Haw. Code R. § 16-106-4.2 - Biennial renewal requirement
(a) A developer
shall submit the following to the director at the time of renewal of the
registration for a time share plan not later than December 31 of each
odd-numbered year, as required by section
514E-10(f),
HRS, and section 16-106-4(h); provided that no application for renewal shall be
deemed complete, nor shall the same be accepted for registration, unless the
prescribed information is provided separately tabbed and numbered in the exact
order as follows:
(1) An application for
renewal of registration on a form prescribed by the director;
(2) A current disclosure statement meeting
the requirements of section
514E-9, HRS,
and section 16-106-3;
(3) A current
financial statement prepared not more than one hundred twenty days before the
date of renewal in accordance with generally accepted accounting principles and
certified by the developer or a certified public accountant to be true and
correct in all respects and to fairly, completely, and accurately represent the
financial condition of the subject thereof as of the respective date thereof;
provided that in lieu of this financial statement, an audited financial report
may be submitted if it is the most current report of the subject thereof and is
not more than fifteen months old at the time of renewal of the developer's
registration. Any false, misleading, or fraudulent financial statement or
report submitted by the developer shall be grounds for cancellation,
suspension, or revocation of a registration;
(4) With respect to any unsold interests in
each registered unit in the time share plan which are held by the developer at
the time of renewal of the registration for the plan, a policy of title
insurance, a preliminary title report, abstract of title, or certificate of
title not more than ninety days old at the time of renewal of the registration
for the time share plan; provided that the policy of title insurance,
preliminary title report, abstract of title, or certificate of title discloses
the status of ownership of the unit and any and all liens and encumbrances
affecting the unit;
(5) The name
and address of the person in the State authorized to receive service of process
on behalf of the developer; provided that written notification of any change of
this name or address shall be submitted to the director within twenty days of
any change;
(6) A complete
statement setting forth the number of registered units in the time share plan
and the number of time share interests being offered for sale in each unit;
provided that this statement shall also specify the number of interests which
have currently been sold in each unit and the number of interests which remain
unsold as of the date of renewal; and provided further that this statement
shall be certified by the developer to be true and correct in all
respects;
(7) If a corporation,
partnership, or joint venture, a certificate of good standing issued by the
business registration division of the department not more than forty-five days
before the date of submission of the application; and
(8) The biennial renewal fee.
A developer is prohibited from renewing the registration of sold interests in a registered time share unit.
(b) An acquisition agent, including the
developer if it is also the acquisition agent, shall submit the following to
the director at the time of renewal of the acquisition agent's registration not
later than December 31 of each odd-numbered year; provided that the acquisition
agent shall submit a separate application for renewal with respect to each time
share plan with which the acquisition agent is registered; and provided further
that no application for renewal shall be deemed complete, nor shall the same be
accepted for registration, unless the prescribed information is provided
separately tabbed and numbered in the exact order as follows:
(1) An application for renewal of
registration on a form prescribed by the director;
(2) Satisfactory evidence that the
acquisition agent is currently bonded as required by section 16-106-40.1 to
cover any violation by the acquisition agent of any solicitation ordinances or
other rules governing the use of the premise or premises in which the time
share plan is promoted; or evidence that the acquisition agent is currently
licensed pursuant to chapter 467, HRS, as a real estate salesperson or a real
estate broker;
(3) An alphabetized
list of the names, addresses, and telephone numbers of all employees and
independent contractors who are currently engaged in contacting persons who may
be interested in purchasing interests in the time share plan;
(4) A copy of the executed agency agreement
currently applicable to the time share plan;
(5) The name and address of the person in the
State authorized to receive service of process on behalf of the acquisition
agent; provided that written notification of any change of this name or address
shall be submitted to the director within twenty days of any change;
(6) If a corporation, partnership, or joint
venture, a certificate of good standing issued by the business registration
division of the department not more than forty-five days before the date of
submission of the application; and
(7) The biennial renewal fee.
An OPC employed directly or indirectly by the acquisition agent shall submit the biennial renewal fee and an application for renewal of the OPC's registration not later than December 31 of each odd-numbered year on a form prescribed by the director.
(c) A sales agent, including the developer if
it is also the sales agent, shall submit the following to the director at the
time of renewal of the sales agent's registration not later than December 31 of
each odd-numbered year; provided that the sales agent shall submit a separate
application for renewal with respect to each time share plan with which the
sales agent is registered; and provided further that no application shall be
deemed complete, nor shall the same be accepted for registration, unless the
prescribed information is provided separately tabbed and numbered in the exact
order as follows:
(1) An application for
renewal of registration on a form prescribed by the director;
(2) Evidence that the sales agent is
currently licensed pursuant to chapter 467, HRS, as a real estate salesperson
or a real estate broker;
(3) An
alphabetized list of the names, addresses, and telephone numbers of all
employees and independent contractors who are currently selling or contacting
persons who may be interested in purchasing interests in the time share plan,
as well as evidence that each of these employees and independent contractors is
currently licensed pursuant to chapter 467, HRS, as a real estate salesperson
or a real estate broker;
(4) A copy
of the executed sales agency or brokerage agreement currently applicable to the
time share plan;
(5) The name and
address of the person in the State authorized to receive service of process on
behalf of the sales agent; provided that written notification of any change of
this name or address shall be submitted to the director within twenty days of
any change;
(6) If a corporation,
partnership, or joint venture, a certificate of good standing issued by the
business registration division of the department not more than forty-five days
before the date of submission of the application; and
(7) The biennial renewal fee.
An OPC employed directly or indirectly by the sales agent shall submit the biennial renewal fee and an application for renewal of the OPC's registration not later than December 31 of each odd-numbered year on a form prescribed by the director.
A sales agent shall submit, for each person on the list required by paragraph (3), the biennial renewal fee and an application for renewal of the real estate salesperson or broker's registration not later than December 31 of each odd-numbered year on a form prescribed by the director.
(d) A
plan manager, including the developer if it is also the plan manager, shall
submit the following to the director at the time of renewal of the plan
manager's registration not later than December 31 of each odd-numbered year;
provided that the plan manager shall submit a separate application for renewal
with respect to each time share plan with which the plan manager is registered;
and provided further that no application for renewal shall be deemed complete,
nor shall the same be accepted for registration, unless the prescribed
information is provided separately tabbed and numbered in the exact order as
follows:
(1) An application for renewal of
registration on a form prescribed by the director;
(2) The address at which all accounting
records, including but not limited to receipts, expenditures, and payment
vouchers, are currently maintained;
(3) Satisfactory evidence that the plan
manager is currently bonded as required by section 16-106-40 to cover any
default of the plan manager and any of the employees of the plan manager of
their duties and responsibilities;
(4) A copy of the executed management
agreement currently applicable to the time share plan;
(5) The name and address of the person in the
State authorized to receive service of process on behalf of the plan manager;
provided that written notification of any change of this name or address shall
be submitted to the director within twenty days of any change;
(6) If a corporation, partnership, or joint
venture, a certificate of good standing issued by the business registration
division of the department not more than forty-five days before the date of
submission of the application; and
(7) The biennial renewal fee.
(e) An exchange agent, including
the developer if it is also the exchange agent, shall submit to the director at
the time of renewal of the exchange agent's registration not later than
December 31 of each odd-numbered year the biennial renewal fee and an
application for renewal of registration on a form prescribed by the director
and copies of the exchange program materials containing the written information
set forth in section
514E-9.5,
HRS, which are currently distributed to each purchaser of a time share interest
participating in the exchange program.
(f) Any application required for renewal of
registration by this section shall be deemed accepted if the director has not
acted upon the application within sixty days following receipt of the same;
except that this subsection shall not apply to any application which is
incomplete and does not contain all of the information required to be submitted
to the director under this section. Restoration of a forfeited registration may
be made in accordance with section 16-106-4.3(c).
(g) Any party required to renew a
registration under this section shall notify the director in writing of any
material change in any information submitted to the director within twenty days
of any material change. Failure to notify the director of any material change
in the information submitted shall be grounds for cancellation, suspension, or
revocation of a registration.
(h)
Any registration which has been forfeited may be restored within ninety days
upon written application and payment to the department of the delinquent fee
and penalty fee; provided that the registration meets all the requirements for
renewal specified in this section. The registrant shall not engage in any time
share activities in connection with the forfeited registration until the
registration has been restored.
(i)
The registration of a developer, acquisition agent, sales agent, OPC, plan
manager, exchange agent, or sales agent employees or independent contractors,
or both, may be placed on inactive status upon payment of the biennial renewal
fee; provided that the registration shall be renewed biennially before December
31 of each odd-numbered year. The information required by this section shall be
updated before an inactive registration will be activated.
(j) The biennial renewal fee required by this
section shall be in the form of a cashier's check or certified check made
payable to the "Department of Commerce and Consumer Affairs" in the amount
specified in chapter 16-53, Hawaii Administrative Rules.
(k) The renewal fee shall be paid upon
submission of a renewal application. Applications shall not be accepted for
department review unless accompanied by the requisite fee.
(l) The format for renewal of registration
shall be prescribed by the director.
Notes
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