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.

 

 

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