Hawaii Revised Statutes
514E. Time Sharing Plans
514E-28 Requirements for surety bonds and letters of credit.

§514E-28 Requirements for surety bonds and letters of credit. Any surety bond or irrevocable letter of credit furnished to the director pursuant to section 514E-19 must be in an amount which is not less than one hundred ten per cent of the remaining principal balance of every indebtedness secured by a blanket lien related to the time share unit. Any such bond must be issued by a surety authorized to do business in the State and having sufficient net worth to be acceptable to the director. Any such letter of credit must be irrevocable and must be drawn upon a bank, savings and loan association, or other financial institution authorized to do business in the State and having a sufficient net worth to be acceptable to the director. The bond or irrevocable letter of credit shall provide for payment (up to the limit of such bond or letter of credit) of all amounts secured by the blanket lien, including costs, expenses, and legal fees of the lienholder, if for any reason the blanket lien is enforced. The beneficiary of any such letter of credit and the obligee of any such bond shall be the director on behalf of the owners. The bond or irrevocable letter of credit may be reduced periodically in proportion to the reduction of the remaining principal balance of the indebtedness secured by the blanket liens. Upon being furnished with a surety bond or irrevocable letter of credit satisfying the foregoing requirements, the developer shall prepare and the director shall execute and acknowledge a document in recordable form accepting such surety bond or irrevocable letter of credit and identifying the time share units to which it applies. [L 1982, c 186, §16]

Structure Hawaii Revised Statutes

Hawaii Revised Statutes

Title 28. Property

514E. Time Sharing Plans

514E-1 Definitions.

514E-1.5 Time share administrator; duties.

514E-2 Status of property.

514E-2.5 Licensing of sales agents and acquisition agents.

514E-2.6 REPEALED. L 2001, c 71, §1.

514E-3 Taxation.

514E-4 County authority.

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-7 Maintenance charges.

514E-8 Mutual right to cancel.

514E-8.5 Classes of time share interests. (a) A time share plan may establish classes of time share interests defined by characteristics as the developer shall determine, including but not limited to season, unit size, location, view, or otherwise. (...

514E-8.6 One-to-one use-right to use-night requirement.

514E-9 Disclosure statement.

514E-9.1 Disclosure statement; prospective purchasers.

514E-9.5 Exchange program; general provisions.

514E-9.8 Time share interest owner referrals. (a) An owner of an interest in a time share plan duly registered under this chapter who is not licensed under chapter 467 and provides the name and address of a prospective purchaser or otherwise refers a...

514E-10 Registration required; developer, acquisition agent, plan manager, and exchange agent; registration renewal.

514E-10.2 Limited permit.

514E-10.3 Time share owners association; budgets and reserves. (a) For each fiscal year, the plan manager, or the board of the association if there is no plan manager, shall adopt an operating budget and distribute copies to all members of the associ...

514E-10.5 Consultant review of developer filing.

514E-11 Prohibited practices.

514E-11.1 Deceptive trade practices.

514E-11.2 Power to enjoin.

514E-11.3 Remedies; sales voidable; when and by whom.

514E-11.4 Defense to action.

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-15 Severability.

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-25 Lien payment deposit.

514E-26 Termination of a trust.

514E-27 Alternative arrangements for purchaser protection.

514E-28 Requirements for surety bonds and letters of credit.

514E-29 Association; lien for delinquent assessments.

514E-30 Scope of chapter.

514E-31 Private right of action.