Current through Register Vol. 46, No. 39, September 25, 2024
(a)
General.
Documents to supplement or amend an offering plan
(collectively, "amendment[s]") shall be deemed part of the offering plan and
shall meet the following requirements:
(1) If the offering plan does not comply with
General Business Law, section 352-e(1)(b) or section
24.1(b) of this
Part, due to change of circumstances, the passage of time or any other reason,
the offering plan must be amended promptly.
(2) An amendment must include a
representation that all material changes of facts or circumstances affecting
the property or the offering are included, unless the changes were described in
prior amendment(s) submitted to but not yet filed with the Department of
Law.
(3) Except as provided in
subdivision (d) of this section, an amendment to an offering plan shall be
filed on the date indicated in the letter issued by the Department of Law
stating that the amendment has been filed, and not sooner.
(4) Amendments that have been filed with the
Department of Law must be attached to the inside front cover of the offering
plan before the amended plan is distributed to the public. The cover of the
offering plan must be stamped: "This plan has been amended. See inside cover."
Any revisions, additions or deletions of specific language in the offering plan
should reprint a sufficient portion of the paragraph from the offering plan as
revised so that the revised portion of the offering plan may be understood
easily. An offering plan may be rewritten to incorporate the amendments into
the body of the plan, and must be rewritten, if required by the Department of
Law.
(5) If there is a substantial
amendment to the offering plan that adversely affects purchasers under
contract, the sponsor must grant timeshare purchasers a right of rescission and
a reasonable period of time that is not less than 15 days after notice to
exercise the right. Sponsor must promptly return any money paid by a purchaser
who rescinds.
(b)
Procedure for submission of amendments.
Amendments must be mailed to or submitted during business
hours to the New York State Department of Law, Real Estate Finance Bureau, 28
Liberty Street, New York, NY 10005. Include the following when submitting an
amendment:
(1) a transmittal letter,
signed by the attorney who prepared the amendment, that:
(i) states the date the offering plan was
filed, and the Department of Law file number;
(ii) identifies the subject amendment in
numerical order;
(iii) states
whether prior amendments had been submitted to but not yet filed with the
Department of Law;
(iv) identifies,
if possible, the attorney in the Department of Law who reviewed the most recent
submission; and
(v) gives the
current status of the offering plan, and states if there are any outstanding
rescission periods;
(vi) notes if
there is currently an investigation pending by the Department of Law of the
sponsor, a principal of sponsor, or the proposed timeshare; and
(vii) states the date on which sponsor
submitted a digital copy of the offering plan and all previously filed
amendments to the Department of Law or whether this is the first time sponsor
is submitting a digital copy of the offering plan and previously filed
amendments, if any;
(2)
one paper copy of the typed or printed amendment to the offering plan and one
digital copy of the amendment to the offering plan;
(3) check(s) (certified or uncertified) for
filing fee(s) under General Business Law, section 352-e(7), payable to New York
State Department of Law, stapled or clipped to the transmittal
letter;
(4) one digital copy of the
offering plan, including all previously filed amendments, if not already
submitted to the Department of Law;
(5) one form RS-2, signed by the sponsor;
and
(6) evidence of approval for
filing in the situs state, if a five business day review is requested pursuant
to section
24.1(d) of this
Part.
(c)
Amendments extending term of offering plan.
Pursuant to section
24.3(a)(5) of
this Part, the term of the initial offer is 12 months, commencing on the date
indicated in the letter issued by the Department of Law stating that the plan
is filed. Any amendment extends the term of the offering for an additional
six-month term from the date of filing of the amendment. In the absence of any
amendments, an extension of the term must be made by amendment before the end
of the then current term, and must comply with the provisions of this
section.
(1) The amendment must
disclose all material changes, such as an increase in maintenance charges or a
material increase in an expense item.
(2) The amendment must state the number of
unsold timeshares remaining and the status of construction of the units and
other facilities.
(d)
Price change amendments.
Any amendment proposing to change any offering price is
subject to the requirements set forth below and must be consistent with section
24.3(k) of this
Part.
(1) Notwithstanding paragraph
(a)(3) of this section, if the amendment is limited solely to price changes and
no prior amendment has been submitted to but not yet filed with the Department
of Law, the amendment shall be deemed filed when submitted to the Department of
Law. This amendment will not extend the term of the offering.
(2) If the amendment contains price changes
and supplements, or amends any other part of the offering plan, the amendment
shall be filed on the date indicated in the letter issued by the Department of
Law stating that the amendment has been filed.
(3) The transmittal letter for a price change
amendment must be accompanied by a completed copy of form C-11 as promulgated
by the Department of Law.
