55-389 - Protection of lien holder. - Virginia Statutes

§ 55-389. Protection of lien holder.

Any lien holder of a time-share interest in any time-share program shall havethe following rights:

1. The lien holder shall have its lien rights preserved as against anypurchaser of a time-share who claims that the time-share instrument isinvalid, void or voidable, thirty days after written notice by certified mailor personal delivery has been given by the developer or lien holder to thepurchaser. The notice must state that the developer has assigned thereceivables to the lien holder and that the purchaser has thirty days withinwhich to object and specify the invalidity or defect contained within suchtime-share instrument. The notice required by this section may be included inthe blanket encumbrance, in the contract, or in any note, deed of trust ormortgage executed by the purchaser in connection with the purchaser'sdeferred purchase of a time-share.

2. Any purchaser who fails to indicate that the time-share instrument isinvalid, void, or voidable as provided in subdivision 1 waives, or isestopped to raise, the same in any subsequent enforcement of the collectionof the receivable by the lien holder.

(1981, c. 462; 1985, c. 517; 1998, c. 460.)