HAR §16-106-2. Definitions

Definitions of terms found in section 514E-1, HRS, shall be adopted by reference. In addition, as used in this chapter: "Annex" means to add any unit or units to a registered time share plan. "Booth" means a temporary place of business, other than a licensed real estate broker’s principal place of business, branch office, or site office, which is established for the purpose of inviting or encouraging invitees to attend a time share sales presentation. "Cash bond" means a bond running to the State and executed by the acquisition agent or plan manager, as principal; provided that in lieu of any surety or sureties, the principal shall furnish security in certified checks or certificates of deposit equal to the full cash value or one hundred per cent of the amount of the bond. "Department" means the department of commerce and consumer affairs. "Facilities" means any structure, service, or property, whether improved or unimproved, made available to the purchaser for recreational, social, family, or personal use. "Invitee" means an individual who is contacted by an OPC and invited or encouraged to attend a time share sales presentation. "Irrevocable letter of credit" means an irrevocable credit running to the State, drawn upon a bank or savings and loan association in the amount required by section 16-106-40. "Material change" means any change of circumstance which would render the information provided in the disclosure statement or in any application for registration no longer accurate or misleading as to purchasers or which affects the rights and obligations of a purchaser or a prospective purchaser of a time share interest, including, but not limited to, change in the nature of the time share plan; change in the period of time usage of the unit; and change in terms and increase in the amounts of underlying encumbrances; provided that administrative changes relating to the operation of the time share plan, including, but not limited to, a 106-4 change in the RME or person designated for service of process for a corporate registrant, shall not be deemed a material change for purposes of this chapter. "Outside public contact" or "OPC" means an individual who acts as an acquisition agent and who does not engage in the sale of time share interests. "Preexisting time share unit" means: (1) A time share unit in existence prior to June 29, 1980, in which the actual receipt of possession, occupancy, or right of use of the unit was obtained by the purchaser or user prior to June 29, 1980, which receipt of possession, occupancy, or right of use may be evidenced by, but not be limited to, tenancy in common, sale, deed, membership agreement, lease, rental agreement, license, use agreement, or security; or (2) A time share unit which has been explicitly provided for in a project instrument or in a declaration or other instrument describing a time share plan for property specified therein and which instrument or declaration was recorded in the State office of the assistant registrar of the land court or the State bureau of conveyances prior to June 29, 1980. "Registrant" means a developer, acquisition agent, sales agent, OPC, sales agent employee/independent contractor, plan manager, or exchange agent required under chapter 514E, HRS, or any rule promulgated pursuant thereto, to register with the director. "Resale agent" means a person who, for a commission or compensation, sells or offers to sell a resale time share interest on behalf of a third party. "Resale time share interest" means: (1) A time share interest in a registered or previously registered time share plan that is being resold by the holder of a purchaser money lien who acquires title or ownership to the time share interest as a result of the default of the purchaser under the purchaser money lien; provided, however, that time share interests that are reacquired by currently registered developers are not included; or (2) A time share interest that is being sold by a person who acquired the time share interest for the person’s own occupancy. For the purposes of this definition, the phrase "person who acquired the time share interest for the person’s own occupancy" shall mean a person who owns not more than two time share interests, unless the person can prove to the satisfaction of the director that more than two time share interests were purchased for the person’s own occupancy. 106-5 "Responsible managing employee" or "RME" means the individual employed by a corporate registrant, which individual is responsible for the direct management of the corporate registrant’s time share operation. "State" means the State of Hawaii. "Supplementary disclosure statement" means an amended disclosure statement filed when there has been a material change in the information provided in the original disclosure statement. "Time share operation" means any business or operation which, for compensation, solicits or encourages others to attend a time share sales presentation or to contact a time share sales agent or developer; or creates a time share plan; or sells time share units; or sells or offers to sell an interest in a time share plan for a developer; or undertakes the duties, responsibilities, and obligations of managing a time share plan. [Eff 11/15/80; am 3/19/82; am and comp 3/28/85; comp 8/30/85; comp 11/29/85; am and comp 6/5/87; comp 3/7/88; am and comp 9/15/90] (Auth: HRS §514E-13) (Imp: HRS §§514E-1, 514E-13)