North Carolina HB 992: Azalea Festival/Official Spring Celebration.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-75
HOUSE BILL 992

*H992-v-7*
AN ACT TO CREATE A TIMESHARE TRUSTEE FORECLOSURE PROCESS FOR
CERTAIN DELINQUENT ASSESSMENTS FOR TIMESHARES LOCATED IN THIS
STATE AND TO CHANGE THE PROCESS FOR ESTABLISHING PATERNITY OF
CHILDREN BORN OUT OF WEDLOCK.

The General Assembly of North Carolina enacts:

SECTION 1. G.S. 93A-62 reads as rewritten:
"§ 93A-62. Delinquent assessments; developer guarantee.
(a) Delinquent assessments may bear interest at the highest rate permitted by law or at
some lesser rate established by the managing entity. In addition to interest, the managing entity
may charge a reasonable administrative late fee for each delinquent assessment. Any costs of
collection, including reasonable collection agency fees and reasonable attorney's fees, incurred
in the collection of a delinquent assessment shall be paid by the owner and shall be secured by a
lien in favor of the managing entity upon the timeshare with respect to which the delinquent
assessment has been incurred.
(b) The managing entity may deny the use of the timeshare units or facilities, including
the denial of the right to make a reservation or the cancellation of a confirmed reservation for
timeshare periods, to any owner who is delinquent in the payment of any assessments made by
the managing entity against the owner for common expenses, in accordance with the following:
(1) The managing entity must, no less than 30 days after the date the assessment
is due, notify the owner in writing of the total amount of any delinquency
which then exists, including any accrued interest and late charges permitted
to be imposed under the terms of the timeshare program or by law and
including a per diem amount. The notice shall be sent to the owner at the
owner's known address as recorded in the books and records of the timeshare
program.
(2) The notice shall clearly state that the owner will not be permitted to use the
owner's timeshare, that the owner will not be permitted to make a reservation
in the timeshare program's reservation system, or that any confirmed
reservation may be canceled until the total amount of such delinquency is
satisfied in full or until the owner produces satisfactory evidence that the
delinquency does not exist.
(3) The notice shall be effective to bar the use of the owner and those claiming
use rights under the owner, including the owner's guests, lessees, and persons
receiving use rights in the timeshare through an exchange program; provided,
however, that (i) a managing entity desiring to deny the use of the timeshare
to persons receiving use rights in the delinquent owner's timeshare through an
exchange program that has an affiliation agreement with the managing entity
shall notify the affiliated exchange company in writing of the denial of use at
the time that the notice was sent to the owner and (ii) any person claiming
through the affiliated exchange program who has received a confirmed

Page 2 Session Law 2025-75 House Bill 992
assignment of the delinquent owner's use rights from the affiliated exchange
company prior to the expiration of 48 hours after the receipt by the affiliated
exchange company of the written notice from the managing entity shall be
permitted by the managing entity to use the owner's use rights.
(4) Any costs reasonably incurred by the managing entity in connection with its
compliance with the requirements of this section may be assessed by the
managing entity against the delinquent owner and collected in the same
manner as if those costs were common expenses of the timeshare program
allocable solely to the delinquent purchaser.
(5) A managing entity may not enforce the denial of use against any one owner
or group of owners without similarly enforcing it against all owners, including
all developers.
(c) In addition to the denial of use pursuant to subsection (b) of this section, the managing
entity may give further notice to the delinquent owner that the managing entity may rent the
delinquent owner's timeshare, or any use rights appurtenant thereto, in accordance with the
following:
(1) A further notice of intent to rent must be given no less than 30 days after the
date the assessment is due and must be delivered to the purchaser in the
manner required for notices under subsection (b) of this section.
(2) The notice shall state that unless the owner satisfies the delinquency in full, or
unless the owner produces satisfactory evidence that the delinquency does not
exist, the purchaser will be bound by the terms of any rental contract entered
into by the managing entity with respect to the owner's timeshare or
appurtenant use rights.
(3) The notice shall state that the owner will remain liable for any difference
between the amount of the delinquency and the net amount produced by the
rental contract and applied against the delinquency, and the managing entity
shall not be required to provide any further notice to the owner regarding an