CODE OF VIRGINIA

DEVELOPER’S OBLIGATION TO COMPLETE (§ 55-386)

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

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

HISTORY: 1981, c. 462; 1983, c. 59; 1985, c. 517; 1994, c. 580; 1998, c. 460.