                                 CODE OF VIRGINIA

PUBLIC OFFERING STATEMENT (§ 59.1-448.1)

A. The travel club shall prepare and distribute to any prospective purchaser,
before execution thereby of a travel services agreement, a public offering
statement which discloses fully and accurately the characteristics of the travel
club and its travel services, the membership offered and shall make known to
prospective purchasers all material circumstances affecting the travel club and
its travel services. The proposed public offering statement shall be filed with
the Commissioner, shall be in a form prescribed by his rules and shall include
the following to the extent applicable:

   1. The name and principal address of the travel club, including:
   				a. The name, principal occupation and address of every director, partner,
   or trustee of the travel club;
   				b. The name and address of each person owning or controlling an interest
   of twenty percent or more in the travel club;
   				c. The particulars of any indictment, conviction, judgment, decree or
   order of any court or administrative agency against the travel club for
   violation of a federal, state, local or foreign country law or regulation in
   connection with activities relating to the rendition of travel services;
   				d. A statement of any unsatisfied judgments against the travel club, the
   status of any pending suits involving the rendition of travel services to
   which the travel club or any general partner, executive officer, director, or
   majority stockholder thereof is a defending party, and the status of any
   pending suits of significance to the travel club; and
   				e. The name and address of the travel club&#8217;s agent for service of
   process.

   2. A general description of the travel services offered by the travel club
   which are made available to purchasers.

   3. A general description of the travel club and its more significant features
   including without limitation the duration of membership, the types of
   membership offered, all fees, costs, and charges imposed on the purchaser
   thereby, and any provision for its cancellation by the purchaser other than by
   default.

   4. Provisions, if any, that have been made by the travel club for fulfilling
   the demand of the purchaser for accommodations in lodgings.

   5. If the travel club&#8217;s net worth is less than $500,000, a copy of the
   travel club&#8217;s current audited balance sheet; if such club&#8217;s net
   worth exceeds said amount, a statement by such travel club that its equity
   exceeds $500,000.

   6. Any initial or special fee due from the purchaser for membership in the
   travel club together with a description of the purpose and method of
   calculating the fee.

   7. A general description of any financing offered by or available through the
   travel club.

   8. A statement that the purchaser has a right to cancel the travel service
   agreement directing the purchaser to see such travel services agreement for
   the particulars of such right of cancellation.

   9. Any restraints on alienation of the travel club membership by the
   purchaser.

   10. A description of any insurance coverage provided for the benefit of the
   purchaser.

   11. Any services which the travel club provides or expense it pays and which
   it expects may become at any subsequent time an expense of the purchaser and
   which is to be paid thereby.

   12. A description of the terms of the deposit escrow requirements, including a
   statement that deposits may be removed from escrow at the termination of the
   cancellation period.

   13. Any other information required by the Commissioner to assure full and fair
   disclosure to prospective purchasers.

   14. A statement, expressed in terms of a percentage, of the number of
   purchasers who applied for accommodations from the travel club during the
   preceding year in contrast to the total number of purchasers who actually
   received such accommodations for the same preceding year. For purposes of
   calculation, an application shall be treated as only one application
   notwithstanding that the purchaser contemporaneously requests accommodations
   at a number of different real property improvements. Such statement shall be
   prepared by an independent certified public accounting firm and may take the
   form of an exhibit to the public offering statement.

B. If any prospective purchaser of a travel club membership is offered the
opportunity to subscribe to or participate in any exchange program registered
under the Virginia Real Estate Time-Share Act (§ 55.1-2200 et seq.), the public
offering statement shall include as an exhibit or supplement, the disclosure
document prepared by the exchange company in accordance with § 55.1-2219 and a
brief narrative description of the exchange program which shall include the
following:

   1. A statement of whether membership or participation in the program is
   voluntary or mandatory;

   2. The name and address of the exchange company together with the names of the
   principal officers and all directors of the exchange company;

   3. A statement of whether the exchange company or any of its officers or
   directors are holders of a ten percent or greater interest in the travel club;

   4. A statement of whether the travel club or any of its officers or directors
   are holders of a ten percent or greater interest in an exchange company;

   5. A statement that the purchaser&#8217;s contract with the exchange company
   is a contract separate and distinct from the purchaser&#8217;s contract with
   the travel club; and

   6. A brief narrative description of the procedure whereby exchanges are
   conducted.

C. The travel club shall amend the public offering statement to reflect any
material change in the travel club membership. The travel club shall file with
the Commissioner the public offering statement amended to reflect any material
change. The Commissioner may at any time require the travel club to alter or
supplement the form or substance of the public offering statement to assure full
and fair disclosure to prospective purchasers.
			The following events shall not be deemed to be a material change
necessitating an amendment to the public offering statement:

   1. A change correcting spelling, grammar, omissions, or other similar errors
   not affecting the substance of the public offering statement;

   2. A change in the fees, dues, or assessments of the purchasers or other
   similar recurring expense items;

   3. A change which is an aspect or result of the orderly development,
   operation, or management of the travel club in accordance with the travel
   services agreement, including, without limitation, the addition or deletion of
   accommodations, transportation or other service related to travel;

   4. A change resulting from the adoption of a new budget;

   5. A change occurring in the issuance of an exchange company&#8217;s updated
   annual report or disclosure documents provided upon its receipt by the travel
   club it shall commence distribution of same in lieu of all others; and

   6. A change in the ownership of the travel club, provided the change affects
   less than an ownership interest of twenty percent.

HISTORY: 1994, c. 482.