HAR §16-106-16. Material change in disclosure statement

(a) A developer shall notify the director in writing of any material change or changes in the disclosure statement for the developer’s time share plan. 106-32 (b) A developer shall amend or supplement the disclosure statement by submitting to the director a supplemental disclosure statement which shall specify, in detail, the material change or changes which have occurred, within twenty days after the material change or changes become known to the developer. (c) Upon acceptance of the supplemental disclosure statement by the director, a true, accurate, and complete copy of the statement shall be given to each purchaser adversely affected by the material change or changes and to each prospective purchaser. A receipt from each purchaser and prospective purchaser shall be obtained and filed as provided in section 16-106-6(b). The developer shall not be in violation of this chapter if the purchaser fails to return the receipt and the developer is able to verify that a statement was sent to the purchaser. (d) The director may independently determine that a material change has occurred and require the developer to prepare a supplemental disclosure statement disclosing the material change or changes in a form approved by the director. (e) Where the purchaser has received title by instrument of record in the sale of an interest in an ownership plan, the developer is under no obligation to give the purchaser a supplemental disclosure statement. [Eff 11/15/80; am and comp 3/28/85; comp 8/30/85; comp 11/29/85; comp 6/5/87; comp 3/7/88; comp 9/15/90] (Auth: HRS §514E-13) (Imp: HRS §§514E-9, 514E-10) SUBCHAPTER 5 CANCELLATION OF CONTRACT