Timeshare developers in Connecticut must abide by a new law titled SB 897. The new law regulates timeshares in Connecticut, asking developers to put all advance deposits collected from a potential buyer of a timeshare in an escrow or trust account. In place of an escrow account, SB 897 permits the Commissioner of Consumer Protection to allow a surety bond, irrevocable letter of credit, or other assurance. If the construction is complete on the timeshare, the surety bond has to be in a quantity equivalent or greater than the quantity of funds that would otherwise be deposited. The surety bond may be for the amount previously stated or in an amount that secures the completion of all guaranteed accommodations including all furniture, fixtures and other promised enhancements if the project is not yet finished. SB 897 becomes active on January 1st, 2010.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.