Wilderness Presidential Resort

Transcription

Presidential Resort
at Chancellorsville
A Time-Share Estate Project
Public Offering Statement
May 21, 2013
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PURCHASER SHOULD READ THIS DOCUMENT FOR HIS OWN PROTECTION
PUBLIC OFFERING STATEMENT
NAME OF TIME-SHARE PROJECT:
Presidential Resort at Chancellorsville,
a Time-Share Estate Project
LOCATION OF TIME-SHARE PROJECT:
9220 Plank Road
Spotsylvania, Virginia 22553
NAME OF DEVELOPER:
Recreational Resorts, Ltd.
a Virginia corporation
EFFECTIVE DATE OF PUBLIC
OFFERING STATEMENT:
December 15, 1995
AMENDED: July 15, 2003; February 1, 2013;
May 21, 2013
This Public Offering Statement presents information regarding Time-Share(s) being offered for
sale by the Developer. The Virginia Real Estate Time-Share Act, §§ 55-360 et seq. of the Code of
Virginia, requires that a Public Offering Statement be given to every Purchaser in order to provide full
and accurate disclosure of the characteristics of and material circumstances affecting the Time-Share
Project and the characteristics of the Time-Share(s) being offered. The Public Offering Statement is not
intended, however, to be all inclusive. The Purchaser should consult other sources for details not
covered by the Public Offering Statement.
The Public Offering Statement summarizes information and documents furnished by the
Developer to the Virginia Common Interest Community Board. The Board has carefully reviewed the
Public Offering Statement to ensure that it is an accurate summary but does not guarantee its accuracy.
In the event of any inconsistency between the Public Offering Statement and the material it is intended
to summarize, the material shall control.
Under § 55-376 of the Virginia Real Estate Time-Share Act, a Purchaser of a Time-Share may
cancel the Contract until midnight of the seventh calendar day following the execution of such Contract.
If the Purchaser elects to cancel the Contract, he can obtain all payments made in connection with the
Contract before cancellation. If the purchaser elects to cancel the Contract, he shall only do so either (i)
by hand-delivering the notice to the Developer at its principal office or at the project or (ii) by mailing
the notice by certified United States mail, return receipt requested, to the Developer or its designated
agent.
The following are violations of Virginia law and should be reported to the Common Interest
Community Board, Perimeter Center, Suite 400, 9960 Mayland Drive, Richmond, Virginia 23233:
-- a misrepresentation made in the Public Offering Statement;
-- an oral modification of the Public Offering Statement; or
-- a representation that the Board has passed on the merits of the Time-Share(s) being
offered or endorses the Time-Share project
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PURCHASER SHOULD READ THIS DOCUMENT FOR HIS OWN PROTECTION
TABLE OF CONTENTS
Page Number
Part
I
II
III
IV
V
VI
VII
INTRODUCTION
DEVELOPER
PROJECT AND PROGRAM
A.
Creation
B.
Time-shares
C.
Project
D.
Common Elements
E.
Program
FINANCIAL OBLIGATIONS OF TIME-SHARE OWNERSHIP
TERMS OF OFFERING
ENCUMBRANCES
A.
Easements
B.
Liens
EXCHANGE COMPANY
GENERAL INFORMATION
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7
8
8
11
15
19
19
22
24
26
26
27
27
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EXHIBITS ANNEXED HERETO
EXHIBIT 1
EXHIBIT 1.1
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
EXHIBIT 10
Second Restated and Amended Time-Share Instrument for Presidential Resort at
Chancellorsville, a Time-Share Estate Project (the “Instrument”).
All amendment(s) or supplement(s) to the Instrument (if applicable).
Articles of Incorporation of Presidential Resort Owners Association.
Bylaws of Presidential Resort Owners Association as amended to date.
Rules and Regulations (the “Rules”) in effect as of publication date.
RCI Points RCI Weeks [20-__-20-_] Disclosure Guides
Annual Report
Budget
Management Agreement
Maintenance Fee
Resort Information Sheet
Notes:
(1) Capitalized or block terms used throughout this Public Offering Statement without definition
have the meanings specified in the Instrument, the Time-Share Act, the Virginia Nonstock Corporation Act, the
Rules, and the Articles of Incorporation and Bylaws for Presidential Resort Owners Association.
(2) If no Exhibit is annexed, the information provided in the body of this Public Offering Statement
is current. If an Exhibit exists as a sub-Exhibit, it modifies the body of this Public Offering Statement accordingly.
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SUMMARY OF IMPORTANT CONSIDERATIONS
The following are important matters to be considered in acquiring a Timeshare. They are
highlights only. The narrative sections herein and the exhibits attached hereto should be
examined to obtain detailed information.
1.
Purchasers have a nonwaivable right to cancel the Contract for Purchase and Sale
(“Contract”) for seven calendar days after execution of the Contract. Reference is hereby made
to the Contract under heading “Purchaser's Nonwaivable Right to Cancel” printed in conspicuous
bold face type wherein such right will be found. Developer has no right to cancel the Contract.
2.
The Time-Share Estate Program is governed by a time-share estate owner’s
association formed under the Virginia Nonstock Corporation Act. The Association is
Presidential Resort Owners Association (“Association” or “PROA”). A Time-Share Estate
Owner has voting rights as outlined in the Articles of Incorporation of the Association or Bylaws
thereof, and such Owner is bound by all decisions of the Association, including those with which
the Owner disagrees. (See Part II (E)(1)).
3.
Decisions affecting the business and affairs of the Association are made by its
Board of Directors or an Executive Committee thereof. (See Part II (E)(1)).
4.
During the Developer Control Period (“DCP”), all expense of operating and
maintaining the Program and the Project are paid by Developer with each Purchaser paying a
portion of the Time-Share Estate Occupancy Expenses by way of a Maintenance Fee. After the
Developer Control Period, such expenses will be paid by the Association with each Purchaser
paying a portion thereof by way of an Assessment. (See Part III).
5.
Upon termination of the Developer Control Period, PROA shall be responsible for
all Time-Share Program Expenses and in this regard Developer is not obligated to pay all or a
portion of any assessment, dues, or other charge of PROA, however denominated, passed or
adopted. (See Part III).
6.
A Time-Share Owner cannot reduce the amount of his Owner Obligations by not
using his Time-Share or the Project’s Common Elements. (See Part II (E)(1)).
7.
The Association receives from each Time-Share Purchaser the Maintenance Fee
or Assessment. The Association is responsible to the Developer for the payment of the
Maintenance Fee. (See Part III). Membership in the Association is compulsory and is automatic
upon acquisition of a Time-Share. Membership is lost when transfer of the Time-Share occurs.
(See Part II (E)(1)).
8.
Developer will control the Association during the Initial Board Term. This Term
may extend beyond the Developer Control Period and may last until January 1, 2050, but not
longer. (See Part II (E)(1)). Owner Obligations consist of all amounts due the Association,
Developer, or other third party by an Owner occasioned by acquisition or ownership of a TimeShare, participation in the Program, Membership in Association, access to and use and
enjoyment of any Amenity situate within Presidential Resort or Wilderness Resort, or ownership
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of a time-share located within Presidential Resort. They include, without limitation, the
Maintenance Fee, Assessment, user fees, facilities fees, interest, late charges, unpaid purchase
price amounts, Holdover Charges, and Collection Costs. If a Time-Share Owner fails to pay his
Owner Obligations when due, Association and Developer have a Lien against each Time-Share
of the Owner, which if foreclosed, results in the loss of the Time-Share and possibly a lien on his
other real estate. Also, access to Presidential Resort and the Project, Wilderness Resort, the
Amenities, and participation in the Program will be denied. Certain other penalties may apply.
(See Part III).
9.
Recreational Resorts, Ltd., a Virginia corporation ("Developer"), owns the
Development from which it has been, and may in the future be committing Units and/or
Amenities to the Time-Share Project and Time-Share Program. Developer also conducts the
marketing and sale of Time-Share Estates from previously committed Time-Share Units. (See
Part II (C)).
10.
Recreational Resorts, Ltd., a Virginia corporation, is currently the Managing
Agent under contract to perform certain duties and routine operations of the Association. (See
Part II (E)(2)).
11.
A Time-Share Owner may occupy the Project only during the Unit Week
appurtenant to the Time-Share. Rental by a Time-Share Owner of his Time-Share is subject to
restrictions. The right of the Time-Share Owner to resell or transfer his Time-Share is subject to
restrictions. The Time-Share Owner may not alter the structure, interior or exterior of a TimeShare Unit in which his Time-Share is located. The Developer may rent unsold Time-Shares.
The Developer may use or rent unoccupied Time-Share Units without charge.
12.
Owners, other than Developer, and the Guests of such Owners shall occupy and
use Time-Share Units only as overnight or weekly recreation or vacation lodging for themselves
and their Guests and not as residences or for other purposes. However, Developer may, while it
has the right to occupy a Time-Share Unit, use that Unit as an office for sales, rental,
management, model or display purposes. (See Part II (C)).
13.
The Association will obtain certain insurance benefitting the Owner, including
fire and extended coverage insurance for improvements. All insurance matters will be handled
by the Board of Directors of the Association subject to Developer’s approval. Each Time-Share
Owner should obtain additional insurance coverage on his own personal property and liability.
(See Part II (E)(6)).
14.
After the Developer Control Period, the Association pays real estate taxes on the
Time-Share Units and the Project from Assessments received from Owners. During the DCP,
Developer pays the taxes with the portion thereof applicable to Time-Share Occupancy Expenses
being paid by the Owner by way of the Maintenance Fee. (See Part III).
15.
Failure by the Association or Developer to pay real estate taxes on the Project or
cause to be paid the underlying liens on the Project could result in foreclosure thereon by the
appropriate creditor. (See Part V (B)(2)).
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16.
A Time-Share Owner is required to make certain disclosures to his purchaser in
the resale of his Time-Share. Developer offers no resale program. (See Part II (B)).
17.
The Time-Share Project is in Presidential Resort and is located adjacent to
Wilderness Resort in Spotsylvania County, Virginia. Exhibit 1 and any amendments or
supplements thereto (if applicable) reflect the current status of the Project in terms of its acreage
and Phases, Buildings/Cabins, Time-Share Units, Time-Share Estates and their types, and the
Common Elements constituting the Project. The commitment of an additional Phase or Unit to
the Project and Program is an aspect or result of the orderly development of the Project and
Program in accordance with the Instrument, and therefore does not require a change to this
Public Offering Statement as such Phase or Unit is committed. (See Part II (C)).
18.
The maximum number of Time-Share Units for the entire Project is 165. Exhibit
1 and amendments or supplements thereto (if applicable) reflect the current number of TimeShare Units. Currently there is only one Time-Share Unit Type, but Developer reserves the sole
right, option and privilege to determine additional Time-Share Unit Types and to add them,
modify them or discontinue their future use at any given time.
19. Future Time-Share Units will, if constructed, come from the Additional Land.
Developer can commit Units to the Project and Program until January 1, 2060. (See Part II (B)
and (C)).
20.
Currently, the Time-Share Project and Time-Share Program are divided into
undivided ownership interests or UDI Time-Share Estates, of which there are two types; namely,
the original UDI Time-Share Estate, which is referred to as a “Floating Week Time-Share
Estate,” and a new subcategory which is referred to as a “Fixed Week Time-Share Estate.” The
maximum number of Time Shares for the Project is unknown. The Instrument in Exhibit 1 (and
any sub-exhibits which may later be added) reflect the current number of Time-Shares and their
types. Developer has reserved the right to create additional types of time-shares for the Project
and Program.
21.
Marketing and sale of Time-Shares will be conducted in accordance with the
Virginia Fair Housing Law. (Code of Virginia Section 36-96.1, et seq.)
GMS Final
May 21, 2013.
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PRESIDENTIAL RESORT AT CHANCELLORSVILLE,
A TIME-SHARE ESTATE PROJECT
INTRODUCTION
Recreational Resorts, Ltd., a Virginia corporation ("Developer" or “Recreational
Resorts”), furnishes in this Public Offering Statement certain information about its time-share
estate project located in Spotsylvania County, Virginia, known as "Presidential Resort at
Chancellorsville, a Time-Share Estate Project," (the "Project" or "Presidential Resort").
This Public Offering Statement consists of two parts, a narrative portion and an exhibit
portion. The exhibits include legal documents required for the creation and operation of the
Project and its time-share owners association. The narrative portion of the Public Offering
Statement is intended to summarize the significant features of the exhibits and to present other
information of interest to the prospective Purchaser. In the event of any inconsistency between
the exhibits and the narrative, the provisions of the exhibits will govern.
Time-Sharing is the concept of purchasing only that portion of time in a resort or other
unit or facility that will actually be used by the owner. In the United States, time-shares are
normally purchased in resort or second home areas, and are normally divided into weekly
increments.
Although there are several variations on the general concept, there are two general
methods of structuring a time-share project. The first is a fee simple ownership in which the
person purchasing a time-share actually acquires an interest in the real estate itself. As a
property owner, this person enjoys the same benefits and carries the same burdens as purchasers
and owners of other real property.
The second approach is a right to use. This again may be structured in several ways, but
it gives the person no ownership interest in the project itself and none of the benefits and burdens
thereof. It is treated as a prepaid rental for the period of the right to use.
Either the fee simple ownership or the right-to-use project may be structured on a fixed or
floating week basis (or a combination of both), i.e., a purchaser enjoys the opportunity to use the
same week every year, or the use by an owner may "float" in a given week or a given period of
weeks during the year. There is also normally a yearly assessment made for maintenance costs,
property replacement, taxes, insurance and the like.
At Presidential Resort, the concept is that of fee simple ownership. The Purchaser of
each Time-Share acquires an undivided fractional interest as a tenant in common with all other
Owners in the Development. Such interest and other rights are described more fully in Section C.
In acquiring an undivided interest in the fee, each Owner also acquires a right to use, for one
week during the Occupancy Period only, (and subject to (i) the appropriate Occupancy Level, (ii)
obtaining a Confirmed Reservation Request, and (iii) being current in the payment of all Owner
Obligations), any one of the Units on a first come, first served space available, recurring basis,
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until Termination of the Program. The right to use varies among Occupancy Levels.
Termination will not take place until January 1, 2060, unless sooner agreed to by all Owners, and
thereafter the Program automatically renews, unless ended in accordance with the Instrument.
After Termination of the Program, an Owner continues his ownership as a tenant in common
with all other Owners in the Development. Membership in Association is compulsory.
Developer may develop other projects within the Additional Land and in any Time-Share
Unit eliminated from the Project, or on other land in the vicinity of the Project. These other
projects may or may not be operated and sold simultaneously with Presidential Resort, and may
include other time-share projects, hotels, condominiums, single family residences, vacation
travel plans, recreational memberships, Alternative Purchases, and other projects.
I.
DEVELOPER.
Developer, Recreational Resorts, Ltd. (“Recreational Resorts”) is a Virginia corporation
incorporated on June 26, 1980. Its principal address is P.O. Box 6006, Charlottesville, Virginia
22906 and its principal business location is 610 West Rio Road, Charlottesville, Virginia 22901.
Since formation, it has primarily developed the Presidential Resort time-share project and the
Wilderness camping resort.
The members of the Board of Directors of Developer are:
C. Dice Hammer, 610 West Rio Road, P.O. Box 6006, Charlottesville, VA 22906;
Marc J. Landau, 3015 North Ocean Blvd., Suite 115, Fort Lauderdale, FL 33308;
Steven C. Krohn, 610 West Rio Road, P.O. Box 6006, Charlottesville, VA 22906;
Thomas C. Waterbury, 610 West Rio Road, P.O. Box 6006, Charlottesville, VA 22906;
Ray Allen King, 9220 Plank Road, Spotsylvania, VA 22553;
James R. Lambert, 981 Hillsboro Mile, Hillsboro Beach, FL 33062.
.
The sole stockholder of Recreational Resorts, Ltd. is The Resorts Companies, Inc. (“TRC”). The
only Person owning or controlling an interest of 20% or more in TRC is The Resorts Companies,
Inc. Employee Stock Ownership Plan (the “Plan”), at 610 West Rio Road, P.O. Box 6006,
Charlottesville, Virginia 22906. The Trustees under the Plan are Marc J. Landau and Steven C.
Krohn.
C. Dice Hammer is the President of TRC and its wholly owned subsidiaries including
Recreational Resorts. Mr. Hammer has over 35 years of experience in the real estate
development and lending industries, most of that concentrating in timeshare projects and resorts.
Mr. Hammer has been involved with several timeshare projects and resorts throughout the
country as an employee, investor or consultant. Mr. Hammer has been a Trustee of the
American Resort Development Association (ARDA), which is the trade association for members
of the timeshare industry.
Marc J. Landau is Vice President/CFO of The Berkley Group, Inc. and TRC and its wholly
owned subsidiaries including Recreational Resorts. Mr. Landau has an extensive background in
accounting and finance dating back to 1983. With a CPA designation, Mr. Landau has been with
The Berkley Group since 1989 in various financial capacities. Mr. Landau is a member of the
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Chairman’s League of ARDA. Mr. Landau serves as Trustee for the Berkley Group's Employee
Stock Ownership Plan (ESOP) and for the TRC ESOP.
Steven C. Krohn is Executive Vice President of Recreational Resorts, and Chief Operating
Officer and Executive Vice President of TRC. He also serves as COO and Executive VP of
Great Eastern Resort Corporation, Great Eastern Resort Management, Inc., Great Eastern
Purveyors, Inc., and Peak Construction Company. Mr. Krohn was in the banking industry for
twenty-eight years, in capacities including Managing Director for Virginia National Bank and
President of Sun Trust Bank’s Shenandoah Valley Group. Mr. Krohn holds an MBA from the
University of Virginia Darden School of Business, and has been actively involved in his
community, serving as Board Chair for the United Way Thomas Jefferson Area and for the
Thomas Jefferson Partnership for Economic Development.
Thomas C. Waterbury is Secretary/Treasurer of Recreational Resorts, and Secretary/Treasurer
of TRC. Mr. Waterbury graduated from Michigan State University with a BA degree in
Accounting. He has had a 25-year career in real estate accounting. Mr. Waterbury has been with
the TRC organization since 1994. Previously, he worked for three years in public accounting
concentrating on real estate clients, for seven years with a Northern Virginia commercial real
estate developer, and for two years with a mid-Atlantic resort developer.
Ray Allen King is the General Manager for Presidential Resort. Mr. King graduated from West
Virginia University with a Bachelor of Science degree in Recreation. He has 26 years of
experience managing Wilderness Resort and Presidential Resort. Mr. King was hired in 1981 as
the resort’s assistant manager and has been the general manager since 1987. He supervises the
600-plus acre resort area that includes three owner’s associations, over 1800 camping lots, over
100 recreational vehicles, more than 50 cabins and many recreational amenities.
James R. Lambert is President of PPM Brokerage Services which provides financing to
timeshare developers and marketers throughout the United States. He is President of Olé Olé
Restaurant in South Florida which has been in operation for over 20 years, and serves his
community as Commissioner for the Town of Hillsboro Beach, Florida, and as Commissioner of
the Hillsboro Inlet District.
Developer will be responsible for selling to the public the Time-Share Estates in
Presidential Resort at Chancellorsville, a Time-Share Estate Project. The name of Developer's
agent for service of any notice permitted by the Time-Share Act and the agent's mailing address
is C. Dice Hammer, P.O. Box 6006, Charlottesville, Virginia 22906. The agent’s hand delivery
address is 610 West Rio Road, Charlottesville, Virginia 22901.
II.
PROJECT AND PROGRAM.
A. Creation
The Virginia Real Estate Time-Share Act (the “Time-Share Act”), Chapter 21 of Title 55
of the Code of Virginia 1950, as amended, is the controlling law in Virginia dealing with timeshare projects. To create a time-share program under the Time-Share Act, a time-share
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instrument must be recorded in the Clerk’s Office. The function of the time-share instrument is
to create a time-share program for a particular project while establishing the parameters under
which the program is to exist.
The Time-Share Estate Program for Presidential Resort at Chancellorsville, a Time-Share
Estate Project, was created in 1989 by Time-Share Instrument dated August 1, 1989 and
recorded February 2, 1990 in the Clerk's Office of the Circuit Court of Spotsylvania County,
Virginia in Deed Book 897, Page 411, Instrument Number 199000001723. Numerous
Amendments and a Restatement were subsequently recorded. Developer amended the Instrument
and then restated it for a first time by “First Restated and Amended Time-Share Instrument for
Presidential Resort at Chancellorsville, a Time-Share Estate Project” dated June 7, 1994 and
recorded July 1, 1994 in Deed Book 1228, Page 227, Instrument Number 199400015139-01 (the
“First Restated Time-Share Instrument”). The First Restated Time-Share Instrument was
amended several times: by “First Amendment to First Restated and Amended Time-Share
Instrument for Presidential Resort at Chancellorsville, a Time-Share Estate Project” dated
January 15, 1995 and recorded March 2, 1995 in Deed Book 1279, Page 249, Instrument
Number 199500003366-01; by “Second Amendment to First Restated and Amended Time-Share
Instrument for Presidential Resort at Chancellorsville, a Time-Share Estate Project” dated
November 15, 1995 and recorded December 5, 1995 in Deed Book 1339, Page 593, Instrument
Number 199500021868-01; by “Third Amendment to First Restated and Amended Time-Share
Instrument for Presidential Resort at Chancellorsville, a Time-Share Estate Project” dated May
8, 2008 and recorded July 28, 2008 at Instrument Number 200800015528; and, by “Second
Restated and Amended Time-Share Instrument for Presidential Resort at Chancellorsville, a
Time-Share Estate Project” dated January 25, 2013, recorded January 31, 2013 as Instrument
Number 130002483.
A copy of the Second Restated Time-Share Instrument is annexed hereto as Exhibit 1.
For purposes hereof, the Second Restated Time-Share Instrument as initially recorded and as
thereafter may be amended or supplemented is herein referred to as the "Instrument". The
Instrument governs the operation and management of the Time-Share Project and Time-Share
Program. Any and all Amendments to the Instrument will be recorded in the Clerk's Office.
The most recent amendment or supplement to Exhibit 1 shall be denoted as Exhibit 1.1
and shall reflect the current status of the Project in terms of its acreage and Phases, Buildings,
Time-Share Units and their types, Time-Share Estates and their types, and the Common
Elements constituting the Project.
In a time-share estate project, the Time-Share Act requires the formation of a Virginia
nonstock corporation to be the recipient of the Common Elements of the Project no later than at
the end of the Developer Control Period and to administer the Program after Developer ends its
involvement, as such, in the Project. The Virginia Nonstock Corporation Act (“Nonstock
Corporation Act”), Chapter 10 of Title 13.1 of the Code of Virginia (1950), as amended, is the
controlling law in Virginia dealing with nonstock corporations. “Presidential Resort Owners
Association” was formed as a Virginia nonstock corporation on June 6, 1989 to satisfy these
requirements and is herein referred to as either "PROA" or the "Association".
The Association is governed by its Articles of Incorporation (“Articles”) and Bylaws,
both of which may be amended in conformity with the Nonstock Corporation Act, and are
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attached as Exhibits 2 and 3. Other documents affecting the Project besides these and the
Instrument are:
Contract for Purchase and Sale (“Contract”):
Deed of Bargain & Sale (“Deed”):
Reverter Deed (“Reverter Deed”):
Deed of Trust Note (“Note”):
Purchase Money Deed of Trust (“Deed of
Trust”):
Deed of Re-Conveyance (“DRC”):
RESPA Disclosure and Good Faith Estimate
(“Disclosure”):
HUD-1 Settlement Statement (“HUD-1”):
Acknowledgment of Representations
(“Acknowledgment”):
RCI Weeks RCI Points [20-__-20-__]
Disclosure Guides (“Exchange Guide”):
Rules:
Rules and Regulations:
Privacy Notice (“Notice”):
Creates the legal obligation to purchase and
sell.
Conveys the Time-Share Estate.
Conveys the Time-Share Estate subject to
Possibility of Reverter
Evidence of the amount financed.
Security device for the Note.
Reconveyance instrument used in limited
events, for example, in an up-grade sale.
Explains the servicing of your deferred
purchase loan and provides an estimate of
closing costs.
Statement of actual closing costs.
Confirms your general understanding of the
Time-Share purchase transaction.
Explains current rights and procedures
determined by RCI, an unrelated exchange
company, for two exchange programs
applicable to the Project. Access to these
Incidental Benefits depends upon Occupancy
Period.
Code of conduct affecting the Project and
authored by either Developer or the
Association.
The aggregate of the Rules of Developer and
those of Association.
Developer’s information-collection and
information-sharing practices concerning
disclosure of consumer’s personal financial
information.
The Contract must be signed by Developer and Purchaser. Developer will sign the Deed
or Reverter Deed. The Note and Deed of Trust are signed by Purchaser if any part of the
purchase price is financed. The Acknowledgment, Disclosure, and HUD-1 are also signed by the
Purchaser. The other documents are generally not signed by either party. A copy of the Rules
and Regulations is annexed hereto as Exhibit 4, and a copy of the Sales Contract, Deed or
Reverter Deed, Exchange Application (if applicable), Notice, and this Public Offering Statement,
with Exhibits, will be made available to Purchaser no later than prior to the execution of the
Sales Contract. Copies can also be obtained at the Project located at 9220 Plank Road,
Spotsylvania, Virginia 22553.
The Documents may be amended from time to time. The RCI’s exchange program may
be amended by RCI, LLC (“RCI”) at any time in its sole discretion. As to the other Documents
concerning the Project, they may be amended according to the terms therein expressed. As
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highlights, amendment of the Instrument may be effected: (A) after the Initial Board Term, on
approval of 10% of the votes attributable to Time-Shares, except that only Developer may amend
certain of its rights; and (B) by Developer at any time unless written disapproval of 75% of the
Time-Shares is received within 30 days of the Amendment.
The Time-Share Act recognizes several terms of importance to the Purchaser, including:
"Incidental Benefit" which is anything valued in excess of $100.00 provided by
Developer which the Purchaser acquires upon acquisition of a Time-Share Estate. An Incidental
Benefit is not a Time-share. The right to participate in the Exchange Company’s program or that
of Coast to Coast is an Incidental Benefit.
"Alternative Purchase" which is anything valued in excess of $100.00 which is offered to
a potential purchaser by Developer during its sales presentation and which is purchased by such
potential purchaser for more than $100.00, even though the purchaser did not buy a Time-Share.
"Product" which is every type of Time-Share (and its Incidental Benefit) and Alternative
Purchase. Each Product must be registered with the Virginia Common Interest Community
Board before it can be offered.
The Developer has reserved the right to add to, alter, modify, and delete Incidental
Benefits throughout the Program. In the acquisition of a Time-Share, the Owner acquires the
Incidental Benefits then in effect and as they are later added to, altered, modified or deleted.
Incidental Benefits end at Termination. Inasmuch as these Incidental Benefits can be added to,
altered, modified or deleted at any time, Developer is not required to include them herein and is
not required to amend this Public Offering Statement when adding, altering, modifying or
deleting such benefits.
Developer has elected to create a public offering statement for each Alternative Purchase
it offers; accordingly, no discussion on that type of offering is included herein.
B.
Time-Shares
1.
UDI Estates, Fixed Week and Floating Week. The Time-Share Project and
Time-Share Program currently have UDI Time-Share Estates: the original UDI Time-Share
Estates, which are referred to as “Floating Time-Share Estates”, and a new subcategory of these
UDI Time-Share Estates which are referred to as “Fixed Time-Share Estates.” Any reference to a
“Time-Share”, an “Estate” or a “Time-Share Estate” without reference to whether it is a Floating
or a Fixed Time-Share Estate applies to both types of Time-Shares.
Developer reserves the right to create additional types of time-shares for the Project and
the Program, in the future.
Since both Estates are UDI Time-Share Estates, the measurement of the fractional fee
simple ownership interest is as follows: the numerator of the fraction is one and the denominator
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is the total number of all recorded Deeds for Time-Share Estates within all Phases containing
Time-Share Estates, less any Time-Share Estates which have been reacquired by Developer as
evidenced by deeds duly recorded or reacquired by the reverter process.
Each Time-Share Estate has a Unit Week, a Time-Share Remainder Interest, Incidental
Benefits, Occupancy Period, and Occupancy Level appurtenant thereto. The Unit Week,
Occupancy Period, and Occupancy Level are determined at the time of purchase and each shall
end when Termination occurs. Incidental Benefits are determined at the time of purchase, may
be added to, altered, modified or deleted throughout the Program, and end when Termination
occurs.
Termination will not take place until January 1, 2060, unless sooner agreed to by all
Owners. Thereafter, the Program automatically renews, unless ended in accordance with the
Instrument.
2.
Time-Share Estate Incidents of Ownership. A Time-Share Estate includes, as an
incident of ownership, the right to use a Time-Share Unit during the applicable Unit Week and
provides the Owner with an exclusive right to occupy a Time-Share Unit during a designated
Unit Week (until Termination occurs) once a Confirmation has been issued. However, the right
of use is not unrestricted. In order for a Time-Share Owner to gain access to the Project and the
Time-Share Unit during his designated Unit Week and to participate in the Program, the TimeShare Owner must satisfy certain conditions. These conditions are:
(1)
(2)
(3)
(4)
file a Reservation Request;
seek occupancy for only the Occupancy Period at the appropriate Occupancy
Level for which the Time-Share Estate relates in conformity with Article 5 of the
Instrument;
be current in the payment of all Owner Obligations; and,
obtain a Confirmation
Unless these conditions are satisfied or otherwise waived by Developer or Association, a
Time-Share Owner may be denied access to the Project and denied participation in the Program.
Waiver of a condition is in the sole discretion of Developer or Association. Upon satisfying the
requirements above stated, an Owner shall be entitled to use his Time-Share only during a
Confirmed Unit Week.
The Reservation Request must be made in advance, by phone or in person.
Until changed by Amendment through a published communication applicable to the
Project, each Time-Share Estate is described by an Occupancy Period designation that is
generally reflective of demand for Confirmations and current pricing.
3.
Occupancy Periods for Unit Weeks Purchased After February 1, 2013. Until
changed by Amendment through a published communication applicable to the Project, each
Time-Share Estate purchased on or after February 1, 2013 and after the filing of the
Instrument shall have an Occupancy Period consisting of a Unit Week or range of Unit Weeks
appurtenant to it for which a Time-Share Purchaser may obtain a Confirmation. The Occupancy
Period designations are:
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OCCUPANCY PERIOD
HIGH FLOATING
MEDIUM FLOATING
VALUE FLOATING
FIXED
UNIT WEEKS______________________ _____.
Range: Weeks 1 through 52
Range: Weeks 1 through 12, and 44 through 52
Deeded as a Week in Weeks 1 through 52
NOTE: The Occupancy Period designations, HIGH, MEDIUM and VALUE are not used
by the Exchange Company, and have no bearing on the exchange programs Power or related
matters. They are subject to change based upon occupancy demand. When so referenced, the
above designations will be automatically substituted. The Unit Weeks designated above are
those for the Project and Program currently in effect with Developer.
4.
Occupancy Periods for Unit Weeks Purchased Prior to February 1, 2013. Each
Time-Share Estate purchased prior to February 1, 2013, had a range of Unit Weeks appurtenant
to it during which a Time-Share Purchaser might obtain a Confirmation, and which Unit Weeks
were and are characterized by the following Occupancy Periods:
OCCUPANCY PERIOD
UNIT WEEKS
________________________ .
HIGH FLOATING (once “Red”)
MEDIUM FLOATING (once “White”)
VALUE FLOATING (once “Blue”)
GREEN CHARTER
GREEN ASSOCIATE
The occupancy and use rights of Owners who purchased their Time-Share Estate prior to
February 1, 2013 are not changed.
NOTE: The Occupancy Period designations “Red,” “White,”, and “Blue” are no longer
used by the Exchange Company or the Developer. Neither the above Occupancy Period
designations nor past designations have any bearing on the exchange programs or related
matters. The Unit Weeks designated above are those for the Project and Program in effect prior
to February 1, 2013.
The Occupancy Period acquired by the Time-Share Estate Purchaser shall be expressed in
either the Contract and/or the Deed.
5.
Occupancy Levels. Each Time-Share Estate also has one of the following
Occupancy Levels appurtenant to it determining the frequency with which a Time-Share
Purchaser may obtain a Confirmation:
(1)
Yearly: A Yearly Owner is permitted to occupy each year a Time-Share
Unit for one Unit Week within the appropriate Occupancy Period for each Time-Share Estate
purchased.
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(2)
BiYearly: A Bi-Yearly Owner is permitted to occupy every other year a
Time-Share Unit for one Unit Week within the appropriate Occupancy Period for each TimeShare Estate purchased.
(3)
Green: A Green Owner is permitted to occupy a Time-Share Unit for one
Unit Week for each Time-Share Estate purchased once every 5 years during certain Unit Weeks
only, namely Unit Weeks 1 through 17 and Unit Weeks 44 through 52. In addition:
(a)
Membership in Coast To Coast with unlimited rights of exchanges
among campgrounds is available if offered and enrolled at time of purchase; and
(b)
No Deposit of the Unit Week with Exchange Company is
permitted; and
(c)
If the Green Occupancy Period is designated “Charter”, the Owner
is entitled to make a Reservation Request up to 180 days in advance before intended occupancy;
and
(d)
If the Green Occupancy Period is designated “Associate”, the
Time-Share Owner is entitled to make a Reservation Request up to 30 days in advance before
intended occupancy; and
(e)
In its discretion, Developer may implement an annual policy to
accept Reservation Requests prior to the advance dates set forth in (c) and (d) above.
The Occupancy Level acquired by the Time-Share Estate Purchaser shall be expressed in
either the Contract or the Deed.
6.
Capacity.
The maximum number of Time-Share Units for the Project and
Program is 165. The maximum acreage for the Project and Program is 76 +/- acres. The
maximum number of Time-Share Estates to be sold is unknown and will not be ascertainable
until the option to expand lapses or Developer sooner concludes its sales effort. The total
number of Time-Share Units and their ratio to Time-Shares is within the sole discretion of
Developer and is unknown at this time. However, no additional Time-Shares may be created
after January 1, 2060.
Developer and Managing Agent calculate the ability of the Project and the Program to
accommodate all sales of Time-Share Estates with reference to historical occupancy and
reservation trends, and to Owner defaults, forfeitures, and/or the number of Owners current in
the payment of all Owner Obligations. On this basis, sufficient time-share units are and at all
future times will be completed or bonded to accommodate all sales.
7.
Duration.
Each Time-Share Estate continues upon Termination. While the
Program ends upon Termination, the Time-Share Estate does not end and its Owner shares in the
ownership of all Time-Share Units then in existence with all other Time-Share Estate Owners.
This is called the “Time-Share Remainder Interest”, which will be computed by Association with
its decision binding on all Owners.
8.
Conveyances. The Time-Share Owner may transfer ownership of his Time-Share
by sale, gift or devise. This can be accomplished, in the former two instances, by the execution
and recordation of a deed recorded in the Clerk’s Office. The last instance is accomplished by a
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will. Owners must notify PROA or Managing Agent in writing of all transfers, and must obtain
Developer’s advance consent to transfers by deed if Owner remains liable to Developer on a
Deed of Trust Note. The Time-Share Act recognizes the sale of an Owner’s Time-Share as a
“re-sale” and in this case, the Owner must provide certain information to his buyer. An Owner
signing a contract for the sale of his Time-Share is entitled, on request, to a recordable statement
setting forth the amount of unpaid Maintenance Fees or Assessments currently levied against that
Time-Share. Such request must be in writing, directed to the Board or Managing Agent, and
delivered to the principal office of the addressee. Failure to furnish or make available to Owner
such statement within 30 business days (or within such time as the Time Share Act then requires)
from the receipt of the written request extinguishes any PROA lien as to the Time-Share but not
the debt. Payment of a fee permitted by the Time-Share Act may be required for the issuance of
such statement. If an Owner seeks a certificate as called for by § 55-380 of the Time-Share Act,
PROA or Developer (as the case may be) must timely provide the same at the fee permitted
thereby. Any purchaser or transferee automatically becomes a Member of the Association and is
subject to the Documents and the Statutes.
TAKE NOTICE:
DEVELOPER OFFERS NO RESALE PROGRAM.
The Time-Share Owner may also rent his Time-Share but only on forms approved in
advance by Developer or Association. The tenant must agree to abide by the terms of the
Documents. Unless the lease is approved in advance, it will not be recognized by Developer or
Association. Access to the Project and the Time-Share Unit, and participation in the Program,
will be denied to the tenant if an unapproved lease form is used.
C.
Project.
Presidential Resort at Chancellorsville, a Time-Share Estate Project, is located in
Spotsylvania County, Virginia and adjoins Wilderness Resort. The Project is zoned Agricultural
(A-1) by the County. A conditional use permit from the County enables the erection of the type
of Units that are in the Project. Owner’s and Guests of Presidential Resort share the Amenities
of Wilderness Resort with the owners and guests of Wilderness Camping Clubs, Inc. (“WCC”)
and Wilderness Resort Association, Inc. (“WRA”) who enjoy ownership or use of camping lots
within Wilderness Resort, and with Recreational Resorts’ invitees.
Historical sites, within 10 miles of the Project, include Rising Sun Tavern, Kenmore Inn,
and numerous Civil War battlefields such as Chancellorsville, Fredericksburg, Mine Run,
Spotsylvania Courthouse, and Wilderness. The Project is approximately 10 miles from the City
of Fredericksburg, Virginia, approximately 70 miles southwest of Washington, 65 miles from
Charlottesville, 60 miles from Richmond and 150 miles from the Virginia Tidewater area. The
Project is within 90 miles of the following attractions: Shenandoah National Park and Skyline
Drive; New Market Battlefield; Luray, Grand, Skyline, Shenandoah and Endless Caverns; and
Monticello.
Some recreational facilities, activities, and amenities that are outside of the Project in the
Wilderness Resort may, from time to time, in PROA’s or Managing Agent’s sole discretion, be
available to Time-Share Owners. They are not part of the Project and varying fees are charged
for their use. Examples of amenities include without limitation, the clubhouse, fields, mini-golf,
lakes, pond, recreational vehicles or RV’s, paddleboats, Jon boats, pavilions, playgrounds, picnic
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areas, tennis courts, racquet courts, recreation center, gym, open space, trails, swimming pools,
grills, coin-operated machines (laundromats, vending, etc.), restaurants, and other facilities of
similar nature (the “Amenities”).
The Development consists of, at any given time, two portions: (1) the Time-Share
Project itself; and (2) the Additional Land. Periodically and as Developer determines in its sole
discretion, Developer will take a portion from the Additional Land and commit it to the Project
and Program. In this event, the size of the Additional Land decreases to the extent of the size of
the portion while the Project itself increases in the same size. That portion of the Development
which has been committed to the Time-Share Program constitutes, at any given time, the TimeShare Project. That portion of the Development which has not been so committed constitutes the
Additional Land. At any given time, the aggregate of the Time-Share Project and the Additional
Land constitutes the Development. The Project includes the Time-Share Units and the Common
Elements but does not include any Additional Land, Amenity, recreational area, or other area in
the vicinity of the Project.
Exhibit 1 (as supplemented by sub-exhibits if applicable) reflects the current status of the
Project in terms of its acreage and the Phases, Buildings/Cabins, Time-Share Units and their
types, Time-Share Estates and their types, and the Common Elements constituting the Project.
It is Developer’s right to construct up to a maximum of 165 Units and thereafter commit
them to the Time-Share Project and Program and in such event, the Units will then become
Time-Share Units. It is also Developer’s right to build any such additional Units throughout the
entire 76 +/- acre Development selling from each no less than 52 Time-Share Estates. Numerous
Common Elements have been or will be constructed and Amenities may be constructed. The
right to add new Time-Share Units, Time-Shares, Amenities, and Common Elements expires on
January 1, 2060. Notwithstanding, the decision to exercise the above rests solely with Developer
and there is no obligation on Developer to continue with the Project and Program beyond what is
depicted in the foregoing Exhibit(s).
The Project as it currently exists with 53 Buildings/Cabins is paid for and fully
completed. There is no common element or facility promised by Developer that has not become
a part of the Project or Program.
The size, configuration, location and materials for constructing and furnishing the TimeShare Units and their contents are within the sole discretion of Developer. All Time-Share
Units, however, will be provided with water, electricity, telephone and sewage service.
The addition and commitment of Time-Share Units, Time-Shares, Amenities, Incidental
Benefits, and/or Common Elements in Phases or otherwise to the Project and Program is an
aspect or result of the orderly development of the Project in accordance with the Instrument.
Accordingly, none of these additions to the Project and Program constitutes a material change
requiring amendment to this Public Offering Statement.
Any Unit or Amenity within the Development not committed to the Time-Share Program
or Project is not a part of the Time-Share Project and its property classification remains as such.
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Each Time-Share Unit will be provided with one (1) on-site parking space. Parking is
currently without charge and is available to a Time-Share Owner only during his confirmed Unit
Week. Unauthorized parking may result in towing.
The Time-Share Unit cannot be altered by the Time-Share Owner under any condition
and occupancy is limited to vacation and recreational use only. No commercial or illegal activity
is permitted in a Time-Share Unit by a Time-Share Owner. The Developer, however, has
reserved the right to operate its sales effort within the Project or the Development
notwithstanding such use being considered commercial in character.
Developer reserves the right at any time and for any reason, before termination of the
Developer Control Period, to eliminate from the Project at no cost, any Time-Share Unit from
which there has not been sold a Time-Share. Any elimination of property shall be effected by
recordation of an Amendment recorded in the Clerk's Office.
A Unit Week begins on a specified day of the week. This is called the "Day" and in the
case of Time-Share Units for Phases I, II, III, IV and V, the Day is Friday, Saturday or Sunday.
The Day will be reflected in the Confirmation or Amendment and if not so designated, the Day
will be Saturday. The Instrument (as may be amended or supplemented) reflects the current Day
for each Time-Share Unit.
Week Numbers for Unit Weeks range consecutively from 1 through 52, inclusive. Unit
Week 1 is the 7 days beginning at 4:00 p.m. on the First Day of January and ending at 4:00 p.m.
on the following Day. Unit Weeks 2 through 51 are consecutive 7 day periods beginning at 4:00
p.m. on the Day the previous Unit Week ends, and ending at 4:00 p.m. on the following Day.
Unit Week 52 is the next days after Unit Week 51, and any additional days thereafter before Unit
Week 1.
Each period begins at 4:00 p.m. on the first Day and ends at 4:00 p.m. on the next
succeeding Day. However, Owners shall vacate at 10:00 a.m. on the succeeding Day to allow
for cleaning, repairs, maintenance and any other preparation for occupancy during the next Unit
Week. If an Owner fails to timely vacate, he is a "Holdover Owner" and is subject to penalties,
including a per day administration charge of between $200.00 and $500.00, as set forth in the
Rules.
As of the Revised Date, Presidential Resort has the following Phases, Acreage,
Buildings/Cabins, Time-Share Units and Time-Share Days:
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Phase Number Acreage Cabin Number Phase I Phase II Phase III Phase IV Phase V Total 2.1+/‐ 13.0+/‐ 2.2+/‐ 0.6+/‐ 0.9+/‐ 1 1 Sunday 3 3 Sunday 4 4 Sunday 5 5 Sunday 6 6 Sunday 7 7 Sunday 8 8 Sunday 9 9 Sunday 10 10 Sunday 11 11 Sunday 12 12 Sunday 13 13 Saturday 14 14 Saturday 15 15 Saturday 16 16 Saturday 17 17 Saturday 18 18 Saturday 19 19 Saturday 20 20 Saturday 21 21 Saturday 22 22 Saturday 63 63 Friday 64 64 Friday 65 65 Friday 66 66 Friday 67 67 Friday 68 68 Friday 69 69 Friday 70 70 Friday 71 71 Friday 72 72 Friday 73 73 Friday 74 74 Sunday 75 75 Sunday 76 76 Sunday 77 77 Sunday 78 78 Sunday 79 79 Saturday 80 80 Friday 81 81 Saturday 82 82 Sunday 23 23 Friday 24 24 Friday 25 25 Friday 26 26 Friday 83 83 Saturday 84 84 Saturday 103 103 Saturday 104 104 Saturday 105 105 Saturday 106 106 Saturday 107 107 Friday 112 112 Sunday 18.8+/‐ acres 53 Cabins 18
Unit Number 53 Units
Day D.
Common Elements
Common Elements are defined by the Time-Share Act to mean the Project less TimeShare Units and the Time-Share Estates located in these Units. As such, the Common Elements
of the Time-Share Project currently consist of the tennis courts, swimming pool and ancillary
facilities, roads, parking areas, landscaping, well house and wells.
Reserved to Developer and the Association is the right to levy the Maintenance Fee,
Assessment and Special Assessment. The Time-Share Owner is bound by the decisions of the
Developer and/or Association in all matters of Common Elements, and the related issues of
Maintenance Fee, Assessment or Special Assessment, even decisions about which the TimeShare Estate Owner disagrees.
Fee simple title to the Common Elements will be transferred to the Association, free of
charge, no later than at such time as Developer either transfers to Purchasers legal or equitable
ownership of at least ninety percent of the Time-Share Estates or completes all of the Common
Elements and facilities comprising the Project, whichever occurs later. Developer may, but is not
required to, make a transfer when the period has ended for a Phase or portion of the Project. The
transfer required of Developer does not exonerate it from the responsibility of completing any
promised and incomplete Common Element.
E.
Program
The Time-Share Program at Presidential Resort is the arrangement under which the
Time-Share Owners access, use, and occupy the Project and its Common Elements and
Amenities. The Program includes, without limitation, the right to file Reservations Requests,
obtain Confirmations, seek and obtain external exchanges through the appropriate Exchange
Company (depending on Occupancy Level), membership in the Association, and the other rights
and benefits afforded by the Documents and the Statutes. The Program is terminable while the
Project is not. Significant points of the Program are:
1. The Association. A nonstock Virginia corporation, Presidential Resort Owners
Association ("PROA" or "Association"), is responsible for the management and operation of the
Program and for the maintenance, repair and furnishing of Time-Share Units. Its normal
operations will be performed under the direction of its Board of Directors (“Board”). The initial
Board was appointed by Developer in its capacity as the sole Class A Member. During the
Initial Board Term, which may extend beyond the Developer Control Period but may last no
longer than January 1, 2060, only the Class A Member may vote. All Owners of Time-Shares
are Class B members of the Association and during the Initial Board Term, Class B Members are
not entitled to vote. As the sole Class A Member, Developer in effect controls the Board during
the Initial Board Term. The purpose of such retention of control is to assure the stability of the
Association, especially during Developer's sales effort. PROA will have the officers prescribed
by its Bylaws and has the power to pass Special Assessments against, and raise the annual
Assessments of, the Time-Share Owners, on termination of the Developer Control Period.
Currently, there are no standing committees of the Association established or to be
established to perform functions of the Association.
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The Association is governed by its Articles of Incorporation (“Articles”) and Bylaws
attached as Exhibits 2 and 3 and by Rules made by the Board, attached as Exhibit 4.
After the Initial Board Term, Time-Share Owners (including the Association as to TimeShares owned by it), as Class B Members, will have one vote for each Time-Share owned. If a
Time-Share is owned by more than one Person, the Person entitled to vote will be as provided in
the Bylaws. Votes may be cast in person or by proxy. Cumulative voting by mail is prohibited.
Each Owner will be bound by all decisions of the Association, including those with which he
disagrees.
Membership in the Association is compulsory and is automatic upon acquisition of a
Time-Share. Membership of an Owner ceases when disposition of his Time-Share occurs.
The annual meeting of members of PROA will be held in conformity with the Bylaws.
Each member entitled to vote will be notified before each meeting in conformity with the
Nonstock Corporation Act.
There will be prepared and disseminated to the Time-Share Owners an annual report as
required by § 55-370.1 of the Act. A copy of the most recent Annual Report is attached as
Exhibit 6, and the current Budget is attached as Exhibit 7.
An Owner cannot reduce the amount of his Owner Obligations including the
Maintenance Fee or Assessment, by refraining from using his Time-Share Unit or any of the
Common Elements.
An Owner must be current in the payment of all Owner Obligations before participation
in the Program or access to the Project or any Time-Share Unit will be permitted. If an Owner is
not current in the payment of all Owner Obligations, then the Owner may be denied access to the
Project, Wilderness Resort, his Time-Share Unit and participation in the Program at the sole
option of Developer or Association.
The use and occupancy of a Time-Share Unit must at all times be in compliance with
law, the Documents and the Statutes.
Any lease and/or contract for goods and services for the Program, Project or the TimeShare Units comprising it, made by Developer during the Developer Control Period and
extending beyond such Period is voidable at the option of the Association as provided by the
Time-Share Act.
Only an Owner who is a Member in Good Standing has the right to inspect the books and
records of the Association. A request to do so must be in writing with 15 day’s advance notice.
A reasonable fee may be charged for copying. No books or records may be removed by the
Owner requesting the information. Inspection and any copying will be under the supervision of
the custodian.
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The Association is forbidden from allowing an Owner access to the name, address, phone
number, electronic mail address or other personal information of another Owner unless such
other Owner approves in writing in advance. Other conditions may exist that prohibit an Owner
access to certain books and records. For more information on Owner rights in this regard, review
the following web site: http://leg1.state.va.us/000/src.htm. The TSA begins in the Virginia Code
at Title 55, Chapter 21, § 55-360.
2.
The Managing Agent.
The Association, through its Board, has employed a
Managing Agent to act for it in performing its duties other than policy making. The Managing
Agent is the Developer, Recreational Resorts, Ltd. of 610 West Rio Road, Charlottesville, VA
22901, pursuant to a Management Agreement with PROA, a copy of which is attached as Exhibit
8. Therein, you will find the terms of the Agreement, as well as the method whereby the
Management Agreement may be terminated. As Managing Agent, Recreational Resorts provides
to the Association certain facilities for the enjoyment and management of the Project. These
include without limitation laundry facilities, facilities for the storage of furnishings, equipment
and vehicles, a check-in location, facilities for accepting reservations, and for the maintenance
and storage of records. Pursuant to the Management Agreement, the Association is charged a
management fee of up to fifteen percent (15%) of revenue. The current Management Agreement
also provides for Managing Agent to receive deferred compensation from PROA for a prior
year(s) in which PROA was unable to compensate Managing Agent in accordance with the
Agreement.
3.
Holdovers, Unit Availability. The Board will charge a Holdover Owner an
administrative fee of between $200.00 and $500.00 per day of the holdover. This charge is
intended as a deterrent to Holdover Owners rather than to benefit the inconvenienced or
displaced Owner or Guest.
If an Owner's Time-Share Unit is unavailable for any reason, such as, for example,
occupancy by a Holdover Owner or a maintenance issue, the Association and Developer in their
discretion may provide alternate accommodations within or without the Project. If another TimeShare Unit is unavailable due to a Holdover Owner, the Holdover Owner shall be charged travel
expenses and any other expenses of the Owner unable to occupy.
4.
Rules, Fines. The Association, Managing Agent, and Developer will each adopt
Rules for the use, enjoyment and occupancy of Time-Share Units, the Project, and participation
in the Program. The Rules can be amended from time to time within the sole discretion of its
author. The current Rules of the Association and those of the Developer, if any, are attached as
Exhibit 4.
The Board may impose a fine against an Owner for the failure of such Owner to comply
with its Rules or the Instrument. Before imposition of a fine or loss of voting rights, the Owner
shall be given reasonable notice and the opportunity to be heard and defend the charges against
such Owner in person or in writing before a decision to impose discipline is rendered.
5. Maid Service, Maintenance. Between the vacating of a Time-Share Unit by one
Owner and the occupancy by the next Owner, such Unit will receive routine janitorial service,
changing of linens and towels, vacuuming and dusting. Weekly maid service is also provided.
Each Time-Share Unit will receive comprehensive maintenance, including repairs, painting, etc.,
to keep it in good condition. The Association or Managing Agent shall provide such
maintenance.
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6. Insurance. The Board will obtain comprehensive general liability insurance for death,
bodily injury and property damage arising out of, or in connection with, the use and enjoyment
of the Project by Owners, Guests and other users. During the Developer Control Period,
Developer pays for this insurance to the extent it does not constitute a Time-Share Estate
Occupancy Expense. Thereafter, such costs are paid by Owners through the Assessment.
Any Building which contains Time-Share Units is covered for its replacement cost by fire
and extended coverage property damage insurance. This coverage will not insure personal
property or effects belonging to Owners, Guests or other users. Owners may wish to contact
their own agents to obtain insurance on their conduct and that of their Guests and on the personal
effects or other property of them and their Guests, since neither Developer nor the Association
provides such coverage.
7. Termination. Termination of the Time-Share Program will not occur any sooner than
the first Day in January, 2060, unless all Time-Share Owners unanimously consent in writing.
Thereafter, the Program will automatically renew itself, unless ended in accordance with the
Instrument. After Termination, an Owner continues to have an ownership interest in the TimeShare Unit as a tenant in common with the other Owners. Partition of a Time-Share Estate in
kind is prohibited until Termination occurs. Court-ordered Termination is permissible under
certain circumstances.
8. Other. The Association may employ attorneys, accountants, collection agents and
other professional Persons to assist in the management of the Project.
Other than certain easements, rights and agreements expressed in the Documents, there
are no leases of recreational areas or similar contractual agreements affecting the use or
maintenance of, or access to, all or any part of the Project, except as follows: PROA permits
WRA and WCC Owners and Guests to access the Presidential swimming pool in exchange for a
contribution towards expenses determined by Managing Agent. Further, PROA members are
permitted to use Wilderness Resort Amenities in exchange for a reasonable fee determined by
Managing Agent in light of expenses.
A Time-Share Unit may be entered without notice to the Owners. Developer or
representatives of PROA may take action or perform work in a Time-Share Unit without the
consent of Owners, and Owners may have to pay the costs of action so taken or work so
performed.
PROA and Developer have a Lien on all Time-Shares of an Owner whose Maintenance
Fees, Assessments or other Owner Obligations are delinquent. See Part III below for more
details.
Developer reserves the right to facilitate and charge an administrative fee for internal
exchanges of Unit Weeks for Owners.
III.
FINANCIAL OBLIGATIONS OF TIME-SHARE OWNERSHIP.
A Time-Share Owner incurs certain financial responsibilities by virtue of owning his
Time-Share. The Time-Share Act recognizes a concept called the “Developer Control Period”
which is a point in time when the Developer has responsibility for the Time-Share Project and
Time-Share Program.
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The Developer Control Period begins when Developer sells its first Time-Share and ends
no later than at such time as Developer either transfers to Purchasers legal or equitable
ownership of at least 90% of the Time-Shares or completes all amenities and facilities, or upon
such later date as may be provided by the TSA, whichever occurs later.
Time-Share Program Expenses are the aggregate of the Time-Share Estate Occupancy
Expenses and all expenses belonging to Developer during the Developer Control Period.
During the Developer Control Period, Developer pays all Time-Share Program Expenses
and the Owners pay all Time-Share Estate Occupancy Expenses by way of the “Maintenance
Fee”. The amount of such Maintenance Fee is determined by Developer as provided in Exhibit 8
and may be increased as needs dictate. The projected Time-Share Estate Occupancy Expense
(the Maintenance Fee) for each Time-Share is set forth in Exhibit 9. Nothing precludes
Developer from making a voluntary payment towards the reduction of Time-Share Program
Expenses, whether in the form of a loan or contribution of capital.
After the Developer Control Period, all Owners except Developer will pay all TimeShare Program Expenses by way of the “Assessment”. The Assessment is determined by
Association. Unless otherwise agreed by the Managing Agent and Association, the Assessment
is based on PROA's budget for the year of such Assessment. The budget will be prepared
annually. The budget divided by the number of active Owners will constitute the formula for
charging Assessments. Total Assessments are expected to increase. DEVELOPER IS NOT
OBLIGATED TO PAY ALL OR A PORTION OF ANY ASSESSMENT, DUES, OR
OTHER CHARGES OF ASSOCIATION, HOWEVER DENOMINATED, PASSED OR
ADOPTED. To the extent Developer does not make a voluntary payment, the amount of the
Time-Share Program Expenses to be borne by the Owners increases. Other than as stated above,
there is currently no service or expense being provided or paid by Developer which may become
at a subsequent time an expense to be paid by the Owners.
Each Owner pays either a Maintenance Fee or an Assessment at any given time but not
both the Maintenance Fee and the Assessment at the same time. Moreover, Special Assessments
may be levied against a Time-Share Owner at any time and reserves created from the collection
of Maintenance Fees, Assessments and Special Assessments are allowed.
Each Owner must pay all applicable user fees, for example, for coin-operated laundry
appliances. Moreover, each Owner must pay all applicable application, membership and
exchange fees to any Exchange Company. These fees are in addition to the Maintenance Fee
and Assessment (and any Special Assessment) and, along with the Assessment and the
Maintenance Fee (and any Special Assessment), constitute the current or expected fees or
charges to be paid by Owners for the use and enjoyment of the Project and participation in the
Program.
A description of any provision made in the budget for reserves for capital expenditures is
also found in Exhibit 7. If any part of the capital reserves will or may be obtained other than
through the Maintenance Fee or the Assessment, such fact is also stated therein. If no provision
is made in the budget for these reserves, then no such provision exists. The amount of capital
reserves accumulated by the Association if any, is also shown in Exhibit 6.
During the Developer Control Period, the Association will pay real estate taxes that are
Time-Share Estate Occupancy Expenses and Developer shall pay the balance. Thereafter, all
such taxes shall be paid by PROA. Generally, each Owner pays a share of such taxes through
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either the Maintenance Fee or the Assessment. For purposes of local real estate taxation, the
Time-Share Act requires that a Time-Share Unit be valued in the same manner as if such Unit
were owned by a single taxpayer. The total cumulative purchase price paid by Owners will not
be used as a factor in determining the assessed value. The actual assessed value of each TimeShare Unit is unknown because the Development has been taxed as a parcel. Exhibit 7 provides
the most recent information on real estate taxes, including the most recent tax rate. There are no
other taxes applicable to the Project that the Owner will be responsible to pay.
All delinquent amounts owed Association by an Owner bear interest at a rate allowed by
law and are secured by a Lien on all Time-Shares owned by such delinquent Owner. On
amounts delinquent for more than 60 days, the Managing Agent or the Board may perfect such
Lien by recording a Memorandum of Lien in the Clerk's Office. The Owner cannot dispose of a
Time-Share free of the Lien until all Owner Obligations are paid in full. The Board, Managing
Agent or Developer (as case may be) may obtain payment of past due amounts by foreclosure of
the Lien, resulting in a forced sale of the Time-Share, or by suing the Owner. Other remedies are
available to Association and Developer and are discussed herein, in the Instrument and in the
Bylaws, including the lien afforded PROA by § 55-370 of the Time-Share Act. When full
payment is made, the Lien will be released by PROA or Managing Agent.
IV. TERMS OF OFFERING.
1. Pricing. Developer estimates that prices for the Time-Shares being offered at the
Time-Share Project will range from $4,000.00 to $15,000.00, with the actual price varying from
transaction to transaction and dependent upon the season. A Time-Share in a season with greater
demand will cost more than a Time-Share in a lesser demanded season. Also, Developer may
offer price reductions during special promotions which may affect the price of a particular TimeShare.
Prices may also vary between Fixed Week Time-Share Estates and Floating Week TimeShare Estates and based upon Occupancy Level.
2. Financing. Purchaser may pay cash or finance his purchase. A Purchaser
need not accept the financing offered by Developer and may seek his own financing. Interest
rates and terms on Developer financed purchases will vary according to costs of funds and other
economic factors. Developer currently finances up to 90% of the purchase price for up to 10
years at rates set by it. The rate will vary according to the percentage of the purchase price
financed and the length of financing. The financing is also subject to additional terms and
conditions as stated in the Note, Deed of Trust and other documents executed at the closing of
the purchase. Interest rates may exceed rates set by financial institutions, but currently do not
exceed 19% per year. Seller financing may include, at Seller’s option, either a monthly servicing
fee or a reduced interest rate depending on Purchaser’s method of payment. Any Purchaser may
pay cash within thirty (30) days of purchase and incur no interest charge.
After signing the contract, and upon receipt of Purchaser’s ten (10) percent down
payment, Developer may, in its sole discretion, offer Purchaser one or more options to modify
the contract and financing rate provided additional payments are made prior to the first regular
loan payment. Developer may also offer to modify the contract to supercede the note and all
interest, and waive recording of the deed of trust upon the following conditions: Prior to the first
regular loan payment, Purchaser must (1) pay fifty percent (50%) of the purchase price in cash;
and (2) make twelve timely monthly payments sufficient to satisfy the remaining fifty percent
(50%) balance of the purchase price within one year. If Purchaser selects and performs these
24
conditions, Purchaser will receive interest-free financing under the contract. A deed will be
recorded and delivered within six months after the final contract payment.
In connection with the financing provided by Developer, Developer may assign its
receivables and lien rights to a financial institution or other person, including affiliates of
Developer. In such event, Developer will give written notice to Purchaser of such assignment
and that Purchaser has 30 days in which to object to any defect in or the validity of the
instrument or be forever barred from raising such objection in any subsequent enforcement of the
collection of the receivable from Purchaser. Developer's lien holder or assignee shall have its
lien rights preserved as against a Time-Share Purchaser who first claims that the Instrument is
invalid, void or voidable 30 days after such written notice has been given by Developer to
Purchaser.
3.
Closing Costs.
Purchaser must pay normal closing costs in addition to the
purchase price. These closing costs include the cost of recording the Deed or Reverter Deed and
any Deed of Trust, preparation of the papers necessary to close, attorney's fees, postage and
handling, administrative and overhead expenses, and acquisition of owner's and mortgagee's title
insurance. In the event an Owner avails himself of an "Up-Grade" opportunity periodically
offered by Developer, additional closing costs will be charged, all of which shall be paid solely
by the Purchaser. A Purchaser is not required to make any contribution to the initial or working
capital of the Project.
4.
Recording. At such time as the Purchaser has fulfilled all of his obligations
under the Sales Contract, or completed the terms of his refinance contract, and is entitled to a
Deed for his Time-Share Estate, Developer will file the Deed or cause it to be filed with the
Clerk’s Office for recordation within 180 days therefrom. Upon receipt of the recorded Deed
from the Clerk's Office, Developer will, within 45 days, send or cause to be sent the original
Deed to the Purchaser.
5.
Default Remedies. If Purchaser defaults under his Sales Contract or in the
payment of money due Developer or Association or violates any other obligation to either of the
same, Purchaser may be sued for the entire unpaid portion of the purchase price and be liable for
all Collection Costs including attorney’s fees, interest, administrative charges, witness fees,
collection agency charges, and court costs. After judgment, Purchaser may be subject to
garnishment of salary or levy on any property of Purchaser, to foreclosure and a deficiency
judgment, and to forfeiture of deposit and note payments. A delinquent Purchaser may be denied
access to the Project and the Program, to Wilderness Resort, to any amenity or facility therein,
and serious delinquencies may subject Purchaser to Forfeiture of his rights to enjoy the Project
and the Program in accordance with procedures set forth in the Instrument. Finally, Purchasers
who receive Reverter Deeds are also subject to the Possibility of Reverter described below.
These remedies are cumulative, and the exercise of one or more shall not be construed to
foreclose the Developer’s right to exercise additional lawful remedies Developer’s sole
discretion.
6.
Possibility of Reverter.
The Developer utilizes the possibility of reverter.
Purchasers are referred to the reverter deed for an explanation thereof. A possibility of reverter
contained in a reverter deed for a time-share estate subject to reverter is valid, enforceable in law
and in equity, and shall operate to transfer title to the time-share estate from each grantee therein
25
back to Developer provided the conditions contained in the TSA, section 55-376.1(A) are
satisfied. Any possibility of reverter not otherwise exercised by Developer pursuant to that
section shall itself lapse and become null and void at the soonest to occur of the following: (i) the
deed of trust is released of record, (ii) a statement that the deed of trust is released of record is
executed and recorded by Developer with a date of when the possibility of reverter was or is to
lapse, or (iii) when the time-share program terminates pursuant to either the TSA or the timeshare instrument. In exercising the possibility of reverter, the developer shall be entitled to retain
as liquidated damages all monies paid by the purchaser in conformity with any consumer
document. The exercise of the possibility of reverter shall not operate to diminish or eliminate
(i) any debt of the purchaser to the time-share association or other third party occasioned by
ownership of the time-share estate or participation in the time-share program, or (ii) any recorded
lien junior in priority to the deed of trust lien referred to in this section.
7.
Cancellation. Each Time-Share Purchaser has a nonwaivable right to cancel the
Contract of Purchase and Sale (“Contract”) for seven calendar days after execution of such
Contract. Reference is hereby made to the portion of the Contract under the heading
“Purchaser’s Nonwaivable Right to Cancel” printed in conspicuous bold face type above the
purchaser's signature line.
The Developer has no right to cancel a Sales Contract with an Owner upon failure of the
Developer to obtain Sales Contracts on a given number or percentage of Time-Shares being
offered or upon failure of the Developer to meet conditions precedent to obtaining necessary
financing.
ANY DEPOSIT MADE IN CONNECTION WITH THE PURCHASE OR RESERVATION OF THE TIME-SHARE WHICH IS THE SUBJECT OF THE SALES
CONTRACT SHALL BE HELD IN ESCROW. ALL CASH DEPOSITS SHALL BE
HELD IN A FEDERALLY INSURED, SEPARATE BANK ACCOUNT LABELED AND
DESIGNATED SOLELY FOR THAT PURPOSE. THE ACCOUNT SHALL BE LOCATED IN VIRGINIA. THE DEPOSIT SHALL BE HELD UNTIL (I) DELIVERED TO
DEVELOPER UPON EXPIRATION OF PURCHASER'S CANCELLATION PERIOD
PROV-IDED THE PURCHASER'S RIGHT OF CANCELLATION HAS NOT BEEN
EXERCISED, OR (II) DELIVERED TO DEVELOPER BECAUSE OF PURCHASER'S
DEFAULT OF THE SALES CONTRACT, OR (III) REFUNDED TO THE PURCHASER.
THE DEPOSIT MAY NOT BE HELD IN ESCROW AND IS NOT PROTECTED AS AN
ESCROW AFTER EXPIRATION OF THE CANCELLATION PERIOD. THE DEVELOPER RESERVES THE RIGHT TO SELL OR ASSIGN ANY NOTE GIVEN BY THE
PURCHASER TO ANOTHER ENTITY, WHETHER OR NOT SUCH ENTITY IS AFFILIATED WITH DEVELOPER.
A fidelity bond has been posted with the Virginia Common Interest Community Board to protect
the deposit while in escrow, but the protection of escrowed deposits is limited.
V. ENCUMBRANCES.
A. Easements
26
1.
Utility Easements. The Project is subject to normal utility easements for water,
sewer, electric, television and telephone lines.
2.
Matters of Record, Easements & Reservations of Right. The Project is also
subject to all matters of record, easements, and reservation of rights created by the Instrument,
generally outlined in Article 5 and 6 thereof, and which are briefly stated to be:
A.
Each Owner has a right of access to and over the Common Elements
subject to the Rules and Regulations.
B.
PROA and Managing Agent have access to every Time-Share Unit to
make inspections, to correct any condition in such Unit threatening another Unit or Time-Share
Unit or likely to result in the breach of any provision of the Documents or the Statutes, to make
alterations or repairs to the mechanical or electrical services or to exercise other responsibilities
outlined in the Instrument. In an emergency, such right shall be immediate, whether or not
Owner is present. Otherwise, entry will be requested in advance at a time reasonably convenient
to the occupying Owner.
C.
Developer may use any Time-Share Units owned by it as models or as
management, sales and rental offices, and may relocate the same from time to time.
D.
Developer may use any property in the Project to facilitate repairs and
renovations.
E.
Developer or its assigns may provide alternate accommodations to an
Owner with a Confirmation, as described in Section 5.7 of the Instrument.
B. Liens
1.
Federal Tax Liens. If Developer becomes the subject of a federal tax lien, such
lienholder may foreclose its lien on the balance of the Project, including any unsold TimeShares. However, all such liens shall be released as to a Time-Share before the deposit or other
payments made by a Purchaser of such Time-Share are removed from escrow. No such lien
exists presently.
2.
Real Estate Tax Liens, Mechanic’s Liens. Sold Time-Shares will be subject to a
real estate tax lien if PROA fails to pay such taxes. Should a mechanic's lien be filed against a
Time-Share Unit, each Owner in such Unit is responsible for a pro-rata portion of the amount
owed and is entitled to a release of the lien from its Time-Share upon payment of such portion.
No such lien exists presently.
3,
Lien for Maintenance Fee and Assessments.
Each Time-Share Estate is
subject to a lien for any unpaid Maintenance Fee and Assessments, other Owner Obligations and
other amounts due. No such lien shall exist as to a Purchaser’s Time-Share Estate at the time his
purchase.
VI.
EXCHANGE COMPANY.
Developer has affiliated RCI, LLC (“RCI”), an independent time-share exchange
company, with the Project and the Program. RCI is an Indiana limited liability company with its
principal office at 9998 North Michigan Road, Carmel, Indiana 46032-9646. RCI's officers
27
(including its top three officers) and all of its directors are listed in RCI Weeks RCI Points
[20__-20__]Disclosure Guides included as Exhibit 5, or at www.rci.com. Neither RCI, nor any
of its members, managers, officials, employees or agents have any interest in Developer,
Managing Agent or the Project.
Such affiliation is an Incidental Benefit for Owners with Occupancy Levels other than
Green, who may pay a fee and become a member of an RCI exchange program for the purpose
of effecting exchanges of the Owner’s Unit Week under the terms of the program then applicable
to the Time-Share Estate purchased. Membership and participation in RCI's Exchange Program
is voluntary. Should an Owner elect to participate in RCI's exchange programs, such Owner’s
contract with RCI is separate and distinct from the Owner's contract with Developer.
As of the date of this Public Offering Statement the RCI Points Exchange Program is
applicable to the Project for some Unit Weeks, and the RCI Weeks Exchange Program is
applicable to all Unit Weeks. Subscribing membership in the RCI Points Exchange Program
includes access to the RCI Weeks Exchange Program. Under the exchange programs, a member
is able to exchange, from time to time, occupancy rights in Presidential Resort for occupancy
rights at other projects affiliated with the applicable RCI exchange program.
RCI in its sole discretion modifies its exchange programs and annually publishes the
Exchange Guide and other materials to update the terms of the applicable program. More
detailed information about RCI's Weeks and Points exchange programs is in the current edition
of the Exchange Guide delivered separately as Exhibit 5. Further information is available on
www.rci.com or by calling RCI.
TAKE NOTICE:

Developer makes no representation or warranty concerning the ease or flexibility of
exchanges;

It may be difficult to exchange your Unit Week for a week at certain other locations
and at certain other seasons; and;

The exchange value of your Unit Week under either RCI Weeks or RCI Points may
be altered by the Exchange Company at any time, without notice, and/or by
Developer by amendment.
To exchange your Unit Week, call Wilderness Presidential Resort’s reservations department
at 540.972.7433 and selecting option #1. RCI recommends you do this at the same time you pay
your maintenance fees help to make the exchange process run more smoothly.
28
VII.
GENERAL INFORMATION.
Any information or data regarding Presidential Resort, a Time-Share Estate Project not
presented in this Public Offering Statement or contained in its Exhibits must not be relied upon.
No person has been authorized by Developer to make any representation not expressly contained
herein or contained in other offering literature registered with the Virginia Common Interest
Community Board. This presentation may not be changed or modified orally.
Developer reserves the right to change the terms of this Public Offering Statement as they
affect potential purchasers.
NOTE: This Public Offering Statement is in summary form only and is designed to
highlight certain important factors dealing with Presidential Resort, a Time-Share Estate Project.
It is not intended to describe every aspect dealing with the Project. Any inconsistency between
the contents hereof and the Instrument, Sales Contract, or Deed or Reverter Deed, shall be
construed in favor of said Instrument, Sales Contract, or Deed or Reverter Deed.
GMS
May 21, 2013
29
EXHIBIT 1
Second Restated and Amended Time-Share Instrument
for Presidential Resort at Chancellorsville, a Time-Share Estate Project
,Instrument Control Number
Commonwealth of Virginia
Land Record Instruments
Cover Sheet - Form A
[ILS Cover Sheet Agent Online Version 2.0.9.15
[ 01 /30/2013
[AMEND
T C Date of Instrument
A 0 Instrument Type
XR
[1
P Number of Parcels
E
X
E
[ 49
Number of Pages
City
0
County
181
(Box for Deed Stamp Only)
[ Spotsy)vania County
P
I
Last Name
First and Second Grantors
First Name
I
I
OI8l[ Recreational Resorts, Ltd .
DDt
I
Last Name
1[
I
OO[
I
Middle Name
1[
1[
Grantee Address (Name)
(Address 1)
(Address 2)
(City, State, Zip)
Consideration [0.00
1
1[
First and Second Grantees
First Name
DI8I[ Recreational Resorts, Ltd .
[ Recreational Resorts, Ltd .
[610 West Rio Rd .
[
[ Charlottesville
1 Existing Debt [0 .00
0
181
I
Middle Name
Suffix
!
I
1[
1[
Suffix
1 [VA 1 [22901
Assumption Balance
[0.00
Prior Instr. Recorded at: City
County
[Spotsylvania County
percent. i n this Juris.('!. )[
Book [
Page [
llnstr. No [
Parcel Identification No (PIN)
[ 10-A-25C
Tax Map Num. (if different than PIN)
[ 10-A-25C
Short Property Description
[ Presidential Resort at Chancellorsville, a Time-Sh
1
1
[
Current Property Addr(Address 1)
[
(Address 2)
[
(City, State, Zip) [
Instrument Prepared by
Recording Paid for by
Return Recording to (Name)
(Address 1)
(Address 2)
(City, State, Zip)
Customer Case 10
Cover Sheet Page # 1 of 1
Rt. 2, Box 27 1
1 [VA 1 [ 22553
SpotsylvaniaV
[610 West Rio Rd.
[
[ Charlottesville
[
1 [
1 [VA 1 [22901
1 [CS-669390
100
P.O. Box 6006
Charlottesville, VA 22906
No Title Insurance
Tax Map: 10-A-25C
SECOND
RESTATED AND AMENDED TIME-SHARE INSTRUMENT
FOR
PRESIDENTIAL RESORT
AT CHANCELLORSVILLE,
THIS SECOND RESTATED AND AMENDED TIME-SHARE INSTRUMENT for
Presidential Resort at Chancellorsville, A Time-Share Estate Project ("Instrument") made this the
25th day of January, 2013, by RECREATIONAL RESORTS, LTD., a Virginia corporation
(“Grantor” for purposes of indexing only and otherwise the "Developer") provides:
PREAMBLE
WHEREAS: by initial “Time-Share Instrument for Presidential Resort at Chancellorsville, a
Time-Share Estate Project” dated August 1, 1989 and recorded February 2, 1990 in the Clerk's
Office, Circuit Court, Spotsylvania County, Virginia (the Clerk’s Office) in Deed Book 897,
Page 411, Instrument Number 199000001723, there was created under the Virginia Real Estate
Time-Share Act (the “Time-Share Act” or “TSA”) a time-share estate project known as
"Presidential Resort at Chancellorsville, a Time-Share Estate Project"; and
WHEREAS: the initial Instrument was amended by a document dated February 12, 1992 and
recorded March 25, 1992 in the Clerk’s Office in Deed Book 1025, Page 103, Instrument
Number 199200004493; and
WHEREAS: a “First Restated and Amended Time-Share Instrument for Presidential Resort at
Chancellorsville, a Time-Share Estate Project” was dated June 7, 1994 and recorded July 1,
1994 in the Clerk’s Office in Deed Book 1228, Page 227, Instrument Number 199400015139-01;
and
WHEREAS: a “First Amendment to First Restated and Amended Time-Share Instrument for
Presidential Resort at Chancellorsville, a Time-Share Estate Project” was dated January 15,
1995 and recorded March 2, 1995 in the Clerk’s Office in Deed Book 1279, Page 249,
Instrument Number 199500003366-01; and
WHEREAS: a “Second Amendment to First Restated and Amended Time-Share Instrument for
Presidential Resort at Chancellorsville, a Time-Share Estate Project” was dated November 15,
1995 and recorded December 5, 1995 in the Clerk’s Office in Deed Book 1339, Page 593,
Instrument Number 19950021868-01; and
1
WHEREAS: a “Third Amendment to First Restated and Amended Time-Share Instrument for
Presidential Resort at Chancellorsville, a Time-Share Estate Project” was dated May 8, 2008
and recorded July 28, 2008 in the Clerk’s Office as Instrument Number 200800015528, and
WHEREAS: the Time-Share Instrument as originally written, amended, supplemented,
corrected and/or restated is hereinafter referred to as the “Time-Share Instrument”; and
WHEREAS: the Time-Share Instrument, and specifically Article 14, allows for Developer to
Amend the Time-Share Instrument; and
WHEREAS: RCI, LLC, of Indianapolis, Indiana (“RCI”), an Exchange Company with which
Developer has affiliated the Time-Share Project since the creation thereof, from time to time
alters its methods, procedures, terminology and results in effectuating exchanges of Time-Share
Estate Owners at the Project, and so it is the intention hereof to redesignate certain Occupancy
Levels no longer recognized by RCI while retaining the occupancy rights of such Unit Weeks,
and to expand reservation and deposit opportunities available to existing Owners in those
Occupancy Levels; and
WHEREAS: it is the intention hereof to modify Occupancy Periods available for future
purchases to create a new subcategory of UDI Time-Share Estate to be known as the “Fixed”
Time-Share Estate, or Fixed Week; and
WHEREAS: it is also the intention hereof to authorize the conveyance to future Owners of
Time-Share Estates by Reverter Deed, and to define a process and procedure for forfeiture of
severely delinquent Owners’ opportunity to participate in the Program; and
WHEREAS: it is the intention hereof to restate the Time-Share Instrument for a second time by
this “Second Restated and Amended Time-Share Instrument for Presidential Resort at
Chancellorsville, a Time-Share Estate Project” and to amend the Instrument to accomplish the
purposes of the Program through the changes herein which Developer has determined in its
discretion are necessary, and to incorporate the previous amendments into a single source
document reflecting the current Time-Share Project and Program.
WITNESSETH:
Developer hereby affirms the creation of a Time-Share Project and Time-Share Program
known as "Presidential Resort at Chancellorsville, a Time-Share Estate Project" to be operated as
a time-share estate project, such Project and Program to be operated pursuant to a uniform plan
of development. Further, Developer declares that as real and personal property are additionally
committed to the Time-Share Project and Program, such addition shall be committed to the
Project and Program as a non-expandable Time-Share Estate Project, all of which are subject to
the following provisions. The benefits conferred, and the restrictions and obligations imposed by
the Instrument, shall be covenants running with the Project and with each Time-Share. The
Instrument binds Developer, Presidential Resort Owners Association (“PROA”), all Owners, and
the heirs, legal representatives, successors and assigns of such parties.
2
ARTICLE 1
DEFINITIONS.
As used in the Instrument and its Exhibits, and in all Amendments thereto, the following
definitions shall control unless the context clearly requires a different meaning. If the Instrument
uses a term that is (i) defined herein and in either the Time-Share Act or Nonstock Corporation
Act or (ii) not defined herein but defined in either the Time-Share Act or Nonstock Corporation
Act, the definition in the respective Act as now in effect or as amended shall control. All terms
having the same definition in this Article are synonymous and interchangeable throughout the
Instrument and its Exhibits. Any defined term herein may from time to time also appear in upper
case characters.
CAPITALIZED OR CASED TERMS SHALL HAVE THE SAME MEANINGS ASCRIBED TO
THEM IN THE DEFINITIONS BELOW.
Section 1.1 Additional Land means, at any given time, the Development less the
Project. With 18.8 +/- acres having been committed to the Project and Program, the acreage of
the Additional Land is 57.2 +/- acres.
Section 1.2
Alternative Purchase shall be as defined in the Time-Share Act.
Section 1.3 Amended Time-Share Instrument, Amended Instrument or Amendment
means this Time-Share Instrument as it may be altered, amended, supplemented or restated in its
entirety. An amendment becomes effective only upon the later to occur of its recordation in the
Clerk's Office or its effective date, if such is expressed therein.
Section 1.4 Amenity is any improvement or personal property inside or outside of the
Project that is made generally available by Developer, Association or Managing Agent to
Owners and Guests of Presidential Resort and Wilderness Resort, and to invitees of Developer,
PROA or Managing Agent.
Section 1.5
Annual Report is that report described in Section 55-370.1 of the TSA.
Section 1.6 Assessment means a sum of money determined periodically and levied
annually by the Board of Directors that is required to be paid by each Owner, other than
Developer, in order to pay all Time-Share Program Expenses, and for the creation and
maintenance of any Reserve for such Expenses. An Assessment can only occur after the
Developer Control Period ends and includes a Special Assessment.
Section 1.7 Association shall have the same meaning as Presidential Resort Owners
Association or PROA.
Section 1.8
Board or Board of Directors means the Board of Directors of PROA.
Section 1.9 Building or Cabin means a structure located within the Project that
contains at least one Time-Share Unit.
3
Section 1.10 Check-In means that point in time when an Owner or Guest physically
presents himself or herself at the Project for the purpose of occupying a Time-Share Unit during
a Confirmed Unit Week.
Section 1.11 Clerk's Office means the Office of the Clerk of the Circuit Court for
Spotsylvania County, Virginia.
Section 1.12 Collection Costs means the aggregate of (i) interest on any unpaid Owner
Obligations at a rate determined by the Board, from time to time, but not to exceed the rate
allowed by law; (ii) collection expenses, including witness fees, collection agency fees, and
general and administration charges; (iii) late charges of $25.00 or 5% on the payment owed that
is not paid within 10 days of its due date, whichever is greater; (iv) reasonable attorney’s fees
equal to 25% of the total amount due or sued for; and (v) advances by PROA for taxes and to
superior lien holders to protect its Lien. A “Collection Cost” is one of the Collection Costs.
Section 1.13 Common Elements means the land and improvements thereon within the
Project excluding Units, committed by Developer to the Program and made subject to this
Instrument, including areas designated as such on the multiple Project plats or described herein
as being such.
Section 1.14 Common Element Taxes mean real estate, personal property and other
taxes applicable to Common Elements.
Section 1.15 Confirm, Confirmation or Confirmed Reservation Request means an
acknowledgment issued by Association or Developer (or the designee of either who may include
an Exchange Company) which creates in favor of an Owner, Guest, or other Person the exclusive
right to use a designated Time-Share Unit for a specified period of time during one or more Unit
Weeks. The actual Time-Share Unit which is the subject of the Confirmation will be specified at
check-in or at any time reasonable to the circumstances. A Confirmation is the result of a
Reservation Request being properly filed and the Owner being current in all Owner Obligations.
Moreover, a Confirmation will not be issued unless all conditions imposed by Articles 3 and 5
hereof are satisfied and when issued is subject to the occupancy and use limitations imposed by
such Articles. The issuance of a Confirmation shall not operate as proof that an Owner is current
in the payment of his Owner Obligations.
Section 1.16 Contract means the legally binding sales Contract for Purchase and Sale
between Developer and a Purchaser for the purchase of a Time-Share.
Section 1.17 Day means the day of the week that a Unit Week begins and ends and is
either the “First Day” or the “Last Day”. The First Day will be Friday, Saturday or Sunday and
the Last Day shall be the seventh consecutive day thereafter. The First Day may be expressed in
an Amendment committing a Phase to the Time-Share Project and Time-Share Program, at
Confirmation or in the Contract or Deed and if not expressed therein, the Day shall be Saturday.
Section 1.18 Deed is the recorded Deed of Bargain & Sale or Reverter Deed by which
Developer transfers to a Purchaser fee simple title to a Time-Share Estate.
4
Section 1.19 Deposit has the meaning given to it by RCI, LLC (“RCI”) the Resort’s
affiliated Exchange Company and relates to a method whereby a Time-Share Estate Owner,
having obtained a Confirmation for a Unit Week, may make that Unit Week available to the
Exchange Company, thereby creating an opportunity for an accommodation at another
participating RCI resort available to such Owner. Deposit procedures are defined by RCI in its
sole discretion and may change from time to time as detailed annually in RCI’s then-current
Week’s Disclosure Guide available at www.rci.com. The right and ability to make a Deposit
depends upon an Owner’s Occupancy Level and separate membership in the Exchange
Company’s program.
Section 1.20 Developer means Recreational Resorts, Ltd., a Virginia stock corporation,
its successors and assigns.
Section 1.21 Developer Control Period or DCP is the period described in Article 8 and
shall have that meaning ascribed to it in the Time-Share Act.
Section 1.22 Development means, at any time, the Project and the Additional Land.
The Development is in Spotsylvania County, and shall not exceed 76.0 +/- acres.
Section 1.23 Documents mean the aggregate of the following instruments: The
Instrument, Contract for Purchase and Sale, Deed of Bargain & Sale or Reverter Deed, PROA
Articles of Incorporation and Bylaws, and Rules and Regulations, as each now exists or as each
may be amended from time to time. A “Document” is one of the Documents.
Section 1.24 Exchange Company shall be as defined in the Time-Share Act.
Section 1.25 Fixed Time-Share Estate is a category of UDI Time-Share Estate created
herein and described in Article 3.
Section 1.26 Floating Time-Share Estate is the UDI Time-Share Estate as described in
Article 3 and in prior Time-Share Instruments.
Section 1.27 Guest means a Person, not an Owner, occupying a Time-Share Unit or
using a Common Element, including an Owner's family members; guests of Developer or
Association; Exchange Program participants; tenants; and Persons occupying a Time-Share Unit
with the permission of an Owner.
Section 1.28 Holdover Owner is defined in Section 5.11.
Section 1.29 Incidental Benefit shall be as defined in the Time-Share Act.
Section 1.30 Including or Include (capitalized or not) means by way of illustration but
not limitation.
Section 1.31 Initial Board Term or IBT is defined in Section 10.2.
5
Section 1.32 Instrument is the Time-Share Instrument for "Presidential Resort at
Chancellorsville, a Time-Share Estate Project" with Exhibits, as amended by any recorded
Amendments.
Section 1.33 Internal Exchange is a benefit of an Occupancy Level and is defined in
Article 5. Reserved to Developer is the right to charge an Owner for the exercise of an Internal
Exchange.
Section 1.34 Lien is defined in Section 10.15.
Section 1.35 Maintenance Fee is as defined in Section 12.2.
Section 1.36 Managing Agent means the person or entity who undertakes the duties,
responsibilities and obligations of the management of the Project, pursuant to a management
contract.
Section 1.37 Management Agreement is the written understanding between PROA
and Managing Agent, as amended from time to time, by which the Managing Agent assumes
some or all of the responsibilities of the Association imposed on it by TSA.
Section 1.38 Nonstock Corporation Act means the Virginia Nonstock Corporation Act,
Title 13.1, Chapter 10, Section 13.1-801 et seq., of the Code of Virginia, 1950, as amended.
Section 1.39 Occupancy Level is defined in Section 5.4.
Section 1.40 Occupancy Period is defined in Section 5.3 and its subparts and includes a
Unit Week defined by a “Week Number” expressed in the Contract and the Deed in the case of
Fixed Time Share Estates, or by a range of “Week Numbers” in the case of Floating Time-Share
Estates within which an Owner may by Reservation Request seek a Confirmation subject to the
restrictions and limitations imposed by the Occupancy Level. Occupancy Periods available
within the Project and the Program for Floating Time-Share Estates can be changed from time to
time in the sole discretion of the Developer by means of an Amendment.
Section 1.41 Owner Obligations mean all amounts owed to PROA, Developer, or other
third party by an Owner occasioned by the acquisition or ownership of a Time-Share,
participation in the Time-Share Program, membership in the Association, use and enjoyment of
any Amenity situated within Presidential Resort or Wilderness Resort, or ownership of a lot in
Wilderness Resort in addition to a Time-Share Estate. Owner Obligations include Assessments,
Maintenance Fees, deferred purchase amounts owed by an Owner occasioned by acquisition of a
Time-Share, Collection Costs, user fees and Holdover Owner Charges. An “Owner Obligation”
is one such amount.
Section 1.42 Phase means that portion of the Additional Land taken therefrom
periodically and committed by Developer as a Phase to the Time-Share Project and Time-Share
Program and made subject to the provisions of the Instrument less and except any real estate
eliminated therefrom by Developer pursuant to Section 2.7 hereof. The size and the ingredients
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of each Phase will be determined solely by Developer and will be committed to the Time-Share
Project and Time-Share Program by means of an Amendment. The Time-Share Project currently
has Phases I, II, III, IV and V only. Phases I through V will be the only Phases to the TimeShare Project until Developer commits more Units to the Project and Program under an
additional Phase designated as such.
Buildings and/or Cabins, with Time-Share Units and Time-Shares therein, may be
committed to the Time-Share Project and Time-Share Program without regard or reference to a
Phase and may be so committed by means of a Supplement to the Instrument. When such
Buildings and/or Cabins are committed as aforesaid, the Phase shall mean Phase I, II, III, IV
and/or V unless a subsequent Phase is denoted.
Section 1.43 Possibility of Reverter means a provision contained in a Reverter Deed
whereby the Time-Share Estate automatically reverts or transfers back to the Developer upon the
satisfaction of the requirements imposed by § 55-376.1 of the TSA.
Section 1.44 Presidential Resort or Presidential means that approximately 76.0 +/- acre
real estate development located adjacent to and surrounded by Wilderness Resort, within which
is or may be situate various time-share projects and condominiums, accommodations, and
Amenities including for example, swimming pools, tennis courts and picnic areas.
Section 1.45. PROA means Presidential Resort Owners Association, a Virginia
corporation formed pursuant to the Nonstock Corporation Act, its successors and assigns,
including any successor corporation resulting from consolidation or merger.
Section 1.46 Product shall be as defined in the Time-Share Act.
Section 1.47 Program or Time-Share Program is the arrangement of Time-Shares
whereby the ownership, use, or occupancy of Time-Share Units circulates among Owners,
according to Reservations made on a first come, first served, space available basis, with rights to
use a Time-Share Unit being additionally subject to the limitations and restrictions imposed by
the Documents and the Statutes. Moreover, the right to participate in the Time-Share Program is
conditioned on the ongoing obligation of the Time-Share Purchaser to be current in the payment
of all of such Purchaser’s Owner Obligations.
Section 1.48 Prohibited Acts are defined in Section 5.9.
Section 1.49 Project or Time-Share Project means, at any given time, all of the TimeShare Units and Common Elements committed to the Time-Share Project created by the
Instrument and to the Program less any real estate eliminated therefrom pursuant to Section 2.7.
The Project shall not exceed 76.0 +/- acres in size and shall lie within the Development. A
description of the Time-Share Project can be found in Article 2 and in the Exhibits to the
Instrument and the Public Offering Statement.
Section 1.50 Purchaser, Owner, Time-Share Owner, or Time-Share Estate Owner
means any Person, other than Developer or a lender, owning or acquiring an interest in a Time7
Share or Alternative Purchase or entering into a legally binding Sales Contract for the purchase
of a Time-Share or Alternative Purchase. Such terms also include said Persons' heirs,
successors, or assigns.
Section 1.51 Reservation Request is the form provided by Developer, Association or
Managing Agent to an Owner, submitted, completely filled in by Owner, PROA or Managing
Agent, with payment of all Owner Obligations current, in order to secure a Confirmation.
Reservation Requests for a Time-Share Unit may be made in advance up to one year before
intended occupancy, or as provided by Owner’s Occupancy Level, unless amended hereby.
Section 1.52 Reverter Deed means a deed from Developer to an Owner that contains a
Possibility of Reverter.
Section 1.53 Rules and Regulations or Rules mean the standards, code of conduct and
procedures (as now exists or as amended) under which an Owner or Guest may use, occupy and
enjoy the Project and/or participate in the Program. The author of the Rules may be the
Association or Developer, each of which reserves the right to establish its own set of Rules. No
Rule of the Association may be in conflict with a Rule of Developer. A “Rule” is one of the
Rules.
Section 1.54 Service Period means that period of time designated by the Association in
its sole discretion, commencing at the end of each Unit Week and ending at the beginning of the
next Unit Week to be used by the Association, Developer and/or Managing Agent to clean,
service and maintain a Time-Share Unit and the Common Elements. The Service Period shall
initially run for six (6) hours from 10:00 a.m. until 4:00 p.m. The Service Period may be changed
by the Association in its sole discretion by publication in the Rules and Regulations; provided,
however, the Service Period shall not be less than three (3) hours nor more than eight (8) hours.
Section 1.55 Special Assessment means the periodic charge levied by the Association
after the Developer Control Period, the proceeds of which are used to pay unanticipated TimeShare Program Expenses or Time-Share Estate Occupancy Expenses as the case may be. As used
in the Time-Share Instrument, the term “Special Assessment” is included in the use of the term
“Assessment” or it may be used independently of such term if the context so requires.
Section 1.56 Statutes mean the aggregate of the following acts: The Time-Share Act
and the Nonstock Corporation Act. A “Statute” is one of the Statutes.
Section 1.57 Term is that period between the date hereof and the sooner to occur of (i)
the end of the Developer Control Period or (ii) the end of the Initial Board Term.
Section 1.58 Termination is described in Article 15.
Section 1.59 Time-Share Act or TSA means The Virginia Real Estate Time-Share Act,
Title 55, Chapter 21, Section 55-360 et seq., of the Code of Virginia, 1950, as amended.
Section 1.60 Time-Share Estate, UDI Time Share Estate, Time-Share or Estate is
defined in Article 3. Currently, the Time-Share Project and Time-Share Program have two types
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of undivided ownership interest or UDI Time-Share Estate, namely, the original UDI TimeShare Estate, now referred to as the “Floating Time-Share Estate” described in Section 3.2, and
the new UDI Time-Share Estate referred to as the “Fixed Time-Share Estate” described in
Section 3.3.
Section 1.61 Time-Share Estate Occupancy Expenses shall be as defined in the TSA.
Section 1.62 Time-Share Estate Subject to Reverter has the meaning ascribed to it in the
TSA.
Section 1.63 Time-Share Program Expenses mean the aggregate of the Time-Share
Estate Occupancy Expenses and all expenses belonging to Developer during the Developer
Control Period.
Section 1.64 Time-Share Remainder Interest is defined in Article 3.
Section 1.65 Time-Share Unit means a Unit committed to the Time-Share Project and
Time-Share Program, identified by Building and Time-Share Unit number on the recorded
Project plats, plans, or in a Supplement or Amendment and divided into Time-Shares together
with and subject to the easements created in Article 6.
Section 1.66 Time-Share Unit Taxes mean all real estate, personal property, sales,
transient, and other taxes applicable to a Time-Share Unit. A “Time-Share Unit Tax” is one of
the Time-Share Unit Taxes.
Section 1.67 Time-Share Unit Type refers to a floor plan and/or other characteristics of
one or more Time-Share Units that materially distinguish it from other Time-Share Units. In
Phases I, II, III, IV and V there are two different floor plans among the 53 Time-Share Units, but
only one Time-Share Unit Type. Developer reserves the sole right, option and privilege to
determine additional Time-Share Unit Types and to add them, modify them or discontinue their
future use at any given time.
Section 1.68 Unit means a part within a Building or Cabin, or a portion within an
Amenity, enclosing an air space designated for separate human occupancy and use and
designated as such herein, on the plats and other exhibits annexed hereto or to an Amendment
together with an unqualified right or easement for the free use and enjoyment of any support
structure, wires, conduits, utility lines and the like necessary to make the Unit habitable. The
configuration of a Unit, its location and every aspect relative thereto are in the sole discretion of
Developer. Moreover, Developer may modify the plan or configuration of any Unit in its
commitment to the Time-Share Project and Time-Share Program. A Unit is not a Common
Element and until it is committed to the Time-Share Project and Time-Share Program it will not
be a Time-Share Unit and its property classification will remain as such with title remaining with
Developer. Only Developer can commit a Unit to the Time-Share Project, which, upon
commitment, becomes a Time-Share Unit.
Section 1.69 Unit Week or Week is defined in Section 5.2.
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Section 1.70 Week Number(s) mean numerical designations from 1 through 52 used to
name the weeks of the year to facilitate requesting, confirming and assigning Unit Weeks and
Units.
Section 1.72 Wilderness Resort means the over 500 acre recreational area that surrounds
the Project, and includes amenities, camping lots of Wilderness Resort Association, Inc. and
Wilderness Camping Clubs, Inc., and their members, green areas, lakes and various Other
Amenities. As defined here, Wilderness Resort does not include the Project.
ARTICLE 2
PROJECT NAME, LOCATION, IDENTIFICATION AND DESCRIPTION; PHASES;
TIME-SHARE UNITS; MAXIMUMS.
Section 2.1 Name. The name of this Time-Share Estate Project is "Presidential Resort
Chancellorsville, a Time-Share Estate Project". It is sometimes referred to as the Project. The
Project is located at 9220 Plank Road, Spotsylvania, Virginia in the Chancellorsville Magisterial
District of Spotsylvania County, Virginia adjacent to Wilderness Resort.
Section 2.2 Phases I, II, III, IV and V; Current Project Description. The following
Phases have been previously committed to the Time-Share Project and Program, and currently
consist of multiple parcels of real estate, as follows:
Phase I: 2.1 acres
Phase II: 13.0 acres
Phase III: 2.2 acres
Phase IV: .6 acres
Phase V: .9 acres
These Phases aggregate 18.8 acres and 53 Cabins or Buildings and the Common
Elements and are depicted on the plats attached as Exhibit A. Phases I through V contain only
UDI Time-Share Estates. Each Cabin contains one Time-Share Unit. Such Phases, Time-Share
Units and Time-Shares therein currently constitute the Project. A schedule of the Time-Share
Project, Time-Share Units, Time-Share Unit numbers, and Common Elements are reflected on
the attached Exhibit B which is incorporated herein by reference, and is depicted as of the date
noted thereon.
Section 2.3 Time-Share Units. Presidential Resort may have the maximum number of
Time-Share Units hereinafter stated. Each Time-Share Unit will be identified by Time-Share
Unit number. No two Time-Share Units can be identified with the same number. Time-Share
Units shall contain Time-Share Estates with both being subject to the Instrument. No Unit may
be committed to the Time-Share Project and Time-Share Program by any Person other than
Developer. Time-Share Units shall be deemed committed to the Program only on the first
settlement of a sale conveying a Time-Share in such Time-Share Unit or Units to a Purchaser.
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Notwithstanding the above, Developer may assign its rights to any other Person to which it
conveys substantially all Time-Share Units which it owns in the Project.
Currently, there is one Type of Cabin for the Project. Accessible one story Cabins are of
the same Type as two story Cabins. The layout for each of these floor plans is described in the
attached Exhibit C.
The boundaries of each Time-Share Unit shall be as shown on a plat or plats and shall be
as follows:
a.
The lower (horizontal) boundary of each Time-Share Unit shall be the horizontal
plane of the upper surface of joists or other structure supporting the floor of the Time-Share Unit.
b.
The upper (horizontal) boundary of each Time-Share Unit shall be the horizontal
plane of the lower surface of the rafters or other structure supporting the uppermost ceilings
within the Time-Share Unit.
c.
The vertical (perimetric) boundaries of each Time-Share Unit shall be the vertical
planes of the perimeter walls as measured from the face of exposed wood or logs and the interior
surface of all studs or other support structures, with all doors and windows in such walls and all
lath, wallboard, plasterboard, plaster, paneling, tiles, wallpaper, paint or other materials
constituting any part of the finished surface thereof, shall be a part of the Time-Share Unit, while
all other portions of such perimeter walls shall be a part of the Common Elements.
Nothing herein shall prohibit or preclude Developer from altering, subdividing or
modifying the plan or configuration of a Time-Share Unit or Time-Share Units owned by
Developer at any time through recordation of an Amendment, together with an amended plat and
revised plans and specifications. Minor alterations or modifications due to site considerations
shall not require an Amendment.
Section 2.4 Maximum Time-Share Units and Acreage. The maximum number of
Time-Share Units for the entire Project is 165. Only Developer can commit Units to the Project
and Program. Only Developer determines the type, design, size, location, and number of TimeShare Units. Additional Time-Share Units shall be deemed committed to the Project and
Program only on the recording of an Amendment attached to which is a plat identifying such
Units. Time-Share Units shall be numbered and no two Time-Share Units shall have the same
number. There are no assurances that any other Time-Share Unit will be created or committed,
or will not be created or committed, to the Time-Share Project and Program beyond those 53
Time-Share Units in 53 Cabins currently committed to the Project and Program as reflected in
Section 2.2 above.
The maximum number of acres for the entire Project is 76.0 +/-. Only Developer can
commit additional acres to the Project and Program. Only Developer determines the number of
acres and location thereof which are at any given time to be committed to the Project and
Program. Additional acres shall be deemed committed to the Project and Program only on the
recording of an Amendment attached to which is a plat outlining and describing such acreage.
The Project currently consists of 18.8 +/- acres.
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Section 2.5 Time-Share Unit Areas. Nothing in the Time-Share Instrument shall be
construed to limit or prohibit Developer from creating a Time-Share Unit containing multiple
areas set aside for separate and exclusive use and enjoyment by an Owner, Guest, Developer or
the Association, as for example, a "Lock-Out" designating one such area from another as the
Developer in its sole discretion determines.
Section 2.6 Option to Commit Units. The option to commit additional Units to the
Time-Share Project and Program, thus becoming Time-Share Units, shall expire on January 1,
2050. There are no circumstances which will terminate this option period except as provided
herein, the sooner build out, sell out, or cancellation of the Project, or the cancellation of such
option by its then owner.
Section 2.7 Elimination of Property. Developer reserves the right at any time before
the termination of the DCP to, for any reason, eliminate from the Additional Land at no cost to
Developer, any area or portion thereof regardless of whether any improvement exists thereon or
is under construction. Any elimination of property shall be effected by Amendment.
Section 2.8 Incidental Benefits. Developer reserves the right at any given time to
add to, modify, alter or delete any Incidental Benefit.
Section 2.9
Alternative Purchase. Developer reserves the right at any given time to
add to, modify, alter or delete any Alternative Purchase.
Section 2.10 Common Elements. The Common Elements of the Time-Share Project
include without imitation the roads, parking lots, exterior perimeter walls driveways, yards,
recreational areas and facilities and other real estate constituting the Project with improvements
thereon that are not Time-Share Units. Common Elements also include, without limitation,
support structures, pipes, wires, conduits, or utility lines running through a Unit or a Time-Share
Unit and serving another Unit or Time-Share Unit.
Section 2.11 Common Element Charges. Currently, there are no charges for use of
any Common Element that is a recreational facility within Presidential Resort. This is subject to
change, however, and if a change does occur, it will be effected by amendment to the Rules and
Regulations without the need of an Amendment to the Instrument.
ARTICLE 3
TIME-SHARE ESTATES.
Confirmed hereby is the division by the Time-Share Instrument of the Time-Share Units
into Time-Share Estates. A Time-Share Estate is an undivided fractional interest as tenant in
common with all other Owners in the Project. In acquiring an undivided interest in the fee, each
Owner acquires a right to use for one Unit Week during such Owner’s Occupancy Period only,
and subject to and in accordance with Article 5 hereof. These interests are commonly known
and referred to as “Undivided Ownership Interests” and have been referred to as “UDI TimeShare Estates” or simply as “UDIs” in one or more previous amendments or supplements to the
Instrument. Phases I, II, III, IV and V contain UDI Time-Share Estates only.
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Section 3.1 Continuation Of Former And Creation Of New Time-Share Estates. The TimeShare Project and Time-Share Program shall hereafter have two types of UDI Time-Share
Estates: the original UDI Time-Share Estates, which shall hereafter be referred to as “Floating
Time-Share Estates”, and a new subcategory of these original UDI Time-Share Estates which
shall hereafter be referred to as “Fixed Time-Share Estates.” Any reference in this Time-Share
Instrument to a “Time-Share”, an “Estate” or a “Time-Share Estate” without reference to
whether it is a Floating Time-Share Estate or a Fixed Time-Share Estate shall apply to both types
of Time-Shares.
Since all Estates are UDI Time-Share Estates, the measurement of the fractional fee
simple ownership interest shall remain unchanged: the numerator of the fraction is one and the
denominator is the total number of all recorded Deeds for Time-Share Estates within all Phases
containing Time-Share Estates, less any Time-Share Estates which have been reacquired by
Developer as evidenced by deeds duly recorded or reacquired by reverter. All Time-Share
Estates are subject to this Instrument, a Contract, a Deed or Reverter Deed, the TSA, the NSA,
the Articles, and the Bylaws as they may be amended from time to time. Each Time-Share Estate
has a Unit Week, a Time-Share Remainder Interest, Occupancy Period, and Occupancy Level
appurtenant thereto. It may have Incidental Benefits. The Unit Week, Occupancy Period, and
Occupancy Level are determined at the time of purchase and each shall end when Termination
occurs. Incidental Benefits are determined at the time of purchase, increase and decrease
throughout the Program, and end when Termination occurs.
In acquiring a Time-Share Estate in fee, each Owner also acquires a qualified and
designated right to occupy one of the Time-Share Units during the Occupancy Period subject to
the appropriate Occupancy Level on a first come, first served space available, recurring basis
until Termination.
The Time-Share Remainder Interest is acquired when title to the Time-Share Estate is
acquired and does not end. Each Owner acquires a Remainder Interest in fee simple in all TimeShare Units as a tenant in common with all other Owners upon Termination.
Section 3.2 Floating Time-Share Estates. Created by initial Time-Share Instrument
as originally executed and recorded was the Time-Share Estate described in Section 3.1 thereof.
These Estates have an Occupancy Period that consists of a range of Week Numbers from which a
Unit Week may be Confirmed following a Reservation Request. No permanent Week Number is
attributed to this Estate. Since the Owner or Guest may request one of many potential Week
Numbers for his Unit Week, the Time-Share Estate is said to “Float” within a range of Week
Numbers, and is hereby designated and shall be referred to hereafter as a “Floating Time-Share
Estate”.
Apart from the name, no aspect of the Estate is changed hereby. Each Floating TimeShare Estate is an undivided fractional fee simple ownership interest in all Time-Share Units
whereby the Owner acquires a Time-Share Unit Week with a range of available Week Numbers
in a Time-Share Unit randomly assigned by Developer in its sole discretion throughout the TimeShare Program, together with a Time-Share Remainder Interest in fee simple as a tenant in
common with all other Owners in such Time-Share Units upon Termination.
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Developer may in its discretion continue selling Floating Time-Share Estates or desist
from selling them.
Section 3.3 Fixed Time-Share Estates. Created by this Second Amended and
Restated Time-Share Instrument is the Fixed Time-Share Estate, a subcategory of the UDI TimeShare Estate distinguished by the fact that a single Week Number for the Unit Week is
determined at the time of purchase. Each Fixed Time-Share Estate is an undivided fractional fee
simple ownership interest in all Time-Share Units whereby the Owner acquires a Time-Share
Estate Unit Week with a fixed Week Number in a Time-Share Unit randomly assigned by
Developer in its sole discretion throughout the Time-Share Program.
Section 3.4
Maximum Number of Time-Shares. Time-Shares can only exist in TimeShare Units. The maximum number of Time-Shares is not known at this time. Developer
reserves the right to sell and has sold more than 52 Time-Shares (whether fee simple or
otherwise) from each Time-Share Unit within the Project. In its discretion, Developer may select
what Time-Share Estates may be sold at any given time. The number of Time-Share Estates that
may be sold is limited only by the Project and the Program’s capacity to satisfy Reservation
Requests taking into consideration Owner defaults, delinquencies, deaths, and reservation and
occupancy trends. No more Time-Shares can be created after January 1, 2050.
Section 3.5
Determination of Ownership Interests. Where the Instrument calls for
the determination of an ownership interest, such determination shall be made by the Association,
which determination shall be binding and conclusive on all Owners.
Section 3.6 Remainder Interest of Time-Share Estate Owners. At Termination, each
Time-Share Estate Owner shall own as tenant in common a percentage ownership interest in all
Time-Share Units hereinafter referred to as the "Time-Share Remainder Interest." Such
ownership shall be the same fraction as shown in Section 3.1, and the Association’s
determination thereof shall be conclusively binding on all Owners.
Section 3.7 Incidental Benefits. Developer reserves the right to add to, modify, alter
or delete any Incidental Benefit. The acquisition of a Time-Share Estate includes any Incidental
Benefits that are made a part of the Contract, as they are then in effect and as they are modified,
added to or deleted by Developer from time to time. The addition or deletion of an Incidental
Benefit shall in no way operate as a derogation of the other incidents of ownership of a TimeShare Estate.
Section 3.8 Alternative Purchase. Developer reserves the right to create, add to, or
delete an Alternative Purchase. Alternative Purchases are defined in the Contract therefore.
Section 3.9 Project Amenities. The Project may contain Amenities, as determined in
the sole discretion of Developer. Amenities, facilities and activities may be added to, modified
or terminated at any time by Developer.
The use and enjoyment by an Owner of an Amenity is left to the sole discretion of the
Amenity’s owner and nothing in the Time-Share Instrument shall be construed to give or grant to
14
an Owner any right, license, or ownership interest in an Amenity. In all cases, the use and
enjoyment by an Owner of an Amenity is subject to the rules and regulations applicable to such
Amenity, including the payment of any dues, charges, or user fees that may be applicable
thereto. Nothing in the Time-Share Instrument shall be construed to limit or prohibit Developer
from offering a given Amenity to one class or type of Persons (including an Owner or Guest)
while simultaneously refusing to offer the same Amenity to another class or type.
Section 3.10 Amenities That Are Common Elements. Any Amenity, once committed
to the Time-Share Project and Program by recorded instrument, becomes a Common Element.
Unless committed, each Amenity remains under the ownership of Developer or its owner.
Any promised Amenity that is or is to become a Common Element for the Project and
Program shall be completed by Developer or its completion guaranteed by the Developer posting
with the Virginia Real Estate Board a bond with surety. Amenities, facilities and activities that
are Common Elements may be added to, modified or terminated at any time. At this time, all
Common Element Amenities contemplated by Developer have been completed.
Section 3.11 Other Amenities. Wilderness Resort and other projects may contain
Amenities which are owned by Developer or other third-party entities, both affiliated and not
affiliated with Developer. As such, the right to use any such Amenity is subject to the sole
discretion of Developer, its owner, or its designee and is independent in every respect of the
Time-Share Instrument, the Project and the Program and the Time-Share purchased by an
Owner. Examples of Other Amenities include without limitation, the clubhouse, fields, minigolf, lakes, pond, recreational vehicles or RV’s, paddleboats, Jon boats, pavilions, playgrounds,
picnic areas, tennis courts, racquet courts, recreation center, gym, open space, trails, swimming
pools, grills, coin-operated machines (laundromats, vending, etc.), restaurants, and other
facilities of similar nature.
ARTICLE 4
OWNERSHIP AND REPLACEMENT OF PERSONAL PROPERTY.
Section 4.1 Personal Property. Each Time-Share Unit shall be provided with basic
furniture, furnishings, and other personal property determined by Developer in its sole discretion.
Ownership of all such property shall belong only to Developer until it transfers ownership
thereof to PROA. Transfer of ownership of all such property shall occur at any time within the
sole discretion of Developer but no later than at the end of Developer Control Period. During
DCP, the maintenance, repair and replacement of such property and the establishment of
adequate reserves therefor, shall be the responsibility of Developer and be a Time-Share Estate
Occupancy Expense. Thereafter, the same shall be the responsibility of PROA and shall be both
a Common Expense and a Time-Share Program Expense.
ARTICLE 5
USE AND OCCUPANCY RESTRICTIONS; LEASING AND RESALE.
Section 5.1 Occupancy. Ownership of a Time-Share Estate does not entitle an Owner
to the unqualified use, occupancy, or enjoyment of the Project or a Time-Share Unit or Common
15
Element or the right to participate in the Time-Share Program. In order to gain access, use and
enjoyment of the Project, a Time-Share Unit or a Common Element and the right to participate in
the Time-Share Program, the Time-Share Owner must satisfy certain conditions, to-wit:
(1)
(2)
(3)
(4)
file a Reservation Request;
seek occupancy for only the Occupancy Period at the appropriate Occupancy
Level for which the Time-Share Estate relates in conformity with this Article 5;
be current in the payment of all Owner Obligations; and,
obtain a Confirmation.
Unless these conditions are satisfied or otherwise waived by Developer or Association, a
Time-Share Owner may be denied access to the Project and denied participation in the Program
in the sole discretion of Developer or Association. Waiver of a condition is, in each instance and
at all times, in the sole discretion of Developer or Association.
Section 5.2 Identification of Unit Weeks. Subject to satisfying the requirements of
Section 5.1, an Owner shall be entitled to use or occupy a Unit only during a Unit Week. A Unit
Week ranges consecutively from 1 through 52, inclusive. Unit Week is the 7 days beginning at 4
p.m. on the first Day of January and ending at 4 p.m. on the following Day. Unit Weeks 2
through 51 are consecutive 7 day periods beginning at 4 p.m. on the Day the previous Unit Week
ends and ending at 4:00 p.m. on the following Day. Unit Week 52 is the next 7 days after Unit
Week 51, and any additional days thereafter before Unit Week 1. Although a Unit Week ends at
4:00 p.m., each Owner shall vacate the Unit no later than 10:00 a.m. to allow weekly
maintenance. The Rules may have provisions for Owners having Confirmed Reservations for
two consecutive Unit Weeks in the same Unit. Any waiver of the weekly maintenance service
shall not reduce the Owner's duty to pay Owner Obligations, including the Maintenance Fee or
Assessments, or other amounts to Developer or PROA . Times in this Section are of the essence.
Section 5.3. Occupancy Periods. The Unit Week acquired by the Time-Share Estate
Purchaser shall be expressed as a Week Number or range of Week Numbers in the Contract and
the Deed which period shall be the Occupancy Period during which a Confirmation may be
sought. Until changed by Amendment through a published communication applicable to the
Project each Time-Share Estate is described by an Occupancy Period designation that is
generally reflective of demand for Confirmations and pricing for the applicable period.
Section 5.3.1 Occupancy Periods for Unit Weeks Purchased On or After February 1,
2013. Until changed by Amendment through a published communication applicable to the
Project, each Time-Share Estate purchased on or after February 1, 2013 and after the filing of
this Second Restated Time-Share Instrument shall have a Unit Week appurtenant to it during
which a Time-Share Purchaser may obtain a Confirmation, and which Unit Week is
characterized by the following Occupancy Periods:
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OCCUPANCY PERIOD
UNIT WEEKS
.
HIGH FLOATING
MEDIUM FLOATING
VALUE FLOATING
FIXED
Deeded as a Fixed Week in Weeks 1 through 52
NOTE: THE OCCUPANCY PERIOD DESIGNATIONS, ABOVE, HIGH,
MEDIUM AND VALUE ARE NOT USED BY THE EXCHANGE COMPANY, AND
HAVE NO BEARING ON THE EXCHANGE PROGRAM, DEPOSIT TRADING
POWER OR RELATED MATTERS. They are subject to change based upon occupancy
demand. The Unit Weeks designated above are those for the Project and Program currently in
effect with Developer.
Section 5.3.2 Occupancy Periods for Unit Weeks Purchased Prior to February
1, 2013. Until changed by Amendment through a published communication applicable to the
Project, each Time-Share Estate purchased prior to February 1, 2013, had a Unit Week or range
of Unit Weeks appurtenant to it during which a Time-Share Purchaser might obtain a
Confirmation, and which Unit Weeks were and are characterized by the following Occupancy
Periods:
OCCUPANCY PERIOD
UNIT WEEKS
.
HIGH FLOATING (once “Red”)
MEDIUM FLOATING (once “White”)
VALUE FLOATING (once “Blue”)
GREEN CHARTER
GREEN ASSOCIATE
The occupancy and use rights of Owners who purchased their Time-Share Estate prior to
February 1, 2013 are not changed by the Occupancy Periods defined in Section 5.3.1.
NOTE: The designations “Red,” “White,” and “Blue” are no longer used. Neither the
Occupancy Period designations in this section nor past designations have any bearing on the
Exchange Program, Deposit Trading Power or related matters. The Unit Weeks designated
above are those for the Project and Program in effect prior to February 1, 2013.
Section 5.4 Occupancy Level. Each Time-Share Estate shall have one of the
following Occupancy Levels appurtenant to it during which a Time-Share Purchaser may obtain
a Confirmation:
(1) Yearly: A Yearly Owner is permitted to occupy each year a Time-Share Unit for one
Unit Week within the appropriate Occupancy Period for each Time-Share Estate
purchased.
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(2) BiYearly: A Bi-Yearly Owner is permitted to occupy every other year a Time-Share
Unit for one Unit Week within the appropriate Occupancy Period for each TimeShare Estate purchased.
(3) Green: A Green Owner is permitted to occupy every five years a Time-Share Unit
for one Unit Week for each Time-Share Estate purchased and:
(a) Membership in an Exchange Company is limited to Coast To Coast with
certain rights of exchanges among campgrounds;
(b) No Deposit of the Unit Week with Exchange Company is permitted;
(c) If the Green Occupancy Period is designated “Charter”, the Owner is entitled
to make a Reservation Request up to 180 days in advance before intended
occupancy;
(d) If the Green Occupancy Period is designated “Associate”, the Time-Share
Owner is entitled to make a Reservation Request up to 30 days in advance
before intended occupancy; and
(e) In its discretion, Developer may implement an annual policy to accept
Reservation Requests prior to the advance dates set forth in (c) and (d) above.
The Occupancy Level acquired by the Time-Share Estate Purchaser shall be expressed in
either the Contract or the Deed.
Section 5.5 Time of Use and Use Restriction. Unless permitted by the Developer or
the Association, a Time-Share Unit may not be occupied or used by the same Owner for more
than two consecutive Unit Weeks at a time. Owners and Guests shall occupy and use TimeShare Units only as vacation or recreational lodging for themselves and their Guests, and not as
residences, and no Time-Share Unit shall be used thereby for any commercial activity. An
Owner may use or occupy a unit only if such Owner first obtains a Confirmed Reservation
Request.
The provisions of this Paragraph shall not apply to the Developer.
Section 5.6 Exclusive Use and Occupancy. Each Owner and Guest shall have the
exclusive right to occupy the designated Time-Share Unit during the Unit Week with the
specified Week Number, subject to receipt of and as outlined in his Confirmation. Only during
such Unit Week may the Owner or Guest use the personal property appurtenant to the TimeShare Unit or the Common Elements of the Project or Amenities unless otherwise approved in
writing by Developer or the Association. Each Owner or Guest shall keep his assigned TimeShare Unit and all Common Elements in good condition and repair during such Unit Week.
Section 5.7 Reservation of Rights: Sold Time-Shares. Hereby granted to Developer
and reserved in favor of itself, its successors or assigns, is the right and easement to use any sold
Time-Share and its attendant Unit Week not then being occupied by an Owner or Guest for any
reason including that such Owner obtained a Confirmation but neither the Owner nor Guest
registered and received an assignment of a Unit at the beginning of such Unit Week. Such right
and easement includes leasing, gift, donation, or any other use and enjoyment and for any reason,
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including renting on a transient basis. Developer may keep for its own account all revenues
occasioned by its exercise of such right and easement. Such use, occupancy, and enjoyment
shall be without cost or charge to Developer from PROA, or from such Owner, Guest, or any
other Person. The costs thereof shall be a Common Expense and a Time-Share Program Expense
and in this regard: DEVELOPER SHALL NOT BE OBLIGATED TO PAY ALL OR
ANY PORTION OF ANY ASSESSMENT, DUES, OR OTHER CHARGE OF PROA,
HOWEVER DENOMINATED, PASSED OR ADOPTED.
Section 5.8 Alternate Accommodations. Developer and PROA may exercise the right
to provide an Owner or Guest holding a Confirmation with alternate accommodations if the
confirmed Time-Share Unit is unavailable for any reason, including without limitation a
Holdover Owner not vacating same, or maintenance being required therefor. Upon exercise of
such right, Developer, PROA and Managing Agent shall be released and discharged of all
liability to such Owner arising from such unavailability.
Section 5.9 Prohibited Acts. PROA and/or Developer may compile a list of
Prohibited Acts and shall publish such Acts in the Rules and Regulations. Any Owner, Guest, or
Person performing or causing to be performed a Prohibited Act shall be in violation of the Rules
and Regulations and also in default of the Instrument. Prohibited Acts may be amended by
either Developer or PROA from time to time in the sole discretion of either. Upon violation of
the Rules, or the default hereof, Developer or PROA may: (i) immediately enter by necessary
force the Time-Share Unit used by such violator and remove same therefrom or from the Project
or Wilderness Resort; (ii) forbid such violator the use of the Time-Share Unit and access to the
Project or Wilderness Resort; (iii) Developer only may declare such violator in default of any
unpaid note in connection with the purchase of a Time-Share and any Deed of Trust securing
such, enabling foreclosure; or (iv) PROA only may declare such violator a “Member Not of
Good Standing” in accordance with the Articles or Bylaws. All above rights are assignable and
shall not limit any other remedy of Developer or PROA.
Section 5.10 Restrictions on Alterations. A Time-Share Unit shall not be altered by an
Owner or Guest.
Section 5.11 Holdover Owner. If an Owner or Guest does not vacate timely his TimeShare Unit in accordance herewith or the Rules and Regulations, the Owner thereof shall be a
"Holdover Owner". PROA shall try to remove the Holdover Owner and any other occupant and
assist the rightful Person entitled to occupancy in finding accommodations as comparable as
possible to the denied Time-Share Unit.
In addition to other remedies provided PROA by law or herein, a Holdover Owner shall
pay for such alternate accommodations, travel expenses incurred by the rightful Person if an
alternate Time-Share Unit is not available, and any other expense caused by such Holdover
Owner. Also, a Holdover Owner shall be charged a reasonable administrative fee, as determined
by the Board, of not less than $200.00 and no more than $500.00 for each day of such holdover.
If, to secure such accommodations, PROA has to contract for a period greater than the actual
holdover, the cost of the entire period shall be paid by the Holdover Owner. Any costs or
charges not paid immediately by such Holdover Owner shall become part of the Holdover
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Owner's Owner Obligations and PROA shall have a lien against all the Holdover Owner's TimeShares or interests therein, which may be enforced in accordance with Article 10. This Section
shall not abridge either PROA's or Developer's right to any other action at law or equity,
including eviction, trespass, or foreclosure. The actions giving rise to the Holdover Owner's
becoming such shall be a Prohibited Act.
Section 5.12 Transfer of a Time-Share. An Owner may sell his Time-Share, but only
after requesting a Resale Package from Developer, PROA or Managing Agent in compliance
with the Documents and the Statutes. In no event shall the acquisition or conveyance of a TimeShare Estate for years with a vested Remainder Interest in fee simple be deemed to result in the
merger of those interests. Nor may the Time-Share Estate for years and the corresponding
Remainder Interest be conveyed or encumbered separately from the other. Any Purchaser or
transferee of a Time-Share, by virtue of being such, automatically becomes a member of PROA
and subject to the Documents and the Statutes. Time-Shares are subject to the use and
occupancy restrictions in Articles 3 and 5. An Owner may only transfer a Time-Share while the
Project is subject to the Program. Any deed conveying an interest less than that acquired by an
Owner, or to combine or divide the Time-Share, shall be void.
NOTE:
DEVELOPER DOES NOT OFFER A TIME-SHARE RE-SALE
PROGRAM.
Section 5.13 Lease. An Owner may lease his Time-Share only in conformity with the
Documents and the TSA. The lessee must agree to abide by the Documents and the Statutes or
the lease shall not be binding on Developer or Association. The lease must be in writing in a
form acceptable to Developer, and presented to and accepted by Developer or the Association
before access to the Project and Presidential Resort will be given to the lessee.
Section 5.14 Other Restrictions on Use and Alienation. Except for the provisions of
this Article 5 and the easements and rights reserved as contained in Article 6, there are currently
no other restrictions on the use and alienation of a Time-Share.
ARTICLE 6
ZONING; EASEMENTS; AND RESERVATION OF RIGHTS.
Section 6.1 Property Subject to Zoning and Easements. The Project is subject to all
zoning ordinances now existing or hereafter applicable thereto and all matters of record.
Section 6.2 Easement to Facilitate Sales. Developer reserves the right to use any
Time-Share Unit owned by Developer, or in which Developer owns a Time-Share, as a model,
management office, or sales office, to erect and maintain signs, advertisements, notices and other
promotional information anywhere in the Project, and to relocate the same from time to time in
or adjacent to the Project. Developer further reserves the right to use, rent, or provide
occupancy of Time-Share Units in which it owns a Time-Share for sales prospects, guests,
employees of Developer, and other Persons.
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Section 6.3 Easements for Ingress and Egress, Utilities, and Drainage. Each Owner,
the Developer, and the Association is hereby granted an easement in common with each other
Owner, the Developer, and the Association for ingress and egress through the Common
Elements. Each Time-Share Unit is hereby subject to an easement for ingress and egress through
the Common Elements by Persons lawfully using the same. The Project is subject to all existing
easements for ingress and egress, including rights of pedestrians and vehicles, and for utility
service and drainage, and to any other existing easements.
Section 6.4 Support Easement. Each Unit, Time-Share Unit, and the Common
Elements are hereby granted an easement for the use and enjoyment of any support structure
(including lateral and subjacent support, wires, conduits, utility lines, and the like), as
constructed by Developer and necessary for making such Unit, Time-Share Unit, and Common
Element habitable or usable for its intended purpose.
Section 6.5 Entry Easement. Developer reserves in favor of Developer and PROA
and the authorized agent(s) of each access to any Time-Share Unit in exercising their rights and
duties and for the correction of any condition in such Unit threatening another Unit, Time-Share
Unit, or the Common Elements and to perform installations, alterations or repairs to the
mechanical or utility systems serving the Project. When possible, entry will be requested in
advance and any such entry will be at a time reasonably convenient to Owner. In case of an
emergency, however, such right of entry shall be immediate, whether or not the Owner is
present.
Section 6.6 Additional Easements. Developer reserves the right to grant any
additional easements it deems necessary for establishing and maintaining the Project or operating
the Program and for the benefit of Owners, and the power to assign all rights in this Article 6 to
any third party.
Section 6.7 Other Easements by Reference. The easement in favor of Developer and
others defined in Section 5.7 is incorporated into this Article by reference.
Section 6.8 Vacation Packages. Developer reserves the right to create sundry
vacation packages affecting the Project and its Time-Share Units and Common Elements. A
vacation package may be sold by Developer if (i) such package is not a Time-Share as defined
herein or in an Amendment; (ii) such package conveys only a right to use a Time-Share Unit on a
first come, first served, space available basis; and (iii) such package requires that its owner
comply with the terms hereof the Documents and the Statutes. Such package may be a part of
the Sales Contract or an independent commodity, bought and sold by Developer as if it were a
Time-Share, and includes without limitation an Alternative Purchase.
Section 6.9 Other Users. Developer is the owner and developer of Wilderness Resort
located adjacent to the Project. Wilderness Resort has Other Amenities, real and/or personal that
may benefit the Owners and Guests of the Project as well as the owners and guests of Wilderness
Resort Association, Inc. (“WRA”) and Wilderness Camping Clubs, Inc. (“WCC”). Developer
hereby reserves the right, option, privilege and easement to grant, permit or license to PROA,
WRA, WCC and/or their Owners and Guests and Developer’s invitees individually or
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collectively to access, use and enjoy the Project Amenities and Other Amenities. Developer may
require all members of Association to be treated similarly and may impose a reasonable charge
for such access, use and enjoyment of the Amenities.
Section 6.10 Financial Encumbrance. Developer reserves the right to place financial
encumbrances on the Project if needed to evidence or secure borrowed funds. However,
Developer shall release from the encumbrances each sold Time-Share as a function of the
settlement process. The use of funds and the placing of encumbrances as aforesaid is an aspect
or result of the orderly development of the Project in accordance with the Instrument.
Section 6.11 Parcel Reservation of Rights. Reserved to Developer is the right to create
a Parcel and thereafter commit it to the Project and Program as a Phase. Multiple Phases are
contemplated by Developer.
Section 6.12 Other Reservations by Reference. The Project and Program are subject to
those rights, options and privileges given to or retained by Developer as expressed throughout
this Instrument.
ARTICLE 7
PAYMENT OF TIME-SHARE ESTATE OCCUPANCY EXPENSES.
Section 7.1 During DCP. Developer shall pay during the DCP all Time-Share Estate
Occupancy Expenses by collecting from each Owner the Maintenance Fee. After the DCP, all
such Expenses shall be paid by the Association through an Assessment to the Owners.
Developer shall not have to pay any part of an Assessment or other charges of PROA after the
DCP, and any payment shall be voluntary and treated solely as a contribution of capital or a loan,
the designation resting with the Developer in its sole discretion.
Section 7.2 After DCP.
UPON TERMINATION OF DCP, DEVELOPER
SHALL NOT BE OBLIGATED TO PAY ALL OR ANY PORTION OF ANY
ASSESSMENT, DUES, OR OTHER CHARGES OF PROA, HOWEVER
DENOMINATED, PASSED OR ADOPTED AND ANY SUCH PAYMENTS SHALL
BE VOLUNTARY ON DEVELOPER'S PART.
ARTICLE 8
THE TIME-SHARE PROGRAM.
Section 8.1 Developer Control Period. DCP begins when Developer sells its first
Time-Share. DCP ends no later than at such time as Developer either transfers to Purchasers
legal or equitable ownership of at least 90% of the Time-Shares or completes all amenities and
facilities, or upon such later date as may be provided by the TSA, whichever occurs later.
Section 8.2 Responsibilities During Developer Control Period. During DCP,
Developer, PROA or Managing Agent shall manage and control the Program. All costs
associated with the control, management and operations of the Project and Program during DCP
shall belong to Developer, including Time-Share Estate Occupancy Expenses. During DCP,
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Developer may collect periodic charges from Owners for the payment of Time-Share Estate
Occupancy Expenses by way of a Maintenance Fee. The Maintenance Fee is an Owner
Obligation. Also during DCP, Developer shall prepare or cause to be prepared the Annual
Report, and shall secure and maintain comprehensive general liability insurance for death, bodily
injury and property damage arising out of, or in connection with, the use and enjoyment of
Common Elements or Units by Owners, Guests and other users. During DCP, Developer shall
provide PROA with a regular accounting as to all matters that significantly affect the interest of
Owners in the Program.
Section 8.3 Responsibilities on Termination of Developer Control Period. On
termination of DCP, PROA shall be responsible for all Time-Share Program Expenses and in this
regard: DEVELOPER SHALL NOT BE OBLIGATED TO PAY ALL OR ANY
PORTION OF ANY ASSESSMENT, DUES, OR OTHER CHARGE OF PROA,
HOWEVER DENOMINATED, PASSED OR ADOPTED.
Section 8.4 Restrictions During Developer Control Period. Any lease and/or contract
for goods and services for the Program or the Time-Share Units comprising it, made by
Developer during DCP and extending beyond DCP, shall be voidable at the option of PROA as
provided by the TSA.
Section 8.5 Transfer of Title. Developer shall retain legal title to the Common
Elements until transferred to PROA. Fee simple title to the Common Elements may be
transferred by Developer to PROA at any time, but shall be transferred, in any event, on
termination of DCP. Such transfer shall not free Developer from having to complete the
Common Elements once the transfer occurs. On such transfer, DCP shall end.
Section 8.6 Option of Developer to Re-Acquire Common Elements. Developer
reserves the option to buy back at a price of $1.00 per Common Element any one or more of the
Common Elements transferred by Developer to PROA. This right shall exist until the later of (i)
10 years from the date of the deed of conveyance of the particular amenity, or (ii) January 15,
2050.
Section 8.7 Assessments at End of DCP. On termination of DCP, the PROA Board
shall have the authority to adopt regular Assessments and also to levy Special Assessments
against each Owner and to collect both of same from such Owners. The Assessment and any
Special Assessment are each an Owner Obligation.
ARTICLE 9
MAINTENANCE PROGRAM.
Section 9.1 Program by which Managing Entity will Provide Maintenance of the
Time-Shares. During the DCP, Developer or the Managing Agent on its behalf shall perform (i)
an annual maintenance program for each Time-Share Unit, which shall include all repairs,
painting, clean-up, and refurbishing to keep such Unit in good condition; and (ii) between each
Unit Week, perform routine janitorial service, including changing of linens and towels,
vacuuming, dusting, and minor and emergency repairs. Upon termination of the DCP, PROA
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shall have such responsibility. The cost of such maintenance and service shall be a Time-Share
Estate Occupancy Expense during the DCP, and thereafter, a Time-Share Program Expense.
ARTICLE 10
ORGANIZATION AND FUNCTIONS OF PROA.
Section 10.1 Creation of PROA. PROA has been formed as a Time-Share Estate
Owners Association in accordance with TSA. PROA is a Virginia nonstock corporation having
been incorporated on June 6, 1989, which precedes any date Developer sold its first Time-Share.
PROA shall be the operating entity for the Project and Program, and shall be governed in
accordance with the terms hereof, its Articles, Bylaws, and the Statutes. PROA shall enforce the
Documents and the Statutes and make and enforce such Rules pertaining to the use and
enjoyment of Time-Share Units and Common Elements as the Board may from time to time
determine. The Rules shall be published by PROA and supplied any Owner on request, on
payment of a reasonable fee.
A copy of PROA's current set of Rules is annexed to Developer's Public Offering
Statement as an exhibit. In enforcing its Rules or the Instrument, PROA shall not impose a
monetary penalty or suspend an Owner's rights and privileges in the Project and Program without
giving such Owner reasonable notice and an opportunity to be heard and explain the charges
against such Owner in person or in writing to the Board before a decision to impose discipline is
rendered.
All corporate powers shall be exercised by or under the authority of, and the business of
PROA managed under the direction of, its Board subject to any limitation set forth in the
Documents and the Statutes.
Section 10.2 Appointment and Election of Board of Directors. The first Board shall
be designated in accordance with the Nonstock Corporation Act and shall serve for a period
ending no later than January 1, 2050. Such period is referred to herein as “Initial Board Term”
or “IBT.” The duration of the IBT shall be determined in the sole discretion of Developer in its
capacity as PROA's sole Class A Member. As such, Developer may end the IBT before January
1, 2050. During IBT, only Developer, as the sole Class A Member, may vote on matters
involving PROA, including the removal and replacement of members of the Board or the
amendment to the Bylaws. The Board shall, therefore, during the IBT consist of Directors
selected solely by Developer. At the end of the IBT, the qualifications for, number and election
of successor Directors shall be determined by Class B Members. At the first meeting of PROA
after the IBT, the Board shall be elected by all then eligible Owners as Class B Members,
including Developer, under such terms and qualifications as are existent in the Articles or, if
there be none, in its Bylaws.
Section 10.3 PROA Powers, Functions and Responsibilities. To the extent consistent
with the powers and responsibilities defined in the Documents and the Statutes, PROA may
exercise the following powers and shall perform the following functions and responsibilities, and
may do so by engaging a Managing Agent (who may be affiliated with Developer) (A) provide
complete maintenance, administrative, supervisory and managerial services for the Project and
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the Program; (B) prepare and distribute the Annual Report to Owners in accordance with TSA;
(C) adopt and enforce Rules for the use, occupancy, and enjoyment of Time-Share Units and
Common Elements by Owners; (D) assist Developer in the collection of the Maintenance Fee
during the DCP, and thereafter impose and collect the Assessment for the Time-Share Estate
Program Expenses and any Special Assessment as the Board may determine from time to time;
(E) after DCP, be responsible for insurance as provided in Article 11; (F) establish procedures to
impose fines or suspend the rights of an Owner for failure of that Owner or any of his Guests to
comply with the Instrument or the Rules; and (G) employ attorneys, accountants, and other
professionals as necessary to assist in the management of the Program and Project as well as the
Units and Common Elements comprising it.
The Management Agreement between PROA and the Managing Agent (which may be
Developer or an affiliate thereof) contains a provision that enables Managing Agent to receive as
compensation up to fifteen percent (15%) of gross revenues paid during each year of the term of
the Management Agreement. Such Agreement may also provide for Managing Agent to receive
deferred compensation from PROA for prior years in which PROA was unable to compensate
Managing Agent in accordance with the Management Agreement.
Section 10.4 PROA Membership and Voting Rights. Membership in PROA consists
of the Developer as the sole Class A member and the Class B Members, consisting of all
Owners. Developer will be a Class B Member if it owns a Time-Share. During the IBT, Class B
Members as such shall have no voting rights. At any meeting of PROA after the IBT expires,
each Class B Member in Good Standing shall have one vote for each Time-Share owned. If a
Time-Share is owned by more than one Person, the exercise of the vote for that Time-Share shall
be governed by the Bylaws, or if no provision exists therein pertinent thereto, by the Nonstock
Corporation Act. The vote attributable to a Time-Share is not divisible. Each Owner, as a Class
B Member, is bound by the Documents, the Statutes, and the Management Agreement regardless
of how ownership was acquired. Class B Membership is compulsory and ownership of a TimeShare shall, in and of itself, constitute a Class B membership. Membership resulting from TimeShare ownership shall cease on disposition of that Time-Share, regardless of the manner of
disposition. No Person holding any deed of trust or other encumbrance on any Time-Share or
the Project as a whole shall have any membership rights in PROA by virtue of such deed of trust
or encumbrance. PROA shall have one vote for each Time-Share it owns.
Section 10.5 Division of Time-Share Program Expenses. During the DCP, each
Owner shall pay Developer the Maintenance Fee and Developer shall pay all Time-Share
Program Expenses. After the DCP, each Owner shall pay Association the Assessment and any
Special Assessment(s) and Association shall pay all Time-Share Program Expenses. No
Assessment can be levied while Developer is entitled to receive a Maintenance Fee.
Section 10.6 Fiscal Year; Preparation and Approval of Budget. The fiscal year of
PROA shall be determined by the Board. Before each fiscal year, the Board shall adopt a budget
for PROA estimating all Time-Share Program Expenses payable during such fiscal year. During
the DCP, the Time-Share Occupancy Expenses shall serve as the basis for determining each
Owner's Maintenance Fee; and thereafter, the Time-Share Program Expenses shall serve as the
25
basis for determining each Owner’s Assessment, and may include reserves as provided in
Paragraph 10.8.
The Budget shall be a part of the Annual Report and shall be prepared in conformity with
the TSA. During the DCP, the Developer shall prepare the Budget on behalf of the PROA
Board.
Section 10.7 Imposition and Payment of Assessments. After the Initial Board Term,
the Board shall establish the Assessment and any Special Assessment for each Time-Share as it
determines to be in the best interests of PROA with due regard for this Article 10.
Section 10.8 Reserves. The Board may establish and maintain reasonable reserves for
working capital, operations, contingencies, and replacements. If the Board determines that
reserves are inadequate or additional monies are necessary for any reason, including nonpayment
of Owner Obligations due PROA, it may levy at any time a further Assessment or special
assessment in the manner provided herein.
Section 10.9 Initial Budget. The first Board of Directors shall determine the Budget,
the level of Assessment to the end of the appropriate fiscal year, and the date that the Assessment
shall begin.
Section 10.10 Effect of Failure to Prepare or Adopt Budget. The failure of the Board
to prepare or adopt timely a Budget for any fiscal year shall not constitute a waiver or release of
an Owner's responsibility to pay an Assessment or Special Assessment. In the absence of an
annual or adjusted Budget, each Owner shall pay before the first day of the third month of the
current fiscal year, the Assessment at the same rate as the previous year, and any additional sum
subsequently assessed as a result of a new annual or adjusted Budget. Any such supplemental
Assessment shall be due on the date provided in the notice hereof.
Section 10.11 Payment of Owner Obligations. Each Owner shall pay every Owner
Obligation, especially the Maintenance Fee and the Assessment and any Special Assessment
imposed by the Board pursuant to the Documents or the Statutes. No Owner shall be exempt
from liability for the payment of every Owner Obligation by his waiving any rights of use or
participation in the Project or Program.
Section 10.12 Interest and Late Charges. Reserved hereby is the right of Developer or
PROA to impose interest and late charges for the failure of a Time-Share Owner to pay timely
and in full each Owner Obligation, including without limitation the Maintenance Fee,
Assessment, or any PROA Special Assessment. Such interest and late charges shall each be a
Collection Cost, be imposed in conformity with Virginia law, herewith, and shall be determined
solely by the creditor to whom the Owner Obligation is due.
Section 10.13 Collection of Owner Obligations. The appropriate creditor shall take such
action it deems necessary to collect every Owner Obligation and Collection Cost, especially any
delinquent Maintenance Fee, Assessment or any Special Assessment, and may, in its discretion,
26
impose interest and reasonable late charges thereon in addition to the Collection Costs provided
inthis Article.
Section 10.14 Statement of Owner Obligations. PROA, within ten business days of
receiving a written request, shall provide an Owner, contract purchaser or mortgagee a written
statement of all Owner Obligations due PROA, Developer, or Managing Agent. The Board may
impose a reasonable charge for the preparation of such statement, not to exceed the maximum
amount allowed by TSA. PROA shall timely provide any certificate called for by Section 55380 of TSA, at a fee not more than allowed by such Section.
Section 10.15 Lien. Each unpaid Owner Obligation is hereby declared to be a lien
against every Time-Share of its Owner, which lien shall be effective as provided above. Either
PROA or Developer shall be the beneficiary of such lien, and either may record a memorandum
of such lien, or such other documents required by TSA or by the laws of Virginia, to confirm the
amount and priority of such lien. Such lien is in addition to the lien provided by Section 55-370
of TSA. The lien provided hereby and by the TSA is herein collectively referred to as "Lien."
Such Lien may be enforced and foreclosed in any manner provided by Virginia law, including a
suit or foreclosure provided by TSA, or action by PROA or Developer.
Section 10.16 Suit for Collection of Owner Obligations. PROA or Developer may
collect Owner Obligations (including Collection Costs) by personal action to recover a money
judgment or by enforcing its Lien by foreclosure or otherwise, and may settle or compromise
such claim. The personal action may be maintained without foreclosure or waiving the Lien
securing the same, and a foreclosure may be maintained despite pendency of such action.
PROA and Developer shall be entitled to bid at any sale held pursuant to a proceeding to
foreclose their respective Lien and may apply as a cash credit against its bid all Owner
Obligations due it.
PROA may assign its Lien rights and claim to any Owner Obligations to Developer, any
Owner, group of Owners, or any other Person, whether for valid consideration or not.
Section 10.17 Subordination and Mortgage Protection. The Lien of any Owner
Obligation and Collection Costs shall be subordinate to the lien of any deed of trust or like
instrument in which the beneficiary is Developer, or any Person or entity to whom Developer has
assigned its beneficial interest.
Section 10.19 Foreclosure by Developer. Any Owner Obligation assigned by PROA to
or otherwise owed Developer shall be added to any outstanding principal balance said Owner
owes Developer or its assignees under any deferred purchase deed of trust note executed in
connection with the Time-Share to which such Owner Obligation relates. The nonpayment of
such Owner Obligation and the transfer thereof by PROA to Developer shall constitute a default
of such note and deed of trust given as security therefor, enabling suit or foreclosure.
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ARTICLE 11
INSURANCE.
After the Developer Control Period, PROA shall obtain physical damage (with or without
extended coverage), liability, and such other insurance under terms and conditions as the Board
deems in the best interests of PROA, but all such insurance shall be approved by Developer until
DCP terminates. All such insurance policies shall be written by reputable companies and
obtained by PROA. The costs of such insurance shall be paid as provided in Article 8. If any
required insurance is unavailable or unreasonably costly, neither the Board, PROA, Managing
Agent nor Developer shall be liable for any loss or damage caused by not obtaining coverage. In
each such policy, insurer shall waive any right of subrogation against Developer, PROA, Board,
or Managing Agent, their agents, employees, and any other Person that Developer may from
time to time designate. Insurer shall not claim invalidity arising from acts of insured. No policy
may be canceled, reduced or substantially modified, or canceled for nonpayment of premium
without 30 days prior written notice to the Board, Managing Agent, and Developer. All policies
shall protect Developer as an Owner as long as Class B Members in the Association have no
voting rights therein.
An Owner may, and is urged to at his own expense, obtain insurance for his own benefit
covering his personal property, liability, and other interests. However, no such coverage shall
decrease the realization by PROA, on behalf of all Owners, on any of its policies, or cause any
coverage maintained by PROA to be brought into contribution with coverage obtained by an
Owner. All such policies shall waive subrogation as against such Persons to which subrogation
in PROA's policies would be denied. No Owner shall obtain separate insurance policies in
conflict with this Article.
Physical damage insurance policies secured by PROA shall be for the benefit of PROA,
Owners, their known mortgagees, and Developer, as their respective interests may appear. All
proceeds thereof shall be paid to the Board of PROA as Insurance Trustee (“Trustee”). The sole
duty of Trustee shall be to hold proceeds paid to it in trust and to hold the trust as provided
herein. Such proceeds, after deducting the expenses of the Trustee (i.e. the "Net Proceeds"),
shall be used for any reconstruction or repair, with the balance thereafter placed in the general
operating account of PROA. If no such reconstruction or repair takes place, such Net Proceeds
shall be distributed as determined equitable by the Board. An Owner’s currency or default as to
Owner Obligations may be weighed by the Board as an equity in favor of or against distribution
to an Owner as the case may be. A mortgagee may require that distribution to an Owner be made
jointly to such Owner and known mortgagees for their share of such Net Proceeds.
The Board is hereby irrevocably appointed the agent for each Owner, each mortgagee,
other named insured’s and their beneficiaries, and any other holder of a lien or other interest to
adjust and settle all claims arising under insurance policies obtained by PROA and to execute
and deliver releases on payments of claims.
The Board shall, in its discretion, subject to the approval of Developer, determine the
extent, if any, to which such reconstruction, repair, debris removal, or landscaping shall take
place. The Board may impose an Assessment or levy a Special Assessment against Owners to
28
cover any deficiency between the cost of such reconstruction or repair and the insurance
proceeds.
Any damage to Property or injury to Person caused by the intentional or negligent act of
any Person shall be paid for by such Person regardless of whether such damage or injury is
covered by insurance. The amount of such damage or injury shall be an Owner Obligation.
ARTICLE 12
PAYMENTS BY OWNER.
Section 12.1 Obligations to Pay. Each Owner shall pay the Maintenance Fee to
Developer until termination of the DCP. Thereafter, each Owner shall pay PROA the
Assessment.
Section 12.2 Maintenance Fee. For each right to occupy a Time-Share Unit, the
Owner with an Occupancy Level of Yearly shall pay annually to Developer one Maintenance
Fee for each Time-Share owned. For each right to occupy a Time-Share Unit, the Owner with an
Occupancy Level of Green shall pay annually to Developer one Maintenance Fee for each TimeShare owned. For each right to occupy a Time-Share Unit, the Owner with an Occupancy Level
of BiYearly shall pay annually to Developer an amount equal to one-half of the Maintenance
Fee. The Maintenance Fee is to assist Developer in paying Time-Share Estate Occupancy
Expenses. The Maintenance Fee is due each year upon written notice therefor, regardless of the
date of purchase and regardless of whether Owner uses a Time-Share Unit or any of the
Common Elements at the Project. The Maintenance Fee is due for the year of purchase
notwithstanding the purchase occurs after the first of January.
For calendar year 2013, the Maintenance Fee is $428.00. Developer may increase the
Maintenance Fee thereafter in its sole discretion. In future years, the Maintenance Fee will be
disclosed in the budget and/or annual report.
Developer reserves the right to facilitate and charge an administrative fee for internal
exchanges of Unit Weeks for Owners. The 2013 charge for exercising an internal exchange of
Owner’s Unit Week for another Unit Week is $50.00. Developer may increase the fee in its sole
discretion. Moreover, the receipt by Developer of this fee is for its own account. In future years,
the internal exchange charge will be set forth in the Rules and Regulations.
The receipt by Developer, in its capacity as the developer of the Project, of the
Maintenance Fee is for its own account. Developer is not obligated to pay any of this Fee to
PROA or any third party. At the end of the DCP, if any excess funds exist which represent the
amount of Maintenance Fees collected minus all Time-Share Estate Occupancy Expenses paid or
to be paid, then in such event, Developer shall pay such excess to PROA, but only if required by
TSA at that time to do so.
If an Owner files a Reservation Request for a Unit Week for which the Maintenance Fee
has not been paid, such Owner shall pay when filing the Reservation Request, the said unpaid
29
Maintenance Fee and all other unpaid Owner Obligations for such period.
Confirmation thereof will be required of Developer.
Otherwise, no
Section 12.3 Assessment and Special Assessments. After DCP, each Owner shall pay
when due to PROA the Assessment and any Special Assessment determined and levied by the
Board. The Assessment and any Special Assessment is a Time-Share Program Expense.
Section 12.4 Other Fees. Each Owner shall also pay all user fees applicable to
Amenities in the Project, Wilderness Resort, and neighboring facilities, and pay all application
and membership fees, and other fees to any Exchange Company offered by Developer if an
Owner accepts membership in the Exchange Company.
Section 12.5 Incorporation by Reference. All other matters pertaining to Owner
Obligations, their composition, due dates, their creditors, enforcement rights, and the like
contained elsewhere and throughout the other Documents are incorporated herein by reference as
if set forth verbatim.
ARTICLE 13
COMPLIANCE AND DEFAULT.
Section 13.1
Compliance. Each Owner and Guest shall be governed by and shall
comply with the Documents and the Statutes. Compliance as aforesaid shall entitle the Owner to
participate in the Time-Share Program.
The failure of an Owner to comply with the Documents and the Statutes shall result in the
Owner being in default of the Documents and/or the Statutes and in such event the said Owner
may be:
1.
2.
3.
4.
5.
6.
Declared a “Member Not in Good Standing” in the Association; and/or
Denied participation in the Time-Share Program resulting in being:
(a)
denied access to the Project and to Wilderness Resort; and/or
(b)
denied access to the Owner’s Unit Week; and/or
(c)
denied rights or participation in Association matters, including any thenexisting voting rights; and/or
Evicted from the Project and Presidential Resort; and/or
Subjected to Developer’s exercise of Possibility of Reverter; and/or
Subjected to foreclosure upon Owner’s Time Share Estate; and/or
Subjected to forfeiture of his entitlements under Section 13.9.
An Owner declared a “Member Not in Good Standing” as to one Time-Share Estate at
Presidential is a “Member Not in Good Standing” as to all Time-Shares Estates at Presidential.
An Owner declared a “Member Not in Good Standing” may have such Owner’s status returned
to a “Member in Good Standing” provided the condition precedents imposed by the Association
are satisfied.
30
An Owner who fails to comply with the Documents or the Statutes does not relieve
himself of the on-going responsibility to pay all Owner Obligations, including the Maintenance
Fee and Assessment.
Section 13.2 Relief. An Owner who fails to comply with the Documents or Statutes
exposes himself to all available remedies afforded the aggrieved party by the Documents, the
Statutes or law (both at law and equity; federal and state). The exercise by the aggrieved party of
one remedy shall not constitute a waiver of any other remedy. Moreover, the aggrieved party
may exercise any one or more remedy simultaneously, including a civil suit for collection,
equitable relief for injunction, foreclosure under the Act and/or loss of Time-Share Estate.
A trustee under a deferred purchase deed of trust executed by an Owner in connection
with the acquisition of a Time-Share may foreclose under such deed of trust without conflict of
interest on trustee’s part.
Section 13.3 Additional Liability. Each Owner must pay for the repair or replacement
caused by the negligence of such Owner or Guest. Such liability shall include any increase in
casualty insurance rates occasioned by the negligent use of a Time-Share Unit or Common
Elements.
Section 13.4 Costs and Attorneys' Fees. If PROA or Developer prevails in any
proceeding against an Owner arising out of a default by an Owner or Guest, it may recover the
costs of such proceeding and attorneys' fees by way of the Collection Costs.
Section 13.5 No Waiver of Rights. The failure of Developer, PROA, the Board, or an
Owner to enforce the Documents or the Statutes shall not be a waiver of enforcement of such
right in the future. All rights granted Developer, PROA, the Board, or any Owner under each of
the Documents and the Statutes, shall be cumulative, and the exercise of one or more thereof
shall not be an election of remedies nor preclude the party exercising the same from exercising
such other privileges as may be granted to such party by such Documents, the Statutes, or at law
or in equity.
Section 13.6 Enjoining Violations by Owners. Any breach of the Documents or
Statutes shall enable PROA or Developer, in addition to any other rights set forth herein, to: (A)
enter the Time-Share Unit in which, or as to which, such violation or breach exists and remove,
at the expense of the defaulting Owner, any thing or condition existing therein contrary hereto,
and neither the Board nor PROA shall thereby be guilty in trespass; (B) enjoin or remedy, by
appropriate legal or equitable proceedings, the continuance of such breach; (C) fine such Owner
in accordance with the provisions hereof; or (D) exercise all rights afforded by Article 10.
Section 13.7 Legal Proceedings. Failure to comply with the Documents or the Statute
shall be grounds for relief, including an action to recover money damages, any injunctive and
other relief herein or provided by a court, or any combination thereof. Such relief may be sought
by PROA, or, if appropriate, by any aggrieved Owner or Developer, and shall not be an election
of remedies.
31
In an action in equity including injunctive relief, no bond shall be required of Developer
or PROA, and in this regard each Owner Respondent or Defendant waives any right therefor or
to demand same. Venue for any legal proceeding pertaining to the Time-Share Instrument, the
Time-Share Project, the Time-Share Program and Association matters shall be before a Court of
competent jurisdiction, sitting without a jury, in Spotsylvania County, Virginia.
Section 13.8 Possibility of Reverter. Developer may hereafter utilize a Reverter Deed
which is applicable in the event an Owner fails to pay timely and in full any portion of the
deferred purchase price of his Time-Share. A Reverter Deed, if utilized, will comply with the
TSA then in effect. Pursuant to the current TSA in effect as of the recording date of this
Instrument, the Reverter Deed shall contain a paragraph entitled “Loss of Time-Share Estate.” In
this paragraph, an explanation of this Developer right can be found. Should a grantee of a
Reverter Deed default in or violate an obligation imposed by a consumer document for a period
of at least 60 days and fail to cure such violation or default within no less than 30 calendar days
thereafter, title to the time-share will revert back to Developer upon Developer recording an
affidavit to this effect where this Reverter Deed is recorded. Only Developer can elect to exercise
the Possibility of Reverter. Each grantee in this Reverter Deed will be sent at least two notices of
default or violation within the 30-day period with no less than 10 days to cure in each instance.
The notice will be sent to the address of each grantee maintained at the office of the Developer or
PROA. After the cure period has lapsed and Developer records the affidavit, title to the timeshare estate will automatically vest in Developer and any note executed by grantee will be
deemed canceled and any recorded deed of trust securing such note shall be automatically
released. The Possibility of Reverter will itself lapse and become null and void at the soonest to
occur of the following: (i) the deed of trust is released of record, (ii) a statement that the deed of
trust is released of record is executed and recorded by Developer with a date of when the
Possibility of Reverter was or is to lapse, or (iii) when the time-share program terminates
pursuant to either the Virginia Real Estate Time-Share Act or the time-share instrument which
created such program.
13.9
Forfeiture.
Section13.9.1 Introduction. As previously stated, an Owner is the owner of a Time-Share
as defined herein. Such ownership entitles the Owner to all rights contained in the Time-Share
Instrument, including, by way of example, participation in the Time-Share Program, use and
enjoyment of his Confirmed Time-Share Unit during his Confirmed Unit Week, and access to
the Time-Share Project.
However, once a violation occurs and Forfeiture results pursuant to this Section, while an
Owner will still retain ownership of a Time-Share, he will lose all other entitlements, including,
without limitation, use and enjoyment of any Time-Share Unit and a Unit Week, participation in
the Time-Share Program and access to the Time-Share Project and Wilderness Resort.
Section 13.9.2 Declaration of Forfeiture. Only Developer can declare a Forfeiture during
the Initial Board Term. Thereafter, either Developer or PROA may declare a Forfeiture. In no
event may Forfeiture of a Time-Share occur if such Time-Share is subject to a lien, deed of trust
or mortgage where any of the deferred purchase price of the Time-Share remains unpaid and the
32
noteholder at the time is a mortgagee who is not Developer, unless such mortgagee gives its
written consent.
13.9.3 Forfeiture. Forfeiture means a declaration whereby a Time-Share Owner is
forbidden use and enjoyment of the Time-Share Program and access to the Time-Share Project
with no automatic right of reinstatement. Forfeiture can occur only if the following conditions
have been satisfied:
(A)
The Owner must be in violation of a provision of the Documents, including by
way of illustration:
(i)
The failure to pay timely and in full each Owner Obligation; or
(ii)
The material violation of any Prohibited Act.
(B)
The Owner shall have been sent no less than two notices with a right to cure of no
less than 15 days each. Each notice shall be sent to Owner at the address of such Owner
maintained in the records of Developer, and if none, then at the address of such Owner
maintained in the records of Association, by certified mail, return receipt requested. Each notice
shall (i) contain a description of the violation, (ii) inform the Owner of his right to cure, and (iii)
specify a deadline date in which to cure.
(C)
If the two notices of Subpart (B) have been sent and no cure was completely and
timely made, the Owner shall be sent a “Notice of Forfeiture” which shall:
(i)
contain a description of the violation;
(ii)
inform the Owner that his right to cure has lapsed;
(iii) that a Forfeiture has been declared;
(iv)
that as a result, all rights of Owner to use and enjoy any Time-Share Unit
and any Unit Week, participation in the Time-Share Program and access to the Time-Share
Project and Wilderness Resort have been forfeited and can no longer be exercised; and
(v)
that such Forfeiture shall apply from a date provided in the Notice of
Forfeiture until Termination.
13.9.4 Effect of Forfeiture. Forfeiture shall have the following effect:
(A)
Title to the Time-Share shall remain with the Owner;
(B)
Use by the Time-Share Owner of any Time-Share Unit and a Unit Week shall be
lost and suspended during pendency of the Forfeiture;
(C)
The right to participation by the Time-Share Owner in the Time-Share Program
shall be revoked during pendency of the Forfeiture;
(D)
The right of access to the Time-Share Project and Wilderness Resort shall be
revoked during pendency of the Forfeiture;
(E)
The obligation to pay Maintenance Fees and Assessments only during pendency
of the Forfeiture shall lapse;
(F)
The obligation to pay Owner’s mortgage under any deferred purchase
arrangement, including the purchase money note and deed of trust, shall remain during the
pendency of the Forfeiture;
(G)
At Termination, Forfeiture of a Time-Share shall itself lapse and become null and
void, provided, however, before the Owner shall be entitled to any distribution, all Owner
Obligations shall have been satisfied;
33
(H)
The attempted transfer of his Time-Share by the Owner during pendency of
Forfeiture shall be void and of no effect unless the transfer is to Developer during the IBT or to
PROA thereafter;
(I)
The Association shall include any Forfeiture of a Time-Share by an Owner in the
Certificate of Resale issued about such Owner pursuant to Section 55-380 of the Time-Share Act
and a statement to the effect that the transfer or sale to any Person other than Developer or
PROA is void; and
(J)
The Owner who has suffered Forfeiture will be classified by Association as a
“Member Not in Good Standing” with any voting rights in Association being lost and forfeited
during the pendency of Forfeiture.
13.9.5 Reinstatement from Forfeiture. Reinstatement is not a matter of right of an Owner
whose Time-Share has been the subject of Forfeiture. Reinstatement of an Owner to all of his
entitlements of ownership prior to Forfeiture shall rest solely in the discretion of Developer
during the Initial Board Term and thereafter by either Developer or Association. No
Reinstatement shall occur without:
(A)
Prior written consent from any then mortgagee; and
(B)
In the case of a Reinstatement where the Forfeiture was originally declared by the
Developer, the prior written consent of the Developer or its assigns.
In addition, Developer and Association may each impose reasonable conditions to the
Reinstatement which may include without limitation:
(A)
Payment of all past due Owner Obligations, with interest and late charges
accruing thereon;
(B)
The levy of a fee for processing the Reinstatement ; and,
(C)
Restrictions on future access, use and enjoyment of the Time-Share Project and
participation in the Time-Share Program, including by way of illustration, the allocation of new
and differing Unit Weeks, Time-Share Units and Time-Share Unit Types.
ARTICLE 14
AMENDMENT OF INSTRUMENT.
Section 14.1 Amendment by PROA or Owners. (A) After the end of IBT and the
election and qualification of a successor Board, the Instrument may be amended by a recordable
document approved by 10% of the votes attributable to Time-Shares (including votes attributable
to Time-Shares owned by Developer). No such amendment may: (i) change or alter the
definition of a Time-Share; (ii) alter voting rights attributable to a Time-Share by the Instrument,
the Articles or Bylaws; (iii) impair or prejudice the rights of any mortgagee or change the
Instrument affecting an institutional mortgagee without the written approval of all mortgagees of
record affected thereby; or (iv) change the rights of Developer. Until the end of the IBT, the
Instrument may not be amended by the Owners.
(B) After Developer in its sole discretion has concluded its development and sales efforts
and no more Time-Shares are to be sold thereby, the Instrument may be amended by a recordable
document approved by 12% of the votes attributable to Time-Shares (including votes attributable
to Time-Shares owned by Developer).
34
Section 14.2 Amendment by Developer. Developer may amend the Instrument by a
recordable document at any time. Such Amendment shall become operative upon recordation, or
later if stated in the Amendment, unless Developer receives written disapproval of such
Amendment from 75% of the votes attributable to Time-Shares (including any votes attributable
to Time-Shares owned by Developer), within 30 days of such Amendment, time being of the
essence.
Section 14.3 Reserved Rights of Developer Not Subject to Amendment. Developer
reserves the following rights to itself and its successors or assigns which shall not be changed by
Amendment to the Instrument unless said Amendment is occasioned by Developer or its
successors or assigns: (i) to amend the Instrument through the recordation of an Amendment if
so required by any lending institution or public body, or if required to accomplish the purposes
of the Program, as determined by Developer in its sole discretion; and, (ii) to grant additional
easements and assign that right to PROA, as provided in Article 6.
ARTICLE 15
TERMINATION OF PROGRAM.
Section 15.1 Less than Unanimous Consent. Unless sooner terminated under
Paragraphs 15.2 or 15.3, the Program shall, at 5:00 o'clock p.m. on the first Day in January, 2060
(the "Date"), automatically renew for an additional 10 years. The Board, not less than 60 nor
more than 90 days before such Date and each 10 years thereafter, shall call a special meeting of
all Owners. A quorum at such a meeting shall be the lesser of (i) 20% of the total outstanding
votes of all Owners or (ii) any lesser quorum provided in the Bylaws. Owners, by a majority
vote of such quorum, may then vote to Terminate. Failure to Terminate shall cause an automatic
extension of the Program for an additional 10 years. At all such special meetings on each tenth
anniversary of the January 2060 Date meeting, the quorum shall be as aforesaid, and a majority
of such quorum may vote to Terminate.
Section 15.2 Unanimous Consent. The Program may be Terminated at any time if all
Owners and holders of all liens affecting the Project execute and record a document of such
Termination.
Section 15.3 Court Ordered. After DCP, a Judge of the Spotsylvania County Circuit
Court may Terminate the Program upon any good cause shown, provided the relief sought is
consented to in writing by no less than 50 Owners.
Section 15.4 After Termination. After Termination, an Owner may exercise such
Owner's rights as a tenant in common, in fee simple, with the other owners, including the right of
partition.
Section 15.5 Termination Upon Events Occurring. There is no event (including without
limitation condemnation and damage or destruction) upon which the Time-Share Program will
end before Termination except as may be provided in the preceding Sections of this Article 15.
35
ARTICLE 16
MISCELLANEOUS.
The captions herein are inserted for convenience only and do not define, limit or describe
the provisions thereof. If any term, provision or covenant hereof (collectively "Provision") is
held to be partly or wholly invalid or is unenforceable for any reason, such holding shall not
affect any other Provision, or the remaining portions of any Provi sion held to be partly invalid or
unenforceable. The Instrument shall be liberally construed to create a uniform plan of Time·
Share ownership. Throughout the Instrument, whenever appropriate, the singular shall include
the plural and the masculine gender, the feminine or neuter. No third party beneficial rights are
intended hereby and none are afforded hereby. The Instrument shall be construed under the laws
of the Commonwealth of Virginia.
~:""~~£
"Steven C. Krohn , Executive Vice President
COMMONWEALTH OF VIRGINIA
County of Albemarle
I, the undersigned, a Notary Public in and for the jurisdiction aforesaid , do hereby certify
that Steven C. Krolm, Executive Vice President of Recreational Resorts, Ltd. a Virginia stock
corporation, whose name is signed as such to the foregoing Second Restated and Amended
Time·Share Instrument has acknowledged the same before me in my jurisdiction aforesaid.
Given under my hand this 50~ day of January, 2013.
My commission expires:
Garrett M. Smith
(Notarial Seal)
Commonwealth of Virginia
Notary Public
Commission No. 7375359
My Commi..ion . ,plr•• 12/3112014
GMS RRM 1/21113
36
EXHIBIT A
Plat of Project
NOTES;
I. THE DEVELOPMENT CONSISTS OF 76.0 . ACRES OF WH I CH 18.8. ACRES ARE THE T I ME-SHARE
PROJECT AND 57.2 ' ACRES ARE ADDITIONAL LAND.
2. THE TIME-SHARE PROJECT CONSISTS OF:
A. FIVE PHASES:
I. PHASE ONE IS 2. 1' ACRES WITH TIME-SHARE UNITS I, 3-13;
II. PHASE TWC IS 13.0> ACRES WITH TIME-SHARE UNITS 1~-22, 63-82;
III, PHASE THREE IS 2.2> ACRES WITH TIME-SHARE UNITS 23-26; AND
IV. PHASE FOUR IS 0.6>. ACRES WITH TIME-SHARE UNITS 83, 8~, 103 AND 10~
V. PHASE FIVE IS 0 .9' ACRES WITH TIME-SHARE UNITS 105. 106. 107. AND 112.
B. TOTAL OF 53 TIME-SHARE UNITS (I.E. CABINS) NUMBEREO 1. 3-26. 63-84.
103-107 AND 112.
C. COMMON ELEMENTS CONSIST, IN PART OF, THE nENNIS COURTS. SWIMMINC
POOL AND ANCILLARY FACIUTIES. ROADS, PARKING AREAS, LANDSCAPING ANO
WELL HOUSE.
3. INTERNAL LINES DIVIDING PHASES ARE ONLY SHOWN
TO APPROXIMATE THE ACREAGE OF EACH PHASE.
~. THE PROPERTY DEUNEATED HEREON IS LOCAnED ON TAX ASSESSMENT MAP 10-A-25C AND IS
CURRENTLY IN THE NAME OF RECREAT IONAL RESORTS, LTD, AS RECORDED I N DEED BOOK B97
AT PAGE 411 AMONG RECORDS OF SPOTSYLVANIA COUNTY, VIRGINIA.
5. NO TI TLE REPORT WAS FUlN I SHED.
6. THE PROPERTY
is
SUBJECT TO ALL ENCUMBRANCES OF RECORD.
7. BOUNDARY INFORMATION TAKEN FROM RECORD SOURCES.
e
GPS TIE IN NOTE·
THIS PLAT IS REFERENCED TO THE VIRGINIA COORDINATE SYSTEM OF 1983 AS COMPUTED
FROM A FIELQ SURVEY WHICH TIES THIS DEVELOPMENT BOUNDARY TO SpOTSYIYANIA COUNTY
MONUMENT IN I 02-080 RESORT.
THE GRID FACTOR (EIEYATION FACTOR X SCAlE FACTOR) THAT HAS BEEN APPLIED TO THE
FIELD DISTANCE TO DERIVE THE REFERENCED COORDINATES IS Q 99994697. UNLESS
OTHERWISE STATED THE PLAT DISTANCES SHOWN ARE INTENDED TO BE HORIZONTAL
DISTANCES MEASURED AT THE MEAN ELEVATION OF THE DEVELOPMENT.
THE BEARINGS SHOWN ARE REFERENCED TO VCS 1983 GRID NORTH. THE FOOT DEFINITION
USED FOR CONVERSION OF THE MONUMENT COORDINATES I S THE 'U.S. SURVEY FOOT" OR I FT
- 1200/3937 METER.
GEODETIC CONTROL MON~ENTS EXISTING OR PLACED WITHIN THE BOUNDARIES OF TH IS
DEVELOPMENT SHALL NOT BE 0 I STURBED. THE LANDOWNER ASSWES THE RESPONS IBI L I TY FOR
REPLACEMENT OF ANY 0 I STURBED MONUMENT.
•'".
"
~
•
'"<Xi
VICINITY MAP
SCALE: 1" = 2000'
EXHIBIT "A"
THE DEVELOPMENT
PRESIDENTIAL RESORT
AT CHANCELLORSVILLE
SITE
CHANCELLOR MAGISnERIAI. DISTRICT
SPOTSYLVANIA COUNIY, VIRGINIA
DATE: IAAY I, 2008
SHEET 1 OF 3
i
til
,/
I
___ .J
/
RIDGE ROAD
GLEN 6
BULL RUN
GLE~~
(A PRIVATE STREET)
(EX. DEVELOPMENT ACCESS )
_~S~O~7....!·1~·.Q2·E
~
~
4-
aUll. RUN
1&/1'
.... ER"Ec:c:
" LU
11 ..........
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ll'.
'Go
4 6 7 . 6,:;:0,· ~,.
J.
\~
17
~~~
B
-::=t--o0()'9V~'22 ' JJ
/,?O
PHASE THREE
2.2 'Acre.
I
2)
"~,";'J."ci
/ c,,'t. • .,:0
.,-0;'
S
0'()
(/00 U
.~
26
8
Vi
~
/
~
~
~
/
~SE
FIVE
10 .9 ±Acra,
/
PHASE FOUR /
06 ±Acres /
/
RECREATIONAL
RESORTS. LTD.
"\
/
~\
/
~~\
'8,>("
'"
;,
~~:&'
/
/crWICELLORS','ILLE
E<""T' TE" II
4",.c~:-'- - - -",..,',.,"=-'-=-:"==------,
o. \
'f'
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\
EXHIBIT "A"
I " .
It
/ ' __ /"v
/
'oJ'
THE DEVELOPMENT
PRESIDENTIAL RESORT
~
/
\~
&.: - ;4
J,:j {o;'O
""
/
oJ'
CHANCEUOR MAGISTERIAl DISTRICT
SPOTSYLVANIA COUNTY, VIRGINIA
DATE: MAY " 2008
SHEET 2 OF J
/
/
/ •.,0
\ /.60"
y~.'
LINE
11
L2
L3
LINE TABLE
BEARING
53 1'14'57"
S71 '44'21"W
505'16'21"E
LENGTH
1 0 . 0'
93.00'
25.00'
PH
Pallo n Herrls Rust & ASJ Qc \ales
Enalne er •. SurJe yora ,Planners,Land.cape Archllec ts
1 2~96 Darby Brooke Court
200
~.~~~.~O
.
~~~~
25
00~----~400 'tfoodbrld&t, Vlralnla 22192
'
200
~::S:C:A:L£:::,:·:g::::::::::::::::F:[:[:T:::::7:03::':97:
-:I:'2:2::r:AX::7=O:3::'9='=-:66:9:3::M.=I:rO=6:9:0:-6:~:27=-~
52729'10"E
42.90'
.1'--'0,
RESREATlm~AL
'>,
RESORTS,
SO)~
VCS 83 NORTH ZONE
:ae:
l-'
o·
:z . . . . <
",0
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........
o
N;:
'"z
TOP
BUILDER.
TAX PARCEL lO-A-25C
~~OTCH
I ~~C . ,
ET AL
RECREATIONAL RESORTS. LTD.
D.B. 897 PC. 4 I I
AREA - 75.0f ACRES
iHE DEVELOPMENT"
N 5,791,708.11
E 11.722,612.56
-
_--=?,~;-;. AVAILABLE FOR
FUTURE DEVELOPMENT
-AOOIT!ONAl LAND-
FRA~J~IS
CATHOLIC
WORKER WEST
5
78 4
11,721,248.05
20,JL~~~~0~~~~2050;.~__.4~OO
EXHIBIT "A"
THE DEVELOPMENT
PRESIDENnAL RESORT
A TIME-SHARE
ESTATE PROJECT
Ctw-lCELLOR MAGISTERlAl DISTRICT
n.~. "'Y 1 2008
ut\'~
MI"I
•
RH
SCAL£
I" -
200'
PaLLon Horrl. Rust &: Auoclelu
IT£!
Enalneen ,Surveyon,Plannen.Lendscape Atchilecls
125ge Darby Brooke Court
WoodbrldJe . Viraln1 a
22 192
"
~w
L:::::::::::::S:H:E8:::3:0:f::3::::::::::::7:0:3::'9:7:-I:':22:::fA:X::7:03::':9:4-=6:6:93::W=.:~:O=6:~:-=6:~:27:J~
I
II
FO~~
( ,:'0 "
"
PHASE
TAX PARC,!;" 10-A-25C
RECREATIONAL
RESORTS. LTD.
D,B, 897 PG, 4"
AREA -76 ,0± ACRES
"THE DEVELOPMENT"
,
"
,
AVAILABlE: FOR -::..-~
FUTURE DEVELOPMENT
,
'" "ADDmONAL LAND"
PHASE FI,,'E
C.9 .Acro:.
5~~
O~~~~O~~~~~5~O______~
I?O
SCALE
I" = 50'
FEU
EXHIBIT "B"
NOTES:
PHASE IV
PRESIDENTIAL RESORT
AT CHANCELLORSVILLE
1. THE PROPERTY DELINEATED HEREON IS
LOCATED ON TAX ASSESSMENT MAP 10-A-25C
AND IS CURRENTLY IN THE NAME Of
CHANCELLOR MAGISTERIAl. DISTRICT
RECREATIONAL RESORTS. LTD. AS RECORDED IN
SPOTSYLVANIA COUNTY. VIRGINIA
DEED BOOK 697 AT PAGE 4 I I AMONG RECORDS '-:;;r:;~_,.=_.:::D~
AT:.:E::...:.::t.4A:::y!.....!'.:..:::
,2.:;:0::::06:..-_ _ _
Of SPOTSYLVANIA COUNTY. VIRGINIA,
I- n
2, NO TITLE REPORT WAS fURNISHED,
3, THE PROPERTY I S SUBJECT TO ALL
ENCUM8RANCES OF RECORD .
4. BOUNDARY INrORMATION TAKEN FROM RECORD
SOURCES .
rlH
-1
Pellon Hotrls Rust &: Associates
£na1n,.n,Surveyon ,Plannen,Landsc ape Archlhcl.
12~ge Darby Brooke Courl
Woodbrldle, Vlra lnl • 22192
703 ... 97-1122 r"x 703 494 -6693 Melro 690 - 6527
PHASE 1"',·,'0
PHASE F1VE
/
/
0.9 ±Acre!
,
I
TAX PARCEL 10-A-25C
'
RECREATIONAL '
RESORTS
t
O.S. 897 PC. LTD·
411
PHASE
AREA -76 .0± ACRES
"THE OEVELOPMENT"
AVAILABLE FOR
~
TWO
30 . Ano'!
.' .
- c::....
FUTURE DEVELOPMENT
. "AOOmONAl lAND"
5~e.
~~~~O~~~~5~O~____~
100
SCALE I" = 50'
F[ET
EXHIBIT ·C·
PHASE V
PRESIDENTIAL RESORT
AT CHANCELLORSVILLE
A TIME-SHARE ESTATIE PROJECT
NOTES:
1. THE PROPERTY DELINEATED HEREON IS
LOCATED ON TAX ASSESSMENT MAP 10-A-25C
AND IS CURRENTLY IN THE NAME OF
CHANCELLOR MAGISTERIAL DISTRICT
RECREAT IONAl RESORTS. LTD. AS RECORDED IN
DEED BOOK a97 AT PAGE ~ 1/ AMONG RECORDS ,-:;;;::;;=-_-:;:=_.:::OA
;:JE:=:..
: .:::MA:::Y
:....:l,:.
• .!2:!::
OO~B~_ _ _~
SPOTSYLVANIA CO\-NTY, VIRGINIA.
Inn ,
or
2. NO TITLE REPORT WAS FURNISHED.
3. THE PROPERTY IS SUBJECT TO ALL
ENCUMBRANCES Of RECORD.
4. BOUNDARY INFORMATION TAKEN FROM RECORO
SOURCES .
A
rlHl~
\..
Pallon Harrl. Ru.t & Auocial ..
£n,ln.cn ,5u rv.yon.Planneu.Land~c.pe Arch itect.
12~96 Darby Brooke Courl
Woodbrld,lI . Vlralnla 22192703
497-1122
rAX
703
404 -1S593
Metro 690-e~21
w
r-'
EXHIBITB
Resume of Project
(as of February 1,2013)
Resum e of Project
Phases, Acreage, Cabins a nd Days
The Time-Sh are Project currently consists of five Phases total ing 18.80+ acres, 53
cabins (each ofwhich is a Time-Share Unit) committed to the Time-Share Project and Tim eShare Program, all 53 of which contain UDI Time-Share Estates only (Fixed a nd Floating),
and Common Elements, as fo llows:
Phase Number
Acrc aee
Phase I
2.1+/-
Phase II
13.0+/-
Cabin or Building Number
Time-Share 110ft Numher
1
3
4
5
6
7
8
9
10
1
3
4
5
6
7
8
9
10
11
11
12
13
12
13
14
15
16
17
18
19
20
21
14
15
16
17
18
19
20
21
22
63
64
65
66
67
68
69
70
71
22
63
64
65
66
67
68
69
70
71
72
72
73
73
74
75
76
74
75
76
Day
Sunday
Sunday
Sunday
Sunday
Sunday
Su nday
Sunday
Su nday
Sunday
Sunday
Sunday
Saturday
Saturday
Saturday
Saturday
Saturday
Saturday
Saturday
Saturday
Saturday
Saturday
PI'lday
Friday
Friday
Friday
Friday
Friday
Friday
Friday
Friday
Friday
Friday
Sunday
Sunday
Sunday
Phase II (cont'd)
77
78
79
80
81
82
77
78
79
80
81
82
Sunday
Sunday
Saturday
Friday
Saturday
Sunday
23
24
2S
26
83
Friday
Friday
Friday
Friday
Saturday
Phase III
2.2+/-
Phase IV
0.6+/-
23
24
25
26
83
0.9+/-
84
103
104
105
84
103
104
105
Saturday
Saturday
Saturday
Saturday
106
107
112
106
107
112
Saturday
Friday
Sunday
Phase V
Total
16.8+/- acres
53 Cabills
Common Elements
The Common Elements consist, in part, of the tennis courts, swimming pool and
ancillary facilities, roads, parking areas,landscaping and well house and wells.
2
EXHIBITC
Floorplans
12 '-B '
f
6'-1'
6 ' -B"
r
II
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•
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9'-
1'-2.
' Bath
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(it
••
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BedrOQm
N
.,
,
1,
:
Ref
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loeetlon by owner
l1ylng .ROQm
.'
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'.
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ae. detell
<TYp· 2B Ploe08)
-@
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f
. .
up-t-+_...J
.
' -I I I'
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11
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1
9'-B '
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CUpp ASSOC.
ARCHITECTS, P.C.
CONVENTIONAL FRAMED CABINS
'OA
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MILLER
-,-
GER94CAB- I
c&WMI_
A-IOI
I OF 3
16
OFFICIAL RECEIPT
SPOTSYLVANIA CIRCUIT COURT
9107 JUDICIAL CENTER LANE
SPOTSYLVANIA , VA 22553
540 - 507 - 7600
DEE D
RECE HT
DATE : 01/31/13 TIME : 10 : 49 : 25 ACCOUNT : 177CLR130002483
RECEIPT : 13000003319
CASHIER : WHT
REG : SV44 TYPE : AMEND
PAYMENT : FULL PAYMENT
INSTRUMENT
130002483 BOOK :
PAGE :
RECORDED : 01/31/13 AT 10 : 48
GRANTOR : RECREATIONAL RESORTS , LTD .
EX : N LOC : CO
GRANTEE : RECREATIONAL RESORTS , LTD .
EX : N PCT : 100%
AND ADDRESS
610 WEST RIO RD . CHARLOTTESVILLE , VA . 22901
RECEIVED OF : RECREATIONAL RESORTS , LTD .
DATE OF DEED : 01/30/13
CHECK :
$55 . 00 10959
DESCRIPTION 1 : PRESIDENTIAL RESORT AT CHANCELLORSVILLE , A TI PAGES : 49 OP 0
2:
NAMES :
0
CONSIDERATION :
. 00 A/VAL :
. 00 MAP : 10 - A- 25C
PIN : 10-A- 25C
301 DEEDS
48 . 50 145 VSLF
1. 50
5 . 00
106 TECHNOLOGY TRST FND
55 . 00
TENDERED
AMOUNT PAID :
55 . 00
CHANGE AMT :
. 00
CLERK OF COURT: CHRISTALYN M. JETT
PAYOR ' S COPY
RECEIPT COPY 1 OF
2
EXHIBIT 1.1
Amendments and Supplements to
Second Restated and Amended Time-Share Instrument
for Presidential Resort at Chancellorsville, a Time-Share Estate Project
Amendments/Supplements Follow this Cover Sheet. None Exist as of May 21, 2013
31
EXHIBIT 2
Articles of Incorporation of Presidential Resort Owners Association
32
EXHIBIT 3
Bylaws of Presidential Resort Owners Association
33
EXHIBIT 4
Rules and Regulations of Presidential Resort Owners Association
34
EXHIBIT 5
RCI’s Weeks Disclosure Guide
The RCI Weeks Disclosure Guide is updated routinely by RCI.
It is distributed separately with this Public Offering Statement.
The most recent version is always available at www.rci.com.
35
EXHIBIT 6
Annual Report of Presidential Resort Owner’s Association
37
I
I
r
PRESIDENTIAL RESORT
OWNERS ASSOCIATION
SPOTSYLVANIA, VIRGINIA
FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2012
l
!
i
r
PRESIDENTIAL RESORT OWNERS ASSOCIATION
j
t
CONTENTS
PAGE
Report of independent auditors ... .... ... .... ... ... ... .. ... ... .... .... .... ... ... .... ... ... ... .. ... ... ... .. .. ... .. .. .... ...... .. ... .... ... .
1
Balance sheet.......................................................................................................................................
3
Statement ofrevenue, expenses, and changes in fund balance ... .... .. ... ... ... ... .. ... .. .. ... .. ... ... ...... ... ... ... ...
4
Statement of cash flows.......................................................................................................................
5
6
Notes to financial statements...............................................................................................................
Supplementary information:
Supplementary information on future major repairs and replacements - unaudited ...................... 10
HANTZMON WIEBEL
Certified
L. Peyton Humphrey
Lawrence ]. ?vlartin
Phillip \V. Shitlett
Dean A. !Yfartinelli
Richard ~1. Busofsky
Public
LLP
Accountants
P.O. Box 1403 • 818 E.as( Jdferson Stred • Charlottesville, VA 22902
(4J·l) 296-2156 • FAX {·B4) 977-4629 • www.hantzmonwkbel.com
VV. Keith Haney
Kevin L. Keller
Glenn l\1. Lankford
Alfred L. Layne, Jr.
Jennifer$. Lehman
P. Frank Berry
Kendra L. Stribling
Jeffre)' D. U!iner
• Consultants •
Robert F. Gennnn
Robert A. Foster
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors
Presidential Resort Owners Association
Spotsylvania, Virginia
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of PRESIDENTIAL RESORT OWNERS
ASSOCIATION (a Virginia corporation), which comprise the balance sheet as of December 31, 2012, and
the related statements of revenue, expenses, changes in fund balance, and cash flows for the year then
ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
l
'
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity's preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
lvfcmbers
American Institute of Certified Public Accountants • Virginia Society of Ccrtifo:d Public Accounta1)(s • Private Companies Practice Section of AI CPA
I
i
'
I
To the Board of Directors
Presidential Resort Owners Association
REPORT ON THE FINANCIAL STATEMENTS--( Cont'd)
Auditor's Responsibility--(Cont'd)
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of PRESIDENTIAL RESORT OWNERS ASSOCIATION as of December 31, 2012, and the
results of its operations and its cash flows for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
REPORT ON SUMMARIZED COMPARATIVE INFORMATION
We have previously audited PRESIDENTIAL RESORT OWNERS ASSOCIATION'S 2011 financial
statements, and we expressed an unmodified opinion on those financial statements in our report dated
June 11, 2012. In our opinion, the summarized comparative information presented herein as of and for
the year ended December 31, 2011, is consistent, in all material respects, with the audited financial
statements from which it has been derived.
Ii
DISCLAIMER OF OPINION ON REQUIRED SUPPLEMENTARY INFORMATION
f
Accounting principles generally accepted in the United States of America require that
supplementary information on future major repairs and replacements on page 10 be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Financial Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Charlottesville, Virginia
May3, 2013
-2-
i
BALANCE SHEET
DECEMBER
31, 2012
(WITH COMPARATIVE TOTALS FOR
2011)
ASSETS
2012
2011
TOTAL
OPERATING
REPLACEMENT
FuND
FUND
(FOR COMPARATIVE
TOTAL
PURPOSES ONLY)
$ 198,056
$1,081,060
834,475
102,208
6,260
76,356
6,602
$1,140,999
$1,164,018
$
$
ASSETS
Cash and cash equivalents ....................... ..
Assessments receivable (net) .................... .
Due from developer .................................. .
Due from affiliates ................................... .
Prepaid expenses ..................................... ..
Total assets ........................................... .
$
198,056
$
834,475
102,208
6,260
$1,140,999
$
LIABILITIES AND FuND BALANCE
LIABILITIES
Accounts payable ..................................... .
Due to developer ...................................... .
Unearned assessments .............................. .
Total liabilities ...................................... .
$
55,848
$
55,848
1,085,151
1,085,151
54,772
103,246
1,006,000
1,140,999
1, 140,999
1,164,018
$1,140,999
$1,164,018
I
I
f
i
FuND BALANCE ............................................ .
Total liabilities and fund balance .......
$1, 140,999
$
t
(The accompanying notes are an integral part of these financial statements)
-3-
STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED DECEMBER 31,
2012
(WITH COMPARATIVE TOTALS FOR 2011)
2012
OPERATING
FUND
TOTAL
2011
TOTAL
(FOR COMPARATIVE
PURPOSES ONLY)
$ 3,437,127
120,223
372,680
49,960
$4,324,897
120, 135
295,400
41,916
REPLACEMENT
FUND
REVENUE
Member assessments ................................ .
Cabin rental revenue ................................. .
Finance charges ........................................ .
Miscellaneous income ............................... .
$3,437,127
120,223
372,680
49,960
Total revenue ........................................ .
3,979,990
3,979,990
4,782,348
EXPENSES
Housekeeping, recreational, maintenance
and administrative services ................... ..
Recreational expenses .............................. ..
Management fee expense .......................... .
General and administrative expenses ......... .
Utilities ..................................................... .
Supplies .................................................... .
Office expense .......................................... .
Professional fees ....................................... .
Repairs and maintenance .......................... .
Pool expenses .......................................... ..
Vehicle expense ........................................ .
Grounds maintenance ................................ .
Replacement expense ............................... ..
Insurance ................................................. ..
Real estate taxes ...................................... ..
Bad debt expense ...................................... .
1,670,024
50,575
410,346
51,921
373,914
43,776
33,825
15,000
80,612
126,009
62,863
19,691
1,973
8,053
90,481
912,193
1,670,024
50,575
410,346
51,921
373,914
43,776
33,825
15,000
l 09,346
126,009
62,863
19,691
1,973
8,053
90,481
912,193
1,760,953
53,583
474,577
61,553
396,263
38,700
40,523
14,801
115,671
131,244
68,141
30,733
232
7,015
88,359
1,500,000
Total expenses ................................... .
3,951,256
3,979,990
4,782,348
REVENUE OVER (UNDER) EXPENSES .............. .
28,734
$
28,734
28,734
(
28,734)
FUND BALANCE, BEGINNING OF YEAR .......... ..
TRANSFER TO REPLACEMENT FUND...............
FUND BALANCE, END OF YEAR .................... ..
(
28,734)
28,734
~-~-~
$
$
$
-4-
$
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER
31, 2012
(WITH COMPARATIVE TOTALS FOR 2011)
2011
2012
TOTAL
OPERATING
REPLACEi\'lENT
FUND
FUND
(FOR COMPARATIVE
TOTAL
PURPOSES ONLY)
CASH FLows FROM OPERA TING ACTIVITIES
Revenue over (under) expenses .............................................. ..
Adjustments to reconcile revenue over (under) expenses to net
cash provided by (used in) operating activities:
Bad debt expense ................................................................... .
(Increase) decrease in assets:
Assessments receivable (net) ............................................. .
Prepaid expenses .............................................................. .
Increase (decrease) in liabilities:
Accounts payable .............................................................. .
Unearned assessments ....................................................... .
Net cash provided by (used in) operating activities ...... .
$
28,734
($
28,734)
$
$
912,193
912,193
1,500,000
912,193)
342
912,193)
342
1,372,274)
182)
1,076
79,151
1,076
79,151
11,298)
154,000)
80,569
37,754)
109,303
28,734)
CASH FLOWS FROM INVESTING ACTIVITIES
Due from developer ....................................................................... .
Due from affiliates ......................................................................... .
834,475)
25,852)
834,475)
25,852)
829,559
23,152
Net cash provided by (used in) investing activities ................... .
860,327)
860,327)
852,711
103,246)
103,246
103,246)
103,246
883,004)
918,203
CASH FLOWS FROM FINANCING ACTIVITIES
Due to developer ....................................................... .
Transfer (to) fron1 other funds ....................................................... .
103,246)
28,734)
28,734
Net cash provided by (used in) financing activities ................... .
131,980)
28,734
883,004)
NET INCREASE {DECREASE) IN CASH AND CASH EQUIVALENTS
1,081,060
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ..
CASH AND CASH EQUIVALENTS, END OF YEAR ................................... .
$ 198,056
$
1,081,060
162,857
$ 198,056
$1,081,060
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NOTES TO FINANCIAL STATEMENTS
NATURE OF ORGANIZATION
Presidential Resort Owners Association (the Association) was incorporated on August I, 1989 as a
non-profit, non-stock corporation to provide management, maintenance, and care of "Presidential
Resort at Chancellorsville," a Time-Share Estate Project. Recreational Resorts, Ltd. is the developer
of the Time-Share Estate Project, "Presidential Resort at Chancellorsville." Every purchaser of a
time-share week within this project receives a public offering statement, which explains the
relationship between the developer and the Association and outlines the responsibilities of the
Association. The Association currently consists of 53 cabins located in Spotsylvania, Virginia.
The Association is currently in the developer control period, which begins when the developer sells
its first time-share and shall end no later than at such time as the developer either transfers to
purchasers legal or equitable ownership of at least 90% of the time-share or completes all amenities
and facilities, whichever shall occur later. During the developer control period, the developer shall
be responsible for costs associated with the control, management, and operation of the project and
have for its account any maintenance fees collected to cover these costs.
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The Association is currently under the control of the initial Board of Directors, on which the
developer serves as the only voting member. The budgeting function of the Association rests with
the Board.
SIGNIFICANT ACCOUNTING POLICIES
Fund Accounting
The Association's governing documents provide certain guidelines for governing its financial
activities. To ensure observance of limitations and restrictions on the use of financial resources,
the Association maintains its accounts using fund accounting. Financial resources are classified
for accounting and reporting purposes in the following funds established according to their nature
and purpose:
Operating Fund - This fund is used to account for financial resources available for the
general operations of the Association.
Replacement Fund - This fund is used to accumulate financial resources designated for
future major repairs and replacements.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Association considers all highly liquid debt
instruments purchased with a maturity of three months or less to be cash equivalents. Cash
accounts in excess of federally insured limits are subject to risk of loss.
-6-
I
NOTES TO FINANCIAL STATEMENTS--(Cont'd)
SIGNIFICANT ACCOUNTING POLICIES--(Cont'd)
Assessments Receivable
Association members are subject to annual assessments to provide funds for the Association's
operating expenses, future capital acquisitions, and major repairs and replacements. Assessments
receivable at the balance sheet date represent fees due from cabin unit owners. Finance charges
are being recognized as collected and, therefore, not included in assessments receivable. The
Association provides for various collection remedies for delinquent assessments, including the
filing ofliens and foreclosing on the cabin unit owner.
The allowance for cancellations has been based on management's estimate of the potential
foreclosures on owners' interests in the Time-Share Estate Project.
Real Property
Real property and common areas owned by individual unit owners in common and improvements
made by the Association to such property are not capitalized in the financial statements.
1
Unearned Assessments
Unearned assessments represent cash payments by owners in advance of the actual year which the
assessment covers.
Income Taxes
Homeowners' associations may be taxed either as homeowners' associations or as regular
corporations. The Association has elected to be taxed as a homeowners' association. Under that
election, the Association is taxed on its nonexempt function income, such as interest earnings, at a
flat rate of 32%. Exempt function income, which consists primarily of member assessments, is
not taxable.
Uncertain Tax Positions
The Association has reviewed and evaluated the relevant technical merits of each of its tax
positions in accordance with guidance established by the Financial Accounting Standards Board
("FASB") and determined that there are no uncertain tax positions that would have a material
impact on the financial statements of the Association. The Association generally is no longer
subject to tax examinations by the U. S. federal, state, or local tax authorities for years before
2009.
-7-
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SIGNIFICANT ACCOUNTING POLICIES--(Cont'd)
Accounting Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Subsequent Events
Management has evaluated subsequent events through May 3, 2013, which is the date the financial
statements were available to be issued.
ASSESSMENTS RECEIVABLE
The Association bills its owners once a year, generally 60 days in advance of when the assessment is
due. Assessments receivable consist of the following:
2012
Assessments billed and uncollected ...................................... . $4,022,606
Amounts billed and uncollected for future year operations .. . ( 2,124,606)
2011
$3,685,519
( 2.279,519)
Total assessments over 60 days past due .......................... .
1,898,000
1,406,000
Allowance for cancellations .................................................. .
1,898,000
1,406,000
Net assessment receivable .......................................... ..
$
$
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FUTURE MAJOR REPAIRS AND REPLACEMENTS
The Association's governing documents do not require funds to be accumulated for future major
repairs and replacements. The Association has no formal restrictions to prevent the intended
replacement fund from being used to cover current operating costs. The Association did not carry
any replacement fund balance on the fmancial statements at December 31, 2012 or 2011.
Management of the Association conducted a study in December 2012 to estimate the remaining
useful lives and the replacement costs of the common property components. Actual expenditures,
however, may vary from the estimated amounts and the variations may be material. Therefore,
amounts accumulated in the replacement fund may not be adequate to meet future needs. If
additional funds are needed, the Association has the right to increase regular assessments or levy
special assessments, or it may delay major repairs and replacements until funds are available.
- 8-
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RELATED PARTY TRANSACTIONS
Recreational Resorts, Ltd. acts as the managing agent for Presidential Resort Owners Association,
Wilderness Camping Club, Inc., and Wilderness Resort Association, Inc. The undivided interest and
timeshare owners are members of these respective associations and club which are responsible,
through the collection of member dues, for the payment of operational expenses and necessary
maintenance of the developed projects. Recreational Resorts, Ltd. exercises substantial control over
these associations and club and provides financial support when needed. Recreational Resorts, Ltd.
and these associations and club have entered into management agreements, whereby the net income
or loss from the associations and club is transferred to Recreational Resorts, Ltd. as management fee
income or expense for services rendered. For the year ended December 31, 2012 and 2011,
management fees amounted to $410,346 and $474,577, respectively. Recreational Resorts, Ltd., as
developer of Presidential Resorts, is also responsible for funding operating and replacement fund
deficits while the Association is in the developer control period. As of December 31, 2012, amounts
due from the developer totaled $834,475. As of December 31, 2011, amounts due to the developer
totaled $103,246.
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The Association's operating expenses include housekeeping, recreational, maintenance and
administrative services that are paid by the developer. These expenses include wages, payroll taxes,
workers comp insurance, and fringe benefits for employees working for the Association.
Housekeeping, recreational, maintenance and administrative services expense for the years ended
December 31, 2012 and 2011 amounted to $1,670,024 and $1,760,953, respectively.
Presidential Resort Owners Association pays the majority of the invoices related to shared costs and is
reimbursed by Wilderness Resort Association, Inc. and Wilderness Camping Club, Inc. As of
December 31, 2012 and 2011, amounts due from Wilderness Resort Association, Inc. totaled $75,411
and $64,584, respectively. As of December 31, 2012 and 2011, amounts due from Wilderness
Camping Club, Inc. totaled $26,797 and $11,772, respectively.
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COMPARATIVE FINANCIAL INFORMATION
The financial statements include certain prior-year summarized comparative information in total but
not by fund balance. Such information does not include sufficient detail to constitute a presentation
in conformity with generally accepted accounting principles. Accordingly, such information should
be read in conjunction with the Association's financial statements for the year ended December 31,
2011, from which the summarized information was derived.
-9-
SUPPLEMENTARY INFORMATION
'
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SUPPLEMENTARY INFORMATION ON FUTURE
MAJOR REPAIRS AND REPLACEMENTS - UNAUDITED
DECEMBER
I
I
31, 2012
i
Management of the Association conducted a study in December of 2012 to estimate the
remaining useful lives and the replacement costs of the components of common property.
Replacement costs were based on the estimated costs to repair or replace the common property
components at the date of the study. Estimated current replacement costs do not take into account the
effects of inflation between the date of the study and the date the components will require repair or
replacement.
The following table is based on the study and presents significant information about the
components of common property:
ESTIMATED
REMAINING
USEFUL
ESTIMATED
LIVES
REPLACEMENT
COMPONENTS
(YEARS)
COSTS
Appliances ..................................... .
Building equipment ....................... .
Building ......................................... .
Carpeting ....................................... .
Furniture and fixtures .................... .
1 to 10
6 to 21
1 to 17
6
1 to 15
$ 160,000
411,000
353,000
83,000
783,000
$1,790,000
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- 10 -
EXHIBIT 7
Budget of Presidential Resort Owner’s Association
38
EXHIBIT 8
Management Agreement
Presidential Resort Owner’s Association/Recreational Resorts, Ltd.
39
EXHIBIT 9
Maintenance Fee
40
EXHIBIT 10
Resort Information Sheet
41

Wilderness Presidential Resort

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