(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:

contract signature

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Terms Used In Hawaii Revised Statutes 514E-18

  • Developer: means any person that creates a time sharing plan or is in the business of selling time share units. See Hawaii Revised Statutes 514E-1
  • Director: means the director of commerce and consumer affairs. See Hawaii Revised Statutes 514E-1
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Purchaser: means any person who has contracted to acquire a time share interest. See Hawaii Revised Statutes 514E-1
  • Sales agent: means a person who sells or offers to sell for compensation a time share interest in a time share plan, except a person who acquired a time share interest for the person's own occupancy and later offers it for resale. See Hawaii Revised Statutes 514E-1
  • Time share interest: means any interest in a time share unit or plan which entitles the owner or holder thereof to the use, occupancy or possession of a time share unit on a periodically recurring basis. See Hawaii Revised Statutes 514E-1
  • Trustee: A person or institution holding and administering property in trust.
(1) To the trustee of a lien payment trust if a lien payment trust is established pursuant to § 514E-19 to protect purchasers from blanket liens;
(2) As provided by any alternative arrangements accepted by the director pursuant to § 514E-27 where such alternative arrangements are used pursuant to § 514E-19 to protect purchasers from blanket liens; or
(3) To the developer only after the requirements of any other alternative under § 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 § 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.
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