Amend the bill, as and if amended, page 1, beginning on line 35, by striking SECTION 1 in its entirety and inserting therein the following:
/ SECTION 1. Section 27-32-10 of the 1976 Code is amended by adding an appropriately numbered item to read:
"( ) 'Timeshare declaration' means the document or documents which provide the legal framework for the establishment of the method of interval ownership and which is or are recorded at the office of the Clerk of Court, Register of Mesne Conveyance, or the Register of Deeds as may be determined by the county in which the vacation time-sharing property is located." /
Amend the bill further, as and if amended, page 3, beginning on line 1, by striking SECTION 3 in its entirety and inserting therein the following:
/ SECTION 3. Chapter 32, Title 27 of the 1976 Code is amended by adding:
Section 27-32-500. This article may be cited as the 'Vacation Time-sharing Plan Extension and Termination Act'.
Section 27-32-505. The General Assembly declares that the purposes of this article are to recognize that:
(A) Vacation time-sharing plans are created as authorized by statute with most of the older vacation time-sharing properties based on a horizontal property regime structure, and many of these older vacation time-sharing properties are approaching the termination dates set forth in their governing documents, some of which governing documents address termination or extension of the vacation time-sharing property and some of which do not address termination or extension.
(B) In order to provide the owners of vacation time-sharing interests with the right to terminate vacation time-sharing plans or to extend the terms of vacation time-sharing plans and preserve the continued use, enjoyment, and tax values of these time-sharing properties, the General Assembly further declares that the public policy of this State requires the creation of a statutory method to enable the owners of these vacation time-sharing properties to either terminate their vacation time-sharing plans or extend the terms of their vacation time-sharing plans, notwithstanding contrary provisions in their governing documents which may create uncertainty for purchasers, prospective purchasers, owners, and lenders, and which may discourage the ongoing maintenance, refurbishment, and improvement of these vacation time-sharing properties.
Section 27-32-510. (A) Unless the timeshare declaration provides a lower percentage, the vote or written consent, or both, of sixty percent of all eligible voting interests in a vacation time-sharing plan may extend the term of the vacation time-sharing plan at any time. If the term of a vacation time-sharing plan is extended pursuant to this section, all rights, privileges, duties, and obligations created under applicable law or the timeshare declaration continue in full force to the same extent as if the extended termination date of the vacation time-sharing plan were the original termination date of the vacation time-sharing plan.
(B) Unless the timeshare declaration specifically provides for a lower quorum, the quorum for a vacation time-sharing association meeting to consider extension of the term of the vacation time-sharing plan is fifty percent of all eligible voting interests in the vacation time-sharing plan.
(C) A vacation time-sharing association meeting held to consider extension of the term of the vacation time-sharing plan may be held at any time before the termination of the vacation time-sharing plan.
(D) The board of directors of the vacation time-sharing association may determine that a voting interest that is delinquent in the payment of more than two years of assessments is ineligible to consent to or vote on an extension of the vacation time-sharing plan unless the delinquency is paid in full before the consent or vote. A voting interest determined to be ineligible by the board of directors must be subtracted from the total percentage or number of all voting interests required to consent to or vote to approve the extension of the vacation time-sharing plan and must not be considered for any purpose, including the percentage or number of voting interests necessary to constitute a quorum.
(E) A proxy for a vote to extend a vacation time-sharing plan pursuant to this section is valid for up to three years and is revocable unless the proxy states it is irrevocable.
Section 27-32-520. (A) Unless the timeshare declaration provides a lower percentage, the vote or written consent, or both, of sixty percent of all eligible voting interests in a vacation time-sharing plan may terminate the term of the vacation time-sharing plan at any time. If a vacation time-sharing plan is terminated pursuant to this section, the termination has immediate effect as if the effective date of the termination were the original date of termination.
(B) If the vacation time-sharing property is managed by a vacation time-sharing association that is separate from any underlying owners' association, the termination of a vacation time-sharing plan does not change the corporate status of the vacation time-sharing association. The vacation time-sharing association continues to exist only for the purposes of concluding its affairs, prosecuting and defending actions by or against it, collecting and discharging obligations, disposing of and conveying its property, collecting and dividing its assets, and otherwise complying with this section.
(C) After termination of a vacation time-sharing plan, the board of directors of the vacation time-sharing association shall serve as the termination trustee, as the entity empowered to implement the termination of the vacation time-sharing plan, and in this fiduciary capacity may bring an action in partition on behalf of the tenants in common in each former vacation time-sharing property or sell the former vacation time-sharing property in a manner and to a person who is approved by a majority of all tenants in common. The termination trustee also has all other powers reasonably necessary to effect the partition or sale of the former vacation time-sharing property, including the power to maintain the property during the pendency of a partition action or sale.
(D) All reasonable expenses incurred by the termination trustee relating to the performance of its duties pursuant to this section, including the reasonable fees of attorneys and other professionals, must be paid by the tenants in common of the former vacation time-sharing property subject to partition or sale, proportionate to their respective ownership interests.
(E) The termination trustee shall adopt reasonable procedures to implement the partition or sale of the former vacation time-sharing property and comply with the requirements of this section.
(F) If the terminated vacation time-sharing plan is in an underlying subdivision that is not simultaneously terminated, a majority of the tenants in common in each former accommodation present and voting in person or by proxy at a meeting of the tenants in common conducted by the termination trustee, or conducted by the board of directors of the underlying owners' association, if the underlying owners' association managed the former vacation time-sharing property, shall designate a voting representative for the former accommodation and file a voting certificate with the underlying owners' association. The voting representative may vote on all matters at meetings of the underlying owners' association, including termination of the underlying subdivision.
(G) Unless the timeshare declaration specifically provides for a lower quorum, the quorum for a vacation time-sharing association meeting to consider termination of the vacation time-sharing plan is fifty percent of all eligible voting interests in the vacation time-sharing plan.
(H) The board of directors of the vacation time-sharing association may determine that a voting interest that is delinquent in the payment of more than two years of assessments is ineligible to consent to or vote on any termination of the vacation time-sharing plan unless the delinquency is paid in full before the consent or vote. A voting interest determined to be ineligible by the board of directors must be subtracted from the total percentage or number of all voting interests required to consent to or vote to approve the termination of the vacation time-sharing plan and must not be considered for any purpose, including the percentage or number of voting interests necessary to constitute a quorum.
(I) A proxy for a vote to terminate a vacation time-sharing plan pursuant to this section is valid for up to three years and is revocable unless the proxy states it is irrevocable.
Section 27-32-530. The provisions of this article apply to all vacation time-sharing plans in this State in existence on or after the effective date of this article and apply retroactively." /
Renumber sections to conform.
Amend title to conform.