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]

 

 

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