§514E-22 General requirements for trusts. If time share units are required to be conveyed to a trustee pursuant to section 514E-19, the trust instrument must provide for at least the following:
(1) Title to the time share units must be transferred to the trustee before the purchaser's funds are disbursed by the escrow agent.
(2) The trustee shall not convey or transfer the time share units except for any units with respect to which no owner has any further right of occupancy or as permitted in section 514E-26.
(3) The trustee shall be prohibited from encumbering the time share units unless the director shall consent thereto. Such consent shall be given if the trust shall meet all of the requirements of section 514E-24 or all requirements of one of the alternative provisions in section 514E-19 are then satisfied.
(4) The association on behalf of the owners must expressly be made a third party beneficiary of the trust.
(5) Notice of the intention of the trustee to resign must be given to the director at least ninety days before the resignation takes effect.
(6) No amendment of the trust instrument adversely affecting the interests or rights of owners may be made without the written approval of the association.
(7) Any other provisions required by the director as provided by rules adopted pursuant to chapter 91. [L 1982, c 186, §10]
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514E-2.6 REPEALED.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.