Rights Under Foreclosure

The developer whose project is subject to an underlying blanket lien or encumbrance shall protect non-defaulting purchasers from foreclosure by the lienholder by obtaining from the lienholder a non-disturbance clause, subordination agreement or partial release of the lien as the time-share intervals are sold. In the alternative, the developer may obtain the agreement of the lienholder to take the project in the event of default by the developer subject to the rights of the non-defaulting purchasers by posting a bond, equal to fifty percent (50%) of the amount owed to the lienholder, making an assignment of receivables equal to one hundred twenty-five percent (125%) of the principal amounts due from purchasers, pledging collateral security equal to one hundred percent (100%) of the amount owed to the lienholder or entering into any other financing plan or escrow agreement acceptable to the lienholder.