Purchaser: _____________________________ ____________________________________
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_____________________________ ____________________________________
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This Public Offering Statement is presented to prospective purchasers in compliance with the requirements of the Vacation Time Sharing Plans Act, South Carolina Code § 27-32-10, et. seq. (1976, as amended). Capitalized terms shall have the meanings ascribed to them in the Declaration and related Club documents for the Festiva Resorts Adventure Club.
1. Seller. The seller of the vacation time sharing plan is Festiva Development Group, LLC, a Nevada company, whose principal address is One Vance Gap Rd., Asheville, NC 28805 ("Seller").
2. Time Sharing Plan and Club Description. The Declarant is offering "Memberships" in Festiva Resorts Adventure Club (the "Vacation Club" or "Club"), which is operated by Festiva Resorts Adventure Club Members Association, Inc., a non-stock, non-profit corporation organized under South Carolina law (the " Association"). The Declarant has established the Club as a uniform plan under which it will acquire Resort Interests, which may or may not be interests in real property, that will be placed in Trust in order to provide Accommodations for Members under right-to-use programs, using points denominations in conjunction with the reservation system more fully described in the Club documents. The Declarant will cause or has caused the Resort Interests to be transferred to a "Trustee," free and clear of all Blanket Liens or with a Non-Disturbance Agreement in place with respect to any Blanket Lien that continues to encumber such Resort Interests, to be held in the corresponding "Trust" for the benefit of the Association and its Members. Prior to each such conveyance of Resort Interests, the Declarant will assign values denominated in a currency known as "Points" to the subject Resort Interests based on various factors, including supply and demand, location and time of year, as well as by comparing each Resort Interest with others. Points are the currency of use in the Vacation Club through which Members have the right to reserve and use on a recurring, non-priority, annual basis recreational accommodations in timeshare units ("Club Accommodations") available by reason of the conveyed Resort Interests. The Club Accommodations are and will be located in various U.S. and Caribbean resort locations ("Component Sites"), which are listed in the appropriate Club documents.
Members in the Club are either “Converting Members” or “New Members.” A Converting Member is the holder of legal title to a Resort Interest in a resort who has elected to acquire a Membership in the Vacation Club by signing and delivering to the Declarant a Purchase Agreement, an Assignment of Beneficial Use Rights, and all other required documents and instruments. A New Member is any Member who is not a Converting Member.
A purchaser should not rely upon representations other than those included in the contract and this disclosure.statement.
Acknowledgment of Receipt of Public Offering Statement
I/we have received a copy of a Public Offering Statement effective August 11, 2006, and consisting of three (3) pages and one (1) exhibit as required by Section 27-32-100 of the Vacation Time Sharing Plans Act, South Carolina Code § 27-32-10, et. seq, (1976, as amended).
(Signature Date Signature Date Signature Date Signature Date)
3. Points. Points are the currency of use in the Vacation Club through which Members have the right to reserve the use and occupancy of Club Accommodations in accordance with the terms, provisions, and conditions of the Vacation Club Instruments. Each Member shall be allotted a specific number of annually recurring Points in his or her Purchase Agreement, which number shall be entered in the Register of Members. If a Member acquires multiple Memberships, then the Points allotted annually to each such Membership may be aggregated for reservation purposes. As a matter of convenience, each time that a Membership is issued or the number of Points ascribed to a Membership changes as entered in the Register of Members, the Association will issue a Points Certificate indicating the number of Points associated with the particular Membership purchase or transaction of a Member. The precise details of a Member's Points and how they are used within the Club are outlined more fully in the Club instruments. Specifically, the Club Rules and Regulations govern the reservation, use, and occupancy of Club Accommodations.
4. Interval International. The Club has an agreement with Interval International, Inc. ("ll") of Miami, Florida, wherein II has agreed to provide its exchange program to Club Members. II is an independently owned and operated service company. Seller is not an agent for II and no representations or promises made by Seller or its agents are binding on II. II's responsibility for representations regarding its exchange program, as well as II's current or future services, is limited to those made in written materials furnished by II. Purchaser's participation in such exchange program is voluntary and subject to the payment by Purchaser of such Membership, exchange, and other miscellaneous fees as are required from time to time by II. Seller makes no representations concerning the current or future services to be provided by II or the availability, continuance, success or failure of the II exchange program.
5. Charges to Which Purchaser May Be Subject. To efficiently and effectively provide for the administration of the Club by the Members, a non-profit South Carolina corporation, known and designated as the Festiva Resorts Adventure Club Members Association, Inc. (the "Association"), has been organized, and said corporation shall administer the operation and management of the Club. The Association has the authority and power to enforce the provisions of the Club instruments, including levying and collecting assessments, and adopting and enforcing Rules and Regulations governing use and occupancy of the various Resort Interests of the Club and any Common Elements, and Limited Common Elements. In this regard, the Association may assess and collect fees for the use of amenities and services, including but not limited to late penalties, holdover penalties, extraordinary cleaning costs, costs for damage to units, reservation fees, and other reasonable fees that the Board of Directors determines to be in the best interest of the Club. The Association is further authorized to enter into a management agreement whereby the Association may delegate some or all of its powers and authority to a managing agent. In such an event, the managing agent may also have the authority to levy and collect assessments and fees and to enforce the Rules and Regulations and other Club instruments.
6. Description of Furniture, Fixtures, and Appliances. Due to the variety of inventory in the Club, a general description of all furniture, fixtures and appliances to be located in the accommodations at each resort location is available from Festiva's Owner Services Department.
7. Management Agreement. Seller has entered into a management agreement with Festiva Management Group, LLC ("Manager"), for the operation, administration, and maintenance of the Club and its various accommodations and facilities. The original term of the agreement expires on August 11, 2011, and the agreement automatically renews for successive five (5) year periods unless terminated. Pursuant to the management agreement, Manager is responsible for organizing meetings of the Members, preparing annual budgets, maintaining financial records of the Association, collecting assessments from Members, hiring operational and maintenance staff, and maintaining and repairing the premises. In' order to effectively perform its duties under 1he management agreement, Manager is further authorized to subcontract any of its management functions to third parties.
8. Protection of Purchaser's Interest. In order to protect purchaser's interest from loss due to foreclosure on an underlying financial obligation, Seller has entered into a Trust Agreement and an Escrow Agreement with InterCity Escrow Services, and, pursuant to this agreement, Club accommodation must be unencumbered prior to being available for use in the Club. Additionally, all deposits paid by purchaser shall be retained in a trust account and shall not be released to Seller until all liens and encumbrances secured by the accommodation or timeshare interval have been paid and satisfied in full.
9. Assurances of Completion. All Club accommodations, units, and facilities are complete or substantially complete as of the date of sale. All Club amenities and facilities are complete at the time of sale. Seller is obligated to maintain sufficient Accommodations within the Club to satisfy all points which have been sold to purchasers in the Club, which ensures that it maintains the legally required accommodations to Member ratio.
10. Salesperson Obligations. Salespersons for the Club represent Seller and not prospective purchasers.
11. Personal Use. You should purchase a Club Membership as a vacation experience and for your personal use and enjoyment. You should not purchase a Club Membership as an investment or for profit upon its rental or resale.
12. Resale. Seller currently has no resale program, but purchasers may seek to resell their Club Memberships on their own or through a licensed real estate broker of their choice. Seller requires that all outstanding fees and payments, including the entire outstanding loan balance, be paid in full prior to any transfer of ownership. Any incidental benefits included with the purchase of a Club Membership are transferable to a resale purchaser at the sole discretion of Seller. Membership in Interval International is not transferable. In the event of a resale, Seller and/or the Association reserve the right to charge a reasonable fee for processing the transfer of ownership to a resale purchaser. There are no differentiations in the usage of Club Memberships purchased by a consumer through someone other than Seller.
There is a lien or lien right against each Membership to secure the payment of assessments or other amounts due from obligors to the association in accordance with the operating budget and special assessments and to secure payment of assessments for ad valorem real estate taxes. A purchaser's failure to make the required payments may result in foreclosure of an assessment lien. Assessment liens may be foreclosed in accordance with judicial procedures established by law or with a nonjudicial procedure established by Article 3 of Chapter 32 of Title 27 of the Code of Laws of South Carolina. By purchasing a Club Membership in the Club/timeshare plan described in this public offering statement, a purchaser acknowledges and agrees that any assessment lien against the Membership owned by a purchaser may be foreclosed by a nonjudicial procedure and agrees that the notice of a foreclosure by a nonjudicial procedure may be made by the use of certified or registered mail. The purchaser is required to provide an address for the delivery of aIl notices required by law and to inform the managing entity of any changes in the purchaser's notice address.
NEVS/FAC/9-30-08
