Terms And Conditions 1-10
TERMS AND CONDITIONS
1. DEFINITIONS:
Unless expressly indicated herein to the contrary or the context otherwise requires, the capitalized terms used herein shall have the meanings ascribed to them in the Declaration for Festiva Resorts Adventure Club (the
"Declaration") and the By-laws of the Association (the
"By-Laws" )
2. PAYMENT OF PURCHASE PRICE:
Purchaser may pay for the Membership described herein in cash or by borrowing from Seller a portion of the purchase price (the purchase price is the amount set forth on line 1 of Page 1 hereof and is hereinafter called the
"Purchase Price")). If Purchaser borrows a portion of the Purchase Price from Seller, then Purchaser will be required to execute and deliver a Promissory Note (the
"Note") payable to the order of Seller in the amount of the unpaid balance of the Purchase Price, and grant the first priority Seller Security Interest (defined below) that secures the payment of the Note and encumbers Purchaser's Membership, as well as certain other documents and instruments which Seller, in its sole discretion, deems reasonably necessary or appropriate in order to secure Purchaser's payment of the Note. Purchaser will be subject to all of the terms, provisions, and conditions described and set forth in all such documents and instruments.
If Purchaser requests purchase money financing, purchaser agrees to cooperate with all reasonable requests made by Seller in connection with the financing and Purchaser shall provide Seller upon request such financial information as Seller may from time to time reasonably request.
In the event that Seller sends Purchaser any document or instrument for re-execution, Purchaser shall promptly re-execute same, cause his or her signature to be notarized (to the extent indicated), and return such document(s) and/or instrument(s) to Seller in accordance with Seller's written instructions. Purchaser's failure to do so for any reason within fifteen (15) calendar days following Purchaser's receipt thereof shall constitute a default hereunder, entitling Seller to exercise its available rights and remedies pursuant to Paragraph 12 hereof .
3. LEGALLY BINDING AGREEMENT:
This Agreement will become effective and legally binding upon both parties when signed by Purchaser and Seller and may not be amended except by a written instrument that is signed by both Seller and Purchaser. At the time Seller accepts this Agreement, Seller agrees to sell the Membership described herein to Purchaser, and Purchaser agrees to make all of the payments required to be made under this Agreement when due and to comply fully with all of the terms, provisions, and conditions hereof and of the Club Instruments.
4. DEPOSITS:
In compliance with all applicable state and local law, Purchaser's initial deposit and any subsequent payments made by Purchaser to Seller prior to Closing shall be delivered to and held in escrow by New England Vacation Services, LLC, the address of which is 135 E Hickory, Denton, Texas, 76201 (
"Escrow Agent"). Any and all interest that accrues on Purchaser's deposit and subsequent payments shall, except to the extent prohibited by law, be payable to and inure to the sole benefit of Seller and not be credited toward the Purchase Price. Escrow Agent shall hold all such deposits and other amounts until the expiration of Purchaser's cancellation period as described herein without such right of cancellation having been exercised by Purchaser. Upon presentation by Seller of an affidavit to the effect that such cancellation period has expired and Closing has occurred, or alternatively, that Purchaser has breached any term, provision, or condition hereof, Escrow Agent shall deliver any funds held on Purchaser's behalf, together with any interest that has accrued thereon, to Seller. Seller shall have no right to use any of the funds held by Escrow Agent until such funds have been delivered to Seller in accordance with the provisions hereof.
5. CLUB MEMBERSHIP PLAN:
Purchaser shall be entitled to use and occupy Assigned Club Accommodations during such Use Period(s) every Calendar Year as shall properly have been reserved by Purchaser in accordance with the terms, provisions, and conditions of the Club Instruments, as they may be amended or restated from time to time. Because reservations are confirmed by the Manager on a first-come, first-served, and space-available basis, Purchaser is encouraged to make reservation requests as far in advance of the desired Use Period(s) as the Rules and Regulations permit in order to maximize the chances of obtaining confirmed reservations for the Use Period(s) of Purchaser's choice. Purchaser acknowledges that notwithstanding any provision of this Agreement or the By-laws, Purchaser will not have the guaranteed exclusive right to reserve, use, and occupy any particular Club Accommodation in any particular Component Site during any particular Use Period.
The initial term of the Club shall be as set forth in Section 20.1 of the Declaration unless terminated sooner in the manner described in the Club Instruments.
Purchaser will be entitled to make a reservation or use and occupy any Club Accommodation after Purchaser has timely paid any and all (i) amounts due Seller hereunder; (ii) Assessments, Personal Charges, and other amounts levied upon him or her and upon his or her Membership as described in part in Paragraph 7 below, and otherwise fully complied with all of the terms, provisions, and conditions of the Club Instruments.
6. ASSESSMENTS:
Purchaser understands and agrees that in accordance with the provisions of the Club Instruments, Purchaser shall be responsible for his or her proportionate share of the Club Costs. The initial Standard Assessment shall be due and payable to the Association prior to Purchaser's use and occupancy of a Club Accommodation during any Use Period in the year in which Closing occurs. Subsequent Standard Assessments shall be due and payable on a calendar year basis at the time(s) and in the manner established from time to time by the Board, written notice of which shall be provided to each Member. The amount of Purchaser's Standard Assessment each year may vary and will be determined by the Board, pursuant to an annual budget that wIll be prepared by the Manager and approved by the Board.
If Purchaser's Initial Calendar Year, as set forth on Page 1 hereof, is the year following the year in which Closing occurs, then no Standard Assessment attributable to the current Calendar Year shall be due and payable by Purchaser. Except where Purchaser's Initial Calendar Year is not the Calendar Year in which Closing occurs, if Purchaser does not use and occupy a Club Accommodation for one (1) or more Use Periods In any given Calendar Year, Purchaser shall continue to be obligated to pay in full all Assessments levied against his or her Membership with respect to such Calendar Year.
In addition to Standard Assessments, Purchaser understands and agrees that he or she will be responsible for the timely payment to the Association of any Special Assessments levied upon his or her Membership by the Association, as well as any Personal Charges that he or she incurs, all in accordance with the provisions of the Club Instruments.
The Association may enforce Purchaser's obligation to pay the aforedescribed Assessments and Personal Changes in the manner set forth in this Agreement and in the applicable provisions of the Declaration and the By-laws. Unless and until all Assessments and other amounts that Purchaser owes the Association or Seller have first been paid in full, Purchaser shall not be entitled to reserve, use, or occupy any Club Accommodation or exercise any other rights, benefits, or privileges to which Purchaser would otherwise be entitled pursuant to the Club Instruments.
7. CLOSING:
Except as otherwise provided by applicable law, for purposes of this Agreement, the term
"Closing" shall mean that date following the expiration of Purchaser's cancellation period without such right having been exercised and as of which the parties hereto have properly executed and delivered all documents necessary to effect the transfer of the Membership to Purchaser and the payment of the Purchase Price to Seller, including but not limited to execution and delivery of this Agreement, and, if applicable, the Note. Upon Closing, Seller shall cause Purchaser to be entered as the owner of the Membership in the Register of Members. The estimated date of Closing is within two (2) days following the expiration of Purchaser's cancellation period identified above. The Processing Fee set forth on page 1 hereof is the amount of Closing costs payable by Purchaser.
8. TITLE:
Purchaser understands and acknowledges that the basis for the Membership is certain real property interests (called
"Resort Interests") in various resorts, hotels, and other vacation properties and that legal title and/or the Beneficial Use Rights appurtenant thereto is held in trust for the benefit of the Association and all Members, pursuant to a recorded Trust Agreement with Stewart Vacation Ownership/InterCity Escrow Services, the address of which is 6210 Stoneridge Mall Road, Suite 140, Pleasanton, CA, 94588 ("Trustee"). Seller has caused the Resort Interests to be conveyed to the Trustee, subject to the Trust Agreement and to the Declaration creating the Club, but otherwise free and clear of all blanket financial liens.
9. SECURITY INTERESTS:
Association's Securitv Interest. Purchaser, as debtor, hereby grants to the Association, as secured party, a security interest (the
"Association Security Interest") in the Collateral to secure Purchaser's timely paymerrt of Assessments and Personal Charges and Purchaser's performace under the Club Instruments. The Association Security Interest shall, at all times, be junior and subordinate to the Seller Security Interest. Solely for purposes of this Paragraph 9, the Association is an intended third party beneficiary of this Agreement and is entitled to enforce the Association Security Interest granted by Purchaser hereunder.
Seller's Security Interest. If Seller is granting purchase money financing to Purchaser in connection with Purchaser's purchase of the Membership, then Purchaser, as debtor, hereby grants to Seller, as secured party, a purchase money security interest (the "Seller Security Interest") in the Membership and in all rights, benefits, and privileges appurtenant thereto as established in the Club Instruments and all rights, benefits, and privileges accruing thereto in the future, all replacements and additions to the foregoing, and all proceeds thereof (collectively, the "Collateral") to secure Purchaser's performance under the Note, this Agreement, and the Club Instruments.
FinancinaStatements. Purchaser irrevocably authorizes Seller and the Association, at any time and from time to time, to file in the appropriate filing office in any Uniform Commercial Code jurisdiction initial financing statements and any amendments thereto that provide any other information required by Part 5 of Article 9 of the Uniform Commercial Code of any applicable state, or such other jurisdiction, for the sufficiency, or filing office acceptance of, any financing statement or amendment, including (i) Purchaser's name, address, and social security number; and (ii) if Purchaser is not an individual, Purchaser's type of organization and any organizational identification number issued to Purchaser. Purchaser shall furnish any such information in writing to Seller or the Association, as the case may be, within five (5) calendar days after Seller's or the Association's request therefor. Each Person identified as Purchaser in this Agreement represents and warrants to Seller and the Association that on the date of this Agreement, he or she is domiciled in the state identified below his or her signature on this Agreement. Each Person identified as a Purchaser in this Agreement shall notify Seller and the Association in writing if he or she changes his or her state of domicile within thirty (30) days after such change. Such notice shall identify the state of such person's new domicile and his or her residential address therein.
10. COMPLETION OF CONSTRUCTION:
All Club Accomodations have been constructed and are available for use by Members pursuant to the Club instruments.