HB2723 Summary

• Establishes the Timeshare Lien and Security Interest Act creating a framework for managing entity liens on timeshare interests for unpaid assessments, fees, and related charges.

• Authorizes nonjudicial foreclosure of managing entity liens on timeshare estates through public auction with required notice to owners and lienholders at least 30 days in advance.

• Permits foreclosure of managing entity liens on timeshare uses either through Uniform Commercial Code procedures or nonjudicial foreclosure methods similar to timeshare estate procedures.

• Extinguishes all redemption rights upon sale at public auction and allows purchasers to take title free of prior owner's unpaid assessments owed to the managing entity.

• Provides that mortgageholders and managing entities forfeit deficiency claims when conducting nonjudicial foreclosures and must deliver foreclosure deeds to purchasers for recording within 30 days.