State whether or not and under what conditions the sponsor may permanently or temporarily close campgrounds which
are part of the timesharing plan. If the sponsor offers trailer or other equipment rentals, state that availability is limited
and include a reference to a more detailed discussion of equipment rentals.
(4) If, as part of the timesharing plan, timeshare owners have the right to use and occupy property outside the immediate
timeshare regime (at no additional charge or at a discount from rates charged to the general public), describe the ease-
ment of the timeshare regime over the other property and specify those mortgages and other liens, if any, to which the
easement is subordinate. Discuss the possibility that such easement (and the right of timeshare owners to use and occupy
the other property) may be cut off by the foreclosure of such mortgages or other liens on the other property or by the
bankruptcy of the owner of the other property.
(5) If, as part of the timesharing plan, timeshare owners have the right to use and occupy property outside the immediate
timeshare regime (at no additional charge or at a discount from rates charged to the general public), describe the cove-
nant (running with the land) that such other property will be used only for the purposes set forth in the offering plan.
Specify any mortgages or other liens to which the covenant is subordinate and discuss the possibility that such covenant
may be cut off by the foreclosure of such mortgages or other liens on the other property and that, in such event, the use
of the other property may be changed from its use at the time that the purchaser acquired his or her timeshare.
(6) State that timeshares should be purchased for personal recreational use and not for profit or investment. State that no
resale market exists for timeshares and that the resale value of timeshares, if any, is uncertain. State that most real estate
brokers will not list timeshares and that an owner's efforts to sell his or her timeshare will bring him or her into direct
competition with the sponsor who may have a large inventory of unsold intervals. Discuss any restrictions or fees im-
posed on the resale of timeshares.
(7) State which resort exchange network, if any, the sponsor has joined. State, if applicable, that the exchange network is
independent of the sponsor and that timeshare owners will be entitled to use this network only as long as the sponsor and
the timeshare property continue as a member of the exchange company. State that the availability of exchange privileges
for any timeshare owner will be contingent upon meeting the terms and conditions of the exchange company, including
payment of membership and exchange fees. If applicable, state that a timeshare owner must release his or her timeshare
to the exchange network in order to participate in the exchange program before being informed of the specific resorts or
locations available for trade. State in capital letters that there can be no assurance that a particular interval can be ex-
changed, that an exchange for a particular interval or a particular resort can be arranged, that this timeshare resort will
continue to qualify with the exchange company, or that this interval program or any other will continue to exist. If the
timesharing plan is not affiliated with an exchange network, so state.
(8) In a right-to-use timesharing plan, state that a timeshare purchaser acquires no recordable interest in real property. In
a right-to-use or leasehold timesharing plan, state that a timeshare purchaser receives no voting rights or right to control
the policies or decisions of the sponsor with regard to the use or maintenance of the timeshare property. State also that
full control for the adequate operation and maintenance of the timeshare property lies with the sponsor, and that the fa-
cilities and services of the timesharing plan will be available only as long as the sponsor is able to provide them. State
that no bond or other security has been provided for the sponsor's undertakings in this regard.
(9) In a fee or cooperative timesharing plan, state that the successful operation and maintenance of the timeshare prop-
erty depends upon the ability of the sponsor to meet its financial obligations with respect to unsold timeshares. State that
during the early years of the project, the failure of the sponsor to meet its obligations in this regard will require a small
number of timeshare owners to cover the costs of operating and maintaining the entire project. State that the sponsor has
provided no bond or other security for its undertaking in this regard.
(10) In a fee or cooperative timesharing plan, state that while timeshare owners do have certain voting rights, it is ex-
pected that most timeshare owners will not participate in the management of the timeshare regime since each timeshare
owner has a relatively small interest in the timesharing plan and is away from the timeshare property for most of the year
and it is unlikely that the many timeshare owners could be effectively organized into a voting block. State that the gov-
erning body of the timeshare regime will be controlled by the sponsor and that the daily affairs of the timeshare regime
will be handled by the sponsor and managing agent.
Unofficial version, rev. 4/18
4