Address

Sovereign Corporate Centre46 Fairwind St., Mt. Royal Ave.P.O. Box CB-12762 Suite #407Nassau, N.P., The Bahamasmmccartney@lexjustis.com www.lexjustis.com www.lexjustis.com/blog

Telephone

[242] 326-1202

Facsimile

[242] 325-4202

APPLYING FOR TIME SHARE LICENSE IN THE BAHAMAS

http://www.scribd.com/doc/26889148

Conditions for Grant of Approval of Time Share License

As previously mentioned those individuals involved in the construction,marketing, selling, or managing a time share development in The Bahamasare required to be licensed as a developing owner, marketing or managingagent. Licenses granted by the BIA remain in effect throughout the life of thetime share project and at the discretion by the BIA. It is important to notethat the time share developers should refrain from taking any action whichcould in any way be interpreted as advertising, marketing or selling timeshare interests in The Bahamas without authority approval; otherwise, it mayface severe penalties under the act, including jail for the principals andsubstantial monetary fines.In constructing time share facilities, the applicant must satisfy the BIA that ithas the financial ability to complete the development with all of therequisites necessary for its proper operation. In addition to this obligation,the BIA will not grant a developing owner's license unless satisfied thatpurchasers of the timeshare interests will have a right to occupy and usethose accommodations and facilities for certain periods, not in excess of six(6) months in any year over a period of years not exceeding forty (40) years.Generally speaking, whether the applicant wishes to construct, market,manage, or sell a time share in The Bahamas are required to satisfy the BIAthat the time share development has made provision for:-Non-Disturbance Clause in Debt Instruments: the inclusion of a non-disturbance clause in all debt instruments (where there is recourseagainst the time-sharing project) for the protection of the interests of all time-sharing purchasers;-Cancellation of Managing Agent by Time Share Purchasers : the abilityof purchasers of time-sharing interests to directly or indirectly canceland terminate (on commercially reasonable terms) the contract of anymanaging agent after the sellout of seventy-five per centum (75%) of all time-sharing interests in the project, through the creation of anadvisory membership structure or owner's association as selected by

Address

Sovereign Corporate Centre46 Fairwind St., Mt. Royal Ave.P.O. Box CB-12762 Suite #407Nassau, N.P., The Bahamasmmccartney@lexjustis.com www.lexjustis.com www.lexjustis.com/blog

Telephone

[242] 326-1202

Facsimile

[242] 325-4202

APPLYING FOR TIME SHARE LICENSE IN THE BAHAMAS

the developing owner for each time-sharing project; such structure orassociation, as the case may be, shall have the right to the names andaddresses of all time-sharing purchasers in the project; the managingagent shall co-operate with such structure or association in all waysfeasible; and the Board shall periodically review comments receivedfrom any such structure or association and take any suggestions intoconsideration as part of the periodic inspection;-Copies of Legal Documents for BIA Review: copies of all contracts andother legally binding documents being used by the parties inconnection with the time-sharing project, including all rules,regulations, conditions or limitations on and charges for use of theaccommodations or facilities as may be in force from time to time,provided to the BIA for review;-Maintaining Proper Records: the keeping of proper and detailed recordsconcerning all aspects of the development, management, advertising,marketing and sale of the time-sharing project; such records shallinclude a copy of the contract for each sale under the time-sharingproject and records detailing the disposition of all funds realized fromsuch sales;-Transfer of Time Sharing Interests: copies of the contract transferringthe time-sharing interests and the Public Offering Statement, if required, full information concerning the terms and conditions of anyfinancing offered; a detailed statement of all annual or periodiccharges and assessments that defines the basis for such charges andassessments and the means by which all periodic charges andassessments (if any) will be made and the amounts thereof; and, allrules, regulations, conditions or limitations on the use of theaccommodation or facilities of the project; provided to the BIA forreview, prior to their use or implementation, as the case may be, and

Address

Sovereign Corporate Centre46 Fairwind St., Mt. Royal Ave.P.O. Box CB-12762 Suite #407Nassau, N.P., The Bahamasmmccartney@lexjustis.com www.lexjustis.com www.lexjustis.com/blog

Telephone

[242] 326-1202

Facsimile

[242] 325-4202

APPLYING FOR TIME SHARE LICENSE IN THE BAHAMAS

every purchaser, prior to the execution of the contract by suchpurchaser,-Seven Day Cancellation Period:afforded every purchaser acancellation period of not less than seven (7) days from the date of theexecution of the contract or until seven (7) days after receipt of thePublic Offering Statement, whichever is the later, during which timesuch purchaser shall be entitled to cancel the contract;-Ability to Refund Payments: made satisfactory financial arrangementsfor the refund to the purchaser of the total amount of all paymentsmade by the purchaser, reduced by the proportion of any contractbenefits by any purchaser who cancels his contract as provided in thisAct within twenty (20) days of the receipt of the notification of thecancellation;-Honoring the Rights of Time Share Purchasers: the satisfaction that if the titles, rights, obligations and responsibilities of a developing owner,marketing agent or managing agent are transferred to a third party,such third party agrees in writing to honor fully the rights of the time-sharing purchasers under the time-sharing project;-Jurisdiction of Time Share Regulations: the inclusion of a clause in allcontracts and other legally binding documents being used by theparties in connection with the time-sharing project to the effect thatsuch contracts and other documents shall in so far as they relate to thepurchase or transfer of a time-sharing interest be interpreted andconstrued according to the law of The Bahamas; otherwise as providedin the time-sharing contract, and if not so provided, then the law of theplace of the situs of the time-sharing contract's execution shall govern;