Wash. Admin. Code § 308-127-300 - Impoundment
(1) The agency may
require impoundment authorized in the Timeshare Act, under circumstances which
include, but are not limited to, the following:
(a) The registration of any cooperative or
right-to-use project whenever adequate assurances of continued quiet enjoyment
cannot be provided by means of bonds, escrows, trusts, or other devices;
or
(b) The registration of any form
of timeshare project whenever the timeshare properties and other facilities
promised are not yet constructed or otherwise available, and where completion
of construction or delivery of accommodations and facilities cannot be assured
by bonds, escrows, trusts, or other devices; or
(c) The registration of persons in the
business of listing or brokering resale timeshare intervals whenever any
advance fees or funds of any description are to be collected from buyers or
sellers of resale timeshare intervals prior to the time of transacting a
purchase or sale of a timeshare interval; or
(d) The registration of persons in the
business of offering commercial promotional programs whenever any advance fees
or funds of any description are to be collected from persons in advance, in
connection with delivery by the promisor of gifts, prizes, awards, or any other
item of value.
(2) Funds
subject to impoundment shall be placed in a separate and independent trust
account with a bank or depository institution acceptable to the director. A
written consent of the depository to act in such capacity shall be filed with
the director.
(3) The director will
authorize the depository to release to the promoter or an affiliate when
appropriate, such amounts of the impounded funds applicable to a specified
purpose such as, payment of selling costs or timeshare expenses, purchase of
property, or the construction of an improvement, upon a showing that the
promoter can satisfy its obligations under the purchaser contracts to furnish
purchasers the accommodations, facilities and services promised, or if for
other reasons the impoundment is no longer required for the protection of
purchasers. A request to authorize the release of the impounded funds to the
promoter or an affiliate shall contain the following:
(a) A statement of the promoter, or affiliate
where appropriate, that all required proceeds from the sale of timeshares have
been placed with the depository in accordance with the terms and conditions of
the impoundment agreement;
(b) A
statement of the depository signed by an appropriate officer setting forth the
aggregate amount of funds placed with the depository, and any interest earned
by these funds;
(c) The name of
each timeshare contract purchaser and the amount impounded for the account of
each purchaser; and
(d) Such other
information as the director may request in a particular case.
Notes
Statutory Authority: RCW 43.24.086. 90-07-023, § 308-127-300, filed 3/14/90, effective 4/14/90. Statutory Authority: 1983 1st ex.s. c 22 §§ 13 and 26. 83-24-057 (Order 733 DOL), § 308-127-300, filed 12/6/83.
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