Section 2 Definitions

Section 2. As used in this chapter, the following words shall, unless the context otherwise requires, have the following meanings:—

“Affiliate of a developer”, any person who controls, is controlled by, or is under common control with a developer. A person controls a developer if the person is (i) a general partner, officer, director, or employer of the developer, (ii) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty per cent of the voting interest in the developer, (iii) controls in any manner the election of a majority of the directors of the developer, or (iv) has contributed more than twenty per cent of the capital of the developer. A person is controlled by a developer if the developer is (i) a general partner, officer, director, or employer of the person, (ii) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than twenty per cent of the voting interest in the person, (iii) controls in any manner the election of a majority of the directors of the person, or (iv) has contributed more than twenty per cent of the capital of the person. Control does not exist if the powers described in this paragraph are held solely as security for an obligation and are not exercised.

“Association”, the association organized under the provisions of subsection (a) of section nineteen.

“Business day”, any calendar day except Saturday or Sunday, or day on which a federal, state or county holiday is celebrated.

“Conversion building”, a building that at any time before the disposition of any time-share was occupied wholly or partially by persons other than purchasers and persons who occupied with the consent of purchasers.

“Developer”, any person who (i) offers to dispose of or disposes of his interest in a time-share not previously disposed of, or (ii) succeeds under section twenty-two to any special developer right.

“Dispose” or “disposition”, a voluntary transfer of any legal or equitable interest in a time-share, but does not include the transfer or release of a security interest.

“Enrolled”, paid membership in an exchange program or membership in an exchange program evidenced by written acceptance or confirmation of membership.

“Exchange company”, any person owning or operating an exchange program.

“Exchange program”, any program which allows for the assignment or exchange of time-share occupancy rights between or among time-share owners in the same or other time-share properties.

“Manager”, any person, other than all time-share owners or the association, designated in or employed pursuant to the time-share instrument or project instrument to manage the time-share units.

“Managing entity”, the manager or, if there is no manager, the association.

“Multi-location plan”, a time-share plan encompassing more than one time-share property pursuant to which time-share owners may, by reservation or other similar procedure, occupy time-share units in more than one time-share property.

“Multi-location developer”, a developer creating or selling its own time-shares in a multi-location plan.

“Offering”, any advertisement, inducement, solicitation, or attempt to encourage any person to acquire a time-share, other than as security for an obligation. An advertisement in a newspaper or other periodical of general circulation, or in any broadcast medium to the general public, of a time-share in a unit not located in the commonwealth, is not an offering if the advertisement states that an offering may be made only in compliance with the law of the jurisdiction in which the unit or units are located. An offering to the “general public” shall mean any offering to twenty-five or more people.

“Person”, a natural person, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, joint venture, or other legal or commercial entity. In the case of a nominee trust, however, “person” means the beneficiary of the trust as well as the trust and the trustee.

“Project”, real property, subject to a project instrument, containing more than one unit. A project may include units that are not time-share units.

“Project instrument”, one or more recordable documents, by whatever name denominated, applying to the whole of a project and containing restrictions or covenants regulating the use, occupancy, or disposition of units in a project, including any amendments to the document, but excluding any law, ordinance, by-law, or governmental regulation.

“Purchaser”, any person, other than a developer, who by means of a voluntary transfer acquires a legal or equitable interest in a time-share other than as security for an obligation.

“Sales contract”, the written contract which provides for the sale by the developer and the purchase by the purchaser of one or more time-shares in a time-share property.

“Time-share”, a time-share estate or a time-share license.

“Time-share estate”, a right to the occupancy of a unit or any of several units during five or more separated time periods over a period of at least five years, including extension or renewal options, coupled with a freehold estate or an estate for years in a time-share property or a specified portion thereof.

“Time-share expenses”, expenditures, fees, charges, or liabilities (i) incurred with respect to the time-shares or by or on behalf of all time-share owners in one time-share property, and (ii) imposed on the time-share units by the entity governing a project of which the time-share property is a part, together with any allocations to reserves, but excluding purchase money payable for time-shares. Time-share expenses shall include real estate taxes and other governmental assessments and charges with respect to the time-share property in which the time-shares are located.

“Time-share instrument”, one or more documents, by whatever name denominated, creating or regulating time-shares.

“Time-share liability”, the liability for time-share expenses allocated to each time-share pursuant to paragraph (4) of subsection (a) of section twelve.

“Time-share license”, a right to the occupancy of a unit or any of several units during five or more separated time periods not coupled with a freehold estate or an estate for years.

“Time-share owner”, a person who is an owner or co-owner of a time-share other than as security for an obligation.

“Time-share plan”, the rights, obligations and program created by the time-share instrument for a time-share property or, in the case of a multi-location plan, for time-share properties.

“Time-share property”, one or more time-share units subject to the same time-share instrument, together with any other real estate or rights therein appurtenant to those units.

“Time-share unit”, a unit in which time-shares exist.

“Unit”, real property, or a portion thereof, designated for separate use.