||||
13 | (C) The description of the timeshare estate in the | ||||||
14 | same manner required for recording a mortgage against a | ||||||
15 | timeshare estate; and | ||||||
16 | (D) The amount of the debt secured by the managing | ||||||
17 | entity lien. | ||||||
18 | (2) In the case of a timeshare use, files a notice of | ||||||
19 | lien against the timeshare use in the filing office of the | ||||||
20 | Illinois Secretary of State pursuant to Article 9 of the | ||||||
21 | Uniform Commercial Code, which notice of lien, in addition | ||||||
22 | to any other filing requirements imposed by Article 9 of | ||||||
23 | the Uniform Commercial Code, must identify each of the | ||||||
24 | following: | ||||||
25 | (A) The name of the timeshare use owner as the | ||||||
26 | debtor; |
| |||||||
| |||||||
1 | (B) The name of the managing entity as the secured | ||||||
2 | party; | ||||||
3 | (C) The address of the managing entity; | ||||||
4 | (D) The timeshare use as the collateral; and | ||||||
5 | (E) The amount of the debt secured by the managing | ||||||
6 | entity lien. | ||||||
7 | (d) The managing entity must send a copy of the recorded or | ||||||
8 | filed notice of lien on the timeshare interest, as the case may | ||||||
9 | be, to the last known address of the timeshare interest owner. | ||||||
10 | (e) A managing entity lien against a timeshare estate, at | ||||||
11 | the managing entity's option, may (1) be foreclosed as provided | ||||||
12 | in Section 10-50 or (2) be foreclosed in the same manner as a | ||||||
13 | mortgage pursuant to the Illinois Mortgage Foreclosure Law. | ||||||
14 | (f) A managing entity lien against a timeshare use, at the | ||||||
15 | managing entity's option, may (1) be foreclosed as provided in | ||||||
16 | Section 10-55 or (2) be enforced in the same manner as a | ||||||
17 | security interest pursuant to Article 9 of the Uniform | ||||||
18 | Commercial Code.
| ||||||
19 | (765 ILCS 101/10-50 new) | ||||||
20 | Sec. 10-50. Nonjudicial foreclosure against timeshare | ||||||
21 | estates. | ||||||
22 | (a) Notwithstanding anything in the Illinois Mortgage | ||||||
23 | Foreclosure Law or other applicable law to the contrary: | ||||||
24 | (1) The holder of a mortgage against a timeshare estate | ||||||
25 | may foreclose or otherwise enforce a security interest |
| |||||||
| |||||||
1 | pursuant to this Section 10-50; and | ||||||
2 | (2) The holder of a managing entity lien against a | ||||||
3 | timeshare estate may foreclose such managing entity lien | ||||||
4 | pursuant to this Section 10-50. | ||||||
5 | (b) Upon default, and after all applicable cure periods | ||||||
6 | identified in the mortgage (if such default is under a | ||||||
7 | mortgage) or the timeshare instrument (if default is under a | ||||||
8 | managing entity lien) have expired, the holder of the mortgage | ||||||
9 | or managing entity lien must: | ||||||
10 | (1) Provide written notice of the default to the | ||||||
11 | timeshare estate owner at the last known address of the | ||||||
12 | timeshare estate owner by (A) certified mail, return | ||||||
13 | receipt requested and (B) first-class mail. | ||||||
14 | (2) Provide the timeshare estate owner an additional | ||||||
15 | opportunity to cure for a period of at least 30 days | ||||||
16 | following the later date of the mailing of the notices | ||||||
17 | pursuant to Sections 10-50(b)(1)(A) and 10-50(b)(1)(B). | ||||||
18 | (c) If, the timeshare estate owner does not cure the | ||||||
19 | default before the expiration of the additional cure period | ||||||
20 | granted pursuant to Section 10-50(b)(2), the holder of the | ||||||
21 | mortgage or managing entity lien may foreclose the mortgage or | ||||||
22 | managing entity lien by conducting a public auction that | ||||||
23 | complies with the following requirements: | ||||||
24 | (1) The holder of the mortgage or managing entity lien | ||||||
25 | must provide notice of the public auction as follows: | ||||||
26 | (A) By publishing notice of the public auction in |
| |||||||
| |||||||
1 | at least each of 3 successive weeks in a newspaper, | ||||||
2 | whether printed or electronic, of general circulation | ||||||
3 | in the county where the timeshare estate is located. | ||||||
4 | The first notice must be published no more than 30 days | ||||||
5 | before the date of the public auction, which 30-day | ||||||
6 | period shall be calculated by excluding the date of | ||||||
7 | publication of the first notice and the date of the | ||||||
8 | public auction. | ||||||
9 | (B) By sending written notice identifying the | ||||||
10 | time, date, and place of the public auction to the last | ||||||
11 | known address of the owner of record of the timeshare | ||||||
12 | estate at least 30 days before the date of the public | ||||||
13 | auction by (i) certified mail, return receipt | ||||||
14 | requested and (ii) first-class mail. | ||||||
15 | (C) By sending notice identifying the time, date, | ||||||
16 | and place of the public auction to all persons known to | ||||||
17 | have a lien against the timeshare estate at least 30 | ||||||
18 | days before the date of the public auction by certified | ||||||
19 | mail, return receipt requested. | ||||||
20 | (2) The notices given pursuant to Section 10-50(c)(1) | ||||||
21 | must also contain: | ||||||
22 | (A) The name of the timeshare estate owner; | ||||||
23 | (B) A general description of the timeshare estate; | ||||||
24 | and | ||||||
25 | (C) The terms of the public auction. | ||||||
26 | (3) If more than one timeshare estate is to be included |
| |||||||
| |||||||
1 | in the public auction, all such timeshare estates may be | ||||||
2 | combined into one notice of public auction. | ||||||
3 | (4) The public notice required by Section | ||||||
4 | 10-50(c)(1)(A) for foreclosing a mortgage against a | ||||||
5 | timeshare estate must be printed in substantially the | ||||||
6 | following form:
| ||||||
7 | NOTICE OF SALE OF TIMESHARE ESTATE OR ESTATES UNDER SECTION | ||||||
8 | 10-50 OF THE ILLINOIS REAL ESTATE TIMESHARE ACT OF 1999
| ||||||
9 | By virtue of 765 ILCS 101/10-50 and in execution of a certain | ||||||
10 | mortgage (or mortgages, if more than one) on the timeshare | ||||||
11 | estate (or estates, if more than one) given by the owner of the | ||||||
12 | timeshare estate (or owners, if more than one) set forth below | ||||||
13 | for breach of the conditions of said mortgage (or mortgages, if | ||||||
14 | more than one) and for the purpose of foreclosing, the same | ||||||
15 | will be sold at public auction starting at........... | ||||||
16 | on............ 20.. at........, Illinois, being all and | ||||||
17 | singular the premises described in said mortgage (or mortgages, | ||||||
18 | if more than one). (For each mortgage, list the name and | ||||||
19 | address of the timeshare estate owner, a general description of | ||||||
20 | the timeshare estate, and the book and page number of the | ||||||
21 | mortgage.)
| ||||||
22 | TERMS OF SALE: (State the deposit amount to be paid by the | ||||||
23 | purchaser at the time and place of the sale and the times for |
| |||||||
| |||||||
1 | payment of the balance or the whole, as the case may be. The | ||||||
2 | timeshare estates, if more than one, must be sold in individual | ||||||
3 | lots unless there are no individual bidders, in which case, | ||||||
4 | they may be sold as a group.)
| ||||||
5 | Other terms may be announced at the public auction.
| ||||||
6 | Signed.................................
| ||||||
7 | Holder of mortgage or authorized agent. | ||||||
8 | (5) The public notice required by Section | ||||||
9 | 10-50(c)(1)(A) for foreclosing a managing entity lien | ||||||
10 | against a timeshare estate must be printed in substantially | ||||||
11 | the following form:
| ||||||
12 | NOTICE OF SALE OF TIMESHARE ESTATE OR ESTATES UNDER SECTION | ||||||
13 | 10-50 OF THE ILLINOIS REAL ESTATE TIMESHARE ACT OF 1999
| ||||||
14 | By virtue of the timeshare instrument of the | ||||||
15 | ................... (name and address of timeshare property) | ||||||
16 | and 765 ILCS 101/10-45 establishing a managing entity lien for | ||||||
17 | failure to pay assessments and other costs on the timeshare | ||||||
18 | estate (or estates, if more than one) held by the owner of the | ||||||
19 | timeshare estate (or owners, if more than one) listed below, | ||||||
20 | the timeshare estate (or estates, if more than one) and for the | ||||||
21 | purpose of foreclosing, the same will be sold at public auction |
| |||||||
| |||||||
1 | starting at ......... on ........ 20.. at ............., | ||||||
2 | Illinois. (For each timeshare estate, list the name and address | ||||||
3 | of the timeshare estate owner, a general description of the | ||||||
4 | timeshare estate, and the book and page number of the deed.)
| ||||||
5 | TERMS OF SALE: (State the deposit amount to be paid by the | ||||||
6 | purchaser at the time and place of the sale and the times for | ||||||
7 | payment of the balance or the whole, as the case may be. The | ||||||
8 | timeshare estates, if more than one, must be sold in individual | ||||||
9 | lots unless there are no individual bidders, in which case, | ||||||
10 | they may be sold as a group.)
| ||||||
11 | Other terms may be announced at the public auction.
| ||||||
12 | Signed ................................
| ||||||
13 | Managing entity lienholder or authorized agent.
| ||||||
14 | (6) Publishing and sending notices in compliance with | ||||||
15 | this Section 10-50(c) constitutes sufficient public notice | ||||||
16 | of the public auction. | ||||||
17 | (d) Public auctions pursuant to this Section 10-50 must be | ||||||
18 | conducted as follows: | ||||||
19 | (1) The public auction must take place within the | ||||||
20 | county where the timeshare estate is located. | ||||||
21 | (2) The public auction must be open to the general |
| |||||||
| |||||||
1 | public and conducted by an auctioneer licensed pursuant to | ||||||
2 | the Auction License Act. | ||||||
3 | (3) Notwithstanding anything in the Auction License | ||||||
4 | Act to the contrary, the auctioneer, in his or her | ||||||
5 | discretion, may waive the reading of the names of the | ||||||
6 | timeshare estate owners, if more than one, the description | ||||||
7 | of the timeshare estates, if more than one, and the | ||||||
8 | recording information of the applicable mortgages or | ||||||
9 | managing entity liens (as the case may be), if more than | ||||||
10 | one. | ||||||
11 | (4) All rights of redemption of the timeshare estate | ||||||
12 | owner are extinguished upon sale of a timeshare estate at | ||||||
13 | the public auction. | ||||||
14 | (5) The holder of the mortgage or managing entity lien, | ||||||
15 | the developer, the managing entity, and the timeshare | ||||||
16 | estate owner are not precluded from bidding at the public | ||||||
17 | auction. | ||||||
18 | (6) The successful purchaser at the public auction is | ||||||
19 | not required to complete the purchase of the timeshare | ||||||
20 | estate if the timeshare estate, at the time the auctioneer | ||||||
21 | accepts the successful bid, is subject to liens or other | ||||||
22 | encumbrances, other than those identified in the notice of | ||||||
23 | public auction and those identified at the auction before | ||||||
24 | the auctioneer opens bidding on the applicable timeshare | ||||||
25 | estate. | ||||||
26 | (7) The purchaser at the public auction takes title to |
| |||||||
| |||||||
1 | the timeshare estate free and clear of any outstanding | ||||||
2 | assessments owed by the prior timeshare estate owner to the | ||||||
3 | managing entity. | ||||||
4 | (e) Upon the sale of a timeshare estate pursuant to this | ||||||
5 | Section 10-50, the holder of the mortgage or managing entity | ||||||
6 | lien must provide the purchaser with (1) a foreclosure deed or | ||||||
7 | other appropriate instrument transferring the mortgage | ||||||
8 | holder's or managing entity's interest in the timeshare estate | ||||||
9 | and (2) an affidavit affirming that all requirements of the | ||||||
10 | foreclosure pursuant to this Section 10-50 have been satisfied. | ||||||
11 | (f) The timeshare estate is considered sold, and the deed | ||||||
12 | or other instrument transferring the timeshare estate must | ||||||
13 | transfer the timeshare estate, subject to municipal or other | ||||||
14 | taxes and any liens or encumbrances recorded before the | ||||||
15 | recording of the mortgage or the managing entity lien | ||||||
16 | foreclosed pursuant to this Section 10-50 (as the case may be), | ||||||
17 | but not including such managing entity lien. | ||||||
18 | (g) The purchaser of a timeshare estate at a public auction | ||||||
19 | pursuant to this Section 10-50 must record the foreclosure deed | ||||||
20 | or other instrument with the appropriate recorder of deeds | ||||||
21 | within 30 days after the date the foreclosing mortgage holder | ||||||
22 | or managing entity (as the case may be) delivers the | ||||||
23 | foreclosure deed or other instrument to the purchaser. | ||||||
24 | (h) If the holder of a mortgage or managing entity lien | ||||||
25 | conducts a nonjudicial foreclosure pursuant to this Section | ||||||
26 | 10-50, the holder of the mortgage or managing entity lien |
| |||||||
| |||||||
1 | forfeits its right to pursue a claim for any deficiency in the | ||||||
2 | payment of the obligations of the timeshare estate owner | ||||||
3 | resulting from the application of the proceeds of the sale to | ||||||
4 | such obligations. | ||||||
5 | (i) For purposes of this Section 10-50, obligations to pay | ||||||
6 | assessments secured by a lien established pursuant to a | ||||||
7 | timeshare instrument before the effective date of this | ||||||
8 | amendatory Act of the 96th General Assembly are considered | ||||||
9 | managing entity liens. | ||||||
10 | (j) This Section 10-50 applies to the foreclosure of | ||||||
11 | mortgages and liens considered to be managing entity liens that | ||||||
12 | arose before or after the effective date of this amendatory Act | ||||||
13 | of the 96th General Assembly.
| ||||||
14 | (765 ILCS 101/10-55 new) | ||||||
15 | Sec. 10-55. Foreclosure of lien or security interest on a | ||||||
16 | timeshare use. | ||||||
17 | (a) Notwithstanding anything in the Illinois Mortgage | ||||||
18 | Foreclosure Law or the Uniform Commercial Code to the contrary, | ||||||
19 | the holder of a managing entity lien on a timeshare use created | ||||||
20 | by Section 10-45, in the case of the failure to pay assessments | ||||||
21 | when due, or a security interest against a timeshare use, in | ||||||
22 | the case of a breach of the security agreement, may do either | ||||||
23 | of the following: | ||||||
24 | (1) Enforce the security interest pursuant to Part 6 of | ||||||
25 | Article 9 of the Uniform Commercial Code, including |
| |||||||
| |||||||
1 | (without limitation) accepting the timeshare use in full or | ||||||
2 | partial satisfaction of the timeshare use owner's | ||||||
3 | obligation pursuant to Section 9-620 of the Uniform | ||||||
4 | Commercial Code; or | ||||||
5 | (2) Nonjudicially foreclose in the same manner as | ||||||
6 | authorized by Section 10-50 for holders of a mortgage or | ||||||
7 | managing entity lien against a timeshare estate. | ||||||
8 | (b) All rights of redemption of a timeshare use owner are | ||||||
9 | extinguished upon sale of a timeshare use as authorized by | ||||||
10 | Section 10-55(a). | ||||||
11 | (c) The holder of the security interest or managing entity | ||||||
12 | lien, the developer, the managing entity and the timeshare use | ||||||
13 | owner are not precluded from bidding at the sale of the | ||||||
14 | timeshare use pursuant to this Section 10-55 and may enter into | ||||||
15 | agreements for the purchase of one or more timeshare uses | ||||||
16 | following the completion of the sale proceedings. | ||||||
17 | (d) The purchaser at the public auction takes title to the | ||||||
18 | timeshare use free and clear of any outstanding assessments | ||||||
19 | owed by the prior timeshare use owner to the managing entity.
| ||||||
20 | (765 ILCS 101/15-5)
| ||||||
21 | Sec. 15-5. Investigation. The Department Office of Banks | ||||||
22 | and Real Estate may
investigate the actions or qualifications | ||||||
23 | of any person or persons holding or
claiming to hold a | ||||||
24 | certificate of registration under this Act. Such a person
is
| ||||||
25 | referred to as "the respondent" in this Article.
|
| |||||||
| |||||||
1 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
2 | (765 ILCS 101/15-10)
| ||||||
3 | Sec. 15-10.
Disciplinary hearings; record; appointment of | ||||||
4 | administrative
law judge.
| ||||||
5 | (a) The Department Office of Banks and Real Estate has the | ||||||
6 | authority to conduct hearings
before an administrative law | ||||||
7 | judge on proceedings to revoke, suspend, place on
probation, | ||||||
8 | reprimand, or refuse to issue or renew registrants registered | ||||||
9 | under
this
Act, or to impose a civil penalty not to exceed | ||||||
10 | $25,000 upon any registrant
registered under this Act.
| ||||||
11 | (b) The Department Office of Banks and Real Estate , at its | ||||||
12 | expense, shall preserve a
record
of all proceedings at the | ||||||
13 | formal hearing of any case involving the refusal to
issue
or | ||||||
14 | the revocation, suspension, or other discipline of a | ||||||
15 | registrant. The
notice of
hearing, complaint, and all other | ||||||
16 | documents in the nature of pleadings and
written
motions filed | ||||||
17 | in the proceedings, the transcript of testimony, the report of
| ||||||
18 | the
Board, and the orders of the Department Office of Banks and | ||||||
19 | Real Estate shall be the
record of
proceeding. At all hearings | ||||||
20 | or prehearing conferences, the Department Office of Banks and
| ||||||
21 | Real Estate and the respondent shall be entitled to have a | ||||||
22 | court reporter in
attendance for purposes of transcribing the | ||||||
23 | proceeding or prehearing
conference.
| ||||||
24 | (c) The Secretary Commissioner has the authority to appoint | ||||||
25 | any attorney duly
licensed
to practice law in the State of |
| |||||||
| |||||||
1 | Illinois to serve as an administrative law
judge in
any action | ||||||
2 | for refusal to issue or renew a certificate of registration or | ||||||
3 | to
discipline
a registrant or person holding a certificate of | ||||||
4 | registration. The
administrative law
judge has full authority | ||||||
5 | to conduct the hearing. The administrative law judge
shall
| ||||||
6 | report his or her findings and recommendations to the Secretary | ||||||
7 | Commissioner . If the Secretary
Commissioner disagrees with the | ||||||
8 | recommendation of the administrative law
judge, the Secretary | ||||||
9 | Commissioner may issue an order in contravention of the
| ||||||
10 | recommendation.
| ||||||
11 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
12 | (765 ILCS 101/15-15)
| ||||||
13 | Sec. 15-15. Notice of proposed disciplinary action; | ||||||
14 | hearing.
| ||||||
15 | (a) Before taking any disciplinary action with regard to | ||||||
16 | any registrant,
the
Department Office of Banks and Real Estate | ||||||
17 | shall:
| ||||||
18 | (1) notify the respondent in writing, at least 30 | ||||||
19 | calendar days prior to
the
date
set for the hearing, of any | ||||||
20 | charges made, the time and place for the hearing of
the
| ||||||
21 | charges, and that testimony at the hearing will be heard | ||||||
22 | under oath; and
| ||||||
23 | (2) inform the respondent that upon failure to file an | ||||||
24 | answer and request
a
hearing before the date originally set | ||||||
25 | for the hearing, default will be taken
against
the |
| |||||||
| |||||||
1 | respondent and the respondent's registration may be | ||||||
2 | suspended or revoked,
or the respondent may be
otherwise | ||||||
3 | disciplined, as the Department Office of Banks and Real | ||||||
4 | Estate may deem
proper.
| ||||||
5 | (b) If the respondent fails to file an answer after | ||||||
6 | receiving notice, the
respondent's registration may, in the | ||||||
7 | discretion of the Department Office of Banks and
Real
Estate , | ||||||
8 | be revoked or suspended, or the respondent may be
otherwise
| ||||||
9 | disciplined as deemed proper,
without
a hearing, if the act or | ||||||
10 | acts charged constitute sufficient grounds for that
action
| ||||||
11 | under this Act.
| ||||||
12 | (c) At the time and place fixed in the notice, the | ||||||
13 | Department Office of Banks and Real
Estate shall proceed to | ||||||
14 | hearing of the charges. Both the respondent and the
complainant | ||||||
15 | shall be accorded ample opportunity to present in person, or by
| ||||||
16 | counsel, statements, testimony, evidence, and argument that | ||||||
17 | may be pertinent to
the charges or any defense to the charges.
| ||||||
18 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
19 | (765 ILCS 101/15-20)
| ||||||
20 | Sec. 15-20. Disciplinary consent orders. Notwithstanding | ||||||
21 | any other
provisions of this Act concerning
the conduct of | ||||||
22 | hearings and recommendations for disciplinary actions, the
| ||||||
23 | Department Office
of Banks and Real Estate has the authority to | ||||||
24 | negotiate agreements with
registrants
and applicants resulting | ||||||
25 | in disciplinary consent orders. Any such consent
order
may |
| |||||||
| |||||||
1 | provide for any form of discipline provided for in the Act. Any | ||||||
2 | such
consent
order shall provide that it is not entered into as | ||||||
3 | a result of any coercion by
the Department
Office of Banks and | ||||||
4 | Real Estate . Any such consent order shall be accepted by
| ||||||
5 | signature or rejected by the Secretary Commissioner in a timely | ||||||
6 | manner.
| ||||||
7 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
8 | (765 ILCS 101/15-25)
| ||||||
9 | Sec. 15-25. Disciplinary action; civil penalty. The | ||||||
10 | Department Office
of
Banks and Real Estate may refuse to issue | ||||||
11 | or renew any registration, or revoke
or suspend
any | ||||||
12 | registration or
place on probation or administrative | ||||||
13 | supervision, or reprimand any
registrant, or impose a civil | ||||||
14 | penalty not to exceed $25,000, for any one or
any
combination | ||||||
15 | of the following causes:
| ||||||
16 | (1) A registrant's disregard or violation of any | ||||||
17 | provision of this Act or
of
the
rules adopted by the | ||||||
18 | Department Office of Banks and Real Estate to enforce this | ||||||
19 | Act.
| ||||||
20 | (2) A conviction of the registrant or any principal of | ||||||
21 | the registrant of
(i) a
felony under the laws of any U.S. | ||||||
22 | jurisdiction, (ii) a misdemeanor under the
laws
of any U.S. | ||||||
23 | jurisdiction if an essential element of the offense is | ||||||
24 | dishonesty,
or (iii)
a crime under the laws of any U.S. | ||||||
25 | jurisdiction if the crime relates directly
to the
practice |
| |||||||
| |||||||
1 | of the profession regulated by this Act.
| ||||||
2 | (3) A registrant's making any misrepresentation for | ||||||
3 | the purpose of
obtaining a
registration or certificate of | ||||||
4 | registration.
| ||||||
5 | (4) A registrant's discipline by another U.S. | ||||||
6 | jurisdiction, state agency,
or
foreign nation regarding | ||||||
7 | the practice of the profession regulated by this Act,
if at
| ||||||
8 | least one of the grounds for the discipline is the same as | ||||||
9 | or substantially
equivalent to one of those set forth in | ||||||
10 | this Act.
| ||||||
11 | (5) A finding by the Department Office of Banks and | ||||||
12 | Real Estate that the registrant,
after
having his or her | ||||||
13 | registration placed on probationary status, has violated | ||||||
14 | the
terms
of probation.
| ||||||
15 | (6) A registrant's practicing or attempting to | ||||||
16 | practice under a name other
than the name as shown on his | ||||||
17 | or her registration or any other legally
authorized
name.
| ||||||
18 | (7) A registrant's failure to file a return, or to pay | ||||||
19 | the tax, penalty, or
interest
shown in a filed return, or | ||||||
20 | to pay any final assessment of tax, penalty, or
interest,
| ||||||
21 | as required by any tax Act administered by the Illinois | ||||||
22 | Department of Revenue,
until the requirements of any such | ||||||
23 | tax Act are satisfied.
| ||||||
24 | (8) A registrant's engaging in dishonorable, | ||||||
25 | unethical, or unprofessional
conduct of a character likely | ||||||
26 | to deceive, defraud, or harm the public.
|
| |||||||
| |||||||
1 | (9) A registrant's aiding or abetting another person or | ||||||
2 | persons in
disregarding
or violating any provision of this | ||||||
3 | Act or of the rules adopted by the Department Office of
| ||||||
4 | Banks and Real Estate to enforce this Act.
| ||||||
5 | (10) Any representation in any document or information | ||||||
6 | filed with the
Department Office
of Banks and Real Estate | ||||||
7 | which is false or misleading.
| ||||||
8 | (11) A registrant's disseminating or causing to be | ||||||
9 | disseminated any false
or
misleading promotional materials | ||||||
10 | or advertisements in connection with a
timeshare plan.
| ||||||
11 | (12) A registrant's concealing, diverting, or | ||||||
12 | disposing of any funds or
assets
of
any person in a manner | ||||||
13 | that impairs the rights of purchasers of timeshare
| ||||||
14 | interests in the timeshare plan.
| ||||||
15 | (13) A registrant's failure to perform any stipulation | ||||||
16 | or agreement made to
induce the Department Office of Banks | ||||||
17 | and Real Estate to issue an order relating to the
timeshare | ||||||
18 | plan.
| ||||||
19 | (14) A registrant's engaging in any act that | ||||||
20 | constitutes a violation of
Section
3-102, 3-103, 3-104, or | ||||||
21 | 3-105 of the Illinois Human Rights Act.
| ||||||
22 | (15) A registrant's failure to provide information | ||||||
23 | requested in writing by
the Department
Office of Banks and | ||||||
24 | Real Estate , within 30 days of the request, either as the
| ||||||
25 | result
of a formal or informal complaint to the Department | ||||||
26 | Office of Banks and Real Estate or as
a
result of a random |
| |||||||
| |||||||
1 | audit conducted by the Department Office of Banks and Real | ||||||
2 | Estate ,
which
would indicate a violation of this Act.
| ||||||
3 | (16) A registrant's failure to account for or remit any | ||||||
4 | escrow funds coming
into
his or her possession which | ||||||
5 | belonged to others.
| ||||||
6 | (17) A registrant's failure to make available to | ||||||
7 | Department Office of Banks and Real
Estate
personnel during | ||||||
8 | normal business hours all escrow records and related | ||||||
9 | documents
maintained in connection therewith, within 24 | ||||||
10 | hours after a request from the Department
Office
of Banks | ||||||
11 | and Real Estate personnel.
| ||||||
12 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
13 | (765 ILCS 101/15-30)
| ||||||
14 | Sec. 15-30. Subpoenas; attendance of witnesses; oaths.
| ||||||
15 | (a) The Department Office of Banks and Real Estate has the | ||||||
16 | power to issue subpoenas ad
testificandum and to bring before | ||||||
17 | it any persons, and to take testimony either
orally or by | ||||||
18 | deposition, or both, with the same fees and mileage and in the
| ||||||
19 | same
manner as prescribed in civil cases in the courts of this | ||||||
20 | State. The Department Office of
Banks
and Real Estate has the | ||||||
21 | power to issue subpoenas duces tecum and to bring
before
it any | ||||||
22 | documents, papers, files, books, and records, with the same | ||||||
23 | costs and in
the
same manner as prescribed in civil cases in | ||||||
24 | the courts of this State.
| ||||||
25 | (b) Upon application of the Department Office of Banks and |
| |||||||
| |||||||
1 | Real Estate or its designee
or
of the applicant, registrant, or | ||||||
2 | person holding a certificate of registration
against
whom | ||||||
3 | proceedings under this Act are pending, any circuit court may | ||||||
4 | enter an
order compelling the enforcement of any subpoena | ||||||
5 | issued by the Department Office of Banks
and Real Estate in | ||||||
6 | connection with any hearing or investigation.
| ||||||
7 | (c) The Secretary Commissioner and the designated | ||||||
8 | administrative law judge have power
to administer oaths to | ||||||
9 | witnesses at any hearing that the Department Office of Banks | ||||||
10 | and
Real
Estate is authorized to conduct and any other oaths | ||||||
11 | authorized in any Act
administered by the Department Office of | ||||||
12 | Banks and Real Estate .
| ||||||
13 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
14 | (765 ILCS 101/15-35)
| ||||||
15 | Sec. 15-35.
Administrative law judge's findings of fact, | ||||||
16 | conclusions of
law,
and recommendations. At the conclusion of | ||||||
17 | the hearing, the administrative law
judge shall present to the | ||||||
18 | Secretary Commissioner a written report of the administrative
| ||||||
19 | law
judge's findings of fact, conclusions of law, and | ||||||
20 | recommendations regarding
discipline or a civil penalty. The | ||||||
21 | report shall contain a finding of whether
or not the respondent
| ||||||
22 | violated this Act or failed to comply with conditions
required
| ||||||
23 | in this Act. The administrative law judge shall specify the | ||||||
24 | nature of the
violation
or failure to comply.
| ||||||
25 | If the Secretary Commissioner disagrees in any regard with |
| |||||||
| |||||||
1 | the report of the
administrative law judge, the Secretary | ||||||
2 | Commissioner may issue an order in contravention
of the report. | ||||||
3 | The Secretary Commissioner shall provide a written report to | ||||||
4 | the
administrative law judge on any deviation and shall specify | ||||||
5 | with particularity
the
reasons for that action in the final | ||||||
6 | order.
| ||||||
7 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
8 | (765 ILCS 101/15-40)
| ||||||
9 | Sec. 15-40. Rehearing. After any hearing involving | ||||||
10 | disciplinary action
against a
registrant, a copy of the | ||||||
11 | administrative law judge's report shall be served on
the
| ||||||
12 | respondent by the Department Office of Banks and Real Estate , | ||||||
13 | either personally or as
provided in this Act for the service of | ||||||
14 | the notice of hearing. Within 20
calendar
days after the | ||||||
15 | service, the respondent may present to the Department Office of | ||||||
16 | Banks and
Real
Estate a motion in writing for a rehearing. The | ||||||
17 | motion shall specify the
particular grounds for rehearing.
If | ||||||
18 | the respondent orders a transcript of the record from the | ||||||
19 | reporting service
and pays for it within the time for filing a | ||||||
20 | motion for rehearing, the 20
calendar
day period within which a | ||||||
21 | motion for rehearing may be filed shall commence upon
the | ||||||
22 | delivery of the transcript to the respondent.
| ||||||
23 | If no motion for rehearing is filed, then upon the | ||||||
24 | expiration of the time
specified for filing a motion, or if a | ||||||
25 | motion for rehearing is denied, then
upon
denial, the Secretary |
| |||||||
| |||||||
1 | Commissioner may enter an order in accordance with the
| ||||||
2 | recommendations of the administrative law judge, except as | ||||||
3 | otherwise provided
in this Article.
Whenever the Secretary | ||||||
4 | Commissioner is not satisfied that substantial justice has been
| ||||||
5 | done in the hearing or in the administrative law judge's | ||||||
6 | report,
the Secretary Commissioner
may order a rehearing by the | ||||||
7 | same or some other duly qualified administrative
law judge.
| ||||||
8 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
9 | (765 ILCS 101/15-45)
| ||||||
10 | Sec. 15-45. Order or certified copy. An order or a | ||||||
11 | certified copy of
an
order, over the seal of the Department | ||||||
12 | Office of Banks and Real Estate and purporting to
be
signed by | ||||||
13 | the Secretary Commissioner , shall be prima facie proof of the | ||||||
14 | following:
| ||||||
15 | (1) That the signature is the genuine signature of the | ||||||
16 | Secretary Commissioner .
| ||||||
17 | (2) That the Secretary Commissioner is duly appointed | ||||||
18 | and qualified.
| ||||||
19 | (3) That the administrative law judge is duly appointed | ||||||
20 | and qualified.
| ||||||
21 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
22 | (765 ILCS 101/15-50)
| ||||||
23 | Sec. 15-50. Restoration of certificate of registration. At | ||||||
24 | any time
after the
suspension or revocation of any certificate |
| |||||||
| |||||||
1 | of registration, the Department Office of
Banks and
Real Estate | ||||||
2 | may restore the certificate of registration to the respondent
| ||||||
3 | upon
the written recommendation of the Secretary Commissioner , | ||||||
4 | unless after an
investigation and a hearing the Secretary | ||||||
5 | Commissioner determines that
restoration is not in the public | ||||||
6 | interest.
| ||||||
7 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
8 | (765 ILCS 101/15-55)
| ||||||
9 | Sec. 15-55. Surrender of certificate of registration. Upon | ||||||
10 | the
revocation or
suspension of a certificate of registration, | ||||||
11 | the registrant shall immediately
surrender the certificate of | ||||||
12 | registration to the Department Office of Banks and Real
Estate . | ||||||
13 | If
the registrant fails to do so, the Department Office of | ||||||
14 | Banks and Real Estate has the
right to
seize the certificate of | ||||||
15 | registration.
| ||||||
16 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
17 | (765 ILCS 101/15-60)
| ||||||
18 | Sec. 15-60. Administrative Review Law. All final | ||||||
19 | administrative
decisions
of the Department Office of Banks and | ||||||
20 | Real Estate under this Act are subject to judicial
review
under | ||||||
21 | the Administrative Review Law and the rules implementing that | ||||||
22 | Law. The
term "administrative decision" is defined as in | ||||||
23 | Section 3-101 of the Code of
Civil
Procedure.
Proceedings for | ||||||
24 | judicial review shall be commenced in the circuit court of the
|
| |||||||
| |||||||
1 | county in which the party applying for review resides, but if | ||||||
2 | the party
is not a
resident of this State, the venue shall be | ||||||
3 | in Cook or Sangamon County.
| ||||||
4 | Pending the court's final decision on administrative | ||||||
5 | review, the acts,
orders,
sanctions, and rulings of the | ||||||
6 | Department Office of Banks and Real Estate regarding any
| ||||||
7 | registration shall remain in full force and effect unless | ||||||
8 | modified or stayed
by
court order pending a final judicial | ||||||
9 | decision.
| ||||||
10 | The Department Office of Banks and Real
Estate
shall not be | ||||||
11 | required to certify any record to the court or file any answer
| ||||||
12 | in court
or otherwise appear in any court in a judicial review | ||||||
13 | proceeding unless
there is
filed in the court, with the | ||||||
14 | complaint, a receipt from the Department Office of Banks and
| ||||||
15 | Real
Estate acknowledging payment of the costs of furnishing | ||||||
16 | and certifying the
record.
Failure on the part of the plaintiff | ||||||
17 | to file a receipt in the court is grounds
for
dismissal of the | ||||||
18 | action.
| ||||||
19 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
20 | (765 ILCS 101/15-65)
| ||||||
21 | Sec. 15-65. Public interest, safety, or welfare; summary | ||||||
22 | suspension. The Secretary
Commissioner may temporarily
suspend | ||||||
23 | any registration pursuant to this Act, without hearing, | ||||||
24 | simultaneously
with the institution of proceedings for a | ||||||
25 | hearing provided for in this Section,
if the
Secretary |
| |||||||
| |||||||
1 | Commissioner finds that the evidence indicates that the public | ||||||
2 | interest,
safety, or
welfare imperatively requires emergency | ||||||
3 | action. If the Secretary Commissioner
temporarily
suspends any | ||||||
4 | registration without a hearing, a hearing must be held within | ||||||
5 | 30
calendar days after the suspension. The person whose | ||||||
6 | registration is suspended
may seek a continuance of the | ||||||
7 | hearing, during which the suspension shall remain
in effect. | ||||||
8 | The proceeding shall be concluded without appreciable delay.
| ||||||
9 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
10 | (765 ILCS 101/15-70)
| ||||||
11 | Sec. 15-70. Non-registered practice; civil penalty; | ||||||
12 | injunction.
| ||||||
13 | (a) Any person who practices, offers to practice, attempts | ||||||
14 | to practice, or
holds
himself or herself out to practice as a | ||||||
15 | registrant under this Act without being
registered under this | ||||||
16 | Act shall, in addition to any other penalty provided by
law,
| ||||||
17 | pay a civil penalty to the Department Office of Banks and Real | ||||||
18 | Estate in an amount not to
exceed $25,000 for each offense as | ||||||
19 | determined by the Department Office of Banks and Real
Estate . | ||||||
20 | The civil penalty shall be assessed by the Department Office of | ||||||
21 | Banks and Real
Estate
after a hearing is held in accordance | ||||||
22 | with the provisions set forth in this Act
regarding the | ||||||
23 | provision of a hearing for the discipline of a registrant.
| ||||||
24 | (b) The Department Office of Banks and Real Estate has the | ||||||
25 | authority and power to
investigate any and all non-registered |
| |||||||
| |||||||
1 | activity.
| ||||||
2 | (c) A civil penalty imposed under subsection (a) shall be | ||||||
3 | paid within 60
days after the effective date
of
the
order | ||||||
4 | imposing the civil penalty. The order shall constitute a | ||||||
5 | judgment and
may
be filed, and execution may be had thereon, in | ||||||
6 | the same manner as any judgment
from any
court of record.
| ||||||
7 | (d) Engaging in timeshare practices
in Illinois by any | ||||||
8 | entity not holding a valid and current
certificate of
| ||||||
9 | registration
under
this Act is declared to be inimical to the | ||||||
10 | public welfare, to constitute a
public
nuisance, and to cause | ||||||
11 | irreparable harm to the public welfare. The Secretary
| ||||||
12 | Commissioner ,
the Attorney General, the State's Attorney of any | ||||||
13 | county in the State, or any
person may maintain an action in | ||||||
14 | the name of the People of the State of
Illinois,
and may apply | ||||||
15 | for injunctive relief in any circuit court to enjoin such | ||||||
16 | entity
from
engaging in such practice. Upon the filing of a | ||||||
17 | verified petition in the
court, the
court, if satisfied by | ||||||
18 | affidavit or otherwise that such entity has been engaged
in
| ||||||
19 | such practice without a valid and current
certificate of
| ||||||
20 | registration, may enter a temporary
restraining order without | ||||||
21 | notice or bond, enjoining the defendant from such
further
| ||||||
22 | practice. Only the showing of nonregistration, by affidavit or | ||||||
23 | otherwise, is
necessary in order for a temporary injunction to | ||||||
24 | issue. A copy of the verified
complaint shall be served upon | ||||||
25 | the defendant and the proceedings shall
thereafter
be conducted | ||||||
26 | as in other civil cases except as modified by this Section. If |
| |||||||
| |||||||
1 | it
is
established that the defendant has been or is engaged in | ||||||
2 | such unlawful
practice,
the court may enter an order or | ||||||
3 | judgment perpetually enjoining the defendant
from
further | ||||||
4 | practice. In all proceedings hereunder, the court, in its | ||||||
5 | discretion,
may
apportion the costs among the parties | ||||||
6 | interested in the action, including cost
of
filing the | ||||||
7 | complaint, service of process, witness fees and expenses, court
| ||||||
8 | reporter
charges and reasonable attorneys' fees. In the case of | ||||||
9 | a violation of any
injunctive
order entered under the | ||||||
10 | provisions of this Section, the court may summarily try
and | ||||||
11 | punish the offender for contempt of court. Proceedings for an | ||||||
12 | injunction
under this Section shall be in addition to, and not | ||||||
13 | in lieu of, all penalties
and other
remedies provided in this | ||||||
14 | Act.
| ||||||
15 | (Source: P.A. 91-585, eff. 1-1-00 .)
| ||||||
16 | (765 ILCS 101/15-80)
| ||||||
17 | Sec. 15-80. Cease and desist orders. The Department Office | ||||||
18 | of Banks and Real
Estate
may issue a cease and desist order to | ||||||
19 | any person who engages in any activity
prohibited by this Act. | ||||||
20 | Any person in violation of a cease and desist order
entered
by | ||||||
21 | the Department Office of Banks and Real Estate is subject to | ||||||
22 | all of the remedies
provided
by law.
| ||||||
23 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
24 | (765 ILCS 101/20-5)
|
| |||||||
| |||||||
1 | Sec. 20-5. Administration of Act. The Department Office of | ||||||
2 | Banks and Real Estate
shall exercise the powers and duties | ||||||
3 | prescribed by the Civil Administrative
Code
of Illinois and | ||||||
4 | shall exercise other powers and duties necessary for
| ||||||
5 | effectuating the
purposes of this Act. The Department Office of | ||||||
6 | Banks and Real Estate may contract with
third
parties for | ||||||
7 | services necessary for the proper administration of this Act. | ||||||
8 | The Department
Office
of Banks and Real Estate has the | ||||||
9 | authority to establish public policies and
procedures | ||||||
10 | necessary for the administration of this Act.
| ||||||
11 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
12 | (765 ILCS 101/20-10)
| ||||||
13 | Sec. 20-10. Administrative rules. The Department Office of | ||||||
14 | Banks and Real Estate
shall adopt rules for the implementation | ||||||
15 | and enforcement of this Act.
| ||||||
16 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
17 | (765 ILCS 101/20-15)
| ||||||
18 | Sec. 20-15. Real Estate License Administration Fund.
| ||||||
19 | All fees collected for registration and for civil penalties | ||||||
20 | pursuant to this
Act and administrative rules adopted under | ||||||
21 | this Act shall be deposited into
the Real Estate License | ||||||
22 | Administration Fund. The moneys deposited in the Real
Estate | ||||||
23 | License Administration Fund shall be appropriated to the | ||||||
24 | Department Office of Banks
and Real Estate for expenses for the |
| |||||||
| |||||||
1 | administration and enforcement of this
Act.
| ||||||
2 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
3 | (765 ILCS 101/20-20)
| ||||||
4 | Sec. 20-20. Forms. The Department Office of Banks and Real | ||||||
5 | Estate may prescribe
forms
and procedures for submitting | ||||||
6 | information to the Department Office of Banks and Real
Estate .
| ||||||
7 | (Source: P.A. 91-585, eff. 1-1-00.)
| ||||||
8 | (765 ILCS 101/20-25)
| ||||||
9 | Sec. 20-25. Site inspections. The Department Office of | ||||||
10 | Banks and Real Estate shall
thoroughly investigate all matters | ||||||
11 | relating to an application for registration
under this Act and | ||||||
12 | may
require a personal inspection of any developer, timeshare | ||||||
13 | plan, accommodation,
exchange company, or resale company and | ||||||
14 | any offices where any of the foregoing
may transact
business. | ||||||
15 | All reasonable expenses incurred by the Department Office of | ||||||
16 | Banks and Real
Estate in
investigating such matters shall be | ||||||
17 | borne by the registrant, and the registrant
shall
reimburse the | ||||||
18 | Department Office of Banks and Real Estate for those expenses | ||||||
19 | within 30
calendar days of receipt of notice of
the expenses | ||||||
20 | from the Department Office . The Department
Office of Banks and | ||||||
21 | Real Estate may require a deposit sufficient to cover the
| ||||||
22 | expenses
prior to incurring the expenses.
| ||||||
23 | (Source: P.A. 91-585, eff. 1-1-00.)
|
| |||||||
| |||||||
1 | (765 ILCS 101/5-35 rep.)
| ||||||
2 | Section 10. The Real Estate Timeshare Act of 1999 is | ||||||
3 | amended by repealing Section 5-35.
| ||||||
4 | Section 97. Severability. The provisions of this Act are | ||||||
5 | severable under Section 1.31 of the Statute on Statutes.
| ||||||
6 | Section 99. Effective date. This Act takes effect upon | ||||||
7 | becoming law.
|