TIMESHARING (LICENSING AND CONTROL) AMENDMENT ACT 2005 BERMUDA 2005 : 34 TIMESHARING (LICENSING AND CONTROL) AMENDMENT ACT 2005

Transcription

1 BERMUDA 2005 : 34 TIMESHARING (LICENSING AND CONTROL) AMENDMENT Date of Assent: 29 December 2005 Operative Date: Notice in Gazette ARRANGEMENT OF SECTIONS 1 Short title 2 Amends section 2 3 Amends section 4 4 Amends section 15 5 Amends section 18 6 Inserts sections 19B and 19C 7 Amends section 23 8 Amends section 24 9 Amends section Amends section 25A 11 Inserts sections 25C and 25D 12 Amends section Amends section Amends section Amends section Amends Schedule 17 Application 18 Commencement WHEREAS it is expedient to amend the Timesharing (Licensing and Control) Act 1981; Be it enacted by The Queen's Most Excellent Majesty, by and with the advice and consent of the Senate and the House of Assembly of Bermuda, and by the authority of the same, as follows: 1

2 Short title 1 This Act, which amends the Timesharing (Licensing and Control) Act 1981 (the "principal Act"), may be cited as the Timesharing (Licensing and Control) Amendment Act Amends section 2 2 Section 2 of the principal Act is amended in the definition of developing owner by deleting twenty-five and substituting forty. Amends section 4 3 Section 4 of the principal Act is amended (a) in subsection (1), by deleting years not exceeding twenty-five and substituting not less than forty years ; and (b) by inserting next after subsection (3) the following new subsection (4) The Minister shall not grant a licence for the operation of a timesharing scheme unless the Minister has approved the maximum number of units in the scheme and it shall be a term of the licence that the number of units in the scheme shall not exceed that maximum number.. Amends section 15 4 Section 15 of the principal Act is amended in subsection (2) by deleting $500 and substituting $1, Amends section 18 5 Section 18 of the principal Act is amended in subsection (5) by deleting $5,000 and substituting $10, Inserts sections 19B and 19C 6 The principal Act is amended by inserting next after section 19A, the following new sections Lien for overdue charges, etc. 19B (1) The managing agent is entitled to have a lien registered against the right of a purchaser to occupy and use the facilities of a timesharing scheme for any overdue charge or assessment owed by the purchaser or any amounts owing for costs arising from damage to the facilities of the timesharing scheme by the purchaser or the purchaser s guests. 2

3 (2) An application to register a lien shall be made to the Registrar General who shall register the lien in the Register of Timesharing Intervals upon being satisfied that the managing agent is entitled to have it registered. (3) A registered lien shall prevail against (a) the right of any subsequent purchaser of the right to occupy and use the facilities of the timesharing scheme who purchases the right after the lien is registered; and (b) any charge against the purchaser s right to occupy and use the facilities that is not registered or that is registered after the lien is registered. Termination of pre-licensing contracts 19C (1) This section applies to a contract relating to a timesharing interval of a timesharing scheme if the contract is entered into before a developing owner s licence is issued in respect of the timesharing scheme. (2) Any party to a contract described in subsection (1) may terminate the contract, by written notice to the other party or parties, at any time before the developing owner s licence is issued. (3) The power under this section to terminate a contract is in addition to, and does not derogate from, the right of a purchaser to cancel a contract for the purchase of a timesharing interval within the rescission period allowed in the contract.. Amends section 23 7 Section 23 of the principal Act is amended in subsection (3) by deleting $10,000 and substituting $20, Amends section 24 8 Section 24 of the principal Act is amended (a) in subsection (2), by repealing paragraph (b) and substituting the following new paragraph (b) to the developing owner, upon the expiration of the rescission period of a purchaser's contract, up to an amount not exceeding thirty-five per centum of the gross amount realized from the sale of the timesharing interval of that purchaser for the purpose of paying construction costs of the timesharing scheme; ; (b) by repealing subsection (5) and substituting the following new subsection 3

4 (5) A developing owner who contravenes subsection (1) or (2)(d) or who uses disbursements under subsection (2)(b) for a purpose other than that specified in subsection (2)(b) or an escrow agent who contravenes subsection (2) commits an offence: Punishment on summary conviction: a fine of $10, or imprisonment for one year or both such fine and imprisonment.. Amends section 25 9 Section 25 of the principal Act is amended (a) in subsection (2), by deleting latent and substituting any ; (b) in subsection (4), by deleting $5,000 and substituting $10, Amends section 25A 10 Section 25A of the principal Act is amended (a) in subsection (4), by deleting the funds and substituting up to fifty per centum of the funds ; (b) in subsection (5) by deleting in this section contained and substituting contained in this section ; (c) by repealing subsection (6) and substituting the following new subsections (6) Any interest accruing to the trust fund on proceeds from the sale of a timesharing interval shall be dealt with in the manner agreed to by written contract between the developing owner and the purchaser of the timesharing interval. (6A) The terms and conditions of any contract entered into between the developing owner and the purchaser in relation to any interest accruing to the trust fund on proceeds from the sale of a timesharing interval under subsection (6) shall be subject to the written approval of the Minister and the Minister of Finance. ; and (d) in subsection (7), by deleting $5,000 and substituting $10, Inserts sections 25C and 25D 11 The principal Act is amended by inserting next after section 25B the following new sections 4

5 Purchaser to accommodation ratio 25C (1) The developing owner and marketing agent shall ensure that the total number of the time intervals sold is limited so that if all the purchasers exercised their rights to occupy units, each unit would still be unoccupied for at least one week each year. (2) The minimum one-week period referred to under subsection (1) shall not be considered an interval for the purposes of allocating assessments under section 25D. Assessments, principles relating to allocation 25D Charges and assessments for the operation and maintenance of the timesharing scheme shall be allocated to purchasers and the developing owner in accordance with the following principles (a) the charges and assessments shall be allocated among all timesharing intervals including timesharing intervals not yet sold; (b) the allocation among timesharing intervals must be proportionate to the intervals and may vary only on the basis of factors that relate to the intervals including, without limiting the generality of the foregoing, the duration of the interval and the size, type, location or other characteristics of the unit to which the interval relates; (c) neither the developing owner nor a purchaser shall be exempted from, or accorded special treatment in respect of, any charge or assessment.. Amends section Section 27 of the principal Act is amended in subsection (3) by deleting $1,000 and substituting $2, Amends section Section 33 of the principal Act is amended (a) in subsection (1), by deleting $1,000 and substituting $2, and by deleting $5,000 and substituting $10, ; (b) in subsection (2), by deleting $500 and substituting $1, ; and (c) in subsection (3), by deleting $2,000 and substituting $4,

6 Amends section Section 34 of the principal Act is amended by deleting $500 and substituting $1, Amends section Section 35 of the principal Act is amended in subsection (5) by deleting $5,000 and substituting $10, Amends Schedule 16 The Schedule to the principal Act is amended (a) in paragraph (c), by inserting next after an advisory membership structure or tenants' association for each timesharing scheme:, the words such body shall be governed in accordance with the principle that the number of votes a purchaser has, should be proportionate to his timesharing interval; ; (b) in paragraph (f), by inserting next after and the amounts thereof;, the words, provision for the winding up of the scheme in the event such winding up becomes necessary; ; (c) in paragraph (g), by deleting fifteen days and substituting ten days and by deleting FIFTEEN (15) DAYS and substituting TEN (10) DAYS ; and (d) in paragraph (n), by inserting, next after the costs of operating and maintaining the timesharing scheme, the words, subject to section 25D. Application 17 (1) Section 3 shall apply to timesharing schemes in operation at the time of the coming into force of this Act. (2) Section 11 shall apply to (a) timesharing schemes which come into operation after the coming into force of this Act; and (b) timesharing schemes existing on the coming into force of this Act, nine months after the coming into force of this Act. (3) Section 16(b) shall not apply to contracts executed prior to the coming into force of this Act. (4) Section 16(b) shall apply to timesharing schemes in operation on the coming into force of this Act. 6

7 Commencement 18 This Act comes into operation on such day as the Minister may appoint by Notice published in the Gazette. 7