§514E-18 Release of purchaser's funds, notes, and contracts from escrow upon closing. (a) Upon the closing of the escrow for the sale of a time share interest, the purchaser's funds and any negotiable instruments and purchase money contracts made by the purchaser shall be delivered by the escrow agent:
(1) To the trustee of a lien payment trust if a lien payment trust is established pursuant to section 514E-19 to protect purchasers from blanket liens;
(2) As provided by any alternative arrangements accepted by the director pursuant to section 514E-27 where such alternative arrangements are used pursuant to section 514E-19 to protect purchasers from blanket liens; or
(3) To the developer only after the requirements of any other alternative under section 514E-19 for protecting purchasers from blanket liens have been satisfied.
(b) Notwithstanding any other provisions of this chapter, the escrow agent may not release the purchaser's funds, negotiable instruments, and purchase money contracts from the escrow account to or for the benefit of the developer or a sales agent or for construction until:
(1) The seven-day cancellation period under section 514E-8 expires as to the purchaser whose funds are being released; and
(2) The escrow agent receives a sworn statement from the developer that:
(A) No cancellation notice postmarked on a date within the seven-day cancellation period was received from the purchaser whose funds are being released; and
(B) No cancellation notice was otherwise received during the seven-day cancellation period from the purchaser whose funds are being released. [L 1982, c 186, §5; am L 1985, c 114, §6]
Revision Note
In subsection (a)(1), "or" deleted after ending punctuation pursuant to §23G-15.
Structure Hawaii Revised Statutes
514E-1.5 Time share administrator; duties.
514E-2.5 Licensing of sales agents and acquisition agents.
514E-2.6 REPEALED. L 2001, c 71, §1.
514E-5 Geographic limitations.
514E-5.5 Foreign time share plans; exemption.
514E-6 Time sharing in projects.
514E-6.5 Voting rights for time share units.
514E-8 Mutual right to cancel.
514E-8.6 One-to-one use-right to use-night requirement.
514E-9.1 Disclosure statement; prospective purchasers.
514E-9.5 Exchange program; general provisions.
514E-10.5 Consultant review of developer filing.
514E-11.1 Deceptive trade practices.
514E-11.3 Remedies; sales voidable; when and by whom.
514E-12 Civil penalty; suspension or revocation of registrations.
514E-12.5 Statutory or common-law remedies.
514E-13 Authority of director.
514E-14 Preexisting time share units and plans.
514E-16 Deposit of purchaser's funds, notes, and contracts into escrow.
514E-17 Release of purchaser's funds, notes, and contracts from escrow without a closing.
514E-18 Release of purchaser's funds, notes, and contracts from escrow upon closing.
514E-19 Protection of purchasers from blanket liens.
514E-20 Effect of recording a nondisturbance agreement.
514E-21 Effect of recording a notice of time share plan.
514E-22 General requirements for trusts.
514E-23 Requirements for trustees.
514E-24 Additional requirements for lien payment trusts.
514E-26 Termination of a trust.
514E-27 Alternative arrangements for purchaser protection.
514E-28 Requirements for surety bonds and letters of credit.