2005 Nevada Revised Statutes - Chapter 119B — Memberships in Campgrounds
CHAPTER 119B - MEMBERSHIPS IN CAMPGROUNDS
GENERAL PROVISIONS
NRS 119B.010 Definitions.
NRS 119B.020 Administratordefined.
NRS 119B.030 Affiliatedefined.
NRS 119B.040 Brokerof record defined.
NRS 119B.050 Campgrounddefined.
NRS 119B.060 Campingsite defined.
NRS 119B.070 Developerdefined.
NRS 119B.073 Divisiondefined.
NRS 119B.080 Membershipdefined.
NRS 119B.090 Offerdefined.
NRS 119B.095 Publicoffering statement defined.
NRS 119B.100 Purchaserdefined.
NRS 119B.110 Regulations;professional consultants.
NRS 119B.115 Authorityfor Division to conduct business electronically; regulations; fees; use ofunsworn declaration; exclusions.
NRS 119B.120 Applicability;exemptions.
PERMITS TO SELL MEMBERSHIPS
NRS 119B.130 Application:Form; contents.
NRS 119B.135 Termsand conditions of supporting documents: Description in public offeringstatement; conditions of permit.
NRS 119B.140 Application:Signature; cover page; fee; amendment.
NRS 119B.150 Investigationof applicant.
NRS 119B.160 Periodfor action on application.
NRS 119B.170 Groundsfor denial of application or suspension or revocation of permit.
NRS 119B.180 Hearingon denial of application; expiration of order of denial.
NRS 119B.190 Hearingon suspending, revoking or imposing conditions upon permit.
NRS 119B.200 Renewal.
NRS 119B.210 Fees.
NRS 119B.215 Disciplinaryaction for failure to pay money to Division.
SALE OF MEMBERSHIPS
NRS 119B.220 Offeror sale of membership without permit and broker prohibited.
NRS 119B.230 Salesagents: Association with broker.
NRS 119B.240 Encumbranceson campground; requirements if developer holds leasehold interest.
NRS 119B.250 Conveyanceof campground to trustee before sale of first membership; requirements fortrusts; inspection of records of trust.
NRS 119B.260 Approvalof advertisement or offering.
NRS 119B.270 Prospectivemember to be provided with certain information concerning developer andcampground.
NRS 119B.280 Rightto cancel contract of sale.
NRS 119B.285 Actionby purchaser or Administrator for misrepresentation or other violation.
MAINTENANCE OF CAMPGROUND
NRS 119B.300 Formationof association of members; incorporation; proxies.
NRS 119B.310 Agreementfor management of campground.
NRS 119B.320 Annualbudget; insurance; payment of assessments for unsold memberships.
NRS 119B.330 Assessmentupon membership; notice of assessment; liens.
PROGRAMS FOR EXCHANGE OF OCCUPANCY RIGHTS
NRS 119B.340 Informationto be furnished to purchasers by developer affiliated with company offeringprogram.
NRS 119B.350 Informationto be furnished to purchasers by developer offering program.
NRS 119B.360 Informationto be furnished by company offering program; liability for information andrepresentations.
ENFORCEMENT OF CHAPTER
NRS 119B.370 Orderto cease activities conducted without permit; hearing; agreement in lieu oforder.
NRS 119B.380 Enforcementof chapter and protection of purchasers by Administrator.
NRS 119B.385 Appointmentof receiver.
NRS 119B.390 Actionby Real Estate Commission against broker.
NRS 119B.395 Administrativefine for engaging in certain conduct without permit or authorization; procedurefor imposition of fine; judicial review; exceptions.
UNLAWFUL ACTS
NRS 119B.400 Actingas broker, broker-salesman, salesman, sales agent or registered representativewithout license or registration.
NRS 119B.410 Falsifyingapplication; failure to submit annual report.
NRS 119B.420 Falseor misleading advertising.
NRS 119B.430 Unfairmethods of competition; deceptive or unfair practices.
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GENERAL PROVISIONS
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(Added to NRS by 1985, 1656; A 1987, 1083;
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(Added to NRS by 1985, 1656)
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(Added to NRS by 1985, 1656)
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(Added to NRS by 1985, 1656)
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(Added to NRS by 1985, 1656)
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(Added to NRS by 1985, 1656)
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(Added to NRS by 1985, 1656)
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(Added to NRS by 1985, 1656)
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(Added to NRS by 1985, 1657)
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(Added to NRS by 1987, 1082)
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(Added to NRS by 1985, 1657)
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1. Adopt regulations which are necessary to carry outthe provisions of this chapter.
2. Employ such legal counsel, investigators and otherprofessional consultants as are necessary to carry out the provisions of thischapter.
(Added to NRS by 1985, 1658)
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1. The Administrator may adopt regulations which establishprocedures for the Division to conduct business electronically pursuant totitle 59 of NRS with persons who are regulated pursuant to this chapter andwith any other persons with whom the Division conducts business. Theregulations may include, without limitation, the establishment of fees to paythe costs of conducting business electronically with the Division.
2. In addition to the process authorized by
3. The Division may refuse to conduct businesselectronically with a person who has failed to pay money which the person owesto the Division.
(Added to NRS by
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1. The provisions of this chapter do not apply to:
(a) An offering subject and registered pursuant to theprovisions of chapter 119 of NRS;
(b) An offering subject and registered pursuant to theprovisions of chapter 119A of NRS;
(c) An offer, sale or transfer by any one person of nomore than one membership in a campground in any 12 months;
(d) An offer or sale by a government or governmentalagency; or
(e) A bona fide pledge of a membership in a campground.
2. The Administrator may, pursuant to the regulationsadopted by him, exempt from a provision of this chapter any other sale,transfer or disposition of a membership if he finds that the enforcement ofthat provision with respect to that transaction is not necessary to protect thepublic interest or that of the purchasers thereof.
(Added to NRS by 1985, 1657, 1658)
PERMITS TO SELL MEMBERSHIPS
NRS
1. His name and address.
2. If the applicant is not a natural person:
(a) A copy of the articles of incorporation or theagreement for a partnership or joint venture;
(b) The name and address of each director, officer,partner or affiliate. If any person named is a natural person, his occupationfor the 5 years immediately before the date of the application must also bestated; and
(c) The name and address of each person owning morethan 10 percent of the stock or other equity of the developer.
3. Whether any person identified has, within the 10years immediately before the date of the application, been convicted by a courtof any felony involving theft, fraud or dishonesty and, if so, the style andnumber of the case, the court, the date of the judgment and the penaltyimposed.
4. A copy of each contract or related form proposed tobe used in the sale of memberships in the campground, the prices to be chargedfor each type of membership and the amount and purpose of any other fee or chargeto be paid by a member.
5. A copy of each document relating to the formation,incorporation and operation of the members association responsible for theoperation and maintenance of the amenities and common area of the campground.
6. A brief description of the developers ownership ofor other right to use the properties or facilities represented to be availablefor use by purchasers, together with a brief description of the duration of anylease, license, franchise, reciprocal agreement or other agreement entitlingthe developer to use the properties and facilities, and any material provisionsof those agreements which restrict a purchasers use of the property or whichmay result in the impairment of the purchasers exercise of his rights derivedfrom membership.
7. A statement of the permits or other authorizationsthat are necessary for the operation of each facility that is represented bythe developer as available for the use of a member that have not yet beenobtained.
8. A statement of the financial condition of thedeveloper prepared in accordance with generally accepted accounting principlesand consisting of the financial statements for the most recent fiscal year ofthe developer that have been audited by an independent certified publicaccountant and the unaudited financial statements of the most recentlycompleted fiscal quarter. The Administrator may waive the requirement foraudited statements if they have been prepared by an independent certifiedpublic accountant or an independent public accountant and the Administrator issatisfied with the reliability of those statements and with the ability of thedeveloper to meet his future commitments.
9. A description of the method used to determine thenumber of memberships to be sold for each campground owned by the developer andmade available to members.
10. A copy of the disclosure required by
11. The name and business address and a copy of thelicense of the broker of record who will supervise the sale of the memberships.
12. Such additional information as deemed necessary bythe Administrator.
(Added to NRS by 1985, 1658)
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(Added to NRS by 1987, 1083)
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1. The application must be signed by the developer, orby an officer or a general partner of the developer or a person holding a powerof attorney for that purpose from the developer. If the application is signedpursuant to a power of attorney, a copy must be included with the application.
2. The application must be submitted with the coveringpage prescribed by the Administrator and accompanied by the required fee.
3. The application must promptly be amended if amaterial change occurs in the information contained therein.
(Added to NRS by 1985, 1660)
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1. The Administrator shall, before issuing any permitpursuant to the provisions of this chapter, fully investigate all informationsubmitted to him as required by the provisions of this chapter and may, ifnecessary, inspect the property which is the subject of any application. Allreasonable expenses incurred by the Administrator in carrying out theinvestigation or inspection must be paid by the applicant and no permit may beissued until those expenses have been paid.
2. Payments received by the Administrator pursuant tothis section must be deposited in the State Treasury for credit to the RealEstate Investigative Account. The Administrator shall use the money in theAccount to pay the expenses of agents and employees of the Division making theinvestigations pursuant to this section. The Administrator may advance money tothem for those expenses when appropriate.
(Added to NRS by 1985, 1661; A 1991, 1753)
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1. Issue the applicant a permit to sell memberships;
2. Deny the application, and state the reasons fordenial; or
3. Inform the applicant of any deficiencies in theapplication which must be corrected before a permit is issued.
(Added to NRS by 1985, 1660)
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1. The developer has failed to comply with anyprovision of this chapter which materially affects the rights of purchasers,prospective purchasers or members, or the administration of this chapter;
2. The number of memberships to be sold wouldoverburden the campground or any of its facilities;
3. The developer fails to show to the satisfaction ofthe Administrator an adequate provision for continuing management of thecampground for the duration of the memberships sold;
4. The term of a membership exceeds the term of thedevelopers interest in the campground that is the subject of the membership;
5. The developer has failed to post, refused to post,or defaulted on, a financial assurance given by him concerning the completionof a proposed campground or facility at a campground;
6. The developers offering of memberships has workedor would work a fraud on purchasers or members;
7. An application or a change in the application ismaterially incomplete;
8. The developer, or a director, officer, partner oraffiliate of the developer has within the 10 years immediately before the dateof the application been convicted of a felony involving theft, fraud ordishonesty or enjoined from, or assessed a civil penalty for or found to haveengaged in, a violation of any law to protect retail customers;
9. The developer has represented or is representing toprospective members that a campground or a facility at a campground is plannedwithout having provided to the Administrator a sufficient financial assurancethat the proposed campground will be completed and available to the memberswithin a reasonable time; or
10. The developer has permanently withdrawn, thedeveloper has the right to withdraw permanently, or the property is subject toan involuntary withdrawal, from use of all or any substantial portion of thecamping sites or recreational facilities of any campground.
(Added to NRS by 1985, 1660)
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1. If the Administrator denies an application for apermit, the applicant may, within 30 days, file a written request for ahearing. The Administrator shall set the matter for hearing to be conductedwithin 90 days after receipt of the applicants request, unless the applicantrequests a postponement of the hearing at least 3 working days before the dateset for hearing. If such a request is made by the applicant, the date of thehearing must be agreed upon between the Division and the applicant.
2. If the Administrator fails to:
(a) Hold the hearing within 90 days or within theextended time if a postponement is requested;
(b) Render his decision within 60 days after thehearing; or
(c) Notify the applicant in writing, by his order,within 15 days after his decision was made,
the order ofdenial expires and the Administrator shall issue the permit within 15 days.
(Added to NRS by 1985, 1661)
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1. Before suspending, revoking or imposing conditionsupon a permit, the Administrator shall give notice to the developer of thecharges against him and shall afford him the opportunity to be heard. Serviceof the complaint and notice of the time and place of the hearing may be madepersonally or by mailing a copy of the complaint and notice by certified mailto the developer at his last known address of record on file with theAdministrator.
2. Within 10 days after the service, the developershall file an answer to the complaint with the Administrator. The Administratorshall hold a hearing within 30 days after the filing of the answer, unless anextension is granted by the Administrator for good cause shown. Writtenfindings of fact, conclusions of law, and decision must be made within 30 daysafter the hearing and served upon the developer personally or sent by certifiedmail to his last known address of record on file with the Administrator, within15 days after the decision is made.
(Added to NRS by 1985, 1661)
1. A permit must be renewed annually by the developerby filing the application with and paying the fee for renewal to theAdministrator. The application must be filed and the fee paid not later thanthe 30th day before the date of expiration and must include any change that hasoccurred in the information previously provided to the Administrator or in astatement of disclosure provided to a prospective member pursuant to theprovisions of NRS 119B.270.
2. The renewal is effective on the 30th day after thefiling of the application unless the Administrator:
(a) Denies the renewal; or
(b) Sooner approves the renewal.
(Added to NRS by 1985, 1661)
1. The Administrator shall collect the following feesat such times and upon such conditions as he may provide by regulation:
For an initial permit to sell memberships in a campground.............................. $500
For each renewal of a permit................................................................................... 500
For each amendment to a public offering statement after theissuance of the report 150
For each application for the registration of arepresentative.............................. 85
For each renewal of the registration of a representative...................................... 85
For each transfer of the registration of a representative toa different developer or location 20
For each penalty for a late renewal of the registration of arepresentative....... 40
For each change of name or address...................................................................... 20
2. Each developer shall pay an additional fee for eachmembership he sells in a campground in which more than 50 memberships areavailable pursuant to the following schedule:
Amountto be
Numberof memberships paidper membership
51250 $5.00
251500 4.00
501750 3.00
7511500 2.50
over 1500 1.00
3. The Administrator may reduce the fees establishedby this section if the reduction is equitable in relation to the costs ofcarrying out the provisions of this chapter.
(Added to NRS by 1985, 1662; A 1993, 2296;
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1. Refuse to issue a permit to a person who has failedto pay money which the person owes to the Division.
2. Refuse to renew, or suspend or revoke, the permitof a person who has failed to pay money which the person owes to the Division.
(Added to NRS by
SALE OF MEMBERSHIPS
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1. Holds a permit to do so issued by theAdministrator; and
2. Designates and uses a broker of record to sell themembership.
(Added to NRS by 1985, 1657)
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1. A sales agent may work for only one broker ofrecord at any one time.
2. A broker of record shall give written notice to theAdministrator of a change of association of any sales agent associated with himwithin 10 days after that change.
3. The broker of record, upon the termination of theemployment of any sales agent associated with him, shall submit that agentslicense to the Administrator.
4. If a sales agent changes his association with anybroker of record, he must apply to the Administrator for the reissuance of hislicense for its unexpired term. The application must be accompanied by a fee of$10.
5. A sales agent may only become associated with abroker of record who certifies to his honesty, trustworthiness and goodreputation.
(Added to NRS by 1985, 1657)
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1. A contract of membership may not be executed unlessthe developer has provided satisfactory evidence to the Administrator that:
(a) The campground is free and clear of any blanketencumbrances;
(b) Each person who holds an interest in a blanketencumbrance affecting the campground has executed an agreement, approved by theAdministrator, to subordinate his right to the rights of the member;
(c) The developer has obtained and recorded a bindingagreement acceptable to the Administrator, executed by himself and all holdersof a blanket encumbrance which provides that the holders rights aresubordinate to the rights of subsequent purchasers and that the holder, hissuccessors and assigns, and any person who acquires the property throughforeclosure or by deed in lieu of foreclosure of the blanket encumbrance, takethe property subject to the rights of purchasers provided in the contract ofmembership; or
(d) Title to the campground has been conveyed to atrustee pursuant to the provisions of this chapter.
2. If the interest of the developer is a leaseholdinterest, the lease, unless otherwise required by the Administrator, mustprovide that:
(a) If an association has been formed, the lessor shallgive notice of termination of the lease for any default by the lessee to theassociation and the individual members; and
(b) The lessor, upon the bankruptcy of the lessee,shall enter into a new lease with the association upon the same terms andconditions as the lease with the developer.
TheAdministrator may require the developer to execute a bond or other type ofsecurity to ensure the payment of the rental obligation.
3. In lieu of the requirements set forth insubsections 1 and 2, alternative arrangements may be made if they are adequateto protect the rights of the members and are approved by the Administrator.
4. As used in this section, blanket encumbrancemeans a mortgage, deed of trust, option to purchase, mechanics lien, vendorslien or interest under a contract or agreement of sale, judgment lien, federalor state tax lien, or other lien or encumbrance which secures or evidences theobligation to pay money or to sell or convey any property made available topurchasers by the developer, or any portion thereof, and which authorizes,permits or requires the foreclosure or other disposition of the propertyaffected, except a lien for taxes or assessments levied by a public authoritywhich are not yet due.
(Added to NRS by 1985, 1669)
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1. If the title to a campground is conveyed to atrustee before the sale of the first membership related to it, the developermust provide the Administrator with satisfactory evidence that:
(a) Title to the campground has been conveyed to thetrustee.
(b) All proceeds received by the developer from thesales of memberships are being delivered to the trustee and deposited in a fundwhich has been established to provide for the payment of any taxes, cost ofinsurance or the discharge of any lien recorded against the campground.
(c) The trustee is required to pay all charges againstthe trust in the following order:
(1) Trustees fees and costs.
(2) Payment of taxes.
(3) Payments due to any holder of a lienrecorded against the campground.
(4) Any other payments authorized by thedocument creating the trust.
2. If a trust is created by a developer to hold title,the:
(a) Trustee must be approved by the Administrator.
(b) Trust must be irrevocable, unless otherwiseprovided by the Administrator.
(c) Trustee must not be permitted to encumber theproperty unless permission to do so has been given by the Division.
(d) Association or each member must be made athird-party beneficiary.
(e) Trust must provide that the trust and not thedeveloper is the contracting party in all matters involving the trust assets.
(f) Trustee must give at least 30 days notice inwriting of his intention to resign to:
(1) The association, if it has been formed;
(2) All owners; and
(3) The Administrator.
TheAdministrator must approve a substitute trustee before the resignation of thetrustee may be accepted.
3. The Administrator may inspect the records relatingto the trust at any reasonable time.
(Added to NRS by 1985, 1668)
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1. A membership must not be advertised or offered forsale within this state until the advertisement is approved by theAdministrator.
2. Each application for the approval of advertisingmust:
(a) Include the form and content of advertising to beused;
(b) Include the nature of the offer of gifts or otherfree benefits to be extended; and
(c) Be accompanied by a filing fee of not more than$200, to be established by the Administrator.
3. The Administrator shall render a decision upon anapplication for the approval of advertising or an offer for sale within 30 daysafter the date the application is filed.
(Added to NRS by 1985, 1668; A 1993, 2297)
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1. The name and address of the developer and anyaffiliate of the developer.
2. A brief description of the developers experiencein operating a campground, including the number of years he has been in thatbusiness.
3. A brief description of the nature and duration ofthe members right or license to use the developers campground, both withinthe state and at any other locations owned or controlled by the developer.
4. The location of each of the developers campgroundsand a brief description for each significant facility at each campground thenavailable for use by a member and those which are represented as being planned,together with a brief description of any significant facilities at a campgroundthat are or will be available to a nonmember. As used in this subsectionsignificant facility includes camping sites, swimming pools, athletic courts,recreational buildings, restrooms and showers, laundry rooms and trading postsor grocery stores.
5. A brief description of the developers ownership ofor other right to use the campground or its facilities represented to beavailable for use by a member, together with the duration of any lease,license, franchise or reciprocal agreement entitling the developer to use thecampground or the facilities, and any material provisions of any agreementwhich restricts a members use of the campground or its facilities.
6. A copy of the rules, restrictions or covenantsregulating the members use of the developers campground or its facilities,including a statement of whether and how the rules, restrictions or covenantsmay be changed.
7. A description of any restraints on the transfer ofthe membership.
8. A copy of the policy relating to the availabilityof the camping.
9. A statement of any grounds for the forfeiture of amembership and the procedures and rights to which the member is entitled.
10. A copy of the contract of membership signed by themember.
11. A statement of the prospective members right tocancel the contract of membership as provided in
12. A statement of the terms and conditions of anyprogram for the exchange of the right to use the facilities of anothercampground represented to be available to the member, including whether themembers participation in the program is dependent upon the continuedaffiliation of the developer with that campground and whether the developer oranother person reserves the right to terminate that affiliation.
(Added to NRS by 1985, 1662)
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(Added to NRS by 1985, 1667)
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1. Where any part of the statement of record containedan untrue statement of a material fact or omitted to state a material factrequired to be stated therein, the Administrator or any person acquiring amembership from the developer or his agent during the period the publicoffering statement remained uncorrected (unless it is proved that at the timeof the acquisition he knew of the untruth or omission) may sue the developer inany court of competent jurisdiction.
2. Any developer or agent who sells a membership:
(a) In violation of this chapter; or
(b) By means of a public offering statement whichcontained an untrue statement of a material fact required to be stated therein,may be sued by the Administrator or purchaser of the membership.
3. If a suit authorized under subsection 1 or 2 isbrought by the purchaser, he is entitled to recover such damages as representthe difference between the amount paid for the membership and the reasonablecost of any permanent improvements thereto, and the lesser of:
(a) The value thereof as of the time the suit wasbrought;
(b) The price at which the membership has been disposedof in a bona fide market transaction before suit; or
(c) The price at which the membership has been disposedof after suit in a bona fide market transaction but before judgment,
or torescission of the contract of sale and the refund of any consideration paid byhim.
4. If a suit authorized under subsection 1 or 2 isbrought by the Administrator, he may seek a declaration of the court that anyperson entitled to sue the developer or his agent under this section isentitled to the right of rescission and the refund of any consideration paid byhim.
5. Every person who becomes liable to make any paymentunder this section may recover contribution as in cases of contract from anyperson who, if sued separately, would have been liable to make the samepayment.
6. Reasonable attorneys fees may be awarded to theprevailing party in any action brought under this section. Any action torescind a contract of sale under this section must be brought within 1 yearafter the date of purchase or within 1 year after the date of the discovery ofthe misrepresentation giving rise to the action for rescission.
7. The provisions of this section are in addition toand not a substitute for any other right of a person to bring an action in anycourt for any act involved in the offering or sale of memberships or the rightof the state to punish any person for any violation of any law.
8. For the purposes of this section statement ofrecord means the information submitted to the Administrator by the developerin its application for a permit to offer to sell memberships in a campground.
(Added to NRS by 1987, 1082)
MAINTENANCE OF CAMPGROUND
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1. The developer may form an association of themembers. The association may be incorporated.
2. The state of incorporation may be:
(a) This state;
(b) The state in which the campground is located; or
(c) Any state where the developer has obtained a permitto sell memberships.
3. If an association is incorporated, the articles ofincorporation or the bylaws must provide for the transfer by the developer tothe owners of the control of the association within 120 days after 80 percentof the memberships have been sold.
4. Except as provided in
(Added to NRS by 1985, 1663)
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1. If an association is formed, a developer or anaffiliate of the developer shall provide for the management of the campgroundby a written agreement with the association. The initial term of the agreementmust expire upon the first annual meeting of the members of the association orat the end of 5 years, whichever comes first. Each succeeding term of theagreement must be renewed annually unless the manager of the association or amajority of the members, excluding the developer, notify the manager of theirrefusal to renew the agreement.
2. The agreement must provide that:
(a) The manager or a majority of the members mayterminate the agreement for cause;
(b) The resignation of the manager will not be accepteduntil 90 days after receipt by the members of the written resignation; and
(c) A fidelity bond must be delivered by the manager tothe association.
3. Except as provided in this subsection, if thedeveloper retains a reversionary interest in the campground, the parties to anagreement must include the developer, the manager and the association. Inaddition to the provisions required in this section, the agreement mustprovide:
(a) That the campground will be maintained in goodcondition. Except as provided in this paragraph, any defect which is not curedwithin 10 days after notification by the developer may be cured by him. In anemergency situation, notice is not required. The association must repay thedeveloper for any cost of the repairs plus the legal rate of interest. Eachmember must be assessed for his share of the cost of repairs.
(b) That, if any dispute arises between the developerand the manager or association, either party may request from the AmericanArbitration Association a list of seven potential fact finders from which onemust be chosen to settle the dispute. The agreement must provide for the methodof selecting one fact finder from this list.
(c) For collection of assessments from the members topay obligations which may be due to the developer for breach of the covenant tomaintain the campground or its facilities in good condition and repair.
If thedeveloper, after his request to be included, is not made a party to thisagreement, he shall be deemed a third-party beneficiary of that agreement.
(Added to NRS by 1985, 1664)
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1. The association, or if no association has beenformed the developer, shall adopt an annual budget for revenues, expendituresand reserves and collect assessments for the expenses of the campground fromthe members. The initial budget must be approved by the Administrator. TheAdministrator may require the developer to submit, at his own expense, anopinion from an independent professional consultant regarding the sufficiencyof the budget to sustain the plan offered by the developer. Any money collectedfor assessments must be placed in a trust account.
2. The association or other manager shall maintainadequate property and public liability insurance insuring against all risks ofphysical loss with a provision, accepted in writing by any lender for whom thecampground may constitute security, that the proceeds must be disbursed for therepair or restoration of the campground.
3. The developer shall pay the assessment for anymemberships which are unsold or enter into an agreement, on a form approved bythe Administrator, to pay the difference between the actual expenses incurredand the amounts payable as assessments by the members. The Administrator may requirethe developer to provide a surety bond or other form of security which issatisfactory to the Administrator, to guarantee the payment of the developersobligation. The Administrator may require that the contract of membershipprovide that the failure of the member to pay an annual or special assessmentwithin 90 days after it is due constitutes a breach of the contract and allowsthe foreclosure of the members interest or the restriction of the member fromuse of the campground until that assessment is paid.
(Added to NRS by 1985, 1664)
NRS
1. The amount of the assessment and the other chargesauthorized by the contract of membership;
2. A description of the members interest againstwhich the lien has been assessed; and
3. The name of the member.
The noticemust be signed by an authorized representative of the association or asotherwise provided in the contract of membership. Upon the payment or othersatisfaction of the assessment and charges in connection with which the noticehas been recorded, the association or other manager shall notify the developerof the satisfaction and the release of the lien thereof.
(Added to NRS by 1985, 1665)
PROGRAMS FOR EXCHANGE OF OCCUPANCY RIGHTS
NRS
1. A developer who affiliates his campground with acompany offering a program for the exchange of rights of occupancy amongmembers or with the members whose rights relate to other campgrounds, or both,shall give the member the following information:
(a) The name and address of the company offering theprogram.
(b) If the company is not a natural person, the namesof the officers, directors, shareholders or partners owning at least 5 percentof the outstanding stock of that operator.
(c) A statement indicating whether the company or anyof its officers, directors or partners has any legal or beneficial interest inany interest of the developer or managing agent in a plan to sell membershipsincluded in the program, and if so, the name, location and nature of thatinterest.
(d) A statement that the members contract with thecompany is a contract separate and distinct from the contract of membershipsold by the developer, unless the company and the developer or an affiliate arethe same.
(e) A statement whether the members participation inthe program is dependent upon the continued inclusion of the plan to sellmemberships in the program.
(f) A statement indicating whether the membersmembership or participation in the program, is voluntary or mandatory.
(g) A complete and accurate description of:
(1) The terms and conditions of the memberscontractual relationship with the company and the procedure by which changesthereto may be made.
(2) The procedure to qualify for and makechanges.
(3) Each limitation, restriction or priority ofthe program, including, but not limited to, a limitation on exchanges based onthe seasons of the year, the size of the facilities or levels of occupancy,printed in boldface type, and, if those limitations, restrictions or prioritiesare not uniformly applied by the program, a clear description of the manner inwhich they are applied.
(h) A statement indicating whether an exchange isarranged on the basis of available space and whether there are any guaranteesof fulfilling a specific request for an exchange.
(i) A statement indicating whether and under whichcircumstances a member, in dealing with the company, may lose the right to useand occupy a site in any properly requested exchange without being providedwith substitute accommodations by the company.
(j) The fees to be paid by participants in the program,including a statement indicating whether any fees may be changed by the companyand, if so, the circumstances under which those changes may be made.
(k) The name and address of the site of each campgroundincluded in the program.
(l) The number of sites in each campground included inthe program which are available for occupancy, expressed in numerical groupingsof from 1 to 5, 6 to 10, 11 to 20, 21 to 50 and over 50.
(m) The number of members with respect to each plan tosell memberships or other rights who are eligible to participate in theprogram, expressed in numerical groupings of from 1 to 100, 101 to 249, 250 to499, 500 to 999 and at least 1,000, and a statement of the criteria used todetermine those members who are eligible to participate in the program.
(n) The disposition made by the company of the membershipsdeposited with the program by members who are eligible to participate in theprogram and not used by the company in effecting exchanges.
(o) An annual report completed on or before July 1 ofthe succeeding year which must be independently certified by a certified publicaccountant or accounting firm in accordance with the standards of theAccounting Standards Board of the American Institute of Certified PublicAccountants, as those standards exist on June 7, 1985. The report must include:
(1) The number of members who are enrolled toparticipate in the program, including an indication of whether the relationshipbetween the company and the members is based on the payment of a fee or isgratuitous.
(2) The number of campgrounds and camping sitesincluded in the program, categorized by those campgrounds which are the subjectof a contract between the developer or the association and the company andthose campgrounds which are the subject of a contract between the company andmembers directly.
(3) The number of memberships for which thecompany has an outstanding obligation to provide an exchange to a member whorelinquished a membership during the year in exchange for a membership in anyfuture year.
(4) The number of exchanges confirmed by the companyduring the year.
2. The information required by subsection 1 must bedelivered to the prospective member before the execution of any contractbetween the prospective member and a company or the contract of membership.
3. Upon the receipt of the information, the membershall certify in writing that he has received the information from thedeveloper.
4. Except as otherwise provided in this subsection,the information required by subsection 1 must be accurate as of 30 days beforethe date on which the information is delivered to the prospective member. Theinformation required by paragraphs (b), (c), (k), (l), (m) and (o) ofsubsection 1 must be consistent with the latest audited statement of thecompany which is prepared not more than 18 months before the information isdelivered.
(Added to NRS by 1985, 1665)
NRS
(Added to NRS by 1985, 1667)
NRS
1. A company whose program for the exchange ofoccupancy rights among members of a campground or with the members of differentcampgrounds, or both, is offered to members in this state shall, on or beforeJuly 1 of each year, file with the Administrator and the secretary of themembers association the information required by subsection 1 of
2. No developer is liable for the use, delivery orpublication of the information provided to him by the company.
3. Except as otherwise provided in this subsection, nocompany is liable for:
(a) Any representation made by the developer relatingto the program or the company.
(b) The use, delivery or publication by the developerof any information relating to the program or the company.
The companyis liable only for the written information provided to the developer by thecompany.
(Added to NRS by 1985, 1668)
ENFORCEMENT OF CHAPTER
NRS
1. The Administrator may issue an order directing adeveloper to cease engaging in activities for which the developer has notreceived a permit under this chapter or conducting activities in a manner notin compliance with the terms of his permit.
2. The order to cease must be in writing and muststate that, in the opinion of the Administrator, the developer has not beenissued a permit for the activity or the terms of the permit do not allow thedeveloper to conduct the activity in that manner. The developer shall notengage in any activity regulated by this chapter after he receives such anorder.
3. Within 30 days after receiving such an order, adeveloper may file a verified petition with the Administrator for a hearing.The Administrator shall hold a hearing within 30 days after the petition isfiled. If the Administrator fails to hold a hearing within 30 days, or does notrender a written decision within 45 days after the final hearing, the order tocease is rescinded.
4. If the decision of the Administrator after ahearing is against the person ordered to cease, he may obtain judicial reviewfrom that decision by filing, within 30 days after the date on which thedecision was issued, a petition in the district court for the county in whichhe conducted the activity. The burden of proof is on the petitioner. The courtshall consider the decision of the Administrator which is being reviewed andshall consider and determine solely whether there has been an abuse ofdiscretion on the part of the Administrator in making the decision.
5. In lieu of the issuance of an order to cease suchactivities, the Administrator may enter into an agreement with the developer inwhich the developer agrees to:
(a) Discontinue the activities that are not incompliance with this chapter;
(b) Pay all costs incurred by the administrator ininvestigating the developers activities and conducting any necessary hearings;and
(c) Return to the purchasers any money or propertywhich he acquired through such violations.
The terms ofsuch an agreement are confidential unless violated by the developer.
(Added to NRS by 1985, 1670)
NRS
1. Whenever the Administrator believes that any personhas violated any order, regulation, permit, decision, demand or requirement, orany of the provisions of this chapter, he may bring an action in the districtcourt in the county in which the person resides or maintains his principalplace of business or, if the person resides outside the State, in any court ofcompetent jurisdiction within or outside the State, against the person toenjoin him from continuing the violation.
2. The Administrator may intervene in any actioninvolving a membership or a program for the exchange of rights of occupancy, ifintervention is necessary in the public interest and for the protection of themembers.
(Added to NRS by 1985, 1671)
NRS
1. When the Administrator ascertains that anassociation of members or a developer, if there is no association, is insolventor in imminent danger of insolvency or the associations or developers affairsare being mismanaged, he may file a complaint in the district court of thecounty in which the principal office of the association or developer is locatedfor the appointment of a receiver.
2. Upon the appointment, the receiver shall takepossession of all the property, business and assets of the association ordeveloper which are located within this state and retain possession of themuntil further order of the court. The receiver shall make or cause to be madean inventory of the assets and known liabilities of the association ordeveloper. Upon approval of the court, the receiver shall take such other actionsas appear necessary and reasonable for the conduct of the business of theassociation or developer.
3. The inventory made by the receiver and all claimsfiled by creditors are open at all reasonable times for inspection and anyaction taken by the receiver upon any of the claims is subject to the approvalof the court before which the cause is pending.
4. The expenses of the receiver and compensation ofcounsel, as well as all expenditures required in any liquidation proceeding,must be fixed by the receiver, subject to the approval of the court, and, uponcertification of the receiver, must be paid out of the assets he controls asreceiver.
(Added to NRS by 1987, 1083)
NRS
(Added to NRS by 1985, 1671)
NRS
1. In addition to any other remedy or penalty, theAdministrator may impose an administrative fine against any person whoknowingly:
(a) Engages or offers to engage in any activity forwhich a permit or any type of authorization is required pursuant to thischapter, or any regulation adopted pursuant thereto, if the person does nothold the required permit or has not been given the required authorization; or
(b) Assists or offers to assist another person tocommit a violation described in paragraph (a).
2. If the Administrator imposes an administrative fineagainst a person pursuant to this section, the amount of the administrativefine may not exceed the amount of any gain or economic benefit that the personderived from the violation or $5,000, whichever amount is greater.
3. In determining the appropriate amount of theadministrative fine, the Administrator shall consider:
(a) The severity of the violation and the degree of anyharm that the violation caused to other persons;
(b) The nature and amount of any gain or economicbenefit that the person derived from the violation;
(c) The persons history or record of other violations;and
(d) Any other facts or circumstances that theAdministrator deems to be relevant.
4. Before the Administrator may impose theadministrative fine, the Administrator must provide the person with notice andan opportunity to be heard.
5. The person is entitled to judicial review of thedecision of the Administrator in the manner provided by
6. The provisions of this section do not apply to aperson who engages or offers to engage in activities within the purview of thischapter if:
(a) A specific statute exempts the person fromcomplying with the provisions of this chapter with regard to those activities;and
(b) The person is acting in accordance with theexemption while engaging or offering to engage in those activities.
(Added to NRS by
UNLAWFUL ACTS
NRS
(Added to NRS by 1985, 1657)
NRS
(Added to NRS by 1985, 1671)
NRS
1. It is unlawful for any person to use false ormisleading information to advertise the sale of contracts of membership.
2. Unless a person has actual knowledge of the falseor misleading information, the owner, publisher, licensee or operator of anynewspaper, magazine, television or radio broadcasting station or his agents oremployees are not liable under this chapter for any advertising of any contractfor membership carried in the newspaper, magazine or by the television or radiobroadcasting station nor are any of them liable under this chapter for thecontents of any advertisement.
(Added to NRS by 1985, 1671)
NRS
1. Misrepresenting or failing to disclose any materialfact concerning a campground or membership.
2. Including in any agreement for purchase of amembership provisions purporting to waive any right or benefit provided forpurchasers under this chapter.
3. Receiving from a prospective purchaser any money orother valuable consideration before the purchaser receives the informationrequired by NRS 119B.270.
4. Misrepresenting the amount of time or the date acamping site will be available to a purchaser.
5. Misrepresenting the location of the campground.
6. Misrepresenting the size, nature, extent, qualitiesor characteristics of the campground.
7. Misrepresenting the nature or extent of anyservices incident to the membership.
8. Misrepresenting the conditions under which apurchaser may exchange occupancy rights in a campground in one location foroccupancy rights in a campground at another location.
9. Failing to disclose initially that any promisedentertainment, food or other inducements are being offered to solicit the saleof a membership.
10. Conducting or participating in, without priorapproval by the Division, any type of lottery or contest, or offering prizes orgifts to induce or encourage a person to visit a campground, attend a meetingat which a membership will be discussed, attend a presentation, or purchase amembership.
11. Any act or practice considered an unfair method ofcompetition or an unfair or deceptive act or practice under
12. Making any false promises of a character likely toinfluence, persuade or induce.
13. Engaging in any fraudulent, misleading oroppressive techniques or tactics of selling.
(Added to NRS by 1985, 1657; A 1989, 650)
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