                                 CODE OF VIRGINIA

PROTECTION OF LIEN HOLDER (§ 55.1-2237)

Any lien holder of a time-share interest in any time-share program shall have
the following rights:

1. The lien holder shall have its lien rights preserved as against any purchaser
of a time-share who claims that the time-share instrument is invalid, void, or
voidable, 30 days after written notice by certified mail or personal delivery
has been given by the developer or lien holder to the purchaser. The notice
shall state that the developer has assigned the receivables to the lien holder
and that the purchaser has 30 days within which to object and specify the
invalidity or defect contained within such time-share instrument. The notice
required by this section may be included in the blanket encumbrance, in the
contract, or in any note, deed of trust, or mortgage executed by the purchaser
in connection with the purchaser&#8217;s deferred purchase of a time-share.

2. Any purchaser who fails to indicate that the time-share instrument is
invalid, void, or voidable as provided in subdivision 1 waives, or is estopped
to raise, the same in any subsequent enforcement of the collection of the
receivable by the lien holder.

HISTORY: 1981, c. 462, § 55-389; 1985, c. 517; 1998, c. 460; 2019, c. 712.