                                 CODE OF VIRGINIA

EXCHANGE PROGRAMS (§ 55.1-2219)

A. Any exchange company that offers an exchange program in the Commonwealth
shall prepare and register with the Board a disclosure document including the
following:

   1. The name and address of the exchange company;

   2. The names and addresses of the top three officers and all directors of the
   exchange company and, if the exchange company is privately held, all
   shareholders owning five percent or more interest in the exchange company;

   3. Whether the exchange company or any of its officers or directors has any
   legal or beneficial interest in any developer or managing agent for any
   time-share program participating in the exchange program and, if so, the name
   and location of the time-share project and the nature of the interest;

   4. Unless the exchange company is also the developer or an affiliate, a
   statement that the purchaser&#8217;s contract with the exchange company is a
   contract separate and distinct from the sales contract;

   5. Whether the purchaser&#8217;s participation in the exchange program is
   dependent upon the continued affiliation of the time-share program with the
   exchange program;

   6. Whether the purchaser&#8217;s membership or participation, or both, in the
   exchange program is voluntary or mandatory;

   7. A complete and accurate description of the terms and conditions of the
   purchaser&#8217;s contractual relationship with the exchange company and the
   procedure by which changes in the terms and conditions of the exchange
   contract may be made;

   8. A complete and accurate description of the procedure to qualify for and
   effectuate exchanges;

   9. A complete and accurate description of all limitations, restrictions, or
   priorities employed in the operation of the exchange program, including
   limitations on exchanges based on seasonality, time-share unit size, or levels
   of occupancy, expressed in boldface type, and, in the event that such
   limitations, restrictions, or priorities are not uniformly applied by the
   exchange program, a clear description of the manner in which they are applied;

   10. Whether exchanges are arranged on a space available basis and whether any
   guarantees of fulfillment of specific requests for exchanges are made by the
   exchange program;

   11. Whether and under what circumstances an owner, in dealing with the
   exchange company, may lose the use of occupancy of his time-share in any
   properly-applied-for exchange, without being provided with substitute
   accommodations by the exchange company;

   12. The fees or range of fees for participation by time-share owners in the
   exchange program, a statement of whether any such fees may be altered by the
   exchange company, and the circumstances under which alterations may be made;

   13. The name and address of the site of each time-share project,
   accommodation, or facility participating in the exchange program;

   14. The number of time-share units in each property participating in the
   exchange program that are available for occupancy and that qualify for
   participation in the exchange program, expressed within the following
   numerical groupings: 1-5, 6-10, 11-20, 21-50, and 51 and over;

   15. The number of owners with respect to each time-share program or other
   property who are eligible to participate in the exchange program, expressed
   within the numerical groupings 1-100, 101-249, 250-499, 500-999, and 1,000 and
   over, and a statement of the criteria used to determine those owners currently
   eligible to participate in the exchange program;

   16. The disposition made by the exchange company of time-shares deposited with
   the exchange program by owners eligible to participate in the exchange program
   and not used by the exchange company in effecting exchanges;

   17. The following information, which, except as provided in subsection B,
   shall be independently audited by a certified public accountant or accounting
   firm in accordance with the standards of the Auditing Standards Board of the
   American Institute of Certified Public Accountants and reported for each year
   no later than July 1 of the succeeding year:
   				a. The number of owners enrolled in the exchange program. Such numbers
   shall disclose the relationship between the exchange company and owners as
   being either fee paying or gratuitous in nature;
   				b. The number of time-share projects, accommodations, or facilities
   eligible to participate in the exchange program;
   				c. The percentage of confirmed exchanges, which shall be the number of
   exchanges confirmed by the exchange company divided by the number of exchanges
   properly applied for, together with a complete and accurate statement of the
   criteria used to determine whether an exchange request was properly applied
   for;
   				d. The number of time-shares for which the exchange company has an
   outstanding obligation to provide an exchange to an owner who relinquished a
   time-share during the year in exchange for a time-share in any future year;
   and
   				e. The number of exchanges confirmed by the exchange company during the
   year.

   18. A statement in boldface type to the effect that the percentage described
   in subdivision 17 c is a summary of the exchange requests entered with the
   exchange company in the period reported and that the percentage does not
   indicate a purchaser&#8217;s or owner&#8217;s probabilities of being confirmed
   to any specific choice or range of choices, since availability at individual
   locations may vary.

B. The information required by subsection A shall be accurate as of a date that
is no more than 30 days prior to the date on which the information is delivered
to the purchaser, except that the information required by subdivisions A 2, 12,
13, 14, 15, and 16 shall be accurate as of December 31 of the preceding year if
the information is delivered between July 1 and December 31 of any year;
information delivered between January 1 and June 30 of any year shall be
accurate as of December 31 of the year prior to the preceding year. At no time
shall such information be accurate as of a date that is more than 18 months
prior to the date of delivery. As used in this section, &#8220;year&#8221; means
calendar year.

C. In the event that an exchange company offers an exchange program directly to
the purchaser, the exchange company shall deliver to such purchaser,
simultaneously with such offering and prior to the execution of any contract
between the purchaser and the exchange company, the information set forth in
subsection A. The requirements of this subsection shall not apply to any renewal
of a contract between a purchaser and an exchange company.

D. Each exchange company shall include the statement set forth in subdivision A
18 on all promotional brochures, pamphlets, advertisements, or other materials
disseminated by the exchange company that also contain the percentage of
confirmed exchanges described in subdivision A 17 c.

E. An exchange company shall, on or before July 1 of each year, file with the
Board and the association for the time-share program in which the time-shares
are offered or disposed the information required by this section with respect to
the preceding year. If the Board determines that any of the information supplied
fails to meet the requirements of this section, the Board may undertake
enforcement action against the exchange company in accordance with the
provisions of Article 6 (&#xA7; 55.1-2247 et seq.). No developer shall have any
liability arising out of the use, delivery, or publication by the developer of
written information provided to it by the exchange company pursuant to this
section. Except for written information provided to the developer by the
exchange company, no exchange company shall have any liability with respect to
(i) any representation made by the developer relating to the exchange program or
exchange company or (ii) the use, delivery, or publication by the developer of
any information relating to the exchange program or exchange company. The
failure of the exchange company to observe the requirements of this section, or
the use by it of any unfair or deceptive act or practice in connection with the
operation of the exchange program, shall be a violation of this section.

F. The Board may establish by regulation reasonable fees for registration of the
exchange program. All fees shall be remitted by the Board to the State Treasurer
and shall be placed to the credit of the Common Interest Community Management
Information Fund established pursuant to &#xA7; 54.1-2354.2.

HISTORY: 1985, c. 517, § 55-374.2; 1998, c. 460; 2008, cc. 851, 871; 2019, c.
712; 2020, c. 1011.