(a) Any deposit made with the purchase or reservation of a time-share interest from a developer shall be placed in a noninterest-bearing escrow account and held in this state, or other jurisdiction that is acceptable to the Arkansas Real Estate Commission, in a designated account by an independent bonded escrow company or in an institution whose accounts are insured by a governmental agency or instrumentality until: (1) Delivered to the developer at the end of the time for rescission or a later time specified in a contract or sale;(2) Delivered to the developer because of the purchaser's default under a contract to purchase the time-share interest; or(3) Refunded to the purchaser.(b)(1) In lieu of any escrows required by this section, the commission has the discretion to accept other financial assurances, including a surety bond, or a cash deposit in an amount equal to the escrow requirements of this section.(2) Interest earned on a surety bond or other deposit while deposited with, or for the benefit of, the commission becomes the property of the commission and is deposited into the Real Estate Recovery Fund in § 17-42-403.Amended by Act 2013, No. 710,§ 4, eff. deposited with, or for the benefit of, the commission becomes the property of the commission and is deposited into the Real Estate Recovery Fund in § 17-42-403.Amended by Act 2013, No. 710,§ 4, eff. 8/16/2013.Acts 1983, No. 294, Art. 3, § 3-102; A.S.A. 1947, § 50-1316; Acts 1989, No. 44, § 2.
Arkansas Legal Code