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Originally Posted by rikkis_playpen
I have to admit I'm nervous, Jim... My concern and question is more to the effect of what legal rights do Bluegreen members really have- since the ownerships are not deeded but simply another form of trust. Will this give Diamond the ability to do virtually anything they want with the program? I would expect that BG members will have the right to choose if they join the Club, but..........
Can Diamond force a club conversion similar to the situation Epic owners faced- and if so would this practically eliminate resales and make the foreclosure process as simple as the punch of a button on a keyboard? I certainly hope not, but Mr. Spence can tell you the recent issues that current Club owners have been facing..
BlueGreen members have been blessed with a fairly steady resale value over the years. I'm keeping my fingers crossed!
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This is where Bluegreen owners are in luck. Bluegreen is a timeshare plan that is registered with the State of Florida under it's Multi-site timesharing plan statutes. As part of those statutes, all of the rules governing the ownership must be registered with the state of Florida. And, any bylaw changes must be submitted on an annual basis.
The Bluegreen Vacation Club is based on underlying deeded weeks that are placed in a Vacation Club trust. Owners have what are called Owner Beneficiary Rights under that plan according to a set of reservation rules and point values. Those rules cannot just be changed on a whim. And, the underlying deeded weeks must be redeeded into another trust if they want to make changes. So, a sales effort must be employed to change the ownership significantly.
Bluegreen does have a provision where they are in control of the board. But, if they try to do something like dramatically change the nature of the Club, I am sure that the Florida Attorney General would get involved. It is not likely that DRI would want that fight. They would probably try to change things slowly over time and provide the sales team with the opportunity to upgrade customers to the larger Club.
After thinking through the likely scenarios, I am not really worried too much about what DRI will do. They will do what is in their best interests. As long as we know what that is, we can find the ways to capitalize on the new opportunities that manifest themselves. There will be nice new loopholes for getting into the resorts which will be fun to learn about.
Jim
