(a)        The developer shall describe in the timeshare declaration any creation of a reservation system and shall establish rules and regulations for its operation. In establishing these rules and regulations, the developer shall take into account the location and anticipated relative use demand of each timeshare unit and timeshare project component site that is included in the timeshare program and, the developer shall use its best efforts, in good faith and based upon all reasonably available evidence under the circumstances, to further the best interests of the owners as a whole with respect to their opportunity to use and enjoy the timeshare units.

(b)        The rules and regulations shall also provide for periodic adjustment or amendment of the reservation system by the reservation system operator from time to time in order to respond to actual owner use patterns and changes in owner use demand for the timeshare units existing at that time within the timeshare program. In addition to any other rights granted by the rules and regulations of the timeshare program, the reservation system operator is authorized to manage the reservation and use of the timeshare program using those processes, analyses, procedures, and methods that are in the best interests of the owners as a whole to efficiently manage the timeshare program.

(c)        The reservation system operator shall have the right to forecast anticipated reservation and use of the timeshare units, including the right to take into account current and previous reservation and use of the timeshare units, information about events that are scheduled to occur, seasonal use patterns, and other pertinent factors that affect the reservation or use of the timeshare program.

(d)       The reservation system operator is authorized to reserve timeshare periods and timeshare units, in the best interests of the owners as a whole, for the purposes of depositing any reserved use with an affiliated exchange program or renting any reserved timeshare periods or timeshare units in order to facilitate the use or future use of the timeshare period or timeshare units or other benefits made available through the timeshare program to owners.

(e)        If the reservation system operator is not the timeshare owners’ association, the following provisions shall apply with respect to termination of the reservation system operator’s management agreement or reservation agreement:

(1)        No later than 90 days after the date of termination, or another date as set forth in the applicable management agreement or reservation agreement, the terminated reservation system operator shall transfer to the timeshare owners’ association, or any designated successor reservation system operator, all relevant data held by the prior reservation system operator and related to any reservation system and any other records and information as is necessary to permit the uninterrupted operation and administration of the reservation system. However, the information required to be transferred does not include private information of the terminated reservation system operator that is not directly related to operation and management of the timeshare program.

(2)        All reasonable costs incurred by the terminated reservation system operator in effecting the transfer of information shall be reimbursed to the terminated reservation system operator as a common expense of the timeshare program within 10 days after the completed transfer of the information.

(3)        Nothing contained in this section shall preclude a reservation system operator from providing in its agreement with the timeshare owners’ association or in the timeshare declaration that the reservation system operator owns the reservation system and that the reservation system operator shall continue to own the reservation system in the event that it is terminated. ?(2021-163, s. 1(c); 2021-192, s. 5(a).)

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Terms Used In North Carolina General Statutes 93A-63

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Common expense: All of the following:

    a. See North Carolina General Statutes 93A-41

  • Developer: Any person or entity which (i) creates a timeshare, timeshare project, or timeshare program, (ii) purchases a timeshare for purpose of resale, or (iii) is engaged in the business of selling timeshares it owns or controls and shall include any person or entity who controls, is controlled by, or is in common control with the developer which is engaged in creating or selling timeshares for the developer. See North Carolina General Statutes 93A-41
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Exchange program: Any method, arrangement, or procedure for the voluntary exchange of the right to use and occupy timeshare units among owners, even if enrollment is not voluntary. See North Carolina General Statutes 93A-41
  • following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
  • Owner: Any person, other than a developer, who has acquired a timeshare. See North Carolina General Statutes 93A-41
  • Reservation system: The method, arrangement, procedure, rules, and regulations by which an owner reserves the use and occupancy of a timeshare unit for one or more timeshare periods. See North Carolina General Statutes 93A-41
  • Reservation system operator: The person who has the responsibility for operating any reservation system for the timeshare program. See North Carolina General Statutes 93A-41
  • Timeshare: A timeshare estate or timeshare use. See North Carolina General Statutes 93A-41
  • Timeshare declaration: One or more documents, by whatever name denominated, establishing, creating, or governing the operation of a timeshare program. See North Carolina General Statutes 93A-41
  • Timeshare period: The period or periods of time when an owner is afforded the opportunity to use a timeshare unit under the terms of the timeshare program. See North Carolina General Statutes 93A-41
  • Timeshare program: Any arrangement, plan, program, scheme, or similar device, other than an exchange program, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, or right-to-use agreement, or by any other means whereby an owner receives the right to use timeshare units for a period of time less than a full year during any given year, but not necessarily for consecutive years. See North Carolina General Statutes 93A-41
  • Timeshare project: A specific geographic site where all or a portion of the timeshare units of a timeshare program are located. See North Carolina General Statutes 93A-41
  • Timeshare unit: The real property or real property improvement in a project which is divided into timeshares and designated for separate occupancy and use. See North Carolina General Statutes 93A-41