66-32-303 - Disclosures to purchasers. - Tennessee Statutes

66-32-303. Disclosures to purchasers.

A membership camping operator shall disclose the following information to a purchaser before the purchaser signs a membership camping contract or gives any money or thing of value for the purchase of a membership camping contract. The disclosures shall be delivered to the purchaser prior to the time the contract is signed and may be presented in any format selected by the membership camping operator. The disclosures may be included in or as part of the contract at the option of the membership camping operator and shall clearly communicate all of the following as of a date no more than one (1) year prior to the date of purchase:

     (1)  The name and address of the principal place of business of the membership camping operator and any material affiliate of the membership camping operator;

     (2)  A brief description of the membership camping operator's experience in the membership camping business, including the number of years the membership camping operator has been in the membership camping business;

     (3)  A brief description of the nature of the purchaser's right or license to use the membership camping operator's campground or facilities;

     (4)  The location of each of the membership camping operator's campgrounds and a brief description of the significant facilities at each campground then available for use by purchasers and those which are represented to purchasers as being planned, together with a brief description of any facilities that are or will be available to nonpurchasers or nonmembers.

          (A)  “Significant facilities” includes, but is not limited to, each of the following: the number of campsites in each park; the number of campsites in each park with full or partial hookups; swimming pools; tennis courts; recreation buildings; restrooms and showers; laundry rooms; trading posts; or grocery stores; and

          (B)  “Partial hookups” means those hookups with at least one (1) of the following connections: electricity, water, or sewer connections;

     (5)  A brief description of the membership camping operator's ownership of, or other right to use, the campgrounds represented to be available for use by purchasers, together with the duration of any material lease, license, franchise, or reciprocal agreement entitling the membership camping operator to use the campground, and any material provisions of any agreements which restrict a purchaser's use of the campground;

     (6)  A summary or copy of the rules, restrictions, or covenants regulating the purchaser's use of the membership camping operator's campgrounds, including a statement of whether and how the rules, restrictions, or covenants may be changed;

     (7)  A description of any restraints on the transfer of the membership camping contract;

     (8)  A brief description of the policies relating to the availability of camping sites and whether reservations are required;

     (9)  A brief description of any grounds for forfeiture of a purchaser's membership camping contract;

     (10)  A brief description of all payments of a purchaser under a membership camping contract, including initial fees and any further fees, charges, or assessments, together with any provisions for changing the payments;

     (11)  A copy of the membership camping contract signed by the purchaser;

     (12)  A statement of the purchaser's right to cancel the membership camping contract as provided in § 66-32-304;

     (13)  A description of the manner in which the membership camping operator has complied or proposes to comply with the provisions of § 66-32-307;

     (14)  A description of any liens, defects, or encumbrances on or affecting the title to the membership contracts or to the campgrounds;

     (15)  A statement of the amount, or a statement that there is no amount, included in the budget as a reserve for repairs and replacement;

     (16)  The projected common expense liability, if any, by category of expenditures for the members;

     (17)  Any initial or special fee due from the purchaser at closing, together with a description of the purpose and method of calculating the fee;

     (18)  A description of the insurance coverage, or a statement that there is no insurance coverage, provided for the benefit of members; and

     (19)  A statement of the means, including all financial arrangements, by which the developer proposes to assure the completion of all promised improvements.

[Acts 1985, ch. 303, § 3; T.C.A., § 47-18-403.]