Section 514E-19 - Protection of purchasers from blanket liens(a) An escrow for the sale of a time share interest in a time share ownership plan may close only if the requirements of any one of the following alternatives for protecting the purchaser have been satisfied: (1) The time share interest is conveyed to the purchaser free and clear of any blanket liens;(2) The time share unit is conveyed to a trustee:(A) Free and clear of any blanket liens under a trust meeting the requirements of sections 514E-22 and 514E-23; or(B) Under a lien payment trust meeting the requirements of sections 514E-22, 514E-23, 514E-24, and 514E-25;(3)(A) The time share interest is conveyed to the purchaser subject only to blanket liens: (i) Where every person holding an interest in the blanket lien has executed and recorded a nondisturbance agreement; or(ii) For which the director's acceptance of a surety bond or an irrevocable letter of credit meeting the requirements of section 514E-28 has been recorded with respect to that time share unit; and(B) If legal or equitable title will be held by anyone other than the purchaser, a notice of time share plan is recorded; or(4) The requirements of any alternative arrangements accepted by the director have been met.(b) An escrow for the sale of a time share interest in a time share use plan may close only if the requirements of any one of the following alternatives for protecting purchasers have been satisfied: (1) The time share unit is conveyed to a trustee:(A) Free and clear of any blanket liens under a trust meeting the requirements of sections 514E-22 and 514E-23; or(B) Under a lien payment trust meeting the requirements of sections 514E-22, 514E-23, 514E-24, and 514E-25;(2) A notice of time share plan is recorded and either:(A) Every person holding an interest in a recorded blanket lien against any time share interests in that time share unit executes and records a nondisturbance agreement; or(B) The director's acceptance of a surety bond or an irrevocable letter of credit meeting the requirements of section 514E-28 is recorded; or(3) The requirements of any alternative arrangements accepted by the director have been met.(c) A time share interest in any time share plan which satisfies the escrow and blanket lien protection requirements of this chapter shall not be deemed a risk capital security under chapter 485A, and the offer or sale of a time share interest therein shall not be deemed the offer or sale of a security.Amended by L 2018, c 18,§ 34, eff. 6/4/2018.L 1982, c 186, §7; am L 2006, c 229, §15 .