1. (a) An exchange agent (including the developer if it is also an exchange agent) shall distribute not less than annually to each purchaser of a time share interest participating in the exchange program materials containing written information which shall include the following:

   1. (1) The manner in which the program is operated, the identity of the persons operating the program, and the affiliation between the persons operating the program and the developer;
   2. (2) Whether membership, participation, or both, in the program are voluntary or mandatory;
   3. (3) The costs or ranges of costs of membership and participation in the program as of a specified date, not more than one year before the disclosure statement is delivered to the purchaser, and the person to whom those costs are payable;
   4. (4) Whether and how any of the costs specified in paragraph (3) may be altered, which costs are to be fixed on a case-by-case basis, and the manner in which they are to be fixed in each case;
   5. (5) A description of the availability of time share units represented to be participating in the exchange program;
   6. (6) The reservation and confirmation or other procedures to effectuate the exchange of occupancy rights; and
   7. (7) Other disclosures required by the director as provided by rules adopted pursuant to chapter 91.
2. (b) A copy of the most current written materials supplied by the exchange agent pursuant to subsection (a) of this section shall be delivered to each purchaser simultaneously with the delivery of the disclosure statement.

3. (c) If the exchange agent is not the developer, a subsidiary of the developer, controlled by the developer, or affiliated with the developer, then:

   1. (1) The developer shall have no liability for the publication or distribution by the developer of the most current written materials supplied to the developer by the exchange agent pursuant to this section or the rules adopted by the director; and
   2. (2) The exchange agent shall have no liability with respect to any violation of this chapter or the rules adopted by the director arising out of the use by a developer of information relating to an exchange program other than that provided to the developer by the exchange agent.

[L 1981, c 81, pt of §1]