11:5-9A.5 INSURANCE
11:5-9A.5 Amendments to registrations and to public offering statements
(a) The registrant shall file with the Commission amendments to its registration application and/or public offering statement reflecting any material or adverse change(s) in previously supplied information or documents in accordance with N.J.S.A. 45:15-16.60b(1), in order to ensure that the information provided to purchasers is current.
(b) Material change means any significant change, whether beneficial or adverse, in the size or character of the interest being offered or anything having a significant affect on the regular duties or obligations of the registrant, developer or purchaser.
1. Material change includes, but is not limited to:
i. A change of the developer or registrant;
ii. A change of exchange company or association with an additional exchange company;
iii. Any substantial change in the accommodations and/or amenities that are part of the timeshare plan;
iv. An increase or decrease in the number of timeshare interests in the timeshare plan;
v. A change of escrow agent, type of escrow or alternative assurance, or a change in any substantive provisions of the escrow agreement between the registrant and escrow agent;
vi. An increase in assessments of 15 percent or more;
vii. A change in management company or a change to a substantive provision of the management agreement;
viii. The transfer of control of the association to the owners of interests in the timeshare plan by the registrant;
ix. A filing of bankruptcy on the part of the developer, registrant, or management entity;
x. Substantive changes in the procedures for obtaining reservations or access to the accommodations that are part of the timeshare plan;
xi. The refinancing of or the placing of any additional mortgages or blanket encumbrances on the timeshare property or interests subsequent to registration approval; and
xii. Any special assessments.
(c) Adverse changes include any material change to the timeshare plan that substantially reduces benefits or increases costs to purchasers.
1. If the change is determined by the Commission to be both material and adverse to the purchasers of the timeshare plan as a whole, no closing shall occur until the amendment relating to the material and adverse change has been approved by the Commission.
(d) “Material” or “adverse” changes do not include:
1. Correction of any typographical errors that do not affect the rights or obligations of purchasers;
2. Changes in selling prices or advertising materials;
3. Timely completion of promised improvements as represented in a previously approved public offering statement; and
4. With the exception of special assessments, any increase in fees payable by a purchaser of less than 15 percent.
(e) Unless otherwise permitted by the Act, no revised public offering statement shall be given to prospective purchasers without the approval of the Commission.
1. Applications for approval of an amended or corrected public offering statement shall be made by filing a red-lined copy or other submission utilizing a similar method of clearly showing the differences between the current and previously submitted drafts of the proposed revised public offering statement with the Commission and an application update.
(f) The Commission shall process and review requests for amendments to orders of registration and public offering statements in accordance with the standards and procedures established in the Act and this subchapter for the review of applications for registration. Requests for approval of amendments to orders of registration and revisions to public offering statements shall be accompanied by a fee of $ 300.00 as provided in N.J.A.C. 11:5-9A.10.
(g) The developer shall update the public offering statement to reflect any changes to the timeshare plan that are not material or adverse at the time of the filing of next annual report.
11:5-9A.6 Public offering statements
(a) No person shall dispose of any timeshare interest in a registered timeshare plan unless he or she delivers a current public offering statement and affords the purchaser a reasonable opportunity to read the same before the purchaser signs the contract or purchase agreement.
1. In all cases where a New Jersey purchaser has not had contact with an authorized New Jersey broker, registrants shall maintain the signed and dated receipt for the New Jersey public offering statement and a copy of the contract which the New Jersey purchaser signed for a period of seven years.
(b) The public offering statement shall disclose fully and accurately the characteristics of the timeshare plan offered and shall make known to prospective purchasers all unusual and material circumstances and features affecting the timeshare plan. The public offering statement shall be in clear and concise