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91st General Assembly
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Public Act 91-0585

SB435 Enrolled                                 LRB9103102KSgc

    AN ACT concerning real  estate  timeshare  interests  and
repealing a named Act.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

                 Article 1.  General Provisions

    Section  1-1.  Short title.  This Act may be cited as the
Real Estate Timeshare Act of 1999.

    Section  1-5. Intent.  The intent of the General Assembly
in enacting this Act is to regulate the business of timeshare
plans,  exchange  programs,  and  resale   agents   for   the
protection of the public.

    Section 1-10.  Scope of Act.
    (a)  This Act applies to all of the following:
         (1)  Timeshare   plans   with  an  accommodation  or
    component site in Illinois.
         (2)  Timeshare plans  without  an  accommodation  or
    component  site in Illinois, if those timeshare plans are
    sold or offered to be  sold  to  any  individual  located
    within Illinois.
         (3)  Exchange programs as defined in this Act.
         (4)  Resale agents as defined in this Act.
    (b)    Exemptions.   This  Act  does  not  apply  to  the
following:
         (1)    Timeshare   plans,   whether   or   not    an
    accommodation  is located in Illinois, consisting of 7 or
    fewer timeshare periods, the use of  which  extends  over
    any period of  less than 3 years.
         (2)     Timeshare   plans,   whether   or   not   an
    accommodation is located in  Illinois,  under  which  the
    prospective  purchaser's  total financial obligation will
    be less  than  $1,500  during  the  entire  term  of  the
    timeshare plan.

    Section   1-15.  Definitions.   In  this  Act, unless the
context otherwise requires:
    "Accommodation"  means  any  apartment,  condominium   or
cooperative unit, cabin, lodge, hotel or motel room, or other
private  or commercial structure containing toilet facilities
therein  that  is  designed  and   available,   pursuant   to
applicable  law,  for use and occupancy as a residence by one
or more individuals, or any unit or  berth  on  a  commercial
cruise  line  ship,  which  is  included in the offering of a
timeshare plan.
    "Acquisition agent"  means  a  person  who,  directly  or
through   the  person's  employees,  agents,  or  independent
contractors, induces or attempts to  induce  by  means  of  a
promotion  or  an advertisement any individual located within
the State of Illinois to attend a sales  presentation  for  a
timeshare plan.
    "Advertisement"  means  any  written, oral, or electronic
communication that is directed  to  or  targeted  to  persons
within  the  State  of  Illinois  and  contains  a promotion,
inducement, or offer to sell a timeshare  plan, including but
not limited to brochures,  pamphlets,  radio  and  television
scripts,   electronic   media,   telephone  and  direct  mail
solicitations, and other means of promotion.
    "Association" means the organized body consisting of  the
purchasers of  interests in a timeshare plan.
    "Assessment"  means  the  share of funds required for the
payment of common expenses which is  assessed  from  time  to
time against each purchaser by the managing entity.
    "Commissioner"  means  the Commissioner of Banks and Real
Estate, or a natural person authorized by  the  Commissioner,
the  Office  of Banks and Real Estate Act, or this Act to act
in the Commissioner's stead.
    "Component site" means  a  specific  geographic  location
where accommodations which are part of a multi-site timeshare
plan  are  located.   Separate  phases  of a single timeshare
property in a specific geographic location and  under  common
management shall be deemed a single component site.
    "Developer"  means  and  includes  any  person or entity,
other than a sales agent, acquisition agent, or resale agent,
who creates a timeshare plan or is in the business of selling
timeshare interests, or employs agents to do the same, or any
person or entity who succeeds to the interest of a  developer
by  sale, lease, assignment, mortgage, or other transfer, but
the term includes only  those  persons  who  offer  timeshare
interests   for   disposition   in  the  ordinary  course  of
business.
    "Dispose" or "disposition" means a voluntary transfer  or
assignment  of any legal or equitable interest in a timeshare
plan, other than the transfer, assignment, or  release  of  a
security interest.
    "Exchange  company" means any person owning or operating,
or both owning and operating, an exchange program.
    "Exchange program"  means  any  method,  arrangement,  or
procedure  for the voluntary exchange of  timeshare interests
or other property interests.  The term does not  include  the
assignment  of  the right to use and occupy accommodations to
owners of timeshare interests within a single-site  timeshare
plan.   Any  method, arrangement, or procedure that otherwise
meets  this  definition,  wherein   the   purchaser's   total
contractual  financial  obligation  exceeds  $3,000  per  any
individual, recurring timeshare period, shall be regulated as
a timeshare plan in accordance with this Act.
    "Managing  entity"  means  the  person who undertakes the
duties, responsibilities, and obligations of  the  management
of a timeshare plan.
    "Offer"  means  any  inducement,  solicitation,  or other
attempt, whether by marketing, advertisement, oral or written
presentation, or any other means, to encourage  a  person  to
acquire  a timeshare interest in a timeshare plan, other than
as security for an obligation.
    "Person" means a  natural  person,  corporation,  limited
liability  company,  partnership, joint venture, association,
estate,  trust,  government,  governmental   subdivision   or
agency, or other legal entity, or any combination thereof.
    "Promotion"   means  a  plan  or  device,  including  one
involving  the  possibility  of   a   prospective   purchaser
receiving a vacation, discount vacation, gift, or prize, used
by  a  developer,  or  an  agent,  independent contractor, or
employee of any of the same on behalf of  the  developer,  in
connection  with the offering and sale of timeshare interests
in a timeshare plan.
    "Purchaser" means any person, other than a developer, who
by  means  of  a  voluntary  transfer  acquires  a  legal  or
equitable interest in a timeshare plan other than as security
for an obligation.
    "Purchase contract" means a document pursuant to which  a
person  becomes  legally  obligated  to sell, and a purchaser
becomes legally obligated to buy, a timeshare interest.
    "Resale agent" means a person who,  directly  or  through
the  person's  employees or agents, sells or offers to sell a
timeshare interest previously sold to a purchaser or solicits
an  owner  of  a  timeshare  interest  to  list  the  owner's
timeshare interest for sale.
    "Reservation system" means the  method,  arrangement,  or
procedure  by  which a purchaser, in order to reserve the use
or occupancy of any accommodation of  a multi-site  timeshare
plan   for  one  or  more  timeshare periods,  is required to
compete  with  other  purchasers  in  the   same   multi-site
timeshare  plan, regardless of whether the reservation system
is operated and maintained by the multi-site  timeshare  plan
managing  entity,  an  exchange company, or any other person.
In the event that a purchaser is required to use an  exchange
program  as  the purchaser's principal means of obtaining the
right to use  and  occupy  accommodations,  that  arrangement
shall  be  deemed  a  reservation  system.   When an exchange
company utilizes a mechanism  for  the  exchange  of  use  of
timeshare  periods among members of an exchange program, that
utilization is not  a  reservation  system  of  a  multi-site
timeshare plan.
    "Sales  agent" means a person, other than a resale agent,
who, directly or through the person's employees,  agents,  or
independent  contractors,  sells  or offers to sell timeshare
interests in a timeshare plan to any  individual  located  in
the State of Illinois.
    "Timeshare  instrument"  means  one or more documents, by
whatever  name  denominated,  creating   or   governing   the
operation of a timeshare plan.
    "Timeshare interest" means and includes either:
         (1)   a  "timeshare  estate",  which is the right to
    occupy a timeshare  property,  coupled  with  a  freehold
    estate or an estate for years with a future interest in a
    timeshare property or a specified portion thereof; or
         (2)   a   "timeshare  use",  which  is  the right to
    occupy a  timeshare  property,  which  right  is  neither
    coupled  with  a  freehold  interest, nor coupled with an
    estate for years with a future interest, in  a  timeshare
    property.
    "Timeshare  period"  means  the period or periods of time
when the purchaser  of  a  timeshare  plan  is  afforded  the
opportunity to use the accommodations of a timeshare plan.
    "Timeshare  plan" means any arrangement, plan, scheme, or
similar device, other than an exchange  program,  whether  by
membership   agreement,   sale,   lease,  deed,  license,  or
right-to-use agreement or  by  any  other  means,  whereby  a
purchaser,  in exchange for consideration, receives ownership
rights in or the right to use accommodations for a period  of
time  less  than  a  full year during any given year, but not
necessarily for consecutive years.  A timeshare plan may be:
         (1)  a "single-site timeshare plan",  which  is  the
    right   to  use  accommodations  at  a  single  timeshare
    property; or
         (2)  a "multi-site timeshare plan",  which includes:
              (A)  a "specific timeshare interest", which  is
         the  right  to  use  accommodations  at  a  specific
         timeshare  property,  together  with  use  rights in
         accommodations at one or more other component  sites
         created  by or acquired through the timeshare plan's
         reservation system; or
              (B) a "non-specific timeshare interest",  which
         is  the right to use accommodations at more than one
         component site created by or  acquired  through  the
         timeshare  plan's  reservation system, but including
         no   specific   right   to   use   any    particular
         accommodations.
    "Timeshare  property"  means  one  or more accommodations
subject to the same timeshare instrument, together  with  any
other  property  or  rights  to property appurtenant to those
accommodations.

         Section 1-20.  Estates and  interests  in  property.
Each  timeshare  estate constitutes, for purposes of title, a
separate estate or  interest  in  property  except  for  real
property tax purposes.

    Section 1-25.  Local powers; construction.
    (a)  Except as specifically provided in this Section, the
regulation of timeshare plans and  exchange  programs  is  an
exclusive  power  and function of the State.  A unit of local
government, including a home  rule  unit,  may  not  regulate
timeshare  plans and exchange programs.  This subsection is a
denial and limitation of home rule powers and functions under
subsection (h) of Section 6 of Article VII  of  the  Illinois
Constitution.
    (b)  Notwithstanding subsection (a), no provision of this
Act invalidates or modifies  any  provision  of  any  zoning,
subdivision,  or  building code or other real estate use law,
ordinance, or regulation.
    Further, nothing in this Act shall be construed to affect
or impair the validity of Section 11-11.1-1 of  the  Illinois
Municipal Code or to deny to the corporate authorities of any
municipality  the  powers  granted  in  that  Code  to  enact
ordinances  (i)  prescribing  fair  housing  practices,  (ii)
defining  unfair  housing  practices, (iii) establishing fair
housing or human relations commissions and standards for  the
operation  of  such  commissions  in  the  administration and
enforcement   of   such    ordinances,    (iv)    prohibiting
discrimination  based  on age, ancestry, color, creed, mental
or physical handicap, national origin, race, religion, or sex
in the listing, sale, assignment, exchange, transfer,  lease,
rental,  or financing of real property for the purpose of the
residential occupancy thereof, and (v) prescribing  penalties
for violations of such ordinances.

    Section  1-30.  Creation of timeshare plans.  A timeshare
plan  may  be  created  in any accommodation unless otherwise
prohibited.  All timeshare plans must maintain  a  one-to-one
purchaser-to-accommodation  ratio,  which  means the ratio of
the number of purchasers eligible to use  the  accommodations
of  a  timeshare  plan  on  a  given  day  to  the  number of
accommodations available for use within the plan on that day,
such that the total number of purchasers eligible to use  the
accommodations  of the timeshare plan during a given calendar
year  never  exceeds  the  total  number  of   accommodations
available for use in the timeshare plan during that year. For
purposes   of   the  calculation  under  this  Section,  each
purchaser must be counted at least once,  and  no  individual
accommodation may be counted more than 365 times per calendar
year  (or more than 366 times per leap year). A purchaser who
is delinquent in the payment of  timeshare  plan  assessments
shall   continue   to  be  considered  eligible  to  use  the
accommodations  of  the  timeshare  plan  for   purposes   of
calculating the one-to-one purchaser-to-accommodation ratio.

       Article 5.  Registration  Requirements and Fees

    Section  5-5.  Exemptions from developer registration.  A
person shall not be required to register as a developer under
this Act if:
         (1)  the person is an owner of a timeshare  interest
    who  has acquired the timeshare interest for the person's
    own use and occupancy and who later offers it for resale;
    or
         (2)   the  person  is  a  managing  entity   or   an
    association  that  is  not  otherwise  a  developer  of a
    timeshare plan in its own right,  solely while acting  as
    an association or under a contract with an association to
    offer  or  sell  a  timeshare interest transferred to the
    association  through  foreclosure,  deed   in   lieu   of
    foreclosure,  or   gratuitous transfer,  if such acts are
    performed in the regular course of, or as an incident to,
    the management of the association for its own account  in
    the timeshare plan; or
         (3)   the  person  offers  a  timeshare  plan  in  a
    national   publication   or   by   electronic  media,  as
    determined by the Office of Banks  and  Real  Estate  and
    provided by rule, which is not directed to or targeted to
    any individual located in Illinois; or
         (4) the person is conveyed, assigned, or transferred
    more  than  7  timeshare  periods  from  a developer in a
    single   voluntary   or   involuntary   transaction   and
    subsequently conveys, assigns, or transfers  all  of  the
    timeshare  interests  received  from  the  developer to a
    single purchaser in a single transaction.

    Section 5-10.  Exempt communications.
    (a)  The following communications  are  exempt  from  the
provisions of this Act:
         (1)  Any stockholder communication such as an annual
    report  or  interim  financial  report, proxy material, a
    registration  statement,  a  securities   prospectus,   a
    registration,   a  property  report,  or  other  material
    required to be delivered to a prospective purchaser by an
    agency of any state or the federal government.
         (2)  Any oral or written statement disseminated by a
    developer to broadcast  or print media, other  than  paid
    advertising  or promotional material, regarding plans for
    the acquisition or  development  of  timeshare  property.
    However,  any  rebroadcast  or any other dissemination of
    such oral statements to  a  prospective  purchaser  by  a
    seller  in  any  manner, or any distribution of copies of
    newspaper magazine articles or  press  releases,  or  any
    other  dissemination  of  such  written  statements  to a
    prospective purchaser by a seller in  any  manner,  shall
    constitute an advertisement.
         (3)  Any advertisement or promotion in any medium to
    the  general  public  if  such advertisement or promotion
    clearly  states  that  it  is  not  an   offer   in   any
    jurisdiction   in   which   any  applicable  registration
    requirements have not been fully satisfied.
         (4)  Any audio, written, or  visual  publication  or
    material    relating   to   the   availability   of   any
    accommodations for transient rental, so long as  a  sales
    presentation   is   not   a  term  or  condition  of  the
    availability of such accommodations and so  long  as  the
    failure  of  any  transient  renter  to  take a tour of a
    timeshare property or attend a  sales  presentation  does
    not  result  in  any  reduction  in the level of services
    which would otherwise  be  available  to  such  transient
    renter.
    (b)  The  following  communications  are  exempt from the
provisions of this Act, provided they are  delivered  to  any
person  who  has  previously  executed  a  contract  for  the
purchase  of  or is an existing owner of a timeshare interest
in a timeshare plan:
         (1)  Any communication addressed to and relating  to
    the  account  of any person who has previously executed a
    contract for the sale or purchase of a  timeshare  period
    in a timeshare plan to which the communication relates.
         (2)  Any  audio,  written,  or visual publication or
    material relating to  an  exchange  company  or  exchange
    program  provided  to an existing member of that exchange
    company or exchange program.
         (3)  Any communication by a developer to encourage a
    person who has previously acquired a  timeshare  interest
    from the developer to acquire additional use or occupancy
    rights  or  benefits,  or additional timeshare interests,
    offered by the same developer.

    Section 5-15.  Developer registration requirements.
    (a)  Registration  required.   Any  person  who,  to  any
individual  located  in  Illinois,  sells, offers to sell, or
attempts to solicit  prospective  purchasers  to  purchase  a
timeshare  interest,  or  any  person who creates a timeshare
plan with an accommodation in the State  of  Illinois,  shall
register  as  a  developer  with the Office of Banks and Real
Estate and shall comply with the provisions of subsection (c)
of this Section.
    (b)  Items  to  be  registered.   A  developer  shall  be
responsible for registering with the Office of Banks and Real
Estate,  on  forms  provided  by the Office of Banks and Real
Estate, the following:
         (1)  All timeshare plans which  have  accommodations
    located in Illinois or which are sold or offered for sale
    to any individual located in Illinois.
         (2)   All sales agents who sell or offer to sell any
    timeshare interests in any timeshare plan offered by  the
    developer to any individual located in Illinois.
         (3)    All  acquisition  agents  who,  by  means  of
    inducement,  promotion,  or  advertisement,  attempt   to
    encourage  or  procure  prospective purchasers located in
    Illinois to attend a sales presentation for any timeshare
    plan offered by the developer.
         (4)  All managing entities who manage any  timeshare
    plan  offered  or sold by the developer to any individual
    located in Illinois, without limitation as to whether the
    location of the  accommodation  site  managed  is  within
    Illinois.
    (c)    Escrow.   The  developer  shall  comply  with  the
following escrow requirements:
         (1)  A developer of a timeshare plan  shall  deposit
    into  an escrow account in a federally insured depository
    100%  of  all  funds  which  are  received   during   the
    purchaser's rescission period.  The deposit of such funds
    shall  be  evidenced  by  an  executed  escrow  agreement
    between  the  escrow agent and the developer, which shall
    include provisions that:
              (A)  funds may be disbursed to the developer by
         the escrow agent from the escrow account only  after
         expiration  of the purchaser's rescission period and
         in accordance with the purchase contract, subject to
         paragraph (2) of this subsection; and
              (B)   if  a  purchaser  properly  cancels   the
         purchase  contract  pursuant to its terms, the funds
         shall be paid  to  the  purchaser  or  paid  to  the
         developer   if   the  purchaser's  funds  have  been
         previously refunded by the developer.
         (2)  If a developer contracts to  sell  a  timeshare
    interest  and  the  construction of any property in which
    the timeshare interest is located has not been completed,
    the developer, upon expiration  of the rescission period,
    shall continue to maintain in an escrow account all funds
    received by or  on  behalf  of  the  developer  from  the
    purchaser  under  his  or  her  purchase  contract.   The
    Office of Banks and Real Estate shall establish, by rule,
    the types of documentation which shall  be  required  for
    evidence  of  completion,  including but not limited to a
    certificate of occupancy, a  certificate  of  substantial
    completion,  or  an inspection by the Office of the State
    Fire Marshal or the State Fire Marshal's designee  or  an
    equivalent   public   safety  inspection  agency  in  the
    applicable jurisdiction.  Funds shall  be  released  from
    escrow as follows:
              (A)    If  a  purchaser  properly  cancels  the
         purchase contract pursuant to its terms,  the  funds
         shall  be  paid  to  the  purchaser  or  paid to the
         developer  if  the  purchaser's  funds   have   been
         previously refunded by the developer.
              (B)  If a purchaser defaults in the performance
         of  the  purchaser's  obligations under the purchase
         contract, the funds shall be paid to the developer.
              (C)  If the funds of a purchaser have not  been
         previously   disbursed   in   accordance   with  the
         provisions  of  this  paragraph  (2),  they  may  be
         disbursed to the developer by the escrow agent  upon
         the issuance of acceptable evidence of completion of
         construction as provided herein.
         (3)  In lieu of the provisions in paragraphs (1) and
    (2),  the Office of Banks and Real Estate may accept from
    the  developer  a  surety  bond,  irrevocable  letter  of
    credit, or other financial assurance  acceptable  to  the
    Office  of  Banks  and  Real Estate, as provided by rule.
    Any acceptable financial assurance must be in  an  amount
    equal  to or in excess of the funds which would otherwise
    be placed in escrow, or in an amount equal to the cost to
    complete the incomplete property in which  the  timeshare
    interest is located.
         (4)  The  developer  shall  provide  escrow  account
    information  to  the  Office of Banks and Real Estate and
    shall execute in writing an authorization  consenting  to
    an  audit  or examination of the account by the Office of
    Banks and Real Estate on forms provided by the Office  of
    Banks  and  Real Estate.  The developer shall comply with
    the reconciliation and records  requirements  established
    by  rule  by  the  Office  of Banks and Real Estate.  The
    developer shall make  documents  related  to  the  escrow
    account  or  escrow obligation available to the Office of
    Banks and Real Estate upon  the  Office's  request.   The
    developer shall maintain any disputed funds in the escrow
    account until either:
              (A)   receipt of written direction agreed to by
         signature of all parties; or
              (B)   deposit  of  the  funds  with  a court of
         competent  jurisdiction  in  which  a  civil  action
         regarding the funds has been filed.
    (d)  Comprehensive  registration.    In   registering   a
timeshare  plan,  the  developer  shall  be  responsible  for
providing information on the following:
         (1)  The  developer's  legal name, any assumed names
    used by the developer, principal office  street  address,
    mailing  address,  primary  contact person, and telephone
    number;
         (2)  The  name  of  the  developer's  authorized  or
    registered agent in  the  State  of  Illinois  upon  whom
    claims  can  be  served or service of process be had, the
    agent's street address in Illinois, and telephone number;
         (3)  The  name,  street  address,  mailing  address,
    primary contact  person,  and  telephone  number  of  any
    timeshare plan being registered;
         (4)  The  name,  street address, mailing address and
    telephone number of any sales agent and acquisition agent
    utilized by the developer, and any managing entity of the
    timeshare plan;
         (5)  A public offering statement which complies with
    the requirements of Sections 5-25; and
         (6)  Any other information regarding the  developer,
    timeshare  plan,  sales  agents,  acquisition  agents, or
    managing entities as reasonably required by the Office of
    Banks and Real Estate and established by rule.
    (e)  Abbreviated registration. The Office  of  Banks  and
Real   Estate  may  accept,  as  provided  for  by  rule,  an
abbreviated registration application  of  a  developer  of  a
timeshare  plan  in  which  all  accommodations  are  located
outside of the State of Illinois.  The developer shall file a
written  notice  of  intent to register under this Section at
least  15  days  prior  to  submission.   A  developer  of  a
timeshare plan with any accommodation located in the State of
Illinois  may  not  file  an  abbreviated  filing,  with  the
exception  of  a  succeeding  developer  after  a  merger  or
acquisition when all of the developers' timeshare plans  were
registered  in  Illinois  immediately preceding the merger or
acquisition.
    The developer shall provide a certificate of registration
or  other  evidence  of  registration  from  the  appropriate
regulatory agency of any other jurisdiction within the United
States in which  some  or  all  of  such  accommodations  are
located.   The   other   jurisdiction  must  have  disclosure
requirements that are substantially equivalent to or  greater
than  the  information required to be disclosed to purchasers
by the State of Illinois. A developer filing  an  abbreviated
registration application shall provide the following:
         (1)   The  developer's legal name, any assumed names
    used by the  developer,  and  the  developer's  principal
    office location, mailing address, primary contact person,
    and telephone number.
         (2)   The  name,  location, mailing address, primary
    contact person, and telephone  number  of  the  timeshare
    plan.
         (3)   The name of the authorized agent or registered
    agent in Illinois upon  whom  claims  can  be  served  or
    service  of  process  can  be  had,  and  the  address in
    Illinois of the authorized agent or registered agent.
         (4)  The  names  of  any  sales  agent,  acquisition
    agent,  and  managing entity, and their  principal office
    location, mailing address, and telephone number.
         (5)   The  certificate  of  registration  or   other
    evidence  of  registration from any jurisdiction in which
    the timeshare plan is approved or accepted.
         (6)  A declaration as to whether the timeshare  plan
    is   a   single-site   timeshare  plan  or  a  multi-site
    timeshare plan  and,  if  a  multi-site  timeshare  plan,
    whether  it  consists  of specific timeshare interests or
    non-specific timeshare interests.
         (7)  Disclosure of each jurisdiction  in  which  the
    developer  has  applied for registration of the timeshare
    plan, and whether the timeshare plan, its  developer,  or
    any of its acquisition agents,  sales agents, or managing
    entities  utilized  were  denied registration or were the
    subject of any disciplinary proceeding.
         (8)  Copies of any disclosure documents required  to
    be  given  to purchasers or required to be filed with the
    jurisdiction in which the timeshare plan is  approved  or
    accepted  as  may be requested by the Office of Banks and
    Real Estate.
         (9)  The appropriate fee.
         (10)  Such other information reasonably required  by
    the  Office  of  Banks and Real Estate and established by
    rule.
    (f)  Preliminary permits.   Notwithstanding  anything  in
this  Section  to  the contrary, the Office of Banks and Real
Estate may grant a 6-month preliminary permit, as established
by rule, allowing the developer to begin offering and selling
timeshare interests while the registration is in process.  To
obtain a preliminary permit, the developer shall  do  all  of
the following:
         (1)   Submit  a formal written request to the Office
    of Banks and Real Estate for a preliminary permit.
         (2)  Submit a substantially complete application for
    registration to the Office  of  Banks  and  Real  Estate,
    including  all  appropriate  fees  and  exhibits required
    under this Article.
         (3)  Provide evidence acceptable to  the  Office  of
    Banks  and  Real  Estate  that  all funds received by the
    developer will  be  placed  into  an  independent  escrow
    account with instructions that funds will not be released
    until a final registration has been granted.
         (4) Give to each purchaser and potential purchaser a
    copy  of  the proposed public offering statement that the
    developer has submitted to the Office of Banks  and  Real
    Estate with the initial application.
         (5) Give to each purchaser the opportunity to cancel
    the  purchase  contract in accordance with Section 10-10.
    The purchaser shall have  an  additional  opportunity  to
    cancel  upon  the issuance of an approved registration if
    the Office of Banks and Real Estate determines that there
    is a substantial difference in the disclosures  contained
    in the final public offering statement and those given to
    the purchaser in the proposed public offering statement.
    (g)   Alternative registration; letter of credit or other
assurance; recovery.
         (1) Notwithstanding anything  in  this  Act  to  the
    contrary, the Office of Banks and Real Estate may accept,
    as  established by  rule, a registration from a developer
    for a timeshare plan if the developer provides all of the
    following:
              (A)  A written notice  of  intent  to  register
         under  this  Section  at  least  15  days  prior  to
         submission of the alternative registration.
              (B)  An  irrevocable  letter of credit or other
         acceptable assurance, as established by rule,  in an
         amount  of  $1,000,000,  from  which   an   Illinois
         purchaser  aggrieved  by  any  act,  representation,
         transaction,   or   conduct  of  a  duly  registered
         developer or his or her  acquisition  agent,   sales
         agent,  managing entity, or employee, which violates
         any provision of this Act or the  rules  promulgated
         under  this  Act,  or which constitutes embezzlement
         of money or property or results in money or property
         being unlawfully obtained from any person  by  false
         pretenses,  artifice,  trickery,  or  forgery  or by
         reason    of    any    fraud,     misrepresentation,
         discrimination,  or  deceit by or on the part of any
         developer or agent or employee of the developer  and
         which  results in actual monetary loss as opposed to
         a loss in market value, may recover.
              (C)  The developer's legal  name,  any  assumed
         names  used  by  the  developer, and the developer's
         principal office  location,  mailing  address,  main
         contact person, and telephone number.
              (D)  The  name, location, mailing address, main
         contact  person,  and  telephone   number   of   the
         timeshare plan included in the filing.
              (E)   The  name  of  the  authorized  agent  or
         registered agent in Illinois upon whom claims can be
         served  or  service  of  process can be had, and the
         address in  Illinois  of  the  authorized  agent  or
         registered agent.
              (F)   The names of any sales agent, acquisition
         agent, and  managing  entity,  and  their  principal
         office  location,  mailing  address,  and  telephone
         number.
              (G)  A  declaration as to whether the timeshare
         plan is a single-site timeshare plan or a multi-site
         timeshare plan and, if a multi-site timeshare  plan,
         whether  it consists of specific timeshare interests
         or non-specific timeshare interests.
              (H) Disclosure of each  jurisdiction  in  which
         the  developer  has  applied for registration of the
         timeshare plan, and whether the timeshare plan,  its
         developer,  or  any of its acquisition agents, sales
         agents, or managing entities  utilized  were  denied
         registration or were the subject of any disciplinary
         proceeding.
              (I) The required fee.
              (J)  Such other information reasonably required
         by   the   Office  of  Banks  and  Real  Estate  and
         established by rule.
         (2)  Any  letter  of  credit  or  other   acceptable
    assurance shall remain in effect with the Office of Banks
    and  Real Estate for a period of 12 months after the date
    the developer does not renew or otherwise cancel  his  or
    her  registration with the State of Illinois or 12 months
    after the  Office  of  Banks  and  Real  Estate  revokes,
    suspends,  or otherwise disciplines such developer or his
    or  her  registration,  provided  there  is  no   pending
    litigation  alleging a violation of any provision of this
    Act known by the Office of  Banks  and  Real  Estate  and
    certified by the developer.
         (3)  The  Office  of  Banks  and  Real  Estate shall
    establish procedures, by rule, to satisfy claims  by  any
    Illinois purchaser pursuant to this Section.
         (4)  The  Office  of  Banks  and  Real  Estate shall
    automatically suspend the registration of  any  developer
    pursuant  to  Section  15-25 of this Act in the event the
    Office authorizes  or  directs  payment  to  an  Illinois
    purchaser  from  the letter of credit or other acceptable
    assurance pursuant to this Section and as established  by
    rule.
    (h)  A  developer who registers a timeshare plan pursuant
to this  Act  shall  provide  the  purchaser  with  a  public
offering  statement  that  complies with Section 5-25 and any
disclosures or other written  information  required  by  this
Act.
    (i)  Nothing  contained  in this Section shall affect the
Office of Banks and Real Estate's  ability  to  initiate  any
disciplinary  action  against  a developer in accordance with
this Act.
    (j) For purposes of this  Section,  "Illinois  purchaser"
means  a  person  who,  within  the  State  of  Illinois,  is
solicited,  offered,  or  sold  a  timeshare  interest  in  a
timeshare plan registered pursuant to this Section.

    Section   5-20.  Developer   supervisory   duties.    The
developer  shall  have  the  duty  to  supervise, manage, and
control all aspects of the offering of  the  timeshare  plan,
including,   but  not  limited  to,  promotion,  advertising,
contracting,  and   closing.   The   developer   shall   have
responsibility  for  each  timeshare plan registered with the
Office of Banks and Real Estate and for the  actions  of  any
sales  agent, managing entity, and acquisition agent utilized
by the developer in the offering or selling of any registered
timeshare plan.  Any  violation  of  this  Act  which  occurs
during  the  offering  activities  shall  be  deemed  to be a
violation by the developer as  well  as  by  the  acquisition
agent, sales agent, or managing entity who actually committed
such  violation.  Notwithstanding anything to the contrary in
this Act, the developer shall be responsible for the  actions
of  the  association  and managing entity only while they are
subject to the developer's control.

    Section  5-25. Timeshare plan public  offering  statement
requirements.
    (a)    A   developer  shall  prepare  a  public  offering
statement, shall provide the statement to each purchaser of a
timeshare interest in any  timeshare  plan  at  the  time  of
purchase, and shall fully and accurately disclose those facts
concerning  the  timeshare  developer and timeshare plan that
are required by this Act or by rule.    The  public  offering
statement shall be in writing and dated and shall require the
purchaser to certify in writing the receipt thereof.
    (b)  With  regard  to  timeshare  interests  offered in a
timeshare plan, a public offering statement shall  fully  and
accurately disclose the following:
         (1)   The  name  of  the developer and the principal
    address of the developer.
         (2)   A  description  of  the  type   of   timeshare
    interests being offered.
         (3)   A  general  description  of  the  existing and
    proposed accommodations and amenities  of  the  timeshare
    plan,  including their type and number, personal property
    furnishing the accommodation, any use  restrictions,  and
    any required fees for use.
         (4)    A  description  of   any  accommodations  and
    amenities that are  committed  to  be  built,  including,
    without limitation:
              (A)   the  developer's schedule of commencement
         and completion of all accommodations and  amenities;
         and
              (B)  the estimated number of accommodations per
         site that may become subject to the timeshare plan.
         (5)   A  brief  description of the duration, phases,
    and operation of the timeshare plan.
         (6)  The current annual budget, if available, or the
    projected annual budget  for  the  timeshare  plan.   The
    budget shall include, without limitation:
              (A)   a statement of the amount, or a statement
         that there is no amount, included in the budget as a
         reserve for repairs and replacement;
              (B)  the projected common expense liability, if
         any, by category of expenditures for  the  timeshare
         plan; and
              (C)   a  statement  of any services or expenses
         not reflected  in  the  budget  that  the  developer
         provides or pays.
         (7)   Any  initial  or  special  fee  due  from  the
    purchaser  at closing, together with a description of the
    purpose and method of calculating the fee.
         (8)   A  description  of  any  liens,  defects,   or
    encumbrances  on  or affecting the title to the timeshare
    interests.
         (9)  A description of any financing  offered  by  or
    available through the developer.
         (10)   A statement that within 5 calendar days after
    receipt  of  the  public  offering  statement  or   after
    execution of the purchase contract, whichever is later, a
    purchaser   may   cancel  any  purchase  contract  for  a
    timeshare interest  from  a  developer  together  with  a
    statement  providing the name and street address to which
    the purchaser should mail  any  notice  of  cancellation.
    However,  if  by  agreement of the parties by and through
    the purchase contract, the purchase contract  allows  for
    cancellation  of  the  purchase  contract for a period of
    time exceeding 5 calendar days, then the public  offering
    statement shall include a statement that the cancellation
    of  the  purchase  contract is allowed for that period of
    time exceeding 5 calendar days.
         (11)    A   statement   of   any   pending    suits,
    adjudications,  or  disciplinary  actions material to the
    timeshare interests of which the developer has knowledge.
         (12)  Any restrictions on alienation of  any  number
    or portion of any timeshare interests.
         (13)  A statement describing  liability and casualty
    insurance for the timeshare property.
         (14)   Any current or expected fees or charges to be
    paid by timeshare purchasers for the use of any amenities
    related to the timeshare property.
         (15)  The extent  to  which  financial  arrangements
    have   been  provided  for  completion  of  all  promised
    improvements.
         (16)  The developer or managing entity  must  notify
    the  Office  of  Banks  and  Real Estate of the extent to
    which an accommodation may become subject  to  a  tax  or
    other lien arising out of claims against other purchasers
    in the same timeshare plan.  The Office of Banks and Real
    Estate  may  require  the developer or managing entity to
    notify a prospective purchaser of any such potential  tax
    or  lien  which would materially and adversely affect the
    prospective purchaser.
         (17)  A statement indicating that the developer  and
    timeshare plan are registered with the State of Illinois.
         (18)  If the timeshare plan provides purchasers with
    the  opportunity to participate in an exchange program, a
    description of the  name  and  address  of  the  exchange
    company  and the method by which a purchaser accesses the
    exchange program.
         (19)  Such other information reasonably required  by
    the  Office  of  Banks and Real Estate and established by
    administrative  rule  necessary  for  the  protection  of
    purchasers of timeshare interests in timeshare plans.
         (20)  Any other information that the developer, with
    the approval of the Office  of  Banks  and  Real  Estate,
    desires to include in the public offering statement.
    (c)   A  developer  offering a  multi-site timeshare plan
shall  also  fully  and  accurately  disclose  the  following
information, which may be disclosed in a written, graphic, or
tabular form:
         (1)  A description of each component site, including
    the name and address of each component site.
         (2)  The  number  of  accommodations  and  timeshare
    periods,  expressed in periods of 7-day use availability,
    committed to the multi-site timeshare plan and  available
    for use by purchasers.
         (3)   Each  type  of  accommodation  in terms of the
    number of bedrooms, bathrooms, and sleeping capacity, and
    a statement of whether or not the accommodation  contains
    a  full  kitchen.   For  purposes  of this description, a
    "full kitchen" means a kitchen  having  a  minimum  of  a
    dishwasher, range, sink, oven, and refrigerator.
         (4)  A description of amenities available for use by
    the purchaser at each component site.
         (5)  A description of the reservation system,  which
    shall include the following:
              (A)   The  entity responsible for operating the
         reservation system.
              (B)  A summary of  the  rules  and  regulations
         governing  access  to  and  use  of  the reservation
         system.
              (C)   The  existence  of  and  an   explanation
         regarding  any  priority  reservation  features that
         affect a purchaser's ability  to  make  reservations
         for   the   use   of  a  given  accommodation  on  a
         first-come, first-served basis.
         (6)   A  description  of  any  right  to  make   any
    additions,  substitutions, or deletions of accommodations
    or amenities, and a description of the basis  upon  which
    accommodations and amenities may be added to, substituted
    in, or deleted from the multi-site timeshare plan.
         (7)   A description of the purchaser's liability for
    any fees associated with the multi-site timeshare plan.
         (8)  The location and the anticipated  relative  use
    demand  of  each component site in a multi-site timeshare
    plan, as well as any periodic adjustment or amendment  to
    the  reservation  system  which may be needed in order to
    respond to actual purchaser use patterns and  changes  in
    purchaser  use  demand for the accommodations existing at
    that time within the multi-site timeshare plan.
         (9)  Such other information reasonably  required  by
    the  Office  of  Banks and Real Estate and established by
    administrative  rule  necessary  for  the  protection  of
    purchasers of timeshare interests in timeshare plans.
         (10)  Any other information that the developer, with
    the approval of the Office  of  Banks  and  Real  Estate,
    desires to include in the public offering statement.
    (d)   If  a  developer  offers  a  non-specific timeshare
interest in a multi-site timeshare plan, the developer  shall
disclose  the  information  set forth in subsection (b) as to
each component site.

         Section 5-30.   Exchange  company  registration  and
disclosure requirements.
    (a)   Each  exchange company offering an exchange program
to purchasers in this State shall register with the Office of
Banks  and  Real  Estate  by  July  1  of  each  year.    The
registration  shall  consist  of the information specified in
this Section.  However, an exchange company  shall  make  its
initial  registration  at  least  20  calendar  days prior to
offering membership in an exchange program to  any  purchaser
in this State.
    (b)   If a purchaser is offered the opportunity to become
a member of an exchange program, the developer shall  deliver
to the purchaser, together with the public offering 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  exchange company
offering membership in  the  exchange  program,  or,  if  the
exchange  company is dealing directly with the purchaser, the
developer or the exchange  company    shall  deliver  to  the
purchaser,  prior to the initial offering or execution of any
contract between the purchaser and the exchange company,  the
following written information regarding the exchange program,
the  form  and  substance of which shall first be approved by
the Office of Banks and Real Estate 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 annually no later than August 1 of each year:
              (A)  The number of owners currently enrolled in
         the exchange program.
              (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  Office of Banks and Real Estate of any
    exchange company as established by rule.
    (c)  No developer shall have any liability  with  respect
to  any  violation of this Act arising out of the publication
by the developer of information provided to it by an 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 developer of information relating
to an exchange  program  other  than  that  provided  to  the
developer by the exchange company.
    (d)   All  written, visual, and electronic communications
relating to an exchange company or an exchange program  shall
be  filed  with  the Office of Banks and Real Estate 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 with the 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
any  third  parties on account of any such denial of exchange
privileges.

    Section  5-35. Resale agent registration requirements.
    (a)  Every resale agent as  defined  in  this  Act  shall
register with the Office of Banks and Real Estate.
    (b)    Every   resale  agent  shall  be  responsible  for
registering the following  information  with  the  Office  of
Banks  and  Real  Estate  on  forms provided by the Office of
Banks and Real Estate:
         (1)  A description of the resale program offered  by
    the resale agent.
         (2)   The  legal  name,  any  assumed names, and the
    mailing address,  street  address,  contact  person,  and
    telephone number of the resale agent.
         (3)   A  properly  executed  consent-to-audit  form,
    which allows the Office of Banks and Real Estate to audit
    any escrow accounts held by the resale agent.
         (4)  Any other information required by the Office of
    Banks  and  Real  Estate to be filed by resale agents, as
    established by rule.
    (c)  The following  shall  be  exempt  from  registration
under this Section:
         (1)   Any developer, sales agent, acquisition agent,
    or managing entity that is currently registered  pursuant
    to this Act.
         (2)   Any purchaser that sells or offers to sell his
    or her own timeshare interest.
         (3)   Any  homeowners'  association  that  sells  or
    offers to  sell  its  own  timeshare  interests  acquired
    through  foreclosure,  deed  in  lieu  of foreclosure, or
    gratuitous transfer.
         (4)  Any person  who  is  licensed  under  the  Real
    Estate License Act of 1983 or its successor Act.

    Section   5-40. Resale  agent duties.  Whether registered
or exempt from registration  under  Section  5-35,  a  resale
agent shall comply with all of the following:
    (a)  Prior to engaging in any resale activities on behalf
of  any  owner  of a timeshare interest, a resale agent shall
enter into  a  listing  agreement  with  that  owner.   Every
listing  agreement shall be in writing and signed by both the
resale  agent  and  the  timeshare   interest   owner.    The
requirements  of  the  written  listing  agreement  shall  be
established  by  rule, but at a minimum the listing agreement
shall disclose the method of compensation, a definite date of
termination, whether any fees are non-refundable, and whether
the agreement permits the timeshare resale agent or any other
person to make any use whatsoever of  the  owner's  timeshare
interest  or receive any rents or profits generated from such
use of the timeshare interest.
    (b)  A resale agent shall maintain records as required by
rule.  The records required to be maintained include, but are
not  limited  to,   all   listing   agreements,   copies   of
disbursement  authorizations  in  accordance  with subsection
(c), and resale contracts.
    (c)  A resale agent who collects  any  fees  prior  to  a
transfer of an interest from any owner shall deposit the fees
in  an  escrow  account.  Any fees that are to be paid to the
resale agent prior to  closing  may  be  disbursed  from  the
escrow   account   only   upon   receipt  of  a  disbursement
authorization, signed by the owner, in the following form:
         "I, (name of owner),  am the owner of  a  timeshare
    interest in (name of timeshare plan).   I understand that
    for my protection I can require the entire fee to be held
    in escrow until the closing on the resale of my timeshare
    interest,  but  I  am  authorizing  a  release before the
    transfer in the  following  amount:  (amount  written  in
    words) ($ (amount in numbers)), for the following purpose
    or  purposes  (description  of  purpose  or purposes).  I
    understand that the resale  agent  is  regulated  by  the
    Office  of  Banks  and  Real Estate under the Real Estate
    Timeshare Act of 1999.  The  Office  of  Banks  and  Real
    Estate   requires   the   resale  agent  to  obtain  this
    disbursement  authorization  with  my  signature   before
    disbursement of my funds."
    (d)  A  resale  agent  shall utilize a purchase agreement
that discloses to a purchaser of a timeshare interest all  of
the following:
         (1)  A   legally   sufficient   description  of  the
    timeshare interest being purchased.
         (2)  The name and address of the managing entity  of
    the timeshare property.
         (3)  The  current  year's  assessment for the common
    expenses  allocated  to  the  timeshare  interest   being
    purchased   including   the  time  period  to  which  the
    assessment relates and the date on which it is  due.   If
    not included in the applicable common expense assessment,
    the  amount  of  any  real  or  personal  property  taxes
    allocated to the timeshare interest being purchased.
         (4)  A complete and accurate disclosure of the terms
    and conditions of the purchase and closing, including the
    obligations  of  the  owner,  the  purchaser, or both for
    closing costs and the title insurance.
         (5)  The   entity    responsible    for    providing
    notification to the managing entity of the timeshare plan
    and  the applicable exchange company regarding any change
    in the ownership of the timeshare interest.
         (6)  A statement of the  first  year  in  which  the
    purchaser  is  entitled  to receive the actual use rights
    and occupancy of the timeshare interest, as determined by
    the  managing  entity  of  the  timeshare  plan  and  any
    exchange company.
         (7)  In making  the  disclosures  required  by  this
    subsection  (d), the timeshare resale agent may rely upon
    information provided in writing by the owner or  managing
    entity of the timeshare plan.
         (8)  The  purchaser's  5-day  cancellation period as
    required by Section 10-10.
         (9)  Any other information determined by the  Office
    of Banks and Real Estate and established by rule.

    Section  5-45.   Amendment to registration information or
public offering statement.  The developer, resale agent,  and
exchange  company  shall amend or supplement their disclosure
documents  and  registration  information  to   reflect   any
material  change  in  any information required by this Act or
the  rules  implementing  this  Act.   All  such  amendments,
supplements, and changes shall be filed with  the  Office  of
Banks and Real Estate within 20 calendar days of the material
change.

    Section  5-50.   Registration review time frames.   Every
registration required to be filed with the  Office  of  Banks
and Real Estate under this Act shall be reviewed and issued a
certificate  of registration in accordance with the following
schedule:
         (1)  Comprehensive registration.  Registration shall
    be effective only upon the issuance of a  certificate  of
    registration  by  the  Office  of  Banks and Real Estate,
    which, in the ordinary course of business,  should  occur
    no more than 60 calendar days after actual receipt by the
    Office of Banks and Real Estate of the properly completed
    application.   The  Office  of Banks and Real Estate must
    provide a list of deficiencies  in  the  application,  if
    any, within 60 calendar days of receipt.
         (2)   Abbreviated  registration.  Registration shall
    be effective only upon the issuance of a  certificate  of
    registration  by  the  Office  of  Banks and Real Estate,
    which, in the ordinary course of business,  should  occur
    no more than 30 calendar days after actual receipt by the
    Office of Banks and Real Estate of the properly completed
    application.   The  Office  of Banks and Real Estate must
    provide a list of deficiencies  in  the  application,  if
    any, within 30 calendar days of receipt.
         (3)      Alternative     assurance     registration.
    Registration shall be deemed effective within 15 calendar
    days of receipt, unless the  Office  of  Banks  and  Real
    Estate  provides  to  the  applicant  a  written  list of
    deficiencies  in  the  application,  if  any,  within  15
    calendar days of receipt.
         (4)  Preliminary permit registration.  A preliminary
    permit  shall  be  issued  within  15  calendar  days  of
    receipt, unless the  Office  of  Banks  and  Real  Estate
    provides  to the applicant a written list of deficiencies
    in the application, if any, within 15  calendar  days  of
    receipt.
         (5)  Exchange  company  registration.   Registration
    shall  be  effective  upon receipt by the Office of Banks
    and Real Estate of a properly completed application.  The
    Office of Banks and Real Estate must provide  a  list  of
    deficiencies  in  the  application,  if  any,  within  30
    calendar days of receipt.

    Section 5-55.  Fees.  The Office of Banks and Real Estate
shall provide, by rule, for fees to be paid by applicants and
registrants  to  cover  the reasonable costs of the Office of
Banks and Real Estate  in  administering  and  enforcing  the
provisions  of  this Act. The Office of Banks and Real Estate
may also provide, by rule, for  general  fees  to  cover  the
reasonable  expenses  of  carrying  out  other  functions and
responsibilities under this Act.

    Section  5-60.   Registration;  offer  or   disposal   of
interest.  A developer, exchange company, or resale agent, or
any  of  their agents, shall not sell, offer, or dispose of a
timeshare interest unless  all  necessary  registrations  are
filed and approved by the Office of Banks and Real Estate, or
while  an  order  revoking or suspending a registration is in
effect.
    An applicant for registration under this Act shall submit
the necessary information to  complete  the  application,  as
required  by  the  Office  of Banks and Real Estate, within 6
months from the date the initial registration application was
received by the Office of Banks  and  Real  Estate.   If  the
applicant  fails  to  submit  the  information  necessary  to
complete  the  application as required by the Office of Banks
and Real Estate within the six month period, said application
shall be voided, and  a  new  registration  application  with
applicable fees must be submitted.

    Section  5-65.  Securities.   The offer or disposition of
a timeshare interest in a timeshare plan which satisfies  all
the   requirements  of  this  Act  shall  not  be  deemed  to
constitute the  offer  and  sale  of  a  security  under  the
Illinois Securities Law of 1953.

               Article 10.  Business Practices

    Section 10-5.   Management and operation provisions.
    (a)   Before  the first sale of a timeshare interest, the
developer shall create or  provide  for  a  managing  entity,
which  shall  be  either the developer, a separate manager or
management  firm,  the  board  of  directors  of  an  owners'
association, or some combination thereof.
    (b)  The duties of the managing entity include,  but  are
not limited to:
         (1)  Management     and     maintenance    of    all
    accommodations constituting the timeshare plan.
         (2)  Collection of all assessments  as  provided  in
    the timeshare instrument.
         (3)   Providing  to  all  purchasers  each  year  an
    itemized annual budget, which shall include all estimated
    revenues and expenses.
         (4)  Maintenance of all books and records concerning
    the timeshare plan.
         (5)   Scheduling  occupancy of  accommodations, when
    purchasers are not entitled  to  use  specific  timeshare
    periods,  so  that  all  purchasers  will be provided the
    opportunity to use and possession of  the  accommodations
    of the timeshare plan which they have purchased.
         (6)   Performing any other functions and duties that
    are necessary and proper to maintain  the  accommodations
    or that are required by the timeshare instrument.
    (c)  In  the  event  a  developer,  managing  entity,  or
association  files  a  complaint  in a foreclosure proceeding
involving  timeshare  interests,  the   developer,   managing
entity,  or  association may join in the same action multiple
defendant obligors and junior interest  holders  of  separate
timeshare interests, provided:
         (1)  the  foreclosure  proceeding  involves a single
    timeshare plan;
         (2) the foreclosure proceeding is filed by a  single
    plaintiff;
         (3) the default and remedy provisions in the written
    instruments  on which the foreclosure proceeding is based
    are substantially the same for each defendant; and
         (4) the nature of the defaults alleged is  the  same
    for each defendant.
    (d)  In  any  foreclosure  proceeding  involving multiple
defendants filed under subsection (c), the court shall  sever
for  separate  trial  any  count  of the complaint in which a
defense or counterclaim is timely raised by a defendant.

    Section  10-10.  Cancellation of purchase  contract.  Any
purchase contract entered into by a purchaser of a time share
interest  under  this Act shall be voidable by the purchaser,
without penalty, within 5 calendar days after the receipt  of
the  public  offering  statement  or  the  execution  of  the
purchase  contract, whichever is later. The purchase contract
shall  provide  notice  of  the  5-day  cancellation  period,
together with the name  and  mailing  address  to  which  any
notice   of   cancellation  shall  be  delivered.  Notice  of
cancellation  shall  be  deemed  timely  if  the  notice   is
deposited  with  the  United  States Postal Service not later
than midnight of the fifth calendar day.
    Upon such cancellation, the  developer  or  resale  agent
shall  refund  to  the  purchaser  all  payments  made by the
purchaser, less the amount of any benefits actually  received
pursuant  to the purchase contract.  The refund shall be made
within 20 calendar days after the receipt of  the  notice  of
cancellation,  or  receipt  of  funds  from  the  purchaser's
cleared check, whichever occurs later.
    If  a  purchaser  elects  to  cancel  a purchase contract
pursuant to this Section, the purchaser may  do  so  by  hand
delivering  a  written notice of cancellation or by mailing a
notice of cancellation  by  certified  mail,  return  receipt
requested,  to the developer or resale ent, as applicable, at
an address set forth in the purchase contract.

    Section  10-15.   Interests,  liens,  and   encumbrances;
alternative assurances.
    (a)    Excluding   any  encumbrance  placed  against  the
purchaser's  timeshare  interest  securing  the   purchaser's
payment  of  purchase-money  financing for such purchase, the
developer shall not be entitled to the release of  any  funds
escrowed under subsection (c) of Section 5-15 with respect to
each  timeshare  interest and any other property or rights to
property appurtenant to the timeshare interest, including any
amenities represented to the purchaser as being part  of  the
timeshare plan, until the developer has provided satisfactory
evidence to the Office of Banks and Real Estate of one of the
following:
         (1)   The timeshare interest together with any other
    property  or  rights  to  property  appurtenant  to   the
    timeshare  interest,  including any amenities represented
    to the purchaser as being part of the timeshare plan, are
    free and clear of any of the claims of the developer, any
    owner  of  the  underlying  fee,  a  mortgagee,  judgment
    creditor, or other lienor, or any other person having  an
    interest  in or lien or encumbrance against the timeshare
    interest or appurtenant property or property rights.
         (2)  The developer, any owner of the underlying fee,
    a mortgagee, judgment creditor, or other lienor,  or  any
    other person having an interest in or lien or encumbrance
    against the timeshare interest or appurtenant property or
    property  rights,  including any amenities represented to
    the purchaser as being part of the  timeshare  plan,  has
    recorded a subordination and notice to creditors document
    in  the appropriate public records of the jurisdiction in
    which   the   timeshare   interest   is   located.    The
    subordination document shall  expressly  and  effectively
    provide  that  the  interest  holder's  right,  lien,  or
    encumbrance  shall  not  adversely  affect,  and shall be
    subordinate to, the rights of the owners of the timeshare
    interests in the timeshare plan regardless of the date of
    purchase, from  and  after  the  effective  date  of  the
    subordination document.
         (3)  The developer, any owner of the underlying fee,
    a  mortgagee,  judgment creditor, or other lienor, or any
    other person having an interest in or lien or encumbrance
    against the timeshare interest or appurtenant property or
    property rights, including any amenities  represented  to
    the  purchaser  as  being part of the timeshare plan, has
    transferred the subject accommodations  or  amenities  or
    all  use  rights  therein  to a nonprofit organization or
    owners' association to be held for the use and benefit of
    the owners of the timeshare plan, which entity shall  act
    as  a  fiduciary  to  the  purchasers,  provided that the
    developer has transferred control of such entity  to  the
    owners  or  does  not  exercise its voting rights in such
    entity with respect  to  the  subject  accommodations  or
    amenities.   Prior  to  the  transfer,  any lien or other
    encumbrance against the accommodation or  facility  shall
    be   made  subject  to  a  subordination  and  notice  to
    creditors instrument pursuant to paragraph (2).
         (4)  Alternative arrangements have been  made  which
    are  adequate  to protect the rights of the purchasers of
    the timeshare interests and approved  by  the  Office  of
    Banks and Real Estate.
    (b)   Nothing  in  this Section shall prevent a developer
from accessing any escrow funds if the developer has complied
with subsection (c) of Section 5-15.

    Section  10-20.  Licenses.   Any sales  or  resale  agent
shall  comply  with the provisions of the Real Estate License
Act of 1983, or its  successor  Act  and  the  rules  adopted
pursuant  to  that Act, including licensure, unless otherwise
exempt under the Real Estate License  Act  of  1983,  or  its
successor Act and the rules adopted pursuant to that Act.

    Section 10-25.  Liability; material misrepresentation.
    (a)   A  developer  or  other person offering a timeshare
plan may not do any of the following:
         (1)  Misrepresent a fact material to  a  purchaser's
    decision to buy a timeshare interest.
         (2)   Predict specific or immediate increases in the
    value of a timeshare interest represented over  a  period
    of  time,  excluding bona fide pending price increases by
    the developer.
         (3)   Materially  misrepresent  the   qualities   or
    characteristics   of   accommodations  or  the  amenities
    available to the occupant of those accommodations.
         (4)  Misrepresent the length of time  accommodations
    or  amenities  will  be  available  to the purchaser of a
    timeshare interest.
         (5)   Misrepresent  the  conditions  under  which  a
    purchaser of a timeshare interest may exchange the  right
    of  his  or  her  occupancy for the right to occupy other
    accommodations.
    (b)  A developer or other person  using  a  promotion  in
connection  with  the  offering of a timeshare interest shall
clearly disclose all of the following:
         (1)  That the purpose of the promotion  is  to  sell
    timeshare  interests,  which shall appear in bold face or
    other conspicuous type.
         (2)  That  any  person  whose  name  or  address  is
    obtained   during  the  promotion  may  be  solicited  to
    purchase a timeshare interest.
         (3)  The name of  each  developer  or  other  person
    trying   to   sell   a  timeshare  interest  through  the
    promotion, and the name of each  person  paying  for  the
    promotion.
         (4)  The complete rules of the promotion.
         (5)    The   method   of   awarding  prizes,  gifts,
    vacations, discount vacations, or  other  benefits  under
    the promotion; a complete and fully detailed description,
    including approximate retail value, of all prizes, gifts,
    or  benefits  under  the  promotion; the quantity of each
    prize, gift, or benefit to be awarded or  conferred;  and
    the  date  by  which each prize, gift, or benefit will be
    awarded or conferred.
         (6)  Any other disclosures provided by rule.
    (c)  If a  person  represents  that  a  prize,  gift,  or
benefit  will  be awarded in connection with a promotion, the
prize, gift, or benefit must be awarded or conferred  in  the
manner represented, and on or before the date represented.

    Section  10-30.  Records.  The managing entity shall keep
detailed  financial records directly related to the operation
of the association.  All financial and other records shall be
made reasonably available for examination by  any  purchaser,
or  the  authorized agent of the purchaser, and the Office of
Banks and Real Estate.   For purposes of  this  Section,  the
books  and  records of the timeshare plan shall be considered
"reasonably available" if copies of  the  requested  portions
are  delivered  to  the purchaser or the purchaser's agent or
the Office of Banks and Real Estate within 7 days of the date
the managing  entity  receives  a  written  request  for  the
records  signed  by  the purchaser or the Office of Banks and
Real Estate.  The managing entity may charge the purchaser  a
reasonable fee for copying the requested information.

    Section    10-35.    Maintenance   of   records.    Every
developer,  exchange company, or resale agent shall maintain,
for a period of 2 years, records of any individuals  employed
by   the   developer,  exchange  company,  or  resale  agent,
including  the  last  known  address   of   each   of   those
individuals.

    Section  10-40.  Partition.  No action for partition of a
timeshare interest may be initiated except  as  permitted  by
the timeshare instrument.

            Article 15.  Disciplinary Provisions

    Section   15-5.  Investigation.   The Office of Banks and
Real Estate may investigate the actions or qualifications  of
any   person  or  persons  holding  or  claiming  to  hold  a
certificate of  registration under this Act.  Such  a  person
is referred to as "the respondent" in this Article.

    Section      15-10.  Disciplinary    hearings;    record;
appointment of administrative law judge.
    (a) The Office of Banks and Real Estate has the authority
to conduct hearings before an  administrative  law  judge  on
proceedings   to   revoke,   suspend,   place  on  probation,
reprimand, or refuse to issue or renew registrants registered
under this Act, or to impose a civil penalty  not  to  exceed
$25,000 upon any registrant registered under this Act.
    (b)  The Office of Banks and Real Estate, at its expense,
shall preserve a record of  all  proceedings  at  the  formal
hearing  of  any  case  involving the refusal to issue or the
revocation, suspension, or other discipline of a  registrant.
The  notice of hearing, complaint, and all other documents in
the nature of pleadings and  written  motions  filed  in  the
proceedings,  the  transcript of testimony, the report of the
Board, and the orders of the Office of Banks and Real  Estate
shall  be  the  record  of  proceeding.   At  all hearings or
prehearing conferences, the Office of Banks and  Real  Estate
and the respondent shall be entitled to have a court reporter
in  attendance for purposes of transcribing the proceeding or
prehearing conference.
    (c) The Commissioner has the  authority  to  appoint  any
attorney  duly  licensed  to  practice  law  in  the State of
Illinois to serve as  an  administrative  law  judge  in  any
action  for  refusal  to  issue  or  renew  a  certificate of
registration or to discipline a registrant or person  holding
a  certificate of registration.  The administrative law judge
has   full   authority   to   conduct   the   hearing.    The
administrative law judge shall report his or her findings and
recommendations to the Commissioner.    If  the  Commissioner
disagrees  with  the recommendation of the administrative law
judge, the Commissioner may issue an order  in  contravention
of the recommendation.

    Section  15-15.  Notice  of proposed disciplinary action;
hearing.
    (a) Before taking any disciplinary action with regard  to
any registrant, the Office of Banks and Real Estate shall:
         (1)   notify the respondent in writing, at  least 30
    calendar days prior to the date set for the  hearing,  of
    any  charges  made, the time and place for the hearing of
    the charges, and that testimony at the  hearing  will  be
    heard under oath; and
         (2)  inform the respondent that upon failure to file
    an   answer   and  request  a  hearing  before  the  date
    originally set for the hearing,  default  will  be  taken
    against the respondent and the respondent's  registration
    may  be  suspended  or  revoked, or the respondent may be
    otherwise disciplined, as the Office of  Banks  and  Real
    Estate may deem proper.
    (b)  If  the  respondent  fails  to  file an answer after
receiving notice, the respondent's registration may,  in  the
discretion of the Office of Banks and Real Estate, be revoked
or  suspended, or the respondent may be otherwise disciplined
as deemed proper, without a  hearing,  if  the  act  or  acts
charged  constitute  sufficient grounds for that action under
this Act.
    (c) At the time and place fixed in the notice, the Office
of Banks and Real Estate shall  proceed  to  hearing  of  the
charges.   Both  the  respondent and the complainant shall be
accorded ample  opportunity  to  present  in  person,  or  by
counsel,  statements,  testimony, evidence, and argument that
may be pertinent  to  the  charges  or  any  defense  to  the
charges.

    Section 15-20.  Disciplinary        consent       orders.
Notwithstanding any other provisions of this  Act  concerning
the  conduct of hearings and recommendations for disciplinary
actions,  the  Office  of  Banks  and  Real  Estate  has  the
authority  to  negotiate  agreements  with  registrants   and
applicants  resulting  in  disciplinary  consent orders.  Any
such consent order may provide for  any  form  of  discipline
provided for in the Act. Any such consent order shall provide
that  it  is  not entered into as a result of any coercion by
the Office of Banks and Real Estate.  Any such consent  order
shall   be    accepted   by  signature  or  rejected  by  the
Commissioner in a timely manner.

    Section   15-25.  Disciplinary  action;  civil   penalty.
The  Office  of  Banks and Real Estate may refuse to issue or
renew any registration, or revoke or suspend any registration
or place  on  probation  or  administrative  supervision,  or
reprimand  any  registrant,  or impose a civil penalty not to
exceed $25,000,  for  any  one  or  any  combination  of  the
following causes:
         (1)   A  registrant's  disregard or violation of any
    provision of this Act or of  the  rules  adopted  by  the
    Office of Banks and Real Estate to enforce this Act.
         (2)  A conviction of the registrant or any principal
    of  the  registrant of (i) a felony under the laws of any
    U.S. jurisdiction, (ii) a misdemeanor under the  laws  of
    any  U.S.  jurisdiction  if  an  essential element of the
    offense is dishonesty, or (iii) a crime under the laws of
    any U.S. jurisdiction if the crime  relates  directly  to
    the practice of the profession regulated by this Act.
         (3)  A registrant's making any misrepresentation for
    the purpose of obtaining a registration or certificate of
    registration.
         (4)  A  registrant's  discipline  by  another   U.S.
    jurisdiction,  state  agency, or foreign nation regarding
    the practice of the profession regulated by this Act,  if
    at  least  one  of  the grounds for the discipline is the
    same as or substantially equivalent to one of  those  set
    forth in this Act.
         (5)   A  finding  by  the  Office  of Banks and Real
    Estate that the  registrant,  after  having  his  or  her
    registration  placed on probationary status, has violated
    the terms of probation.
         (6)  A  registrant's  practicing  or  attempting  to
    practice under a name other than the name as shown on his
    or her registration or any other legally authorized name.
         (7)  A  registrant's failure to file a return, or to
    pay the tax,  penalty,  or  interest  shown  in  a  filed
    return,  or  to pay any final assessment of tax, penalty,
    or interest, as required by any tax Act  administered  by
    the   Illinois   Department   of   Revenue,   until   the
    requirements of any such tax Act are satisfied.
         (8)   A   registrant's   engaging  in  dishonorable,
    unethical,  or  unprofessional  conduct  of  a  character
    likely to deceive, defraud, or harm the public.
         (9) A registrant's aiding or abetting another person
    or persons in disregarding or violating any provision  of
    this  Act  or of the rules adopted by the Office of Banks
    and Real Estate to enforce this Act.
         (10)   Any  representation  in   any   document   or
    information  filed  with  the  Office  of  Banks and Real
    Estate which is false or misleading.
         (11) A registrant's disseminating or causing  to  be
    disseminated   any   false   or   misleading  promotional
    materials  or  advertisements  in   connection   with   a
    timeshare plan.
         (12)   A   registrant's  concealing,  diverting,  or
    disposing of any funds or  assets  of  any  person  in  a
    manner that impairs the rights of purchasers of timeshare
    interests in the timeshare plan.
         (13)   A   registrant's   failure   to  perform  any
    stipulation or agreement made to  induce  the  Office  of
    Banks  and  Real Estate to issue an order relating to the
    timeshare plan.
         (14)  A  registrant's  engaging  in  any  act   that
    constitutes  a violation  of Section 3-102, 3-103, 3-104,
    or 3-105 of the Illinois Human Rights Act.
         (15) A registrant's failure to  provide  information
    requested  in  writing  by  the  Office of Banks and Real
    Estate, within 30 days of  the  request,  either  as  the
    result of a formal or informal complaint to the Office of
    Banks  and  Real Estate or as a result of a  random audit
    conducted by the Office of Banks and Real  Estate,  which
    would indicate a violation of this Act.
         (16)  A registrant's failure to account for or remit
    any escrow funds coming into his or her possession  which
    belonged to others.
         (17)  A  registrant's  failure  to make available to
    Office of Banks and Real Estate personnel  during  normal
    business  hours  all escrow records and related documents
    maintained in connection therewith, within 24 hours after
    a request from  the  Office  of  Banks  and  Real  Estate
    personnel.

    Section   15-30.  Subpoenas;   attendance  of  witnesses;
oaths.
    (a) The Office of Banks and Real Estate has the power  to
issue  subpoenas  ad testificandum and to bring before it any
persons,  and  to  take  testimony  either   orally   or   by
deposition,  or  both,  with the same fees and mileage and in
the same manner as prescribed in civil cases in the courts of
this State.  The Office of Banks  and  Real  Estate  has  the
power  to  issue subpoenas duces tecum and to bring before it
any documents, papers, files, books, and  records,  with  the
same  costs  and  in  the  same manner as prescribed in civil
cases in the courts of this State.
    (b)  Upon application of the Office  of  Banks  and  Real
Estate  or  its  designee or of the applicant, registrant, or
person holding a certificate  of  registration  against  whom
proceedings under this Act are pending, any circuit court may
enter  an  order  compelling  the enforcement of any subpoena
issued by the Office of Banks and Real Estate  in  connection
with any hearing or investigation.
    (c)  The  Commissioner  and the designated administrative
law judge have power to administer oaths to witnesses at  any
hearing   that  the  Office  of  Banks  and  Real  Estate  is
authorized to conduct and any other oaths authorized  in  any
Act administered by the Office of Banks and Real Estate.

    Section  15-35.  Administrative  law  judge's findings of
fact, conclusions  of  law,  and  recommendations.    At  the
conclusion of the hearing, the administrative law judge shall
present   to   the  Commissioner  a  written  report  of  the
administrative law judge's findings of fact,  conclusions  of
law,  and  recommendations  regarding  discipline  or a civil
penalty.  The report shall contain a finding  of  whether  or
not the respondent violated this Act or failed to comply with
conditions  required  in  this  Act.   The administrative law
judge shall specify the nature of the violation or failure to
comply.
    If the Commissioner disagrees  in  any  regard  with  the
report  of the administrative law judge, the Commissioner may
issue  an  order  in  contravention  of  the   report.    The
Commissioner   shall   provide   a   written  report  to  the
administrative law judge on any deviation and  shall  specify
with  particularity  the reasons for that action in the final
order.
    Section 15-40.  Rehearing.  After any  hearing  involving
disciplinary  action  against  a  registrant,  a  copy of the
administrative law judge's report  shall  be  served  on  the
respondent  by  the  Office  of Banks and Real Estate, either
personally or as provided in this Act for the service of  the
notice  of  hearing.   Within  20  calendar  days  after  the
service,  the  respondent  may present to the Office of Banks
and Real Estate a motion in writing  for  a  rehearing.   The
motion shall specify the particular grounds for rehearing. If
the  respondent  orders  a  transcript of the record from the
reporting service and pays for it within the time for  filing
a  motion  for  rehearing,  the 20 calendar day period within
which a motion for rehearing may be filed shall commence upon
the delivery of the transcript to the respondent.
    If no motion  for  rehearing  is  filed,  then  upon  the
expiration of the time specified for filing a motion, or if a
motion  for  rehearing  is  denied,  then  upon  denial,  the
Commissioner  may  enter  an  order  in  accordance  with the
recommendations of the administrative law  judge,  except  as
otherwise    provided   in   this   Article.   Whenever   the
Commissioner  is  not  satisfied that substantial justice has
been done in the hearing or in the administrative law judge's
report, the Commissioner may order a rehearing by the same or
some other duly qualified administrative law judge.

    Section 15-45.  Order or certified copy.  An order  or  a
certified  copy  of  an order, over the seal of the Office of
Banks and Real Estate and purporting  to  be  signed  by  the
Commissioner, shall be prima facie proof of the following:
         (1)   That the signature is the genuine signature of
    the Commissioner.
         (2)  That the Commissioner  is  duly  appointed  and
    qualified.
         (3)   That  the  administrative  law  judge  is duly
    appointed and qualified.

    Section 15-50.  Restoration     of     certificate     of
registration.  At any time after the suspension or revocation
of any certificate of registration, the Office of  Banks  and
Real  Estate  may  restore the certificate of registration to
the  respondent  upon  the  written  recommendation  of   the
Commissioner, unless after an investigation and a hearing the
Commissioner determines that restoration is not in the public
interest.

    Section 15-55.  Surrender of certificate of registration.
Upon  the  revocation  or  suspension  of  a  certificate  of
registration,  the registrant shall immediately surrender the
certificate of registration to the Office of Banks  and  Real
Estate.   If  the  registrant  fails  to do so, the Office of
Banks and Real Estate has the right to seize the  certificate
of registration.

    Section  15-60.  Administrative  Review  Law.   All final
administrative decisions of the  Office  of  Banks  and  Real
Estate  under  this  Act are subject to judicial review under
the Administrative Review Law   and  the  rules  implementing
that  Law.   The term "administrative decision" is defined as
in Section 3-101 of the Code of Civil Procedure.  Proceedings
for  judicial  review shall be commenced in the circuit court
of the county in which the party applying for review resides,
but if the party is not a resident of this State,  the  venue
shall be in Cook or Sangamon County.
    Pending  the  court's  final  decision  on administrative
review, the acts,  orders,  sanctions,  and  rulings  of  the
Office  of  Banks  and Real Estate regarding any registration
shall remain in full force  and  effect  unless  modified  or
stayed by court order pending a final judicial decision.
    The Office of Banks and Real Estate shall not be required
to  certify  any  record  to  the court or file any answer in
court or otherwise appear in any court in a  judicial  review
proceeding  unless  there  is  filed  in  the court, with the
complaint, a receipt from the Office of Banks and Real Estate
acknowledging  payment  of  the  costs  of   furnishing   and
certifying  the  record. Failure on the part of the plaintiff
to file a receipt in the court is grounds  for  dismissal  of
the action.

    Section  15-65.  Public  interest,  safety,  or  welfare;
summary suspension.  The Commissioner may temporarily suspend
any  registration  pursuant  to  this  Act,  without hearing,
simultaneously with the  institution  of  proceedings  for  a
hearing  provided  for  in  this Section, if the Commissioner
finds that the evidence indicates that the  public  interest,
safety,  or  welfare  imperatively requires emergency action.
If the Commissioner  temporarily  suspends  any  registration
without  a hearing, a hearing must be held within 30 calendar
days after the suspension.  The person whose registration  is
suspended may seek a continuance of the hearing, during which
the  suspension shall remain in effect.  The proceeding shall
be concluded without appreciable delay.

    Section 15-70.  Non-registered practice;  civil  penalty;
injunction.
    (a)   Any  person  who  practices,  offers  to  practice,
attempts  to  practice,  or  holds  himself or herself out to
practice  as  a  registrant  under  this  Act  without  being
registered under this Act shall, in  addition  to  any  other
penalty provided by law, pay a civil penalty to the Office of
Banks  and Real Estate in an amount not to exceed $25,000 for
each offense as determined by the Office of  Banks  and  Real
Estate.  The civil penalty shall be assessed by the Office of
Banks  and  Real estate after a hearing is held in accordance
with the provisions set  forth  in  this  Act  regarding  the
provision of a hearing for the discipline of a registrant.
    (b)  The   Office  of  Banks  and  Real  Estate  has  the
authority and power to investigate any and all non-registered
activity.
    (c)  A civil penalty imposed under subsection  (a)  shall
be  paid within 60 days after the effective date of the order
imposing the civil penalty.  The  order  shall  constitute  a
judgment  and may be filed, and execution may be had thereon,
in the same manner as any judgment from any court of record.
    (d)  Engaging in timeshare practices in Illinois  by  any
entity  not  holding  a  valid  and  current  certificate  of
registration under this Act is declared to be inimical to the
public welfare, to constitute a public nuisance, and to cause
irreparable  harm  to  the public welfare.  The Commissioner,
the Attorney General, the State's Attorney of any  county  in
the  State,  or any person may maintain an action in the name
of the People of the State of Illinois,  and  may  apply  for
injunctive  relief in any circuit court to enjoin such entity
from engaging  in  such  practice.   Upon  the  filing  of  a
verified  petition  in  the court, the court, if satisfied by
affidavit or otherwise that such entity has been  engaged  in
such  practice  without  a  valid  and current certificate of
registration, may enter a temporary restraining order without
notice or bond, enjoining the  defendant  from  such  further
practice.   Only the showing of nonregistration, by affidavit
or  otherwise,  is  necessary  in  order  for   a   temporary
injunction  to issue.  A copy of the verified complaint shall
be served  upon  the  defendant  and  the  proceedings  shall
thereafter  be  conducted  as  in other civil cases except as
modified by this Section.  If  it  is  established  that  the
defendant  has  been or is engaged in such unlawful practice,
the  court  may  enter  an  order  or  judgment   perpetually
enjoining  the  defendant  from  further  practice.   In  all
proceedings  hereunder,  the  court,  in  its discretion, may
apportion the costs  among  the  parties  interested  in  the
action,  including  cost  of filing the complaint, service of
process, witness fees and expenses,  court  reporter  charges
and  reasonable  attorneys' fees.  In the case of a violation
of any injunctive order entered under the provisions of  this
Section,  the court may summarily try and punish the offender
for contempt of court.  Proceedings for an  injunction  under
this Section shall be in addition to, and not in lieu of, all
penalties and other remedies provided in this Act.

    Section   15-75.  Action   for   compensation;  proof  of
registration. No action or counterclaim may be maintained  by
any  person  in  any  court in this State with respect to any
agreement, contract, or services for  which  registration  is
required  by  this Act, or to recover the agreed price or any
compensation under any such  agreement,  or  to  recover  for
services  for  which  a registration is required by this Act,
without alleging and proving that  the  person  had  a  valid
certificate  of  registration  at  the  time  of  making  the
agreement or doing the work.

    Section  15-80.  Cease  and desist orders.  The Office of
Banks and Real Estate may issue a cease and desist  order  to
any  person  who  engages  in any activity prohibited by this
Act.  Any person in violation of a  cease  and  desist  order
entered  by the Office of Banks and Real Estate is subject to
all of the remedies provided by law.

    Section 15-85.  Statute of limitations.   Any  action  or
proceeding  to  enforce  any  provision  of  this Act must be
commenced within 5 years following the date of the claim upon
which the action or proceeding is based accrues.
                 Article 20.  Administration

    Section 20-5.  Administration  of  Act.   The  Office  of
Banks  and  Real  Estate shall exercise the powers and duties
prescribed by the Civil Administrative Code of  Illinois  and
shall   exercise   other  powers  and  duties  necessary  for
effectuating the purposes of this Act.  The Office  of  Banks
and  Real Estate may contract with third parties for services
necessary for the proper administration  of  this  Act.   The
Office  of  Banks  and  Real  Estate  has  the  authority  to
establish  public  policies  and procedures necessary for the
administration of this Act.

    Section  20-10.  Administrative  rules.   The  Office  of
Banks  and  Real   Estate   shall   adopt   rules   for   the
implementation and enforcement of this Act.

    Section  20-15.  Real Estate License Administration Fund.
    All  fees  collected  for  registration  and  for   civil
penalties  pursuant  to  this  Act  and  administrative rules
adopted under this Act  shall  be  deposited  into  the  Real
Estate  License  Administration Fund. The moneys deposited in
the  Real  Estate  License  Administration  Fund   shall   be
appropriated  to  the  Office  of  Banks  and Real Estate for
expenses for the administration and enforcement of this Act.

    Section 20-20.  Forms.  The  Office  of  Banks  and  Real
Estate  may  prescribe  forms  and  procedures for submitting
information to the Office of Banks and Real Estate.

    Section 20-25.  Site inspections.  The  Office  of  Banks
and  Real  Estate  shall  thoroughly  investigate all matters
relating to an application for registration  under  this  Act
and  may  require  a  personal  inspection  of any developer,
timeshare plan, accommodation, exchange  company,  or  resale
company  and  any  offices  where  any  of  the foregoing may
transact business.  All reasonable expenses incurred  by  the
Office of Banks and Real Estate in investigating such matters
shall  be  borne  by the registrant, and the registrant shall
reimburse the Office of  Banks  and  Real  Estate  for  those
expenses  within 30 calendar days of receipt of notice of the
expenses from the Office.   The  Office  of  Banks  and  Real
Estate may require a deposit sufficient to cover the expenses
prior to incurring the expenses.

                   Article 25.  Transition

    Section  25-5.   Registrations  under preceding Act.  All
registrations of  developers,  timeshare  plans,  acquisition
agents,  exchange  companies, managing agents, resale agents,
and sales agents under the Illinois  Real  Estate  Time-share
Act  in effect on the effective date of this Act shall remain
in full force and effect after the effective date of this Act
and be considered registered under this Act.
    The provisions of this Act, insofar as they are the  same
or substantially the same as those of any prior law, shall be
construed  as  a  continuation of such prior law and not as a
new  enactment.   Any  existing   injunction   or   temporary
restraining  order  validly  obtained under the Illinois Real
Estate Time-share Act which prohibits  unregistered  practice
of  timeshare  developers,  timeshare plans, and their agents
shall not be invalidated by the enactment  of  this  Act  and
shall continue to have full force and effect on and after the
effective date of this Act.
    Any   existing   disciplinary   action  or  investigation
pursuant to  a  violation  under  the  Illinois  Real  Estate
Time-share  Act  shall not be invalidated by the enactment of
this Act and shall continue to have full force and effect  on
and after the effective date of this Act.

             Article 90.  Amendatory Provisions

    Section  90-5.  The  Real  Estate  License Act of 2000 is
amended, if and only if that Act  becomes  law,  by  changing
Sections 1-10 and 5-20 as follows:

    Sec.  1-10.  Definitions. In this Act, unless the context
otherwise requires:
    "Act" means the Real Estate License Act of 2000.
    "Advisory  Council"  means  the  Real  Estate   Education
Advisory Council created under Section 30-10 of this Act.
    "Agency"  means  a  relationship  in  which a real estate
broker or licensee, whether directly or through an affiliated
licensee, represents a consumer by  the  consumer's  consent,
whether express or implied, in a real property transaction.
    "Applicant" means any person, as defined in this Section,
who  applies  to  OBRE  for  a valid license as a real estate
broker, real estate salesperson, or leasing agent.
    "Blind advertisement" means any real estate advertisement
that does not include the sponsoring broker's  business  name
and  that is used by any licensee regarding the sale or lease
of  real  estate,  including  his  or   her   own,   licensed
activities,  or  the  hiring  of any licensee under this Act.
The broker's business name in the case of a  franchise  shall
include  the franchise affiliation as well as the name of the
individual firm.
    "Board"  means  the  Real   Estate   Administration   and
Disciplinary Board of OBRE.
    "Branch  office" means a sponsoring broker's office other
than the sponsoring broker's principal office.
    "Broker"  means  an  individual,   partnership,   limited
liability   company,   corporation,   or  registered  limited
liability partnership other than a real estate salesperson or
leasing agent who for another  and  for  compensation  either
directly or indirectly:
         (1)  Sells,  exchanges,  purchases, rents, or leases
    real estate.
         (2)  Offers to sell, exchange,  purchase,  rent,  or
    lease real estate.
         (3)  Negotiates,  offers,  attempts,  or  agrees  to
    negotiate   the  sale,  exchange,  purchase,  rental,  or
    leasing of real estate.
         (4)  Lists, offers, attempts, or agrees to list real
    estate for sale, lease, or exchange.
         (5)  Buys,  sells,  offers  to  buy  or   sell,   or
    otherwise deals in options on real estate or improvements
    thereon.
         (6)  Supervises  the  collection, offer, attempt, or
    agreement to collect rent for the use of real estate.
         (7)  Advertises or represents himself or herself  as
    being   engaged  in  the  business  of  buying,  selling,
    exchanging, renting, or leasing real estate.
         (8)  Assists or directs in procuring or referring of
    prospects, intended to  result  in  the  sale,  exchange,
    lease, or rental of real estate.
         (9)  Assists  or  directs  in the negotiation of any
    transaction intended to result  in  the  sale,  exchange,
    lease, or rental of real estate.
         (10)  Opens  real estate to the public for marketing
    purposes.
    "Brokerage agreement" means a written or  oral  agreement
between  a  sponsoring  broker  and  a  consumer for licensed
activities to  be  provided  to  a  consumer  in  return  for
compensation  or  the  right  to  receive  compensation  from
another.   Brokerage   agreements  may  constitute  either  a
bilateral or a unilateral agreement between  the  broker  and
the  broker's  client  depending  upon  the  content  of  the
brokerage agreement. All exclusive brokerage agreements shall
be in writing.
    "Client"  means  a  person  who is being represented by a
licensee.
    "Commissioner" means the Commissioner of Banks  and  Real
Estate or a person authorized by the Commissioner, the Office
of  Banks  and  Real  Estate  Act,  or this Act to act in the
Commissioner's stead.
    "Compensation" means the valuable consideration given  by
one  person or entity to another person or entity in exchange
for  the   performance   of   some   activity   or   service.
Compensation   shall   include   the   transfer  of  valuable
consideration, including without limitation the following:
         (1)  commissions;
         (2)  referral fees;
         (3)  bonuses;
         (4)  prizes;
         (5)  merchandise;
         (6)  finder fees;
         (7)  performance of services;
         (8)  coupons or gift certificates;
         (9)  discounts;
         (10)  rebates;
         (11)  a chance to win a raffle, drawing, lottery, or
    similar game of chance not prohibited by any other law or
    statute;
         (12)  retainer fee; or
         (13)  salary.
    "Confidential information" means information obtained  by
a  licensee  from  a  client  during  the term of a brokerage
agreement that (i)  was  made  confidential  by  the  written
request or written instruction of the client, (ii) deals with
the   negotiating   position  of  the  client,  or  (iii)  is
information the disclosure of which could materially harm the
negotiating position of the client, unless at any time:
         (1)  the   client   permits   the   disclosure    of
    information given by that client by word or conduct;
         (2)  the disclosure is required by law; or
         (3)  the  information  becomes  public from a source
    other than the licensee.
    "Confidential information" shall  not  be  considered  to
include  material information about the physical condition of
the property.
    "Consumer" means a person or entity seeking or  receiving
licensed activities.
    "Continuing  education  school" means any person licensed
by OBRE as a school for continuing  education  in  accordance
with Section 30-15 of this Act.
    "Credit  hour"  means 50 minutes of classroom instruction
in course work that meets the requirements set forth in rules
adopted by OBRE.
    "Customer" means a consumer who is not being  represented
by  the  licensee  but  for  whom  the licensee is performing
ministerial acts.
    "Designated  agency"  means  a  contractual  relationship
between a sponsoring broker and a client under Section  15-50
of this Act in which one or more licensees associated with or
employed by the broker are designated as agent of the client.
    "Designated  agent" means a sponsored licensee named by a
sponsoring broker as the legal agent of a client, as provided
for in Section 15-50 of this Act.
    "Director"  means  the  Director  of  the   Real   Estate
Division, OBRE.
    "Dual  agency"  means  an  agency relationship in which a
licensee is  representing  both  buyer  and  seller  or  both
landlord and tenant in the same transaction.  When the agency
relationship  is a designated agency, the question of whether
there is a dual agency shall  be  determined  by  the  agency
relationships  of the designated agent of the parties and not
of the sponsoring broker.
    "Employee" or other derivative of  the  word  "employee",
when   used   to   refer   to,  describe,  or  delineate  the
relationship between a real estate broker and a  real  estate
salesperson,  another real estate broker, or a leasing agent,
shall be  construed  to  include  an  independent  contractor
relationship,  provided  that a written agreement exists that
clearly  establishes  and  states  the   relationship.    All
responsibilities of a broker shall remain.
    "Escrow moneys" means all moneys, promissory notes or any
other   type   or   manner   of  legal  tender  or  financial
consideration deposited with any person for  the  benefit  of
the parties to the transaction.  A transaction exists once an
agreement  has  been  reached  and  an  accepted  real estate
contract signed or lease agreed to by  the  parties.   Escrow
moneys   includes   without  limitation  earnest  moneys  and
security deposits, except those security  deposits  in  which
the  person  holding  the  security  deposit is also the sole
owner of the property being leased and for which the security
deposit is being held.
    "Inoperative" means  a  status  of  licensure  where  the
licensee  holds  a  current  license  under this Act, but the
licensee is prohibited from engaging in  licensed  activities
because  the  licensee  is  unsponsored or the license of the
sponsoring broker with whom the licensee is associated or  by
whom  he  or  she  is employed is currently expired, revoked,
suspended, or otherwise rendered invalid under this Act.
    "Leasing Agent" means a person who is employed by a  real
estate  broker  to  engage  in licensed activities limited to
leasing residential real estate who has obtained a license as
provided for in Section 5-5 of this Act.
    "License" means the document issued  by  OBRE  certifying
that  the person named thereon has fulfilled all requirements
prerequisite to licensure under this Act.
    "Licensed activities" means those  activities  listed  in
the definition of "broker" under this Section.
    "Licensee"  means any person, as defined in this Section,
who holds a valid unexpired license as a real estate  broker,
real estate salesperson, or leasing agent.
    "Listing  presentation"  means  a communication between a
real estate broker or salesperson and a consumer in which the
licensee is attempting to secure a brokerage  agreement  with
the consumer to market the consumer's real estate for sale or
lease.
    "Managing  broker"  means  a  broker  who has supervisory
responsibilities for licensees in one or, in the  case  of  a
multi-office  company,  more than one office and who has been
appointed as such by the sponsoring broker of the real estate
firm.
    "Medium of advertising" means any method of communication
intended to influence the general public to use or purchase a
particular good or service or real estate.
    "Ministerial acts" means those acts that a  licensee  may
perform  for  a  consumer that are informative or clerical in
nature and do not rise to the level of active  representation
on  behalf  of  a  consumer.   Examples of these acts include
without limitation  (i)  responding  to  phone  inquiries  by
consumers  as  to  the  availability and pricing of brokerage
services, (ii) responding to phone inquiries from a  consumer
concerning the price or location of property, (iii) attending
an  open house and responding to questions about the property
from  a  consumer,  (iv)  setting  an  appointment  to   view
property,  (v)  responding  to questions of consumers walking
into  a  licensee's  office  concerning  brokerage   services
offered   or  particular  properties,  (vi)  accompanying  an
appraiser, inspector, contractor, or similar third party on a
visit to a property,  (vii)  describing  a  property  or  the
property's  condition  in  response  to a consumer's inquiry,
(viii) completing  business  or  factual  information  for  a
consumer  on  an offer or contract to purchase on behalf of a
client, (ix) showing a client through a property  being  sold
by  an  owner  on  his  or her own behalf, or (x) referral to
another broker or service provider.
    "OBRE" means the Office of Banks and Real Estate.
    "Office" means a real estate broker's place  of  business
where  the general public is invited to transact business and
where records  may  be  maintained  and  licenses  displayed,
whether  or  not  it  is  the  broker's  principal  place  of
business.
    "Person"   means   and  includes  individuals,  entities,
corporations, limited liability companies, registered limited
liability  partnerships,   and   partnerships,   foreign   or
domestic,  except  that  when the context otherwise requires,
the term may refer to a single individual or other  described
entity.
    "Personal  assistant"  means  a  licensed  or  unlicensed
person  who  has  been  hired  for  the  purpose of aiding or
assisting a sponsored licensee  in  the  performance  of  the
sponsored licensee's job.
    "Pocket  card"  means  the card issued by OBRE to signify
that the person named on the card is currently licensed under
this Act.
    "Pre-license school" means  a  school  licensed  by  OBRE
offering   courses   in   subjects  related  to  real  estate
transactions, including the subjects upon which an  applicant
is examined in determining fitness to receive a license.
    "Pre-renewal period" means the period between the date of
issue  of  a  currently    valid  license  and  the license's
expiration date.
    "Real estate" means and includes leaseholds  as  well  as
any  other  interest  or  estate  in land, whether corporeal,
incorporeal, freehold, or non-freehold,  including  timeshare
interests,  and  whether  the real estate is situated in this
State or elsewhere.
      "Real Estate Administration and Disciplinary Board"  or
"Board" means the Real Estate Administration and Disciplinary
Board created by Section 25-10 of this Act.
    "Salesperson"  means  any  individual,  other than a real
estate broker or leasing agent, who is  employed  by  a  real
estate  broker  or  is associated by written agreement with a
real  estate  broker  as  an   independent   contractor   and
participates  in  any activity described in the definition of
"broker" under this Section.
    "Sponsoring broker" means the broker  who  has  issued  a
sponsor  card  to  a  licensed  salesperson, another licensed
broker, or a leasing agent.
    "Sponsor card" means the temporary permit issued  by  the
sponsoring real estate broker certifying that the real estate
broker,  real  estate  salesperson,  or  leasing  agent named
thereon is employed by or  associated  by  written  agreement
with  the  sponsoring  real estate broker, as provided for in
Section 5-40 of this Act.
(Source: 91HB902ham01.)

    Sec.  5-20.   Exemptions  from  broker,  salesperson,  or
leasing  agent  license  requirement.  The  requirement   for
holding a license under this Article 5 shall not apply to:
    (1)  Any  person,  partnership,  or  corporation  that as
owner or lessor performs any of the  acts  described  in  the
definition  of  "broker"  under Section 1-10 of this Act with
reference to property owned  or  leased  by  it,  or  to  the
regular  employees  thereof  with  respect to the property so
owned or leased, where such acts are performed in the regular
course of or as an incident to the management, sale, or other
disposition of such  property  and  the  investment  therein,
provided  that  such  regular employees do not perform any of
the acts  described  in  the  definition  of  "broker"  under
Section  1-10  of  this  Act in connection with a vocation of
selling or  leasing  any  real  estate  or  the  improvements
thereon not so owned or leased.
    (2)  An attorney in fact acting under a duly executed and
recorded  power  of  attorney  to convey real estate from the
owner or lessor or the services rendered by  an  attorney  at
law  in the performance of the attorney's duty as an attorney
at law.
    (3)  Any  person   acting   as   receiver,   trustee   in
bankruptcy,  administrator,  executor,  or  guardian or while
acting under a court order or under the authority of  a  will
or testamentary trust.
    (4)  Any  person  acting  as  a  resident manager for the
owner or any employee acting as the resident  manager  for  a
broker  managing  an apartment building, duplex, or apartment
complex, when the resident manager resides on  the  premises,
the  premises  is  his  or  her  primary  residence,  and the
resident manager is engaged in the leasing of the property of
which he or she is the resident manager.
    (5)  Any officer or employee of a federal agency  in  the
conduct of official duties.
    (6)  Any  officer  or employee of the State government or
any political subdivision thereof performing official duties.
    (7)  Any multiple listing service  or  other  information
exchange  that is engaged in the collection and dissemination
of information concerning real  estate  available  for  sale,
purchase,  lease,  or  exchange  along  with  which  no other
licensed activities are provided.
    (8)  Railroads and other public  utilities  regulated  by
the State of Illinois, or the officers or full time employees
thereof, unless the performance of any licensed activities is
in  connection  with  the  sale,  purchase,  lease,  or other
disposition of real estate or investment therein not  needing
the approval of the appropriate State regulatory authority.
    (9)  Any  medium  of advertising in the routine course of
selling or publishing advertising along with which  no  other
licensed activities are provided.
    (10)  Any  resident lessee of a residential dwelling unit
who refers for compensation to  the  owner  of  the  dwelling
unit,  or  to  the  owner's  agent,  prospective  lessees  of
dwelling  units  in  the  same  building  or  complex  as the
resident lessee's unit, but only if the resident  lessee  (i)
refers  no  more  than  3 prospective lessees in any 12-month
period, (ii) receives compensation of no more than $1,000  or
the equivalent of one month's rent, whichever is less, in any
12-month  period,  and  (iii) limits his or her activities to
referring prospective lessees to the owner,  or  the  owner's
agent,  and  does  not  show a residential dwelling unit to a
prospective lessee, discuss terms or conditions of leasing  a
dwelling   unit  with  a  prospective  lessee,  or  otherwise
participate in the negotiation of the leasing of  a  dwelling
unit.
    (11)  An  exchange  company  registered  under  the  Real
Estate  Timeshare  Act  of  1999 and the regular employees of
that registered exchange company but only when conducting  an
exchange program as defined in that Act.
    (12)  An  existing timeshare owner who, for compensation,
refers prospective  purchasers,  but  only  if  the  existing
timeshare  owner  (i)  refers  no  more  than  20 prospective
purchasers in any calendar year, (ii) receives no  more  than
$1,000, or its equivalent, for referrals in any calendar year
and   (iii)   limits  his  or  her  activities  to  referring
prospective  purchasers  of  timeshare   interests   to   the
developer  or  the  developer's employees or agents, and does
not  show,  discuss  terms  or  conditions  of  purchase   or
otherwise   participate   in   negotiations  with  regard  to
timeshare interests.
(Source: 91HB902 as introduced.)

    (765 ILCS 100/Act rep.)
    Section 90-10. The Illinois Real Estate Time-Share Act is
repealed.

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