PRIOR PRINTER'S NO. 1812 PRINTER'S NO. 3446
No. 1483 Session of 1983
INTRODUCED BY GREENWOOD, KLINGAMAN, CALTAGIRONE, SWEET,
B. SMITH, SEMMEL, HERSHEY, REINARD, JOHNSON, GAMBLE,
ALDERETTE, MICHLOVIC, MOEHLMANN, LASHINGER, ITKIN,
D. W. SNYDER, HAGARTY, COLAFELLA, MICOZZIE, DeLUCA, FARGO,
KASUNIC, SALOOM AND PRATT, SEPTEMBER 27, 1983
AS REPORTED FROM COMMITTEE ON PROFESSIONAL LICENSURE, HOUSE
OF REPRESENTATIVES, AS AMENDED, SEPTEMBER 17, 1984
AN ACT
1 Amending the act of February 19, 1980 (P.L.15, No.9), entitled <--
2 "An act establishing the State Real Estate Commission and
3 providing for the licensing of real estate brokers and
4 salesmen," requiring statements as to the fair market value
5 and odds of receiving any prize in relation to certain
6 offerings of real property.
7 AMENDING THE ACT OF FEBRUARY 19, 1980 (P.L.15, NO.9), ENTITLED <--
8 "AN ACT ESTABLISHING THE STATE REAL ESTATE COMMISSION AND
9 PROVIDING FOR THE LICENSING OF REAL ESTATE BROKERS AND
10 SALESMEN," FURTHER PROVIDING FOR CIVIL PENALTIES AND FOR THE
11 REGULATION OF PROMOTIONAL LAND SALES.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 604(18) of the act of February 19, 1980 <--
15 (P.L.15, No.9), known as the Real Estate Licensing and
16 Registration Act, is amended to read:
17 Section 604. Prohibited acts.
18 The commission may upon its own motion, and shall promptly
19 upon the verified complaint in writing of any person setting
20 forth a complaint under this section, ascertain the facts and,
1 if warranted, hold a hearing for the suspension or revocation of
2 a license or registration certificate or for the imposition of
3 fines not exceeding $500. The commission shall have power to
4 refuse a license or registration certificate for cause or to
5 suspend or revoke a license or registration certificate or to
6 levy fines up to $500 where the said license has been obtained
7 by false representation, or by fraudulent act or conduct, or
8 where a licensee or registrant, in performing or attempting to
9 perform any of the acts mentioned herein, is found guilty of:
10 * * *
11 (18) Soliciting, selling or offering for sale real
12 property by offering free lots, or conducting lotteries or
13 contests or offering prizes for the purpose of influencing by
14 deceptive conduct any purchaser or prospective purchaser of
15 real property. The commission shall promulgate necessary
16 rules and regulations to provide standards for nondeception
17 conduct under this paragraph. Any offering by mail or by
18 telephone of any prize in relation to the offering of sale of
19 real property, including time sharing, shall be accompanied
20 by a statement of the fair market value, not suggested retail
21 price, of all prizes offered, plus a statement of the odds of
22 receiving any such prize. This statement of value and odds
23 shall be printed in the same size type as the prize
24 description and shall appear immediately adjacent to said
25 description.
26 * * *
27 Section 2. This act shall take effect in 60 days.
28 SECTION 1. SECTIONS 305, 604(A)(25) AND 605 OF THE ACT OF <--
29 FEBRUARY 19, 1980 (P.L.15, NO.9), KNOWN AS THE REAL ESTATE
30 LICENSING AND REGISTRATION ACT, ADDED OR AMENDED MARCH 29, 1984
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1 (P.L.162, NO.32), ARE AMENDED TO READ:
2 SECTION 305. CIVIL PENALTY.
3 (A) IN ADDITION TO ANY OTHER CIVIL REMEDY OR CRIMINAL
4 PENALTY PROVIDED FOR IN THIS ACT, THE COMMISSION, BY A VOTE OF
5 THE MAJORITY OF THE MAXIMUM NUMBER OF THE AUTHORIZED MEMBERSHIP
6 OF THE COMMISSION AS PROVIDED BY LAW, OR BY A VOTE OF THE
7 MAJORITY OF THE DULY QUALIFIED AND CONFIRMED MEMBERSHIP OR A
8 MINIMUM OF FIVE MEMBERS, WHICHEVER IS GREATER, MAY LEVY A CIVIL
9 PENALTY OF UP TO $1,000 ON ANY CURRENT LICENSEE OR REGISTRANT
10 WHO VIOLATES ANY PROVISION OF THIS ACT OR ON ANY PERSON WHO
11 PRACTICES REAL ESTATE WITHOUT BEING PROPERLY LICENSED OR
12 REGISTERED TO DO SO UNDER THIS ACT.
13 (B) THE COMMISSION SHALL LEVY THIS PENALTY ONLY AFTER
14 AFFORDING THE ACCUSED PARTY THE OPPORTUNITY FOR A HEARING, AS
15 PROVIDED IN TITLE 2 OF THE PENNSYLVANIA CONSOLIDATED STATUTES
16 (RELATING TO ADMINISTRATIVE LAW AND PROCEDURE).
17 SECTION 604. PROHIBITED ACTS.
18 (A) THE COMMISSION MAY UPON ITS OWN MOTION, AND SHALL
19 PROMPTLY UPON THE VERIFIED COMPLAINT IN WRITING OF ANY PERSON
20 SETTING FORTH A COMPLAINT UNDER THIS SECTION, ASCERTAIN THE
21 FACTS AND, IF WARRANTED, HOLD A HEARING FOR THE SUSPENSION OR
22 REVOCATION OF A LICENSE OR REGISTRATION CERTIFICATE OR FOR THE
23 IMPOSITION OF FINES NOT EXCEEDING $1,000, OR BOTH. THE
24 COMMISSION SHALL HAVE POWER TO REFUSE A LICENSE OR REGISTRATION
25 CERTIFICATE FOR CAUSE OR TO SUSPEND OR REVOKE A LICENSE OR
26 REGISTRATION CERTIFICATE OR TO LEVY FINES UP TO $1,000, OR BOTH,
27 WHERE THE SAID LICENSE HAS BEEN OBTAINED BY FALSE
28 REPRESENTATION, OR BY FRAUDULENT ACT OR CONDUCT, OR WHERE A
29 LICENSEE OR REGISTRANT, IN PERFORMING OR ATTEMPTING TO PERFORM
30 ANY OF THE ACTS MENTIONED HEREIN, IS FOUND GUILTY OF:
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1 * * *
2 (25) VIOLATING SECTION 605, 606 OR 607.
3 * * *
4 SECTION 605. PROMOTIONAL LAND SALES; APPROVAL.
5 (A) ANY PERSON WHO PROPOSES TO ENGAGE IN REAL ESTATE
6 TRANSACTIONS [OF A PROMOTIONAL NATURE] INVOLVING PROMOTIONAL
7 REAL ESTATE IN THIS COMMONWEALTH FOR A PROPERTY LOCATED INSIDE
8 OR OUTSIDE OF THIS COMMONWEALTH, SHALL FIRST REGISTER WITH THE
9 COMMISSION FOR ITS APPROVAL BEFORE SO DOING, AND SHALL COMPLY
10 WITH SUCH RESTRICTIONS AND CONDITIONS PERTAINING THERETO AS THE
11 COMMISSION MAY IMPOSE BY RULE OR REGULATION. [REGISTRATION SHALL
12 NOT BE REQUIRED FOR PROPERTY LOCATED WITHIN OR OUTSIDE OF THIS
13 COMMONWEALTH WHICH IS SUBJECT TO A STATUTORY EXEMPTION UNDER THE
14 FEDERAL INTERSTATE LAND SALES FULL DISCLOSURE ACT (PUBLIC LAW
15 90-448, 82 STAT. 590, 15 U.S.C. § 1702).]
16 (B) AS USED IN THIS SECTION THE TERM "PROMOTIONAL REAL
17 ESTATE" MEANS [AN INTEREST IN PROPERTY] REAL ESTATE AS DEFINED
18 IN [THIS ACT] SECTION 201 WHICH IS A PART OF A COMMON
19 PROMOTIONAL PLAN UNDERTAKEN BY A SINGLE DEVELOPER OR GROUP OF
20 DEVELOPERS ACTING TOGETHER TO OFFER INTERESTS IN REAL ESTATE FOR
21 SALE OR LEASE THROUGH ADVERTISING BY MAIL, NEWSPAPER OR
22 PERIODICAL, BY RADIO, TELEVISION, TELEPHONE OR OTHER ELECTRONIC
23 MEANS WHICH IS CONTIGUOUS[,] OR KNOWN, DESIGNATED OR ADVERTISED
24 AS A COMMON UNIT OR BY A COMMON NAME[: PROVIDED, HOWEVER, THAT
25 THE]. THE TERM INCLUDES, BUT IS NOT LIMITED TO, SECOND HOME
26 SITES, CAMPSITES, TIMESHARE OR RECREATIONAL DWELLINGS. THE TERM
27 SHALL NOT MEAN REAL ESTATE INTEREST INVOLVING LESS THAN 50 LOTS
28 OR SHARES, CEMETERY LOTS AND LAND INVOLVING LESS THAN 25 ACRES
29 OR A PRIMARY FAMILY RESIDENCE PLAN, AS DEFINED BY REGULATIONS OF
30 THE COMMISSION. NO FILING SHALL BE REQUIRED BY THE COMMISSION TO
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1 VERIFY SUCH EXEMPTIONS.
2 (C) A PERSON [MAY] SHALL APPLY TO THE COMMISSION FOR
3 REGISTRATION OF PROMOTIONAL LAND SALES BY FILING A [STATEMENT OF
4 RECORD] REGISTRATION FORM AND MEETING THE REQUIREMENTS OF THIS
5 SECTION. EACH REGISTRATION SHALL BE RENEWED ANNUALLY. IN LIEU OF
6 REGISTRATION OR RENEWAL, THE COMMISSION [SHALL] MAY ACCEPT
7 REGISTRATIONS, PROPERTY REPORTS OR SIMILAR DISCLOSURE DOCUMENTS
8 FILED IN OTHER STATES OR WITH THE FEDERAL GOVERNMENT[: PROVIDED,
9 THAT THE] THAT THE COMMISSION HAS DETERMINED TO BE OF THE SAME
10 OR SIMILAR SUBSTANTIVE NATURE AS A REGISTRATION FORM REQUIRED BY
11 THE COMMISSION. THE COMMISSION MAY REQUIRE OTHER INFORMATION IT
12 DEEMS PERTINENT. THE COMMISSION MAY SUSPEND OR REVOKE THE
13 REGISTRATION ON ITS OWN MOTION OR WHEN THE FEDERAL GOVERNMENT OR
14 A REGISTERING STATE SUSPENDS OR REVOKES [A REGULATION] THE
15 REGISTRATION. THE COMMISSION [SHALL] MAY, BY RULE AND
16 REGULATION, COOPERATE WITH SIMILAR JURISDICTIONS IN OTHER STATES
17 TO ESTABLISH UNIFORM FILING PROCEDURES AND FORMS, PUBLIC
18 OFFERING STATEMENTS AND SIMILAR FORMS. THE COMMISSION SHALL
19 CHARGE [AN APPLICATION FEE] SUCH APPLICATION AND REGISTRATION
20 FEES AS DETERMINED BY REGULATION TO COVER COSTS [ASSOCIATED WITH
21 PROCESSING APPLICATIONS FOR REGISTRATIONS AND RENEWALS].
22 (D) [UNLESS PRIOR APPROVAL HAS BEEN GRANTED BY THE
23 COMMISSION OR THE PROMOTIONAL PLAN IS CURRENTLY REGISTERED WITH
24 THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PURSUANT TO THE
25 FEDERAL INTERSTATE LAND SALES FULL DISCLOSURE ACT OR PURSUANT TO
26 STATE LAW, THE STATEMENT OF RECORD] THE REGISTRATION FORM SHALL
27 CONTAIN THE INFORMATION AND BE ACCOMPANIED BY DOCUMENTS
28 SPECIFIED AS FOLLOWS:
29 (1) THE NAME AND ADDRESS OF EACH PERSON HAVING AN
30 INTEREST IN THE PROPERTY TO BE COVERED BY THE [STATEMENT OF
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1 RECORD] REGISTRATION AND THE EXTENT OF SUCH INTEREST[, EXCEPT
2 THAT IN]. IN THE CASE OF A CORPORATION THE STATEMENT SHALL
3 LIST ALL OFFICERS AND ALL HOLDERS OF 10% OR MORE OF THE
4 SUBSCRIBED OR ISSUED STOCK OF THE CORPORATIONS.
5 (2) A LEGAL DESCRIPTION OF, AND A STATEMENT OF THE TOTAL
6 AREA INCLUDED IN THE PROPERTY AND A STATEMENT OF THE
7 TOPOGRAPHY THEREOF, TOGETHER WITH A MAP SHOWING THE DIVISION
8 PROPOSED AND THE DIMENSIONS OF THE PROPERTY TO BE COVERED BY
9 THE STATEMENT OF RECORD AND THEIR RELATION TO EXISTING
10 STREETS AND ROADS.
11 (3) A STATEMENT OF THE CONDITION OF THE TITLE TO THE
12 LAND COMPRISING THE PROPERTY INCLUDING ALL ENCUMBRANCES,
13 MORTGAGES, JUDGMENTS, LIENS OR UNPAID TAXES AND DEED
14 RESTRICTIONS AND COVENANTS APPLICABLE THERETO.
15 (4) A STATEMENT OF THE GENERAL TERMS AND CONDITIONS,
16 INCLUDING THE RANGE OF SELLING PRICES OR RENTS AT WHICH IT IS
17 PROPOSED TO DISPENSE OF THE PROPERTY.
18 (5) A STATEMENT OF THE PRESENT CONDITION OF ACCESS TO
19 THE PROPERTY, THE EXISTENCE OF ANY UNUSUAL CONDITIONS
20 RELATING TO SAFETY WHICH ARE KNOWN TO THE DEVELOPER,
21 COMPLETED IMPROVEMENTS INCLUDING, BUT NOT LIMITED TO,
22 STREETS, SIDEWALKS, SEWAGE DISPOSAL FACILITIES AND OTHER
23 PUBLIC UTILITIES, THE PROXIMITY IN MILES OF THE SUBDIVISION
24 TO NEARBY MUNICIPALITIES AND THE NATURE OF ANY IMPROVEMENTS
25 TO BE INSTALLED BY THE DEVELOPER AND HIS ESTIMATED SCHEDULE
26 FOR COMPLETION.
27 (6) A STATEMENT OF ANY ENCUMBRANCE, A STATEMENT OF THE
28 CONSEQUENCES FOR THE PURCHASER OF A FAILURE BY THE PERSON OR
29 PERSONS BOUND TO FULFILL OBLIGATIONS UNDER ANY INSTRUMENT OR
30 INSTRUMENTS CREATING SUCH ENCUMBRANCE AND THE STEPS, IF ANY,
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1 TAKEN TO PROTECT THE PURCHASER IN SUCH EVENTUALITY.
2 (7) A COPY OF THE ARTICLES OF INCORPORATION WITH ALL
3 AMENDMENTS THERETO, IF THE DEVELOPER IS A CORPORATION, COPIES
4 OF ALL INSTRUMENTS BY WHICH A DEED OF TRUST IS CREATED OR
5 DECLARED, IF THE DEVELOPER IS A TRUST, COPIES OF ARTICLES OF
6 PARTNERSHIP OR ASSOCIATION AND ALL OTHER PAPERS PERTAINING TO
7 ITS ORGANIZATION IF THE DEVELOPER IS A PARTNERSHIP,
8 UNINCORPORATED ASSOCIATION, JOINT STOCK COMPANY OR OTHER FORM
9 OF ORGANIZATION AND IF THE PURPORTED HOLDER OF LEGAL TITLE IS
10 A PERSON OTHER THAN THE DEVELOPER, COPIES OF THE ABOVE
11 DOCUMENTS FOR SUCH PERSON.
12 (8) COPIES OF THE DEED OR OTHER INSTRUMENT ESTABLISHING
13 TITLE TO THE PROPERTY IN THE DEVELOPER OR OTHER PERSON AND
14 COPIES OF ANY INSTRUMENT CREATING A LIEN OR ENCUMBRANCE UPON
15 THE TITLE OF THE DEVELOPER OR OTHER PERSON OR COPIES OF THE
16 OPINION OR OPINIONS OF COUNSEL IN RESPECT TO THE TITLE TO THE
17 SUBDIVISION IN THE DEVELOPER OR OTHER PERSON OR COPIES OF THE
18 TITLE INSURANCE POLICY GUARANTEEING SUCH TITLE.
19 (9) COPIES OF ALL FORMS OF CONVEYANCE TO BE USED IN
20 SELLING OR LEASING LOTS TO PURCHASERS.
21 (10) COPIES OF INSTRUMENTS CREATING EASEMENTS OR OTHER
22 RESTRICTIONS.
23 (11) CERTIFIED FINANCIAL STATEMENTS OF THE DEVELOPER OR
24 AN UNCERTIFIED FINANCIAL STATEMENT IF A CERTIFIED STATEMENT
25 IS NOT AVAILABLE AS MAY BE REQUIRED BY THE COMMISSION.
26 (12) SUCH OTHER INFORMATION AND SUCH OTHER DOCUMENTS AND
27 CERTIFICATIONS AS THE COMMISSION MAY REQUIRE AS BEING
28 REASONABLY NECESSARY OR APPROPRIATE TO ASSURE THAT
29 PROSPECTIVE PURCHASERS HAVE ACCESS TO TRUTHFUL AND ACCURATE
30 INFORMATION CONCERNING THE OFFERING.
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1 (13) CONSENT TO SUBMIT TO THE JURISDICTION OF THE
2 COMMONWEALTH COURT WITH RESPECT TO ANY ACTION ARISING UNDER
3 THIS SECTION.
4 (E) IF AT ANY TIME SUBSEQUENT TO THE DATE OF FILING OF A
5 [STATEMENT OF RECORD] REGISTRATION FORM WITH THE COMMISSION, A
6 CHANGE SHALL OCCUR AFFECTING ANY MATERIAL FACTS REQUIRED TO BE
7 CONTAINED IN THE STATEMENT, THE DEVELOPER SHALL PROMPTLY FILE AN
8 AMENDMENT THERETO.
9 (F) IF IT APPEARS TO THE COMMISSION THAT THE [STATEMENT OF
10 RECORD] REGISTRATION FORM OR ANY AMENDMENT THERETO, IS ON ITS
11 FACE INCOMPLETE OR INACCURATE IN ANY MATERIAL RESPECT, THE
12 COMMISSION SHALL SO ADVISE THE DEVELOPER WITHIN A REASONABLE
13 TIME AFTER THE FILING OF THE STATEMENT OR AMENDMENT. FAILURE OF
14 THE DEVELOPER TO PROVIDE THE INFORMATION REQUESTED BY THE
15 COMMISSION WITHIN 90 DAYS SHALL RESULT IN AN AUTOMATIC DENIAL OF
16 AN APPLICATION OR A SUSPENSION OF REGISTRATION.
17 (G) IF IT APPEARS TO THE COMMISSION THAT A [STATEMENT OF
18 RECORD] REGISTRATION FORM INCLUDES ANY UNTRUE STATEMENT OF
19 MATERIAL FACTS OR OMITS TO STATE ANY MATERIAL FACT REQUIRED TO
20 BE STATED THEREIN OR NECESSARY TO MAKE THE STATEMENTS THEREIN
21 NOT MISLEADING, THE COMMISSION MAY REJECT SUCH APPLICATION. THE
22 COMMISSION SHALL MAKE AN INVESTIGATION OF ALL CONSUMER
23 COMPLAINTS CONCERNING REAL ESTATE PROMOTIONS IN THE ABSENCE OF A
24 RECIPROCAL AGREEMENT TO HANDLE ONSITE INSPECTIONS. UNDER NO
25 CIRCUMSTANCES SHALL A MEMBER OR AN EMPLOYEE OF THE COMMISSION
26 PERFORM AN ONSITE INSPECTION. IF THE COMMISSION DETERMINES THAT
27 A VIOLATION OF THIS SECTION HAS OCCURRED, THE COMMISSION MAY:
28 (1) SUSPEND OR REVOKE ANY REGISTRATION;
29 (2) REFER THE COMPLAINT TO THE CONSUMER PROTECTION
30 BUREAU OF THE OFFICE OF ATTORNEY GENERAL; OR
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1 (3) SEEK AN INJUNCTION OR TEMPORARY RESTRAINING ORDER TO
2 PROHIBIT THE COMPLAINED OF ACTIVITY IN THE COMMONWEALTH
3 COURT.
4 (H) UPON REJECTION OF AN APPLICATION OR AMENDMENT, THE
5 APPLICANT MAY WITHIN 20 DAYS AFTER SUCH NOTICE REQUEST A HEARING
6 BEFORE THE COMMISSION. PRIOR TO, AND IN CONJUNCTION WITH SUCH
7 HEARING, THE COMMISSION, OR ITS DESIGNEE, SHALL HAVE ACCESS TO
8 AND MAY DEMAND THE PRODUCTION OF ANY BOOKS AND PAPERS OF, AND
9 MAY EXAMINE, THE DEVELOPER, ANY AGENTS OR ANY OTHER PERSON IN
10 RESPECT OF ANY MATTER RELEVANT TO THE APPLICATION. IF THE
11 DEVELOPER OR ANY AGENTS FAIL TO COOPERATE OR OBSTRUCT OR REFUSE
12 TO PERMIT THE MAKING OF AN INVESTIGATION, SUCH CONDUCT SHALL BE
13 GROUNDS FOR THE DENIAL OF THE APPLICATION.
14 (I) ANY PERSON VIOLATING THE PROVISIONS OF THIS SECTION
15 SHALL BE SUBJECT TO ALL CRIMINAL AND CIVIL PENALTIES IMPOSED BY
16 THIS ACT.
17 SECTION 2. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
18 SECTION 605.1. ESTABLISHMENT OF THE FUND.
19 THERE IS HEREBY ESTABLISHED THE PROMOTIONAL LAND SALES FUND
20 FOR THE PURPOSES HEREINAFTER SET FORTH IN THIS ACT.
21 SECTION 605.2. FUNDING OF THE FUND.
22 (A) THE COMMISSION SHALL, BY REGULATION, ALLOCATE A PORTION
23 OF THE REGISTRATION FEES CHARGED PURSUANT TO SECTION 605 TO THE
24 PROMOTIONAL LAND SALES FUND. ALL SAID FEES SHALL BE PAID INTO
25 THE STATE TREASURY AND CREDITED TO THE PROMOTIONAL LAND SALES
26 FUND AND SAID DEPOSITS SHALL BE USED SOLELY FOR THE PURPOSES FOR
27 WHICH THE FUND IS ESTABLISHED. THE FUND SHALL BE INVESTED AND
28 INTEREST AND DIVIDENDS SHALL ACCRUE TO THE FUND.
29 (B) WHEN ANY AGGRIEVED PERSON OBTAINS A FINAL JUDGMENT IN
30 ANY COURT OF COMPETENT JURISDICTION AGAINST ANY PERSON
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1 REGISTERED WITH THE COMMISSION PURSUANT TO SECTION 605, UPON
2 GROUNDS OF FRAUD, MISREPRESENTATION OR DECEIT WITH REFERENCE TO
3 ANY TRANSACTION FOR WHICH REGISTRATION IS REQUIRED AND WHICH
4 CAUSE OF ACTION OCCURRED ON OR AFTER THE EFFECTIVE DATE OF THIS
5 ACT, THE AGGRIEVED PERSON MAY, UPON TERMINATION OF ALL
6 PROCEEDINGS, INCLUDING REVIEWS AND APPEALS, FILE AN APPLICATION
7 IN THE COURT IN WHICH THE JUDGMENT WAS ENTERED FOR AN ORDER
8 DIRECTING PAYMENT OUT OF THE PROMOTIONAL LAND SALES FUND OF THE
9 AMOUNT UNPAID UPON THE JUDGMENT.
10 (C) THE AGGRIEVED PERSON SHALL BE REQUIRED TO SHOW:
11 (1) THAT HE IS NOT A SPOUSE OF THE DEBTOR OR THE
12 PERSONAL REPRESENTATIVE OF SAID SPOUSE.
13 (2) THAT HE HAS OBTAINED A FINAL JUDGMENT AS SET FORTH
14 IN THIS SECTION.
15 (3) THAT ALL REASONABLE PERSONAL ACTS, RIGHTS OF
16 DISCOVERY AND SUCH OTHER REMEDIES AT LAW AND IN EQUITY AS
17 EXIST HAVE BEEN EXHAUSTED IN THE COLLECTION THEREOF.
18 (4) THAT HE IS MAKING SAID APPLICATION NO MORE THAN ONE
19 YEAR AFTER THE TERMINATION OF THE PROCEEDINGS, INCLUDING
20 REVIEWS AND APPEALS IN CONNECTION WITH THE JUDGMENT.
21 (D) THE COMMISSION SHALL HAVE THE RIGHT TO ANSWER ACTIONS
22 PROVIDED FOR UNDER THIS SECTION AND, SUBJECT TO COURT APPROVAL,
23 IT MAY COMPROMISE A CLAIM BASED UPON THE APPLICATION OF THE
24 AGGRIEVED PARTY.
25 (E) WHEN THERE IS AN ORDER OF THE COURT TO MAKE PAYMENT OR A
26 CLAIM IS OTHERWISE TO BE LEVIED AGAINST THE FUND, SUCH AMOUNT
27 SHALL BE PAID TO THE CLAIMANT IN ACCORDANCE WITH THE LIMITATIONS
28 CONTAINED IN THIS SECTION. NOTWITHSTANDING ANY OTHER PROVISIONS
29 OF THIS SECTION, THE LIABILITY OF THAT PORTION OF THE FUND
30 ALLOCATED FOR THE PURPOSE OF THIS ACT SHALL NOT EXCEED $20,000
19830H1483B3446 - 10 -
1 FOR ANY ONE CLAIM AND SHALL NOT EXCEED $100,000 PER REGISTRANT.
2 IF THE $100,000 LIABILITY OF THE PROMOTIONAL LAND SALES FUND AS
3 PROVIDED HEREIN IS INSUFFICIENT TO PAY IN FULL CLAIMS
4 ADJUDICATED VALID OF ALL AGGRIEVED PERSONS AGAINST ANY ONE
5 REGISTRANT, SUCH $100,000 SHALL BE DISTRIBUTED AMONG THEM IN
6 SUCH RATIO THAT THE RESPECTIVE CLAIMS OF THE AGGRIEVED
7 APPLICANTS BEAR TO THE AGGREGATE OF SUCH CLAIMS HELD VALID. IF,
8 AT ANY TIME, THE MONEY DEPOSITED IN THE PROMOTIONAL LAND SALES
9 FUND IS INSUFFICIENT TO SATISFY ANY DULY AUTHORIZED CLAIM OR
10 PORTION THEREOF, THE COMMISSION SHALL, WHEN SUFFICIENT MONEY HAS
11 BEEN DEPOSITED IN THE FUND, SATISFY SUCH UNPAID CLAIMS OR
12 PORTIONS THEREOF IN THE ORDER THAT SUCH CLAIMS OR PORTIONS
13 THEREOF WERE ORIGINALLY FILED, PLUS ACCUMULATED INTEREST AT THE
14 RATE OF 6% A YEAR.
15 (F) UPON PETITION OF THE COMMISSION, THE COURT MAY REQUIRE
16 ALL CLAIMANTS AND PROSPECTIVE CLAIMANTS AGAINST ONE LICENSEE OR
17 REGISTRANT TO BE JOINED IN ONE ACTION, TO THE END THAT THE
18 RESPECTIVE RIGHTS OF ALL SUCH CLAIMANTS TO THE PROMOTIONAL LAND
19 SALES FUND MAY BE EQUITABLY ADJUDICATED AND SETTLED.
20 (G) SHOULD THE COMMISSION PAY FROM THE PROMOTIONAL LAND
21 SALES FUND ANY AMOUNT IN SETTLEMENT OF A CLAIM AS PROVIDED FOR
22 IN THIS ACT AGAINST A REGISTRANT, THE REGISTRATION OF THAT
23 PERSON SHALL AUTOMATICALLY SUSPEND UPON THE EFFECTIVE DATE OF
24 THE PAYMENT THEREOF BY THE COMMISSION. NO SUCH REGISTRANT SHALL
25 BE GRANTED REINSTATEMENT UNTIL HE HAS REPAID IN FULL, PLUS
26 INTEREST AT THE RATE OF 10% A YEAR, THE AMOUNT PAID FROM THE
27 PROMOTIONAL LAND SALES FUND.
28 SECTION 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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