Exemptions

(a)No registration with the agency shall be required if the developer is registered and there has been issued a public offering statement of similar disclosure document which is provided to purchasers under the following:

(1)Securities and Exchange Act of 1933;

(2)Federal Interstate Land Sales Full Disclosure Act in which the time-share program is made a part of the subdivision that is being registered; or

(3)any other Federal or territorial act which requires a Federal or territorial agency to review a public offering statement or similar disclosure document which is required to be distributed to purchasers.

(b)No registration with the agency shall be required in the case of:

(1)Any transfer of a time-share interval by any time-share interval owner other than the developer or his agency;

(2)any disposition pursuant to court order;

(3)a disposition by a government or governmental agency;

(4)a disposition by foreclosure or deed in lieu of foreclosure;

(5)a disposition of a time-share interval in a time-share project situated wholly outside this Territory provided that all solicitations, negotiations and contracts took place wholly outside this Territory and the contract was executed wholly outside this Territory;

(6)a gratuitous transfer of a time-share interval; and

(7)group reservations made for fifteen

(15)or more people as a single transaction between a hotel and travel agent or travel groups for hotel accommodations, where deposits are made and held for more than three

(3)years in advance. ---------ARTICLE 5 FINANCING