USA Statutes : nevada
Title : Title 10 - PROPERTY RIGHTS AND TRANSACTIONS
Chapter : CHAPTER 119B - MEMBERSHIPS IN CAMPGROUNDS
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 119B.020
to 119B.100 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1985, 1656; A 1987, 1083; 2003, 1312 )
“Administrator” means the
Real Estate Administrator.
(Added to NRS by 1985, 1656)
“Affiliate” of a developer
means a person who, directly, through one or more intermediaries,
controls or is controlled by or is under common control with the
developer.
(Added to NRS by 1985, 1656)
“Broker of record” means
a licensed real estate broker who has responsibility for the marketing
and sale of memberships in a campground.
(Added to NRS by 1985, 1656)
“Campground” means any real
property which has camping sites available for use, occupancy or
ownership, unless all the camping sites are open to the general public
for a daily or other periodic fee. The term does not include any
residential structure affixed to the land.
(Added to NRS by 1985, 1656)
“Camping site” means a space
designed and offered for the purpose of locating a trailer, tent, tent
trailer, pickup camper or other similar device used for camping.
(Added to NRS by 1985, 1656)
“Developer” means a person who
solicits memberships and sells contracts of membership for consideration
in a campground which affords camping sites and related facilities
primarily to members, unless he is exempt from federal taxation pursuant
to 26 U.S.C. § 501 (c)(3).
(Added to NRS by 1985, 1656)
“Division” means the Real Estate
Division of the Department of Business and Industry.
(Added to NRS by 2003, 1311 )
“Membership” means an
agreement offered or sold within this state evidencing a purchaser’s
right or license to use, for more than 30 days, a campground or its
recreational facilities.
(Added to NRS by 1985, 1656)
“Offer” means every inducement,
solicitation or attempt to bring about the sale of a membership in a
campground.
(Added to NRS by 1985, 1657)
“Public
offering statement” means a report, issued by the Administrator pursuant
to the provisions of this chapter, which authorizes a developer to offer
to sell memberships in a campground which is the subject of the report.
(Added to NRS by 1987, 1082)
“Purchaser” means a present or
prospective member.
(Added to NRS by 1985, 1657)
The
Administrator may:
1. Adopt regulations which are necessary to carry out the
provisions of this chapter.
2. Employ such legal counsel, investigators and other professional
consultants as are necessary to carry out the provisions of this chapter.
(Added to NRS by 1985, 1658)
1. The Administrator may adopt regulations which establish
procedures for the Division to conduct business electronically pursuant
to title 59 of NRS with persons who are regulated pursuant to this
chapter and with any other persons with whom the Division conducts
business. The regulations may include, without limitation, the
establishment of fees to pay the costs of conducting business
electronically with the Division.
2. In addition to the process authorized by NRS 719.280 , if the Division is conducting business electronically with a
person and a law requires a signature or record to be notarized,
acknowledged, verified or made under oath, the Division may allow the
person to substitute a declaration that complies with the provisions of
NRS 53.045 to satisfy the legal
requirement.
3. The Division may refuse to conduct business electronically with
a person who has failed to pay money which the person owes to the
Division.
(Added to NRS by 2003, 1311 )
1. The provisions of this chapter do not apply to:
(a) An offering subject and registered pursuant to the provisions
of chapter 119 of NRS;
(b) An offering subject and registered pursuant to the provisions
of chapter 119A of NRS;
(c) An offer, sale or transfer by any one person of no more than
one membership in a campground in any 12 months;
(d) An offer or sale by a government or governmental agency; or
(e) A bona fide pledge of a membership in a campground.
2. The Administrator may, pursuant to the regulations adopted by
him, exempt from a provision of this chapter any other sale, transfer or
disposition of a membership if he finds that the enforcement of that
provision with respect to that transaction is not necessary to protect
the public interest or that of the purchasers thereof.
(Added to NRS by 1985, 1657, 1658)
PERMITS TO SELL MEMBERSHIPS
A person wishing to
offer memberships in a campground must apply to the Administrator for a
permit to do so. The applicant must use the forms prescribed by the
Administrator and must provide all of the following information:
1. His name and address.
2. If the applicant is not a natural person:
(a) A copy of the articles of incorporation or the agreement for a
partnership or joint venture;
(b) The name and address of each director, officer, partner or
affiliate. If any person named is a natural person, his occupation for
the 5 years immediately before the date of the application must also be
stated; and
(c) The name and address of each person owning more than 10 percent
of the stock or other equity of the developer.
3. Whether any person identified has, within the 10 years
immediately before the date of the application, been convicted by a court
of any felony involving theft, fraud or dishonesty and, if so, the style
and number of the case, the court, the date of the judgment and the
penalty imposed.
4. A copy of each contract or related form proposed to be used in
the sale of memberships in the campground, the prices to be charged for
each type of membership and the amount and purpose of any other fee or
charge to be paid by a member.
5. A copy of each document relating to the formation,
incorporation and operation of the members’ association responsible for
the operation and maintenance of the amenities and common area of the
campground.
6. A brief description of the developer’s ownership of or other
right to use the properties or facilities represented to be available for
use by purchasers, together with a brief description of the duration of
any lease, license, franchise, reciprocal agreement or other agreement
entitling the developer to use the properties and facilities, and any
material provisions of those agreements which restrict a purchaser’s use
of the property or which may result in the impairment of the purchaser’s
exercise of his rights derived from membership.
7. A statement of the permits or other authorizations that are
necessary for the operation of each facility that is represented by the
developer as available for the use of a member that have not yet been
obtained.
8. A statement of the financial condition of the developer
prepared in accordance with generally accepted accounting principles and
consisting of the financial statements for the most recent fiscal year of
the developer that have been audited by an independent certified public
accountant and the unaudited financial statements of the most recently
completed fiscal quarter. The Administrator may waive the requirement for
audited statements if they have been prepared by an independent certified
public accountant or an independent public accountant and the
Administrator is satisfied with the reliability of those statements and
with the ability of the developer to meet his future commitments.
9. A description of the method used to determine the number of
memberships to be sold for each campground owned by the developer and
made available to members.
10. A copy of the disclosure required by NRS 119B.270 .
11. The name and business address and a copy of the license of the
broker of record who will supervise the sale of the memberships.
12. Such additional information as deemed necessary by the
Administrator.
(Added to NRS by 1985, 1658)
The
terms and conditions of the documents and agreements submitted pursuant
to subsections 4 and 5 of NRS 119B.130 to which the developer or an affiliate of
the developer is a party must be described in the public offering
statement and constitute additional terms and conditions of the
applicant’s permit to sell memberships.
(Added to NRS by 1987, 1083)
1. The application must be signed by the developer, or by an
officer or a general partner of the developer or a person holding a power
of attorney for that purpose from the developer. If the application is
signed pursuant to a power of attorney, a copy must be included with the
application.
2. The application must be submitted with the covering page
prescribed by the Administrator and accompanied by the required fee.
3. The application must promptly be amended if a material change
occurs in the information contained therein.
(Added to NRS by 1985, 1660)
1. The Administrator shall, before issuing any permit pursuant to
the provisions of this chapter, fully investigate all information
submitted to him as required by the provisions of this chapter and may,
if necessary, inspect the property which is the subject of any
application. All reasonable expenses incurred by the Administrator in
carrying out the investigation or inspection must be paid by the
applicant and no permit may be issued until those expenses have been paid.
2. Payments received by the Administrator pursuant to this section
must be deposited in the State Treasury for credit to the Real Estate
Investigative Account. The Administrator shall use the money in the
Account to pay the expenses of agents and employees of the Division
making the investigations pursuant to this section. The Administrator may
advance money to them for those expenses when appropriate.
(Added to NRS by 1985, 1661; A 1991, 1753)
The Administrator
shall, within 45 days after receipt of an application for a permit to
sell memberships:
1. Issue the applicant a permit to sell memberships;
2. Deny the application, and state the reasons for denial; or
3. Inform the applicant of any deficiencies in the application
which must be corrected before a permit is issued.
(Added to NRS by 1985, 1660)
The Administrator shall deny an application or
suspend or revoke a permit if he determines that:
1. The developer has failed to comply with any provision of this
chapter which materially affects the rights of purchasers, prospective
purchasers or members, or the administration of this chapter;
2. The number of memberships to be sold would overburden the
campground or any of its facilities;
3. The developer fails to show to the satisfaction of the
Administrator an adequate provision for continuing management of the
campground for the duration of the memberships sold;
4. The term of a membership exceeds the term of the developer’s
interest in the campground that is the subject of the membership;
5. The developer has failed to post, refused to post, or defaulted
on, a financial assurance given by him concerning the completion of a
proposed campground or facility at a campground;
6. The developer’s offering of memberships has worked or would
work a fraud on purchasers or members;
7. An application or a change in the application is materially
incomplete;
8. The developer, or a director, officer, partner or affiliate of
the developer has within the 10 years immediately before the date of the
application been convicted of a felony involving theft, fraud or
dishonesty or enjoined from, or assessed a civil penalty for or found to
have engaged in, a violation of any law to protect retail customers;
9. The developer has represented or is representing to prospective
members that a campground or a facility at a campground is planned
without having provided to the Administrator a sufficient financial
assurance that the proposed campground will be completed and available to
the members within a reasonable time; or
10. The developer has permanently withdrawn, the developer has the
right to withdraw permanently, or the property is subject to an
involuntary withdrawal, from use of all or any substantial portion of the
camping sites or recreational facilities of any campground.
(Added to NRS by 1985, 1660)
1. If the Administrator denies an application for a permit, the
applicant may, within 30 days, file a written request for a hearing. The
Administrator shall set the matter for hearing to be conducted within 90
days after receipt of the applicant’s request, unless the applicant
requests a postponement of the hearing at least 3 working days before the
date set for hearing. If such a request is made by the applicant, the
date of the hearing must be agreed upon between the Division and the
applicant.
2. If the Administrator fails to:
(a) Hold the hearing within 90 days or within the extended time if
a postponement is requested;
(b) Render his decision within 60 days after the hearing; or
(c) Notify the applicant in writing, by his order, within 15 days
after his decision was made,
Ê the order of denial expires and the Administrator shall issue the
permit within 15 days.
(Added to NRS by 1985, 1661)
1. Before suspending, revoking or imposing conditions upon a
permit, the Administrator shall give notice to the developer of the
charges against him and shall afford him the opportunity to be heard.
Service of the complaint and notice of the time and place of the hearing
may be made personally or by mailing a copy of the complaint and notice
by certified mail to the developer at his last known address of record on
file with the Administrator.
2. Within 10 days after the service, the developer shall file an
answer to the complaint with the Administrator. The Administrator shall
hold a hearing within 30 days after the filing of the answer, unless an
extension is granted by the Administrator for good cause shown. Written
findings of fact, conclusions of law, and decision must be made within 30
days after the hearing and served upon the developer personally or sent
by certified mail to his last known address of record on file with the
Administrator, within 15 days after the decision is made.
(Added to NRS by 1985, 1661)
1. A permit must be renewed annually by the developer by filing
the application with and paying the fee for renewal to the Administrator.
The application must be filed and the fee paid not later than the 30th
day before the date of expiration and must include any change that has
occurred in the information previously provided to the Administrator or
in a statement of disclosure provided to a prospective member pursuant to
the provisions of NRS 119B.270 .
2. The renewal is effective on the 30th day after the filing of
the application unless the Administrator:
(a) Denies the renewal; or
(b) Sooner approves the renewal.
(Added to NRS by 1985, 1661)
1. The Administrator shall collect the following fees at such
times and upon such conditions as he may provide by regulation:
For an initial permit to sell memberships in a
campground.............................. $500
For each renewal of a
permit.....................................................................
.............. 500
For each amendment to a public offering statement after the issuance of
the report 150
For each application for the registration of a
representative.............................. 85
For each renewal of the registration of a
representative...................................... 85
For each transfer of the registration of a representative to a different
developer or location 20
For each penalty for a late renewal of the registration of a
representative....... 40
For each change of name or
address....................................................................
.. 20
2. Each developer shall pay an additional fee for each membership
he sells in a campground in which more than 50 memberships are available
pursuant to the following schedule:
Amount to be
Number of
memberships
paid per membership
51—250
$5.00
251—500
4.00
501—750
3.00
751—1500
2.50
over
1500
1.00
3. The Administrator may reduce the fees established by this
section if the reduction is equitable in relation to the costs of
carrying out the provisions of this chapter.
(Added to NRS by 1985, 1662; A 1993, 2296; 1999, 62 ; 2003, 1312 )
In addition to any other remedy or penalty, the Administrator
may:
1. Refuse to issue a permit to a person who has failed to pay
money which the person owes to the Division.
2. Refuse to renew, or suspend or revoke, the permit of a person
who has failed to pay money which the person owes to the Division.
(Added to NRS by 2003, 1311 )
SALE OF MEMBERSHIPS
Except as provided in NRS 119B.120 , a person shall not offer to sell or sell in
this state any membership in a campground unless he:
1. Holds a permit to do so issued by the Administrator; and
2. Designates and uses a broker of record to sell the membership.
(Added to NRS by 1985, 1657)
1. A sales agent may work for only one broker of record at any one
time.
2. A broker of record shall give written notice to the
Administrator of a change of association of any sales agent associated
with him within 10 days after that change.
3. The broker of record, upon the termination of the employment of
any sales agent associated with him, shall submit that agent’s license to
the Administrator.
4. If a sales agent changes his association with any broker of
record, he must apply to the Administrator for the reissuance of his
license for its unexpired term. The application must be accompanied by a
fee of $10.
5. A sales agent may only become associated with a broker of
record who certifies to his honesty, trustworthiness and good reputation.
(Added to NRS by 1985, 1657)
1. A contract of membership may not be executed unless the
developer has provided satisfactory evidence to the Administrator that:
(a) The campground is free and clear of any blanket encumbrances;
(b) Each person who holds an interest in a blanket encumbrance
affecting the campground has executed an agreement, approved by the
Administrator, to subordinate his right to the rights of the member;
(c) The developer has obtained and recorded a binding agreement
acceptable to the Administrator, executed by himself and all holders of a
blanket encumbrance which provides that the holder’s rights are
subordinate to the rights of subsequent purchasers and that the holder,
his successors and assigns, and any person who acquires the property
through foreclosure or by deed in lieu of foreclosure of the blanket
encumbrance, take the property subject to the rights of purchasers
provided in the contract of membership; or
(d) Title to the campground has been conveyed to a trustee pursuant
to the provisions of this chapter.
2. If the interest of the developer is a leasehold interest, the
lease, unless otherwise required by the Administrator, must provide that:
(a) If an association has been formed, the lessor shall give notice
of termination of the lease for any default by the lessee to the
association and the individual members; and
(b) The lessor, upon the bankruptcy of the lessee, shall enter into
a new lease with the association upon the same terms and conditions as
the lease with the developer.
Ê The Administrator may require the developer to execute a bond or other
type of security to ensure the payment of the rental obligation.
3. In lieu of the requirements set forth in subsections 1 and 2,
alternative arrangements may be made if they are adequate to protect the
rights of the members and are approved by the Administrator.
4. As used in this section, “blanket encumbrance” means a
mortgage, deed of trust, option to purchase, mechanic’s lien, vendor’s
lien or interest under a contract or agreement of sale, judgment lien,
federal or state tax lien, or other lien or encumbrance which secures or
evidences the obligation to pay money or to sell or convey any property
made available to purchasers by the developer, or any portion thereof,
and which authorizes, permits or requires the foreclosure or other
disposition of the property affected, except a lien for taxes or
assessments levied by a public authority which are not yet due.
(Added to NRS by 1985, 1669)
1. If the title to a campground is conveyed to a trustee before
the sale of the first membership related to it, the developer must
provide the Administrator with satisfactory evidence that:
(a) Title to the campground has been conveyed to the trustee.
(b) All proceeds received by the developer from the sales of
memberships are being delivered to the trustee and deposited in a fund
which has been established to provide for the payment of any taxes, cost
of insurance or the discharge of any lien recorded against the campground.
(c) The trustee is required to pay all charges against the trust in
the following order:
(1) Trustee’s fees and costs.
(2) Payment of taxes.
(3) Payments due to any holder of a lien recorded against
the campground.
(4) Any other payments authorized by the document creating
the trust.
2. If a trust is created by a developer to hold title, the:
(a) Trustee must be approved by the Administrator.
(b) Trust must be irrevocable, unless otherwise provided by the
Administrator.
(c) Trustee must not be permitted to encumber the property unless
permission to do so has been given by the Division.
(d) Association or each member must be made a third-party
beneficiary.
(e) Trust must provide that the trust and not the developer is the
contracting party in all matters involving the trust assets.
(f) Trustee must give at least 30 days’ notice in writing of his
intention to resign to:
(1) The association, if it has been formed;
(2) All owners; and
(3) The Administrator.
Ê The Administrator must approve a substitute trustee before the
resignation of the trustee may be accepted.
3. The Administrator may inspect the records relating to the trust
at any reasonable time.
(Added to NRS by 1985, 1668)
1. A membership must not be advertised or offered for sale within
this state until the advertisement is approved by the Administrator.
2. Each application for the approval of advertising must:
(a) Include the form and content of advertising to be used;
(b) Include the nature of the offer of gifts or other free benefits
to be extended; and
(c) Be accompanied by a filing fee of not more than $200, to be
established by the Administrator.
3. The Administrator shall render a decision upon an application
for the approval of advertising or an offer for sale within 30 days after
the date the application is filed.
(Added to NRS by 1985, 1668; A 1993, 2297)
A developer shall
disclose the following information to a prospective member before he
signs a contract of membership or gives any money or thing of value for
the purchase of a membership. The disclosures must be delivered with the
contract at the time the contract is signed. The information must be
brought up to date annually or whenever there is a material change and
must be presented in a format approved by the Administrator which clearly
communicates all of the following:
1. The name and address of the developer and any affiliate of the
developer.
2. A brief description of the developer’s experience in operating
a campground, including the number of years he has been in that business.
3. A brief description of the nature and duration of the member’s
right or license to use the developer’s campground, both within the state
and at any other locations owned or controlled by the developer.
4. The location of each of the developer’s campgrounds and a brief
description for each significant facility at each campground then
available for use by a member and those which are represented as being
planned, together with a brief description of any significant facilities
at a campground that are or will be available to a nonmember. As used in
this subsection “significant facility” includes camping sites, swimming
pools, athletic courts, recreational buildings, restrooms and showers,
laundry rooms and trading posts or grocery stores.
5. A brief description of the developer’s ownership of or other
right to use the campground or its facilities represented to be available
for use by a member, together with the duration of any lease, license,
franchise or reciprocal agreement entitling the developer to use the
campground or the facilities, and any material provisions of any
agreement which restricts a member’s use of the campground or its
facilities.
6. A copy of the rules, restrictions or covenants regulating the
member’s use of the developer’s campground or its facilities, 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.
8. A copy of the policy relating to the availability of the
camping.
9. A statement of any grounds for the forfeiture of a membership
and the procedures and rights to which the member is entitled.
10. A copy of the contract of membership signed by the member.
11. A statement of the prospective member’s right to cancel the
contract of membership as provided in NRS 119B.280 .
12. A statement of the terms and conditions of any program for the
exchange of the right to use the facilities of another campground
represented to be available to the member, including whether the member’s
participation in the program is dependent upon the continued affiliation
of the developer with that campground and whether the developer or
another person reserves the right to terminate that affiliation.
(Added to NRS by 1985, 1662)
A contract of
membership may be cancelled at the option of the member if he sends
notice of the cancellation by certified mail, return receipt requested,
to the developer, posted not later than midnight of the 5th calendar day
following the day on which the contract was signed. This right must be
set forth in the contract of membership in close proximity to the
member’s signature line. Within 20 days after the developer receives a
notice of cancellation, the contract of membership, the membership card
and other evidence of the membership, the developer shall refund to the
former member any money paid as a deposit, down payment or other
consideration.
(Added to NRS by 1985, 1667)
1. Where any part of the statement of record contained an untrue
statement of a material fact or omitted to state a material fact required
to be stated therein, the Administrator or any person acquiring a
membership from the developer or his agent during the period the public
offering statement remained uncorrected (unless it is proved that at the
time of the acquisition he knew of the untruth or omission) may sue the
developer in any court of competent jurisdiction.
2. Any developer or agent who sells a membership:
(a) In violation of this chapter; or
(b) By means of a public offering statement which contained an
untrue statement of a material fact required to be stated therein, may be
sued by the Administrator or purchaser of the membership.
3. If a suit authorized under subsection 1 or 2 is brought by the
purchaser, he is entitled to recover such damages as represent the
difference between the amount paid for the membership and the reasonable
cost of any permanent improvements thereto, and the lesser of:
(a) The value thereof as of the time the suit was brought;
(b) The price at which the membership has been disposed of in a
bona fide market transaction before suit; or
(c) The price at which the membership has been disposed of after
suit in a bona fide market transaction but before judgment,
Ê or to rescission of the contract of sale and the refund of any
consideration paid by him.
4. If a suit authorized under subsection 1 or 2 is brought by the
Administrator, he may seek a declaration of the court that any person
entitled to sue the developer or his agent under this section is entitled
to the right of rescission and the refund of any consideration paid by
him.
5. Every person who becomes liable to make any payment under this
section may recover contribution as in cases of contract from any person
who, if sued separately, would have been liable to make the same payment.
6. Reasonable attorney’s fees may be awarded to the prevailing
party in any action brought under this section. Any action to rescind a
contract of sale under this section must be brought within 1 year after
the date of purchase or within 1 year after the date of the discovery of
the misrepresentation giving rise to the action for rescission.
7. The provisions of this section are in addition to and not a
substitute for any other right of a person to bring an action in any
court for any act involved in the offering or sale of memberships or the
right of the state to punish any person for any violation of any law.
8. For the purposes of this section “statement of record” means
the information submitted to the Administrator by the developer in its
application for a permit to offer to sell memberships in a campground.
(Added to NRS by 1987, 1082)
MAINTENANCE OF CAMPGROUND
1. The developer may form an association of the members. The
association may be incorporated.
2. The state of incorporation may be:
(a) This state;
(b) The state in which the campground is located; or
(c) Any state where the developer has obtained a permit to sell
memberships.
3. If an association is incorporated, the articles of
incorporation or the bylaws must provide for the transfer by the
developer to the owners of the control of the association within 120 days
after 80 percent of the memberships have been sold.
4. Except as provided in NRS 78.355 , any proxy which is executed by an owner to an
association is valid for an indefinite period if the owner may revoke his
proxy, by written notice to the association, to vote at a particular
meeting.
(Added to NRS by 1985, 1663)
1. If an association is formed, a developer or an affiliate of the
developer shall provide for the management of the campground by a written
agreement with the association. The initial term of the agreement must
expire upon the first annual meeting of the members of the association or
at the end of 5 years, whichever comes first. Each succeeding term of the
agreement must be renewed annually unless the manager of the association
or a majority of the members, excluding the developer, notify the manager
of their refusal to renew the agreement.
2. The agreement must provide that:
(a) The manager or a majority of the members may terminate the
agreement for cause;
(b) The resignation of the manager will not be accepted until 90
days after receipt by the members of the written resignation; and
(c) A fidelity bond must be delivered by the manager to the
association.
3. Except as provided in this subsection, if the developer retains
a reversionary interest in the campground, the parties to an agreement
must include the developer, the manager and the association. In addition
to the provisions required in this section, the agreement must provide:
(a) That the campground will be maintained in good condition.
Except as provided in this paragraph, any defect which is not cured
within 10 days after notification by the developer may be cured by him.
In an emergency situation, notice is not required. The association must
repay the developer for any cost of the repairs plus the legal rate of
interest. Each member must be assessed for his share of the cost of
repairs.
(b) That, if any dispute arises between the developer and the
manager or association, either party may request from the American
Arbitration Association a list of seven potential fact finders from which
one must be chosen to settle the dispute. The agreement must provide for
the method of selecting one fact finder from this list.
(c) For collection of assessments from the members to pay
obligations which may be due to the developer for breach of the covenant
to maintain the campground or its facilities in good condition and repair.
Ê If the developer, after his request to be included, is not made a party
to this agreement, he shall be deemed a third-party beneficiary of that
agreement.
(Added to NRS by 1985, 1664)
1. The association, or if no association has been formed the
developer, shall adopt an annual budget for revenues, expenditures and
reserves and collect assessments for the expenses of the campground from
the members. The initial budget must be approved by the Administrator.
The Administrator may require the developer to submit, at his own
expense, an opinion from an independent professional consultant regarding
the sufficiency of the budget to sustain the plan offered by the
developer. Any money collected for assessments must be placed in a trust
account.
2. The association or other manager shall maintain adequate
property and public liability insurance insuring against all risks of
physical loss with a provision, accepted in writing by any lender for
whom the campground may constitute security, that the proceeds must be
disbursed for the repair or restoration of the campground.
3. The developer shall pay the assessment for any memberships
which are unsold or enter into an agreement, on a form approved by the
Administrator, to pay the difference between the actual expenses incurred
and the amounts payable as assessments by the members. The Administrator
may require the developer to provide a surety bond or other form of
security which is satisfactory to the Administrator, to guarantee the
payment of the developer’s obligation. The Administrator may require that
the contract of membership provide that the failure of the member to pay
an annual or special assessment within 90 days after it is due
constitutes a breach of the contract and allows the foreclosure of the
member’s interest or the restriction of the member from use of the
campground until that assessment is paid.
(Added to NRS by 1985, 1664)
The association or other manager may levy and enforce a
reasonable assessment upon a member in accordance with the contract. The
assessment is a debt of the member at the time the assessment is made.
The amount of the assessment plus any other charges thereon, such as
interest, costs, attorney’s fees and penalties, as may be provided for in
the contract of membership is a lien upon the member’s interest in the
contract of membership. The notice of assessment must state:
1. The amount of the assessment and the other charges authorized
by the contract of membership;
2. A description of the member’s interest against which the lien
has been assessed; and
3. The name of the member.
Ê The notice must be signed by an authorized representative of the
association or as otherwise provided in the contract of membership. Upon
the payment or other satisfaction of the assessment and charges in
connection with which the notice has been recorded, the association or
other manager shall notify the developer of the satisfaction and the
release of the lien thereof.
(Added to NRS by 1985, 1665)
PROGRAMS FOR EXCHANGE OF OCCUPANCY RIGHTS
1. A developer who affiliates his campground with a company
offering a program for the exchange of rights of occupancy among members
or with the members whose rights relate to other campgrounds, or both,
shall give the member the following information:
(a) The name and address of the company offering the program.
(b) If the company is not a natural person, the names of the
officers, directors, shareholders or partners owning at least 5 percent
of the outstanding stock of that operator.
(c) A statement indicating whether the company or any of its
officers, directors or partners has any legal or beneficial interest in
any interest of the developer or managing agent in a plan to sell
memberships included in the program, and if so, the name, location and
nature of that interest.
(d) A statement that the member’s contract with the company is a
contract separate and distinct from the contract of membership sold by
the developer, unless the company and the developer or an affiliate are
the same.
(e) A statement whether the member’s participation in the program
is dependent upon the continued inclusion of the plan to sell memberships
in the program.
(f) A statement indicating whether the member’s membership or
participation in the program, is voluntary or mandatory.
(g) A complete and accurate description of:
(1) The terms and conditions of the member’s contractual
relationship with the company and the procedure by which changes thereto
may be made.
(2) The procedure to qualify for and make changes.
(3) Each limitation, restriction or priority of the program,
including, but not limited to, a limitation on exchanges based on the
seasons of the year, the size of the facilities or levels of occupancy,
printed in boldface type, and, if those limitations, restrictions or
priorities are not uniformly applied by the program, a clear description
of the manner in which they are applied.
(h) A statement indicating whether an exchange is arranged on the
basis of available space and whether there are any guarantees of
fulfilling a specific request for an exchange.
(i) A statement indicating whether and under which circumstances a
member, in dealing with the company, may lose the right to use and occupy
a site in any properly requested exchange without being provided with
substitute accommodations by the company.
(j) The fees to be paid by participants in the program, including a
statement indicating whether any fees may be changed by the company and,
if so, the circumstances under which those changes may be made.
(k) The name and address of the site of each campground included in
the program.
(l) The number of sites in each campground included in the program
which are available for occupancy, expressed in numerical groupings of
from 1 to 5, 6 to 10, 11 to 20, 21 to 50 and over 50.
(m) The number of members with respect to each plan to sell
memberships or other rights who are eligible to participate in the
program, expressed in numerical groupings of from 1 to 100, 101 to 249,
250 to 499, 500 to 999 and at least 1,000, and a statement of the
criteria used to determine those members who are eligible to participate
in the program.
(n) The disposition made by the company of the memberships
deposited with the program by members who are eligible to participate in
the program and not used by the company in effecting exchanges.
(o) An annual report completed on or before July 1 of the
succeeding year which must be independently certified by a certified
public accountant or accounting firm in accordance with the standards of
the Accounting Standards Board of the American Institute of Certified
Public Accountants, as those standards exist on June 7, 1985. The report
must include:
(1) The number of members who are enrolled to participate in
the program, including an indication of whether the relationship between
the company and the members is based on the payment of a fee or is
gratuitous.
(2) The number of campgrounds and camping sites included in
the program, categorized by those campgrounds which are the subject of a
contract between the developer or the association and the company and
those campgrounds which are the subject of a contract between the company
and members directly.
(3) The number of memberships for which the company has an
outstanding obligation to provide an exchange to a member who
relinquished a membership during the year in exchange for a membership in
any future year.
(4) The number of exchanges confirmed by the company during
the year.
2. The information required by subsection 1 must be delivered to
the prospective member before the execution of any contract between the
prospective member and a company or the contract of membership.
3. Upon the receipt of the information, the member shall certify
in writing that he has received the information from the developer.
4. Except as otherwise provided in this subsection, the
information required by subsection 1 must be accurate as of 30 days
before the date on which the information is delivered to the prospective
member. The information required by paragraphs (b), (c), (k), (l), (m)
and (o) of subsection 1 must be consistent with the latest audited
statement of the company which is prepared not more than 18 months before
the information is delivered.
(Added to NRS by 1985, 1665)
If a developer intends to offer a program
for the exchange of occupancy rights among the members whose rights
relate to one campground or with the members whose rights relate to other
campgrounds, or both, directly to a member, the developer shall deliver
to the prospective member, before the offering or the execution of any
contract between the prospective member or member and the developer
offering the program, the information mentioned in subsection 1 of NRS
119B.340 . This section does not apply
to a renewal of a contract for the exchange of occupancy rights between a
member and such a developer.
(Added to NRS by 1985, 1667)
1. A company whose program for the exchange of occupancy rights
among members of a campground or with the members of different
campgrounds, or both, is offered to members in this state shall, on or
before July 1 of each year, file with the Administrator and the secretary
of the members’ association the information required by subsection 1 of
NRS 119B.340 as it relates to that
program.
2. No developer is liable for the use, delivery or publication of
the information provided to him by the company.
3. Except as otherwise provided in this subsection, no company is
liable for:
(a) Any representation made by the developer relating to the
program or the company.
(b) The use, delivery or publication by the developer of any
information relating to the program or the company.
Ê The company is liable only for the written information provided to the
developer by the company.
(Added to NRS by 1985, 1668)
ENFORCEMENT OF CHAPTER
1. The Administrator may issue an order directing a developer to
cease engaging in activities for which the developer has not received a
permit under this chapter or conducting activities in a manner not in
compliance with the terms of his permit.
2. The order to cease must be in writing and must state that, in
the opinion of the Administrator, the developer has not been issued a
permit for the activity or the terms of the permit do not allow the
developer to conduct the activity in that manner. The developer shall not
engage in any activity regulated by this chapter after he receives such
an order.
3. Within 30 days after receiving such an order, a developer may
file a verified petition with the Administrator for a hearing. The
Administrator shall hold a hearing within 30 days after the petition is
filed. If the Administrator fails to hold a hearing within 30 days, or
does not render a written decision within 45 days after the final
hearing, the order to cease is rescinded.
4. If the decision of the Administrator after a hearing is against
the person ordered to cease, he may obtain judicial review from that
decision by filing, within 30 days after the date on which the decision
was issued, a petition in the district court for the county in which he
conducted the activity. The burden of proof is on the petitioner. The
court shall consider the decision of the Administrator which is being
reviewed and shall consider and determine solely whether there has been
an abuse of discretion on the part of the Administrator in making the
decision.
5. In lieu of the issuance of an order to cease such activities,
the Administrator may enter into an agreement with the developer in which
the developer agrees to:
(a) Discontinue the activities that are not in compliance with this
chapter;
(b) Pay all costs incurred by the administrator in investigating
the developer’s activities and conducting any necessary hearings; and
(c) Return to the purchasers any money or property which he
acquired through such violations.
Ê The terms of such an agreement are confidential unless violated by the
developer.
(Added to NRS by 1985, 1670)
1. Whenever the Administrator believes that any person has
violated any order, regulation, permit, decision, demand or requirement,
or any of the provisions of this chapter, he may bring an action in the
district court in the county in which the person resides or maintains his
principal place of business or, if the person resides outside the State,
in any court of competent jurisdiction within or outside the State,
against the person to enjoin him from continuing the violation.
2. The Administrator may intervene in any action involving a
membership or a program for the exchange of rights of occupancy, if
intervention is necessary in the public interest and for the protection
of the members.
(Added to NRS by 1985, 1671)
1. When the Administrator ascertains that an association of
members or a developer, if there is no association, is insolvent or in
imminent danger of insolvency or the association’s or developer’s affairs
are being mismanaged, he may file a complaint in the district court of
the county in which the principal office of the association or developer
is located for the appointment of a receiver.
2. Upon the appointment, the receiver shall take possession of all
the property, business and assets of the association or developer which
are located within this state and retain possession of them until further
order of the court. The receiver shall make or cause to be made an
inventory of the assets and known liabilities of the association or
developer. Upon approval of the court, the receiver shall take such other
actions as appear necessary and reasonable for the conduct of the
business of the association or developer.
3. The inventory made by the receiver and all claims filed by
creditors are open at all reasonable times for inspection and any action
taken by the receiver upon any of the claims is subject to the approval
of the court before which the cause is pending.
4. The expenses of the receiver and compensation of counsel, as
well as all expenditures required in any liquidation proceeding, must be
fixed by the receiver, subject to the approval of the court, and, upon
certification of the receiver, must be paid out of the assets he controls
as receiver.
(Added to NRS by 1987, 1083)
The
Real Estate Commission may take action pursuant to NRS 645.630 against any broker who fails to supervise adequately the
conduct of any person engaged in the sale of memberships offered pursuant
to the provisions of this chapter.
(Added to NRS by 1985, 1671)
1. In addition to any other remedy or penalty, the Administrator
may impose an administrative fine against any person who knowingly:
(a) Engages or offers to engage in any activity for which a permit
or any type of authorization is required pursuant to this chapter, or any
regulation adopted pursuant thereto, if the person does not hold the
required permit or has not been given the required authorization; or
(b) Assists or offers to assist another person to commit a
violation described in paragraph (a).
2. If the Administrator imposes an administrative fine against a
person pursuant to this section, the amount of the administrative fine
may not exceed the amount of any gain or economic benefit that the person
derived from the violation or $5,000, whichever amount is greater.
3. In determining the appropriate amount of the administrative
fine, the Administrator shall consider:
(a) The severity of the violation and the degree of any harm that
the violation caused to other persons;
(b) The nature and amount of any gain or economic benefit that the
person derived from the violation;
(c) The person’s history or record of other violations; and
(d) Any other facts or circumstances that the Administrator deems
to be relevant.
4. Before the Administrator may impose the administrative fine,
the Administrator must provide the person with notice and an opportunity
to be heard.
5. The person is entitled to judicial review of the decision of
the Administrator in the manner provided by chapter 233B of NRS.
6. The provisions of this section do not apply to a person who
engages or offers to engage in activities within the purview of this
chapter if:
(a) A specific statute exempts the person from complying with the
provisions of this chapter with regard to those activities; and
(b) The person is acting in accordance with the exemption while
engaging or offering to engage in those activities.
(Added to NRS by 2003, 1311 )
UNLAWFUL ACTS
Unless the transaction is exempt under the provisions of NRS 119B.120
, it is unlawful for any person to act
as a broker of record, broker-salesman, salesman, sales agent or
registered representative in this State in connection with the sale of
memberships without first obtaining a license or registering pursuant to
the provisions of chapter 645 or 119A of NRS.
(Added to NRS by 1985, 1657)
Any person who willfully submits, in the application for a
permit to sell contracts of membership, any materially false or
misleading information or fails to submit an annual report on a program
for the exchange of occupancy rights among members is guilty of a
misdemeanor.
(Added to NRS by 1985, 1671)
1. It is unlawful for any person to use false or misleading
information to advertise the sale of contracts of membership.
2. Unless a person has actual knowledge of the false or misleading
information, the owner, publisher, licensee or operator of any newspaper,
magazine, television or radio broadcasting station or his agents or
employees are not liable under this chapter for any advertising of any
contract for membership carried in the newspaper, magazine or by the
television or radio broadcasting station nor are any of them liable under
this chapter for the contents of any advertisement.
(Added to NRS by 1985, 1671)
It is unlawful to engage in unfair methods of competition or
deceptive or unfair practices in the offer to sell or sale of a
membership. These practices include, without limitation:
1. Misrepresenting or failing to disclose any material fact
concerning a campground or membership.
2. Including in any agreement for purchase of a membership
provisions purporting to waive any right or benefit provided for
purchasers under this chapter.
3. Receiving from a prospective purchaser any money or other
valuable consideration before the purchaser receives the information
required by NRS 119B.270 .
4. Misrepresenting the amount of time or the date a camping site
will be available to a purchaser.
5. Misrepresenting the location of the campground.
6. Misrepresenting the size, nature, extent, qualities or
characteristics of the campground.
7. Misrepresenting the nature or extent of any services incident
to the membership.
8. Misrepresenting the conditions under which a purchaser may
exchange occupancy rights in a campground in one location for occupancy
rights in a campground at another location.
9. Failing to disclose initially that any promised entertainment,
food or other inducements are being offered to solicit the sale of a
membership.
10. Conducting or participating in, without prior approval by the
Division, any type of lottery or contest, or offering prizes or gifts to
induce or encourage a person to visit a campground, attend a meeting at
which a membership will be discussed, attend a presentation, or purchase
a membership.
11. Any act or practice considered an unfair method of competition
or an unfair or deceptive act or practice under NRS 207.170 , 207.171 or
598.0915 to 598.0925 , inclusive, or chapter 598A or 599A of NRS.
12. Making any false promises of a character likely to influence,
persuade or induce.
13. Engaging in any fraudulent, misleading or oppressive
techniques or tactics of selling.
(Added to NRS by 1985, 1657; A 1989, 650)
