CHAPTER 557B MEMBERSHIP CAMPGROUNDS
557B.1 DEFINITIONS.
557B.2 REGISTRATION REQUIREMENT.
557B.3 APPLICATION FOR REGISTRATION -- AMENDMENTS -- RENEWAL.
557B.4 EXEMPTIONS.
557B.5 EFFECTIVE DATE OF REGISTRATION.
557B.6 DENIAL, SUSPENSION, OR REVOCATION OF APPLICATION OR REGISTRATION -- PENALTIES.
557B.7 FEES.
557B.8 DISCLOSURES TO PURCHASERS.



        

557B.1 DEFINITIONS. As used in this chapter, unless the context otherwise requires: 1. "Advertisement" means an attempt by publication, dissemination, solicitation, or circulation to induce directly or indirectly any person to enter into an obligation or acquire a title or interest in a membership camping contract. 2. "Affiliate" means any person who, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with the person specified. 3. "Blanket encumbrance" means any mortgage, deed of trust, option to purchase, vendor's lien or interest under a contract or agreement of sale, judgment lien, federal or state tax lien, or any other material lien or encumbrance which secures or evidences the obligation to pay money or to sell or convey all or part of a campground located in this state, made available to purchasers by the membership camping operator, and which authorizes, permits, or requires the foreclosure or other disposition of the campground. "Blanket encumbrance" also includes the lessor's interest in a lease of all or part of a campground which is located in this state and which is made available to purchasers by a membership camping operator. "Blanket encumbrance" does not include a lien for taxes or assessments levied by a public body which are not yet due and payable. 4. "Business day" means any day except Saturday, Sunday, or a legal holiday. 5. "Campground" means real property made available to persons for camping, whether by tent, trailer, camper, cabin, recreational vehicle, or similar device and includes the outdoor recreational facilities located on the real property. "Campground" does not include a manufactured home community or mobile home park as defined in section 435.1. 6. "Controlling persons of a membership camping operator" means each director and officer and each owner of twenty-five percent or more of the stock of the operator, if the operator is a corporation; and each general partner and each owner of twenty-five percent or more of the partnership or other interests, if the operator is a general or limited partnership; or other person doing business as a membership camping operator. 7. "Membership camping contract" means an agreement offered or sold within this state evidencing a purchaser's right to use a campground of a membership camping operator for more than thirty days during the term of the agreement. 8. "Membership camping operator" or "operator" means any person other than one who is tax exempt under section 501(c)(3) of the Internal Revenue Code, as defined in section 422.3, who owns or operates a campground and offers or sells membership camping contracts paid for by a fee or periodic payments. "Membership camping operator" does not include the operator of a manufactured home community or mobile home park as defined in chapter 435. 9. "Offer" means an inducement, solicitation, or attempt to encourage a person to acquire a membership camping contract. 10. "Purchaser" means a person who enters into a membership camping contract with a membership camping operator and obtains the right to use the campground owned or operated by the membership camping operator.

         Section History: Recent Form

         87 Acts, ch 181, §5; 2001 Acts, ch 153, §16
        

557B.2 REGISTRATION REQUIREMENT. A person shall not offer or sell a membership camping contract in this state unless one of the following is applicable: 1. The membership camping contract is covered by a membership camping registration as provided in this chapter. 2. The membership camping contract or the transaction is exempted under section 557B.4.

         Section History: Recent Form

         87 Acts, ch 181, §6
         Referred to in § 502.201, 557B.13
        

557B.3 APPLICATION FOR REGISTRATION -- AMENDMENTS -- RENEWAL. 1. Filing fees, as prescribed in section 557B.7, shall accompany the application for registration, renewal of a registration, or any amendment of a registration of membership camping contracts. 2. The application for registration shall be filed with the attorney general and shall include all of the following: a. The membership camping operator's name and the address of its principal place of business, the form, date of organization, jurisdiction of its organization, and the name and address of each of its offices in this state. b. A copy of the membership camping operator's articles of incorporation, partnership agreement, or joint venture agreement as contemplated or currently in effect. c. The name, address, and principal occupation for the past five years of the membership camping operator and of each controlling person of the membership camping operator and the extent of each such person's interest in the membership camping operator as of a specified date within thirty days prior to the filing of the application. d. A list of affiliates of the membership camping operator, including the names and addresses of officers and directors. e. A legal description of each campground owned or operated by the membership camping operator which is represented to be available for use by purchasers and a statement identifying the existing amenities at each campground and the planned amenities represented as to be available for use by purchasers in the future at each campground. If future amenities are represented, the statement must include the estimated cost and schedule for completion of those amenities. f. A brief description of the membership camping operator's ownership of or other right to use the campground properties or facilities represented to be available for use by purchasers, together with a brief description of any material encumbrance, the duration of any lease, real estate contract, license, franchise, reciprocal agreement, or other agreement entitling the membership camping operator to use the property and any material provisions of the agreements which restrict a purchaser's use of the property. g. If a blanket encumbrance materially adversely affects a campground, a legal description of the encumbrance and a description of the steps taken to protect purchasers in accordance with section 557B.12 in case of failure to discharge the encumbrance. h. A brief description of all payments of a purchaser under a membership camping contract, including initial fees and any further fees, charges, or assessments, together with any provision for changing the payments. i. A description of any restraints on the transfer of membership camping contracts, including a complete description of any resale agreement or policy. j. A brief description of the policies relating to the availability of camping sites and whether reservations are required. k. A brief description of any grounds for forfeiture of a purchaser's membership camping contract. l. A sample copy of each membership camping contract to be offered or sold in this state and the purchase price of each type, and if the price varies, the reason for the variance. m. A sample copy of each instrument which a purchaser will be required to execute, and a copy of the disclosure statement required by section 557B.8. n. A statement of the total number of membership camping contracts for each campground intended to be sold in this state and the method used to determine this number, including a statement of commitment that this number will not be exceeded unless it is disclosed by an amendment to the registration. o. A summary or copy of the articles, bylaws, rules, restrictions, or covenants regulating the purchaser's use of each campground and the facilities located on each property, including a statement of whether and how the articles, bylaws, rules, restrictions, or covenants may be changed. p. A brief description of any reciprocal agreement allowing purchasers to use camping sites, facilities, or other properties owned or operated by any person other than the membership camping operator with whom the purchaser has entered into a membership camping contract. q. Financial statements of the membership camping operator prepared in accordance with generally accepted accounting principles which shall include a financial statement for the most recent fiscal year audited by an independent certified public accountant, and an unaudited financial statement for the most recent fiscal quarter. The attorney general may waive the requirement for an audited statement if the statement has been prepared by an independent certified public accountant and the attorney general is satisfied with the reliability of the statement and with the ability of the membership camping operator to meet future commitments. The application shall be signed by the membership camping operator or an officer or a general partner of the membership camping operator, or by another person holding a power of attorney for this purpose from the membership camping operator. If the application is signed pursuant to a power of attorney, a copy of the power of attorney must be included with the application. An application for registration shall be amended within twenty-five days of any material change in the information included in the application. A material change includes any change which significantly reduces or terminates either the applicant's or the purchaser's right to use the campground or any of the facilities described in the membership camping contract, but does not include minor changes covering the use of the campground, its facilities, or the reciprocal program. The registration of the membership camping operator must be renewed annually by filing an application for renewal with the required fee not later than thirty days prior to the anniversary of the current registration. The application shall include all changes which have occurred in the information included in the application previously filed. Registration with the attorney general does not constitute approval or endorsement by the attorney general of the membership camping operator, the membership camping contract, or the campground, and any attempt by the membership camping operator to indicate that registration constitutes such approval or endorsement is unlawful.

         Section History: Recent Form

         87 Acts, ch 181, §7
         Referred to in § 557B.6, 557B.8, 557B.13
        

557B.4 EXEMPTIONS. The following transactions are exempt from registration: 1. An offer, sale, or transfer by any one person of not more than one membership camping contract in any twelve-month period. 2. An offer or sale by a government, government agency, or other subdivision of government. 3. A bona fide pledge of a membership camping contract. 4. Transactions subject to regulation pursuant to chapter 557A.

         Section History: Recent Form

         87 Acts, ch 181, §8
         Referred to in § 502.201, 557B.2
        

557B.5 EFFECTIVE DATE OF REGISTRATION. The application for registration automatically becomes effective upon the expiration of forty-five calendar days following filing of a completed application with the attorney general unless one of the following occurs: 1. The application is denied under section 557B.6. 2. The attorney general grants the registration effective as of an earlier date. 3. The applicant consents to a delay of the effective date. If the attorney general requests additional information with respect to the application, the application becomes effective upon the expiration of fifteen business days following the filing with the attorney general of the additional information unless an order pursuant to section 557B.6 is issued or unless declared effective on an earlier date by order of the attorney general.

         Section History: Recent Form

         87 Acts, ch 181, §9
        

557B.6 DENIAL, SUSPENSION, OR REVOCATION OF APPLICATION OR REGISTRATION -- PENALTIES. The attorney general may by order deny, suspend, or revoke a membership camping operator's application or registration or impose a penalty of not more than five thousand dollars or a combination of suspension or revocation and penalty, if the attorney general finds that the order is for the protection of prospective purchasers or purchasers of membership camping contracts and that one of the following applies: 1. The membership camping operator's advertising or sales techniques or trade practices have been or are deceptive, false, or misleading. 2. The membership camping operator is not financially responsible or has insufficient capital to warrant its offering or selling membership camping contracts in this state. The attorney general may require a surety bond or, if one is unobtainable, other evidence of financial assurances satisfactory to the attorney general. 3. The membership camping operator's application for registration or an amendment to the registration is incomplete in a material respect. 4. The membership camping operator has failed to file timely amendments to the application for registration as required by section 557B.3. 5. The membership camping operator has failed to comply with any provision of this chapter that materially affects the rights of purchasers, prospective purchasers, or owners of membership camping contracts. 6. The membership camping operator has made a false or misleading representation or concealed material facts in any document or information filed with the attorney general. 7. The membership camping operator has represented or is representing to purchasers in connection with the offer to sell membership camping contracts that a particular facility is planned, without reasonable expectation that the facility will be completed within a reasonable time or without the apparent means to ensure its completion. An order denying, suspending, or revoking a registration or imposing a penalty shall be sent by certified mail, return receipt requested, to the applicant or registrant. The applicant or registrant has thirty calendar days from the date of mailing the order to request a hearing pursuant to chapter 17A. If a hearing is not requested within thirty days and is not ordered by the attorney general, the order shall remain in effect until modified or vacated by the attorney general. However, if the attorney general finds that the public health, safety, or welfare imperatively requires emergency action, and incorporates a finding to that effect in the order, summary suspension of a membership camping operator's registration may be ordered. If the membership camping operator desires to contest the summary order, the membership camping operator must request a hearing within fifteen calendar days of service of the summary order. If so requested, the hearing must be instituted within twenty calendar days of the request and the contest of the summary order must be promptly determined.

         Section History: Recent Form

         87 Acts, ch 181, §10; 88 Acts, ch 1134, §99, 100
         Referred to in § 557B.5
        

557B.7 FEES. Each application for registration of an offer or sale of membership camping contracts and each application for amendment or renewal of a registration shall be accompanied by a fee determined by the attorney general which shall be sufficient to defray the costs of administering this chapter.

         Section History: Recent Form

         87 Acts, ch 181, §11
         Referred to in § 557B.3
        

557B.8 DISCLOSURES TO PURCHASERS. A membership camping operator who is subject to the registration requirements of section 557B.3 shall provide a disclosure statement to a purchaser or prospective purchaser before the person signs a membership camping contract or gives any money or thing of value for the purchase of a membership camping contract. 1. The front cover or first page of the disclosure statement shall contain only the following, in the order stated: a. "MEMBERSHIP CAMPING OPERATOR'S DISCLOSURE STATEMENT" printed at the top in boldface type of a minimum size of ten points. b. The name and principal business address of the membership camping operator and any material affiliate of the membership camping operator. c. A statement that the membership camping operator is in the business of offering for sale membership camping contracts. d. A statement, printed in boldface type of a minimum size of ten points, which reads as follows:

THIS DISCLOSURE STATEMENT CONTAINS IMPORTANT MATTERS TO BE CONSIDERED IN THE EXECUTION OF A MEMBERSHIP CAMPING CONTRACT. THE MEMBERSHIP CAMPING OPERATOR IS REQUIRED BY LAW TO DELIVER TO YOU A COPY OF THIS DISCLOSURE STATEMENT BEFORE YOU EXECUTE A MEMBERSHIP CAMPING CONTRACT. THE STATEMENTS CONTAINED IN THIS DOCUMENT ARE ONLY SUMMARY IN NATURE. YOU AS A PROSPECTIVE PURCHASER SHOULD REVIEW ALL REFERENCES, EXHIBITS, CONTRACT DOCUMENTS, AND SALES MATERIALS. YOU SHOULD NOT RELY UPON ANY ORAL REPRESENTATIONS AS BEING CORRECT. REFER TO THIS DOCUMENT AND TO THE ACCOMPANYING EXHIBITS FOR CORRECT REPRESENTATIONS. THE MEMBERSHIP CAMPING OPERATOR IS PROHIBITED FROM MAKING ANY REPRESENTATIONS WHICH CONFLICT WITH THOSE CONTAINED IN THE CONTRACT AND THIS DISCLOSURE STATEMENT. e. A statement, printed in boldface type of a minimum size of ten points, which reads as follows: StartOfSecIF YOU EXECUTE A MEMBERSHIP CAMPING CONTRACT, YOU HAVE THE UNQUALIFIED RIGHT TO CANCEL THE CONTRACT. THIS RIGHT OF CANCELLATION CANNOT BE WAIVED. THE RIGHT TO CANCEL EXPIRES AT MIDNIGHT ON THE THIRD BUSINESS DAY FOLLOWING THE DATE ON WHICH THE CONTRACT WAS EXECUTED OR THE DATE OF RECEIPT OF THIS DISCLOSURE STATEMENT, WHICHEVER EVENT OCCURS LATER. TO CANCEL THE MEMBERSHIP CAMPING CONTRACT, YOU AS THE PURCHASER MUST HAND DELIVER OR MAIL NOTICE OF YOUR INTENT TO CANCEL TO THE MEMBERSHIP CAMPING OPERATOR AT THE ADDRESS SHOWN IN THE MEMBERSHIP CAMPING CONTRACT, POSTAGE PREPAID. THE MEMBERSHIP CAMPING OPERATOR IS REQUIRED BY LAW TO RETURN ALL MONEYS PAID BY YOU IN CONNECTION WITH THE EXECUTION OF THE MEMBERSHIP CAMPING CONTRACT, UPON YOUR PROPER AND TIMELY CANCELLATION OF THE CONTRACT AND RETURN OF ALL MEMBERSHIP AND RECIPROCAL USE PROGRAM MATERIALS FURNISHED AT THE TIME OF PURCHASE. 2. The following pages of the disclosure statement shall contain all of the following in the order stated: a. The name, principal occupation, and address of every director, partner, or controlling person of the membership camping operator. b. A brief description of the nature of the purchaser's right or license to use the campground and the facilities which are to be available for use by purchasers. c. A brief description of the membership camping operator's experience in the membership camping business, including the length of time the operator has been in the membership camping business. d. The location of each of the campgrounds which is to be available for use by purchasers and a brief description of the facilities at each campground which are currently available for use by purchasers. Facilities which are planned, incomplete, or not yet available for use shall be clearly identified as incomplete or unavailable. A brief description of any facilities that are or will be available to nonpurchasers shall also be provided. The description shall include, but need not be limited to, the number of campsites in each park, the number of campsites in each park with full or partial hookups, swimming pools, tennis courts, recreation buildings, restrooms and showers, laundry rooms, trading posts, and grocery stores. e. The fees and charges that purchasers are or may be required to pay for the use of the campground or any facilities. f. Any initial or special fee due from the purchaser, together with a description of the purpose and method of calculating the fee. g. The extent to which financial arrangements, if any, have been provided for the completion of facilities, together with a statement of the membership camping operator's obligation to complete planned facilities. The statement shall include a description of any restrictions or limitations on the membership camping operator's obligation to begin or to complete the facilities. h. The names of the managing entity, if any, and the significant terms of any management contract, including but not limited to, the circumstances under which the membership camping operator may terminate the management contract. i. A summary or copy, whether by way of supplement or otherwise, of the rules, restrictions, or covenants regulating the purchaser's use of the campground and the facilities which are to be available for use by the purchaser, including a statement of whether and how the rules, restrictions, or covenants may be changed. j. A brief description of the policies covering the availability of camping sites, the availability of reservations and the conditions under which they are made. k. A brief description of any grounds for forfeiture of a purchaser's membership camping contract. l. A statement of whether the membership camping operator has the right to withdraw permanently from use, all or any portion of any campground devoted to membership camping and, if so, the conditions under which the withdrawal is to be permitted. m. A statement describing the material terms and conditions of any reciprocal program to be available to the purchaser, including a statement concerning whether the purchaser's participation in any reciprocal program is dependent on the continued affiliation of the membership camping operator with that reciprocal program and whether the membership camping operator reserves the right to terminate such affiliation. n. As to all memberships offered by the membership camping operator at each campground, all of the following: (1) The form of membership offered. (2) The types of duration of membership along with a summary of the major privileges, restrictions, and limitations applicable to each type. (3) Provisions that have been made for public utilities at each campsite including water, electricity, telephone, and sewage facilities. o. A statement of the assistance, if any, that the membership camping operator will provide to the purchaser in the resale of membership camping contracts and a detailed description of how any such resale program is operated. p. The following statement, printed in boldface type of a minimum size of ten points: StartOfSecREGISTRATION OF THE MEMBERSHIP CAMPING OPERATOR WITH THE IOWA ATTORNEY GENERAL DOES NOT CONSTITUTE AN APPROVAL OR ENDORSEMENT BY THE ATTORNEY GENERAL OF THE MEMBERSHIP CAMPING OPERATOR, THE MEMBERSHIP CAMPING CONTRACT, OR THE CAMPGROUND. The membership camping operator shall promptly amend the disclosure statement to reflect any material change and shall promptly file any such amendments with the attorney general.

         Section History: Recent Form

         87 Acts, ch 181, §12
         Referred to in § 557B.3, 557B.10
         StartOfSec557B.9  MEMBERSHIP CAMPING CONTRACTS.
         The membership camping operator shall deliver to the purchaser a
      fully executed copy of a membership camping contract, in writing,
      which contract shall include at least the following information:
         1.  The name of the membership camping operator and the address of
      its principal place of business.
         2.  The actual date the membership camping contract is executed by
      the purchaser.
         3.  The total financial obligation imposed on the purchaser by the
      contract, including the initial purchase price and any additional
      charge the purchaser may be required to pay.
         4.  A statement that the membership camping operator is required
      by law to provide each purchaser with a copy of the membership
      camping operator's disclosure statement prior to execution of the
      contract and that failure to do so is a violation of the law.
         5.  The full name of each salesperson involved in the execution of
      the membership camping contract.
         6.  In immediate proximity to the space reserved for the
      purchaser's signature, a conspicuous statement printed in boldface
      type of a minimum size of ten points:

         StartOfSecYOU THE PURCHASER MAY CANCEL THIS CONTRACT WITHOUT ANY
      PENALTY OR OBLIGATION AT ANY TIME WITHIN THREE BUSINESS DAYS
      FOLLOWING THE DATE OF EXECUTION OF THE CONTRACT OR THE RECEIPT OF THE
      DISCLOSURE STATEMENT FROM THE MEMBERSHIP CAMPING OPERATOR, WHICHEVER
      EVENT OCCURS LATER.  TO CANCEL THE CONTRACT, HAND DELIVER OR MAIL A
      POSTAGE PREPAID WRITTEN CANCELLATION TO THE MEMBERSHIP CAMPING
      OPERATOR AT THE ADDRESS LISTED ON THIS CONTRACT.  UPON CANCELLATION
      AND RETURN OF ALL MEMBERSHIP AND RECIPROCAL USE PROGRAM MATERIALS
      FURNISHED AT THE TIME OF PURCHASE, YOU WILL RECEIVE A REFUND OF ALL
      MONEY PAID WITHIN THIRTY CALENDAR DAYS AFTER THE MEMBERSHIP CAMPING
      OPERATOR RECEIVES NOTICE OF YOUR CANCELLATION.
      

         Section History: Recent Form

         87 Acts, ch 181, §13
         StartOfSec557B.10  PURCHASER'S RIGHT OF CANCELLATION.
         A purchaser has the right to cancel a membership camping contract
      within three business days following the date the contract is
      executed or within three business days following the date of delivery
      of the written disclosure statement required by section 557B.8,
      whichever event is later.
         1.  The right to cancel may not be waived and any attempt to
      obtain such a waiver is unlawful.
         2.  A purchaser may cancel the contract by hand delivering a
      written statement of cancellation or by mailing such a statement to
      the membership camping operator.  The cancellation is deemed
      effective upon mailing.
         3.  Upon cancellation and return of all membership and reciprocal
      use materials furnished at the time of purchase, the membership
      camping operator shall refund to the purchaser all payment and other
      consideration given by the purchaser.  The refund shall be made
      within thirty calendar days after the membership camping operator
      receives notice of the cancellation and may, where payment has been
      made by credit card, be made by an appropriate credit to the
      purchaser's account.  If the membership camping operator fails to
      refund the payment or other consideration given within the thirty-day
      period, it is presumed that the membership camping operator is
      willfully and wrongfully retaining the payment or other
      consideration.  The willful retention of a payment or other
      consideration in violation of this section renders the membership
      camping operator liable for double the amount of that portion of the
      payment or other consideration wrongfully withheld from the purchaser
      together with reasonable attorney fees and court costs.
         4.  The membership camping operator or salesperson shall orally
      inform the purchaser at the time the contract is executed of the
      right to cancel the contract as provided in this section.  

         Section History: Recent Form

         87 Acts, ch 181, §14
         StartOfSec557B.11  PURCHASER'S REMEDIES.
         A purchaser's remedy for errors in or omissions from the
      membership camping contract, the materials delivered to the purchaser
      at the time of sale, or any of the disclosures required in section
      557B.13 is limited to a right of cancellation and refund of the
      payment made or consideration given by the purchaser.  However, this
      limitation does not apply to errors or omissions from the contract or
      disclosures or other requirements of this chapter which are part of a
      scheme to willfully misstate or omit the information required.
      Reasonable attorney fees shall be awarded to the prevailing party in
      any action under this section.  

         Section History: Recent Form

         87 Acts, ch 181, §15
         StartOfSec557B.12  NONDISTURBANCE PROVISIONS.
         1.  With respect to any property in this state acquired and put
      into operation by a membership camping operator after July 1, 1987,
      the membership camping operator shall not offer or execute a
      membership camping contract in this state granting the right to use
      the property until the following requirements are met:
         a.  Each person holding an interest in a voluntary blanket
      encumbrance has executed and delivered a nondisturbance agreement
      which includes all of the following provisions:
         (1)  That the rights of the holder or holders of the blanket
      encumbrance in the affected campground are subordinate to the rights
      of purchasers.
         (2)  That any person who acquires the affected campground or any
      portion of the campground by the exercise of any right of sale or
      foreclosure contained in the blanket encumbrance takes the campground
      subject to the rights of purchasers.
         (3)  That the holder or holders of the blanket encumbrance shall
      not use or cause the campground to be used in a manner which
      interferes with the right of purchasers to use the campground and its
      facilities in accordance with the terms and conditions of the
      membership camping contract.
         b.  Each hypothecation lender which has a lien on, or security
      interest in, the membership camping operator's ownership interest in
      the campground has executed and delivered a nondisturbance agreement
      and recorded the agreement in the office of the clerk of the district
      court of the county in which the campground is located.  In addition,
      each person holding an interest in a blanket encumbrance superior to
      the interest held by the hypothecation lender has executed,
      delivered, and recorded an instrument stating that such person will
      give the hypothecation lender notice of, and at least thirty days to
      cure, any default under the blanket encumbrance before the person
      commences any foreclosure action affecting the campground.  For the
      purposes of this section:
         (1)  "Hypothecation lender" means a financial institution
      which provides a major hypothecation loan to a membership camping
      operator.
         (2)  "Major hypothecation loan" is a loan or line of credit
      secured by substantially all of the contracts receivable arising from
      the membership camping operator's sale of membership camping
      contracts.
         (3)  "Nondisturbance agreement" means an instrument by which a
      hypothecation lender agrees to conditions substantially the same as
      those set forth in paragraph "a".
         2.  In lieu of compliance with subsection 1, a surety bond or
      letter of credit satisfying the requirements of this subsection may
      be delivered to and accepted by the attorney general.  The surety
      bond or letter of credit shall be issued to the attorney general for
      the benefit of purchasers and shall be in an amount which is not less
      than one hundred five percent of the remaining principal balance of
      every indebtedness secured by a blanket encumbrance affecting the
      campground.  The bond shall be issued by a surety which is authorized
      to do business in this state and which has sufficient net worth to
      satisfy the indebtedness.  The aggregate liability of the surety for
      all damages shall not exceed the amount of the bond.  The letter of
      credit shall be irrevocable, shall be drawn upon a bank, savings and
      loan, or financial institution, and shall be in form and content
      acceptable to the attorney general.  The bond or letter of credit
      shall provide for payment of all amounts secured by the blanket
      encumbrance including costs, expenses, and legal fees of the
      lienholder, if for any reason the blanket encumbrance is enforced.
      The bond or letter of credit may be reduced at the option of the
      membership camping operator periodically in proportion to the
      reductions of the amounts secured by the blanket encumbrance.
         3.  The nondisturbance agreement shall be recorded in the real
      estate records of the county in which the campground is located.  

         Section History: Recent Form

         87 Acts, ch 181, §16
         Referred to in § 557B.3
         StartOfSec557B.13  ADVERTISING PLANS -- DISCLOSURES -- UNLAWFUL
      ACTS.
         1.  Any advertisement, communication, or sales literature relating
      to membership camping contracts, including oral statements by a
      salesperson or any other person, shall not contain:
         a.  Any untrue statement of material fact or any omission of
      material fact which would make the statements misleading in light of
      the circumstances under which the statements were made.
         b.  Any statement or representation that the membership
      camping contracts are offered without risk or that loss is
      impossible.
         c.  Any statement or representation or pictorial presentation
      of proposed improvements or nonexistent scenes without clearly
      indicating that the improvements are proposed and the scenes do not
      exist.
         2.  A person shall not by any means, as part of an advertising
      program, offer any item of value as an inducement to the recipient to
      visit a location, attend a sales presentation, or contact a sales
      agent, unless the person clearly and conspicuously discloses in
      writing in the offer in readily understandable language each of the
      following:
         a.  The name and street address of the owner of the real or
      personal property or the provider of the services which are the
      subject of such visit, sales presentation, or contact with a sales
      agent.
         b.  A general description of the business of the owner or
      provider identified and the purpose of any requested visit, sales
      presentation, or contact with a sales agent, including a general
      description of the facilities or proposed facilities or services
      which are the subject of the sales presentation.
         c.  A statement of the odds, in Arabic numerals, of receiving
      each item offered.
         d.  All restrictions, qualifications, and other conditions
      that must be satisfied before the recipient is entitled to receive
      the item, including all of the following:
         (1)  Any deadline by which the recipient must visit the location,
      attend the sales presentation, or contact the sales agent in order to
      receive the item.
         (2)  The approximate duration of any visit and sales presentation.

         (3)  Any other conditions, such as a minimum age qualification, a
      financial qualification, or a requirement that if the recipient is
      married both husband and wife must be present in order to receive the
      item.
         e.  A statement that the owner or provider reserves the right
      to provide a rain check or a substitute or like item, if these rights
      are reserved.
         f.  A statement that a recipient who receives an offered item
      may request and will receive evidence showing that the item provided
      matches the item randomly or otherwise selected for distribution to
      that recipient.
         g.  All other rules, terms, and conditions of the offer, plan,
      or program.
         3.  A person making an offer subject to registration under
      sections 557B.2 and 557B.3, or the person's employee or agent, shall
      not offer any item if the person knows or has reason to know that the
      offered item will not be available in a sufficient quantity based on
      the reasonably anticipated response to the offer.
         4.  A person making an offer subject to registration under
      sections 557B.2 and 557B.3, or the person's employee or agent, shall
      not fail to provide any offered item which a recipient is entitled to
      receive, unless the failure to provide the item is due to a higher
      than reasonably anticipated response to the offer which caused the
      item to be unavailable and the offer discloses the reservation of a
      right to provide a rain check or a like or substitute item if the
      offered item is unavailable.
         5.  If the person making an offer subject to registration under
      sections 557B.2 and 557B.3 is unable to provide an offered item
      because of limitations of supply not reasonably foreseeable or
      controllable by the person making the offer, the person making the
      offer shall inform the recipient of the recipient's right to receive
      a rain check for the item offered or receive a like or substitute
      item of equal or greater value at no additional cost or obligation to
      the recipient.
         6.  If a rain check is provided, the person making an offer
      subject to registration under sections 557B.2 and 557B.3, within a
      reasonable time, and in any event not later than ninety calendar days
      after the rain check is issued, shall deliver the agreed item to the
      recipient's address without additional cost or obligation to the
      recipient, unless the item for which the rain check is provided
      remains unavailable because of limitations of supply not reasonably
      foreseeable or controllable by the person making the offer.  If the
      item is unavailable for these reasons, the person, not later than
      thirty days after the expiration of the ninety-day period, shall
      deliver a like or substitute item of equal or greater retail value to
      the recipient.
         7.  On the request of a recipient who has received or claims a
      right to receive any offered item, the person making an offer subject
      to registration under sections 557B.2 and 557B.3 shall furnish to the
      recipient sufficient evidence showing that the item provided matches
      the item randomly or otherwise selected for distribution to that
      recipient.
         8.  A person making an offer subject to registration under
      sections 557B.2 and 557B.3, or the person's employee or agent, shall
      not do any of the following:
         a.  Misrepresent the size, quantity, identity, or quality of
      any prize, gift, money, or other item of value offered.
         b.  Misrepresent in any manner the odds of receiving a
      particular gift, prize, amount of money, or other item of value.
         c.  Represent directly or by implication that the number of
      participants has been significantly limited or that any person has
      been selected to receive a particular prize, gift, money, or other
      item of value, unless this fact is true.
         d.  Label any offer a notice of termination or notice of
      cancellation.
         e.  Misrepresent, in any manner, the offer, plan, or program.
      

         Section History: Recent Form

         87 Acts, ch 181, §17
         Referred to in § 557B.11
         StartOfSec557B.14  REMEDIES.
         1.  A violation of this chapter or the commission of any act
      declared to be unlawful under this chapter constitutes a violation of
      section 714.16, subsection 2, paragraph "a", and the attorney
      general has all the powers enumerated in that section to enforce the
      provisions of this chapter.
         2.  In addition, the attorney general may seek civil penalties of
      not more than ten thousand dollars for each violation of or the
      commission of any act declared to be unlawful under this chapter.
      Each day of continued violation constitutes a separate offense.
         3.  Any person who fails to pay the filing fees required by this
      chapter and continues to sell membership camping contracts is liable
      civilly in an action brought by the attorney general for a penalty in
      an amount equal to treble the unpaid fees.
         4.  The provisions of this chapter are cumulative and nonexclusive
      and do not affect any other available remedy at law or equity, except
      as otherwise provided in sections 502.201, 537.3310, and 552A.2.  

         Section History: Recent Form

         87 Acts, ch 181, §18; 93 Acts, ch 60, §25
         StartOfSec557B.15  EXEMPTIONS BY ATTORNEY GENERAL.
         The attorney general may, by rule or order, exempt any person from
      all or part of the requirements of this chapter if the attorney
      general finds the requirements unnecessary for the protection of
      purchasers.  In determining exemptions from this chapter, the
      attorney general shall consider all of the following:
         1.  The duration of the membership camping contracts involved.
         2.  The number of membership camping contracts being offered by
      the operator.
         3.  The amount of the purchase price of the membership camping
      contracts.  

         Section History: Recent Form

         87 Acts, ch 181, §19
         StartOfSec557B.16  RULES.
         The attorney general may prescribe rules in accordance with this
      chapter as deemed necessary to carry out the provisions of this
      chapter.  

         Section History: Recent Form

         87 Acts, ch 181, §20

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