(765 ILCS 101/5-30)
Exchange company registration and disclosure requirements.
(a) An exchange company shall register with the Department at least 20 calendar days prior to offering an exchange program to purchasers in this State.
(b) If a purchaser is offered the opportunity to become a member of an
program, the developer shall deliver to the purchaser, together with the public
statement and any other materials required to be furnished under this Section,
and prior to
the offering or execution of any contract between the purchaser and the
company offering membership in the exchange program, or, if the exchange
dealing directly with the purchaser, the developer or the exchange company
to the purchaser, prior to the initial offering or execution of any contract
purchaser and the exchange company, the following written information regarding
exchange program, the form and substance of which shall first be approved by
the Department in accordance with this Section:
(1) The name and address of the exchange company.
(2) The names of all officers, directors, and
shareholders of the exchange company.
(3) Whether the exchange company or any of its
officers or directors have any legal or beneficial interest in any developer, seller, or managing entity for any timeshare plan participating in the exchange program and, if so, the identity of the timeshare plan and the nature of the interest.
(4) Unless otherwise stated, a statement that the
purchaser's contract with the exchange company is a contract separate and distinct from the purchaser's contract with the seller of timeshare interests.
(5) Whether the purchaser's participation in the
exchange program is dependent upon the continued affiliation of the applicable timeshare plan with the exchange program.
(6) A statement that the purchaser's participation
in the exchange program is voluntary.
(7) A complete and accurate description of the terms
and conditions of the purchaser's contractual relationship with the exchange program and the procedure by which changes thereto may be made.
(8) A complete and accurate description of the
procedures necessary to qualify for and effectuate exchanges.
(9) A complete and accurate description of all
limitations, restrictions, and priorities employed in the operation of the exchange program, including but not limited to limitations on exchanges based on seasonality, accommodation size, or levels of occupancy, expressed in conspicuous type, and, in the event that those limitations, restrictions, or priorities are not uniformly applied by the exchange company, a clear description of the manner in which they are applied.
(10) Whether exchanges are arranged on a
space-available basis and whether any guarantees of fulfillment of specific requests for exchanges are made by the exchange company.
(11) Whether and under what circumstances an owner,
in dealing with the exchange program, may lose the right to use and occupy an accommodation of the timeshare plan during a reserved use period with respect to any properly applied-for exchange without being provided with substitute accommodations by the exchange program.
(12) The fees or range of fees for participation by
owners in the exchange program, a statement of whether any such fees may be altered by the exchange company, and the circumstances under which alterations may be made.
(13) The name and address of the site of each
accommodation included within a timeshare plan participating in the exchange program.
(14) The number of accommodations in each timeshare
plan that are available for occupancy and that qualify for participation in the exchange program, expressed within the following numerical groups: 1-5; 6-10; 11-20; 21-50; and 51 and over.
(15) The number of currently enrolled owners for
each timeshare plan participating in the exchange program, expressed within the following numerical groups: 1-100; 101-249; 250-499; 500-999; and 1,000 and over; and a statement of the criteria used to determine those owners who are currently enrolled with the exchange program.
(16) The disposition made by the exchange company of
use periods deposited with the exchange program by owners enrolled in the exchange program and not used by the exchange company in effecting exchanges.
(17) The following information for the preceding
calendar year, which shall be independently audited by a certified public accountant in accordance with the standards of the Accounting Standards Board of the American Institute of Certified Public Accountants and reported on an annual basis on or after August 1 as established by rule:
(A) The number of owners currently enrolled in
(B) The number of timeshare plans that have
current affiliation agreements with the exchange program.
(C) The percentage of confirmed exchanges, which
is the number of exchanges confirmed by the exchange program divided by the number of exchanges properly applied for, together with a complete and accurate statement of the criteria used to determine whether an exchange request was properly applied for.
(D) The number of use periods for which the
exchange program has an outstanding obligation to provide an exchange to an owner who relinquished a use period during a particular year in exchange for a use period in any future year.
(E) The number of exchanges confirmed by the
exchange program during the year.
(F) A statement in conspicuous type to the
effect that the percentage described in subdivision (17)(C) of this subsection is a summary of the exchange requests entered with the exchange program in the period reported and that the percentage does not indicate the probabilities of an owner's being confirmed to any specific choice or range of choices.
(18) Such other information as may be reasonably
required by the Department of any exchange company as established by rule.
(c) No developer shall have any liability with respect to any violation of
arising out of the publication by the developer of information provided to it
exchange company pursuant to this Article. No exchange company shall have any
liability with respect to any violation of this Act arising out of the use by a
information relating to an exchange program other than that provided to the
the exchange company.
(d) All written, visual, and electronic communications relating to an
company or an exchange program shall be filed with the Department
upon its request.
(e) The failure of an exchange company to observe the requirements of this
Section, and the use of any unfair or deceptive act or practice in connection
operation of an exchange program, is a violation of this Act.
(f) An exchange company may elect to deny exchange privileges to any owner
whose use of the accommodations of the owner's timeshare plan is denied, and no
exchange program or exchange company shall be liable to any of its members or
third parties on account of any such denial of exchange privileges.
(Source: P.A. 96-738, eff. 8-25-09.)