55-386 - Developer's obligation to complete. - Virginia Statutes

§ 55-386. Developer's obligation to complete.

A. The developer shall complete all promised and incomplete units and commonelements being offered and described in the time-share instrument and thepublic offering statement. The developer shall be excused for the period orperiods of delay in the completion of such promised units and common elementswhen delayed, hindered, or prevented from doing so by causes beyond thedeveloper's control which shall include: (i) labor disputes not caused by thedeveloper; (ii) riots; (iii) civil commotion or insurrection; (iv) war orwarlike operations; (v) governmental restrictions, regulations or control;(vi) inability to obtain any materials or services; (vii) fire or othercasualties; (viii) acts of God; or (ix) forces not under the control orsupervision of the developer.

B. The developer shall file with the Board a payment and performance bond inthe sum equal to 100 percent of the estimated cost of completing all promisedand incomplete units and common elements comprising the time-share projectdescribed in the time-share instrument and the public offering statement.Such bond shall be conditioned upon the completion of such units and commonelements in conformity with the plans and specifications for suchimprovements. The bond shall be with a surety company authorized to dobusiness in the Commonwealth. The Board may accept cash or an irrevocableletter of credit in lieu of the bond required by this section. The Boardshall be the sole determiner of the form, amount, content, obligee andconditions of the letter of credit. Should it become necessary for the Boardto call upon the letter of credit in order to assure completion of theimprovements, the Board shall have the authority to petition a court ofcompetent jurisdiction to appoint a receiver to administer such completion.

(1981, c. 462; 1983, c. 59; 1985, c. 517; 1994, c. 580; 1998, c. 460.)