Material Changes

(1) A Developer shall not intentionally cause any material change in a time-share program as represented in the public offering statement without at least ten (10) days advance notice to the Commission. As long as a developer is engaged in the offering or disposition of time- share intervals respecting a time-share program, the developer shall notify the Commission TIME-SHARE PROGRAMS CHAPTER 1260-06 of any material change within ten (10) days from the date on which the developer first knew of it. (2) For purposes of this rule, “material change” means a change in any information or document disclosed in or attached to a public offering statement which renders such information or document false or misleading. Without limiting the generality of the preceding sentence, a material change shall be deemed to occur whenever. (a) The current or projected budget for the time-share intervals is revised. (b) The scheduled commencement or completion of promised improvement in the time- share project is (or will be) delayed due to adverse financial conditions or other causes. (3) Upon the occurrence of a material change, the Commission may, if it deems: (a) Request that sales be voluntarily suspended by the developer pending a determination of the effect of the material change on the time-share program. (b) Take action in accordance with T.C.A. § 66-32-121.