514E-26 Termination of a trust. (a) In the case of a time share use plan, the trust for the time share units shall be irrevocable during the time that any owner of a time share interest has a right to the occupancy of a time share unit, except as provided in subsection (c).

(b) In a time share ownership plan, the trust for a time share unit shall be irrevocable until all blanket liens are extinguished, except as provided in subsection (c).

(c) The developer may elect to terminate the use of a trust for a time share unit if, at a later date[:]

(1) The trustee records a notice of time share plan after the recording of either:

(A) Nondisturbance agreements executed by every lienholder who has a blanket lien against the time share unit, or

(B) The director's acceptance of a surety bond or irrevocable letter of credit for that unit; or

(2) The director approves alternative arrangements [that] permit the termination of the trust. [L 1982, c 186, 14]



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