(a) Subject to subdivision (h), the commissioner shall issue a final public report if all registration requirements have been met as set forth in this chapter and if all deficiencies and substantive inadequacies in the substantially complete application for a final public report for the time-share plan have been corrected. (b) The commissioner may issue a conditional public report prior to issuing a final public report for a time-share plan if the requirements of subdivision (c) are met, all deficiencies and substantive inadequacies in the substantially complete application for a final public report for the time-share plan have been corrected, the material elements of the offering to be made under the authority of the conditional public report have been established, and all requirements for the issuance of the conditional public report have been met, except for one or more of the following requirements, as may be applicable: (1) A final map has not been recorded. (2) A condominium plan has not been recorded. (3) A declaration of covenants, conditions, and restrictions has not been recorded. (4) A declaration of annexation has not been recorded. (5) A recorded subordination of existing liens to the time-share instruments or declaration of annexation or escrow instructions to effect recordation prior to the first sale, are lacking. (6) Filed articles of incorporation are lacking. (7) A current preliminary report of a licensed title insurance company issued after filing of the final map and recording of the time-share instrument covering all time-share interests to be included in the public report has not been provided. (8) Other requirements the commissioner determines are likely to be timely satisfied by the applicant. (c) An applicant for a conditional public report shall submit the following information and documents with the applicable filing fee: (1) A copy of the statement set forth in subdivision (e). (2) A sales agreement or lease to be used in any transaction conducted under authority of the conditional public report. The sales agreement or lease shall include all of the following provisions: (A) No escrow will close, funds will not be released from escrow, and the interest contracted for will not be conveyed until a current final public report for the time-share plan is furnished to the purchaser. (B) The contract may be rescinded, in which event the entire sum of money paid or advanced by the purchaser shall be returned if (i) a final public report has not been issued within six months after the date of issuance of the conditional public report if the conditional public report is not renewed, (ii) the final public report is not issued within 12 months after the initial conditional public report is received if the conditional public report has been renewed for an additional six-month period, or (iii) the purchaser or lessee is dissatisfied with the final public report because of a material and adverse change. (3) Escrow instructions to be used in any transaction conducted under authority of the conditional public report that includes at least the following information: (A) The name and address of the escrow depository. (B) A description of the nature of the transaction. (C) Provisions ensuring compliance with Section 11243. (D) Provisions ensuring that no escrow will close, funds will not be released from escrow, and the interest contracted for will not be conveyed until a current final public report for the time-share plan is furnished to the purchaser or lessee. (E) Provisions for the return of money as prescribed in subparagraph (B) of paragraph (2). (d) A decision by the commissioner to not issue a conditional public report shall be noticed in writing to the applicant within five business days after his or her decision and that notice shall specifically state the reasons why the report is not being issued. (e) A person may sell or lease, or offer for sale or lease, time-share interests in a time-share plan pursuant
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