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Rule 8.8 Exchange Program
- If a purchaser is offered the opportunity to subscribe to an exchange program, the purchaser should receive written information concerning the exchange program prior to or concurrently with the execution of the contract with the exchange company. Such information should include, without limitation, the following information.
- The name and address of the exchange company;
- The names of all officers, directors and shareholders of greater that 10% interests of the exchange company;
- A description of the purchaser’s contractual relationship with the exchange program and the procedure by which changes may be made;
- A description of the procedure to qualify for and effectuate changes;
- A description of the limitations, restrictions or priority employed in the operation of the exchange program;
- The fees or range of fees for participation in the exchange program and the circumstances under which the fees may be changed;
- The name and address of each timeshare plan participating in the exchange program;
- The number of timeshare interests reported in seven (7) day usage periods in each timeshare plan participating in the exchange program; and
- The number of purchasers for each timeshare plan participating in the exchange program.
- The exchange program should report on an annual basis following an audit by an independent certified public accountant the following:
- The number of purchasers enrolled in the exchange program;
- The number of accommodations that have current affiliation agreements with the exchange program;
- The percentage of confirmed reservations;
- The number of timeshare periods for which the exchange program has an outstanding obligation to provide an exchange to a purchaser who relinquished a timeshare period during the year; and
- The number of exchanges confirmed by the exchange program during the year.
- No developer shall have any liability with respect to any violation of these rules arising out of the publication by the developer of information provided to it by an exchange company pursuant to this section. No exchange company shall have any liability with respect to any violation of these rules arising out of the use by a developer of information relating to an exchange program other than that provided to the developer by the exchange company.
- An exchange company may elect to deny exchange privileges to any purchaser whose use of the accommodations of the purchaser’s timeshare plan is denied, and no exchange program or exchange company shall be liable to any of its members or any third parties on account of any such denial of exchange privileges.