August 25, Ms [redacted] Revdex.com of Hawaii, Inc [redacted] Re: Case # [redacted] Dear Ms***: The Kuhio Banyan Owners Association ("KBOA"), DBA "Kuhio Banyan Club," and It's Board of Directors Are Solely Responsible for Managing the Project Paragraph of the Time Share Declaration (the KBOA's governing document, approved by the DCCA, which created the project) provides: "All Association powers and duties may be exercised by or under the power of the Board, unless the time share documents or the law limits that exerciseThe business and the affairs of the Association are controlled by the Board." Paragraph of the Declaration also provides: "Administration and management of the time share plan, including the project time share units and the common furnishings, is vested in the AssociationOwners may not participate in the management or administration of the time share plan directly, only indirectly through the Association." The KBOA Was Legally Empowered to Obtain and Pay For The Sublease Extension The KBOA's legal counsel, Mr [redacted] , formally advised the Board by letter dated February 17, that it was legally empowered to obtain an extension of the project's lease and pay for all associated costs by way of a special assessment to be paid on a per-interval basis by all owners whether or not they personally wised to extend their ownership The KBOA Board of Directors Approved a Policy of Refunding Special Assessment Payments To Non-Extending Owners, Not [redacted] Management Company At its February 23, 2005, meeting, the KBOA Board of Directors adopted a policy of refunding the lease extension special assessment to non-extending owners in-good-standing, out of concern for "older owners who had little or no interest in extending their ownership past 2010," but delayed addressing "the timing and manner of the refund and the anticipated value of the intervals after the lease is extended All KBOA Owners Were Legally Obligated to Pay the Lease Extension Special Assessment Paragraph (c) of the projects Time Share Declaration provides: "Each owner is personally obligated to pay on time all assessments charged to his time share interest and all personal charges charged to himAn owner cannot avoid liability for the assessments and personal charges by not using his time share interest or by abandoning itEven if the owner transfers his time share interest to another, he is still personally obligated to pay all assessments and personal charges due before the transfer is effectiveThis includes all costs of collection, including attorney's fees." All Kuhio Banyan owners were notified of their obligations in the official "Notice of Lease Extension & Special Assessment," which included lengthly, pertinent quotes from the governing project documentsThus, notwithstanding the Board's refund policy, every owner knew they were legally bound to pay the lease extension special assessment All Special Assessment Proceeds Were Used To Defray KBOA Costs for the Lease Extension The Board extended the lease as to all seventy (70) apartments that comprise the project, not on an interval-by-interval basisThus, the payments made to the KBOA by the individual complainants represented their proportionate share of plan expenses, and were in no sense a payment for the purchase or lease of individual timeshare interestsAll proceeds of the lease extension special assessment were used for that purpose, as shown in the Association's "Independent Auditor's Report" for The Board Took Reasonable Steps to Raise the Funds Needed for the Refund via Resales Acting in good faith to implement its voluntary refund policy, the Board of Directors took reasonable steps to raise the funds needed for the special assessment refund via a resale program with knowledgeable and reliable timeshare sales professionalsIt was never the intent of the Board to raise such funds by way of another special assessment on the remaining owners -- the only other method available -- nor has it ever promised to do so KBOA Was Forced to Delay the Resale Program Due To Circumstances Beyond Its Control Almost immediately after the lease extension was finalized in December 2007, the energy spike -- which put [redacted] Airlines out of business and caused the two largest timeshare operations in Hawaii to close their doors -- led the gentlemen who had agreed to run the resale program to recommend delaying launching until market conditions improvedThe subsequent financial crisis and deep recession that began in late 2008, however, caused these gentlemen to withdraw entirely from the projectAfter periodic reviews of the status of the timeshare resale market, he Board has subsequetnly determined that -- in view of its greatly increased costs and generally poor financial situation -- it has no alternative but to delay the resale program indefinitely, pending a full economic recoveryAll owners were notified of these developments, including the complainants At this point in time, it is the Board's considered opinion that market conditions do not yet justify implementing the resale program, and that other possible options for addressing the refund issue would place an unfair financial burden on the KBOA's remaining owners Non-Extending Owners Are Free to Extend Their Leases At Any Time Pending the recovery of the vacation industry and the commencement of a successful resale program, any non-extending owner who wishes to get value for his payment of the mandatory lease extension special assessment is free to request an extension of his interval ownership, which will be honored upon payment of the necessary document/recording fees, etc Very Truly Yours, KUHIO BANYAN OWNERS ASSOCIATION [redacted] President
October 22,2014 Kuhio BanyanCertified MailReturn Receipt Requested[redacted]...
[redacted]Re: [redacted]Kuhio Banyan Club Unit [redacted], Week **Dear Ms. [redacted]:It appears that your client failed to inform you of the following dispositive facts: 1.Your client freely chose to extend her leasehold ownership by way of the "KUHIO BANYAN CLUB EXTENSION OF VACATION LEASE FORM" signed and dated by Ms. [redacted] on April 20, 2008 (emphasis in original, copy enclosed).2. Consequently, the Kuhio Banyan Owners Association ("KBOA") was obligated to regard her as an owner after the expiration of the prior lease term on March 31, 2010, and has duly honored all of her requests for transfers of her time into her RCI SpaceBank account in 2011, 2012, 2013, 2014, and even for 2015 (copy of owners card enclosed).3. In accordance with your clients' instructions, her Vacation Lease extension was prepared and deposited, postage paid, into the US Mail on January 15, 2008 (copy of transmittal letter attached). Ms. [redacted]'s willful failure to execute and return this document in no way excuses her current refusal to honor her on-going commitment.The KBOA has performed all of its obligations arising from the contract created when your client exercised her option to extend her ownership, and is ready,willing, and able to continue to do so. Therefore, uuless and until your client brings her account current, the KBOA must take all necessary and proper steps to collect all amounts now or hereafter owing pursuant to said contract until the lease ends on March 31, 2040.Sincerely Yours,KUHIO BANYAN OWNERS ASSOCIATION[redacted]President [redacted] • [redacted]. [redacted] • [redacted] • TOLL FREE [redacted]
The [redacted]'s are mistaken that they were under a 20 year lease. The Kuhio Banyan Owners Association was given a 30 year lease extension thru March 2040. However, if the [redacted]'s do not want to continue with their ownership we will draft a re-conveyance document to return title back to...
the Kuhio Banyan Owners Association. Mr. and Mrs. [redacted] will have use through the 2016 year as long as they pay their 4th Quarter 2016 maintenance fees in the amount of $205. They will then have no further obligation nor further use at the Club as long as they sign before a notary the re-conveyance document. I will instruct the Management Company to go ahead and prepare the re-conveyance document and mail to the [redacted]'s at [redacted] [redacted].
Sincerely yours,
October 22,2014 Kuhio BanyanCertified MailReturn Receipt Requested[redacted] [redacted] [redacted] [redacted]Re: [redacted]Kuhio Banyan Club Unit [redacted], Week **Dear Ms. [redacted]:It appears that your client failed to inform you of the following dispositive facts: 1.Your client freely chose to extend her leasehold ownership by way of the "KUHIO BANYAN CLUB EXTENSION OF VACATION LEASE FORM" signed and dated by Ms. [redacted] [redacted] on April 20, 2008 (emphasis in original, copy enclosed).2. Consequently, the Kuhio Banyan Owners Association ("KBOA") was obligated to regard her as an owner after the expiration of the prior lease term on March 31, 2010, and has duly honored all of her requests for transfers of her time into her RCI SpaceBank account in 2011, 2012, 2013, 2014, and even for 2015 (copy of owners card enclosed).3. In accordance with your clients' instructions, her Vacation Lease extension was prepared and deposited, postage paid, into the US Mail on January 15, 2008 (copy of transmittal letter attached). Ms. [redacted]'s willful failure to execute and return this document in no way excuses her current refusal to honor her on-going commitment.The KBOA has performed all of its obligations arising from the contract created when your client exercised her option to extend her ownership, and is ready,willing, and able to continue to do so. Therefore, uuless and until your client brings her account current, the KBOA must take all necessary and proper steps to collect all amounts now or hereafter owing pursuant to said contract until the lease ends on March 31, 2040.Sincerely Yours,KUHIO BANYAN OWNERS ASSOCIATION[redacted] [redacted]President [redacted] [redacted] • [redacted]. [redacted] • [redacted] • TOLL FREE [redacted]
Thank you very much to the Revdex.com for reviewing our complaint regarding the Kuhio Banyan Owners Association and the automatic extension to our 20 year lease, due to the 30 year extension granted to them thru March 2040. We were not mistaken regarding the 20 year lease we agreed upon back in December of1995.However, moving forward,we will sign the re-conveyance document before a notary upon receipt, returning the title back to the Kuhio Bayan Owners Association. As we have done for the past 20 years, we will comply with our obligation and pay any outstanding fees due, referring to the final 4th Quarter 2016 maintenance fees in the amount of $205.Again, we appreciate your prompt attention in this matter.
August 25, 2014
Ms. [redacted]
[redacted]
Revdex.com of Hawaii, Inc.
[redacted]
[redacted]
Re: Case #[redacted]
Dear Ms. [redacted]:
1. The Kuhio Banyan Owners Association ("KBOA"), DBA "Kuhio Banyan Club," and It's Board of...
Directors Are Solely Responsible for Managing the Project.
Paragraph 6.6 of the Time Share Declaration (the KBOA's governing document, approved by the DCCA, which created the project) provides: "All Association powers and duties may be exercised by or under the power of the Board, unless the time share documents or the law limits that exercise. The business and the affairs of the Association are controlled by the Board." Paragraph 7.1 of the Declaration also provides: "Administration and management of the time share plan, including the project time share units and the common furnishings, is vested in the Association. Owners may not participate in the management or administration of the time share plan directly, only indirectly through the Association."
2. The KBOA Was Legally Empowered to Obtain and Pay For The Sublease Extension.
The KBOA's legal counsel, Mr. [redacted], formally advised the Board by letter dated February 17, 2006 that it was legally empowered to obtain an extension of the project's lease and pay for all associated costs by way of a special assessment to be paid on a per-interval basis by all owners whether or not they personally wised to extend their ownership.
3. The KBOA Board of Directors Approved a Policy of Refunding Special Assessment Payments To Non-Extending Owners, Not [redacted] Management Company.
At its February 23, 2005, meeting, the KBOA Board of Directors adopted a policy of refunding the lease extension special assessment to non-extending owners in-good-standing, out of concern for "older owners who had little or no interest in extending their ownership past 2010," but delayed addressing "the timing and manner of the refund and the anticipated value of the intervals after the lease is extended.
4. All KBOA Owners Were Legally Obligated to Pay the Lease Extension Special Assessment.
Paragraph 10.10 (c) of the projects Time Share Declaration provides:
"Each owner is personally obligated to pay on time all assessments charged to his time share interest and all personal charges charged to him. An owner cannot avoid liability for the assessments and personal charges by not using his time share interest or by abandoning it. Even if the owner transfers his time share interest to another, he is still personally obligated to pay all assessments and personal charges due before the transfer is effective. This includes all costs of collection, including attorney's fees."
All Kuhio Banyan owners were notified of their obligations in the official "Notice of Lease Extension & Special Assessment," which included lengthly, pertinent quotes from the governing project documents. Thus, notwithstanding the Board's refund policy, every owner knew they were legally bound to pay the lease extension special assessment.
5. All Special Assessment Proceeds Were Used To Defray KBOA Costs for the Lease Extension.
The Board extended the lease as to all seventy (70) apartments that comprise the project, not on an interval-by-interval basis. Thus, the payments made to the KBOA by the individual complainants represented their proportionate share of plan expenses, and were in no sense a payment for the purchase or lease of individual timeshare interests. All proceeds of the lease extension special assessment were used for that purpose, as shown in the Association's "Independent Auditor's Report" for 2007.
6. The Board Took Reasonable Steps to Raise the Funds Needed for the Refund via Resales.
Acting in good faith to implement its voluntary refund policy, the Board of Directors took reasonable steps to raise the funds needed for the special assessment refund via a resale program with knowledgeable and reliable timeshare sales professionals. It was never the intent of the Board to raise such funds by way of another special assessment on the remaining owners -- the only other method available -- nor has it ever promised to do so.
7. KBOA Was Forced to Delay the Resale Program Due To Circumstances Beyond Its Control.
Almost immediately after the lease extension was finalized in December 2007, the energy spike -- which put [redacted] Airlines out of business and caused the two largest timeshare operations in Hawaii to close their doors -- led the gentlemen who had agreed to run the resale program to recommend delaying launching until market conditions improved. The subsequent financial crisis and deep recession that began in late 2008, however, caused these gentlemen to withdraw entirely from the project. After periodic reviews of the status of the timeshare resale market, he Board has subsequetnly determined that -- in view of its greatly increased costs and generally poor financial situation -- it has no alternative but to delay the resale program indefinitely, pending a full economic recovery. All owners were notified of these developments, including the complainants.
At this point in time, it is the Board's considered opinion that market conditions do not yet justify implementing the resale program, and that other possible options for addressing the refund issue would place an unfair financial burden on the KBOA's remaining owners.
8. Non-Extending Owners Are Free to Extend Their Leases At Any Time.
Pending the recovery of the vacation industry and the commencement of a successful resale program, any non-extending owner who wishes to get value for his payment of the mandatory lease extension special assessment is free to request an extension of his interval ownership, which will be honored upon payment of the necessary document/recording fees, etc.
Very Truly Yours,
KUHIO BANYAN OWNERS ASSOCIATION
[redacted]
President
August 25, Ms [redacted] Revdex.com of Hawaii, Inc [redacted] Re: Case # [redacted] Dear Ms***: The Kuhio Banyan Owners Association ("KBOA"), DBA "Kuhio Banyan Club," and It's Board of Directors Are Solely Responsible for Managing the Project Paragraph of the Time Share Declaration (the KBOA's governing document, approved by the DCCA, which created the project) provides: "All Association powers and duties may be exercised by or under the power of the Board, unless the time share documents or the law limits that exerciseThe business and the affairs of the Association are controlled by the Board." Paragraph of the Declaration also provides: "Administration and management of the time share plan, including the project time share units and the common furnishings, is vested in the AssociationOwners may not participate in the management or administration of the time share plan directly, only indirectly through the Association." The KBOA Was Legally Empowered to Obtain and Pay For The Sublease Extension The KBOA's legal counsel, Mr [redacted] , formally advised the Board by letter dated February 17, that it was legally empowered to obtain an extension of the project's lease and pay for all associated costs by way of a special assessment to be paid on a per-interval basis by all owners whether or not they personally wised to extend their ownership The KBOA Board of Directors Approved a Policy of Refunding Special Assessment Payments To Non-Extending Owners, Not [redacted] Management Company At its February 23, 2005, meeting, the KBOA Board of Directors adopted a policy of refunding the lease extension special assessment to non-extending owners in-good-standing, out of concern for "older owners who had little or no interest in extending their ownership past 2010," but delayed addressing "the timing and manner of the refund and the anticipated value of the intervals after the lease is extended All KBOA Owners Were Legally Obligated to Pay the Lease Extension Special Assessment Paragraph (c) of the projects Time Share Declaration provides: "Each owner is personally obligated to pay on time all assessments charged to his time share interest and all personal charges charged to himAn owner cannot avoid liability for the assessments and personal charges by not using his time share interest or by abandoning itEven if the owner transfers his time share interest to another, he is still personally obligated to pay all assessments and personal charges due before the transfer is effectiveThis includes all costs of collection, including attorney's fees." All Kuhio Banyan owners were notified of their obligations in the official "Notice of Lease Extension & Special Assessment," which included lengthly, pertinent quotes from the governing project documentsThus, notwithstanding the Board's refund policy, every owner knew they were legally bound to pay the lease extension special assessment All Special Assessment Proceeds Were Used To Defray KBOA Costs for the Lease Extension The Board extended the lease as to all seventy (70) apartments that comprise the project, not on an interval-by-interval basisThus, the payments made to the KBOA by the individual complainants represented their proportionate share of plan expenses, and were in no sense a payment for the purchase or lease of individual timeshare interestsAll proceeds of the lease extension special assessment were used for that purpose, as shown in the Association's "Independent Auditor's Report" for The Board Took Reasonable Steps to Raise the Funds Needed for the Refund via Resales Acting in good faith to implement its voluntary refund policy, the Board of Directors took reasonable steps to raise the funds needed for the special assessment refund via a resale program with knowledgeable and reliable timeshare sales professionalsIt was never the intent of the Board to raise such funds by way of another special assessment on the remaining owners -- the only other method available -- nor has it ever promised to do so KBOA Was Forced to Delay the Resale Program Due To Circumstances Beyond Its Control Almost immediately after the lease extension was finalized in December 2007, the energy spike -- which put [redacted] Airlines out of business and caused the two largest timeshare operations in Hawaii to close their doors -- led the gentlemen who had agreed to run the resale program to recommend delaying launching until market conditions improvedThe subsequent financial crisis and deep recession that began in late 2008, however, caused these gentlemen to withdraw entirely from the projectAfter periodic reviews of the status of the timeshare resale market, he Board has subsequetnly determined that -- in view of its greatly increased costs and generally poor financial situation -- it has no alternative but to delay the resale program indefinitely, pending a full economic recoveryAll owners were notified of these developments, including the complainants At this point in time, it is the Board's considered opinion that market conditions do not yet justify implementing the resale program, and that other possible options for addressing the refund issue would place an unfair financial burden on the KBOA's remaining owners Non-Extending Owners Are Free to Extend Their Leases At Any Time Pending the recovery of the vacation industry and the commencement of a successful resale program, any non-extending owner who wishes to get value for his payment of the mandatory lease extension special assessment is free to request an extension of his interval ownership, which will be honored upon payment of the necessary document/recording fees, etc Very Truly Yours, KUHIO BANYAN OWNERS ASSOCIATION [redacted] President
October 22,2014 Kuhio BanyanCertified MailReturn Receipt Requested[redacted]...
[redacted]Re: [redacted]Kuhio Banyan Club Unit [redacted], Week **Dear Ms. [redacted]:It appears that your client failed to inform you of the following dispositive facts: 1.Your client freely chose to extend her leasehold ownership by way of the "KUHIO BANYAN CLUB EXTENSION OF VACATION LEASE FORM" signed and dated by Ms. [redacted] on April 20, 2008 (emphasis in original, copy enclosed).2. Consequently, the Kuhio Banyan Owners Association ("KBOA") was obligated to regard her as an owner after the expiration of the prior lease term on March 31, 2010, and has duly honored all of her requests for transfers of her time into her RCI SpaceBank account in 2011, 2012, 2013, 2014, and even for 2015 (copy of owners card enclosed).3. In accordance with your clients' instructions, her Vacation Lease extension was prepared and deposited, postage paid, into the US Mail on January 15, 2008 (copy of transmittal letter attached). Ms. [redacted]'s willful failure to execute and return this document in no way excuses her current refusal to honor her on-going commitment.The KBOA has performed all of its obligations arising from the contract created when your client exercised her option to extend her ownership, and is ready,willing, and able to continue to do so. Therefore, uuless and until your client brings her account current, the KBOA must take all necessary and proper steps to collect all amounts now or hereafter owing pursuant to said contract until the lease ends on March 31, 2040.Sincerely Yours,KUHIO BANYAN OWNERS ASSOCIATION[redacted]President [redacted] • [redacted]. [redacted] • [redacted] • TOLL FREE [redacted]
The [redacted]'s are mistaken that they were under a 20 year lease. The Kuhio Banyan Owners Association was given a 30 year lease extension thru March 2040. However, if the [redacted]'s do not want to continue with their ownership we will draft a re-conveyance document to return title back to...
the Kuhio Banyan Owners Association. Mr. and Mrs. [redacted] will have use through the 2016 year as long as they pay their 4th Quarter 2016 maintenance fees in the amount of $205. They will then have no further obligation nor further use at the Club as long as they sign before a notary the re-conveyance document. I will instruct the Management Company to go ahead and prepare the re-conveyance document and mail to the [redacted]'s at [redacted] [redacted].
Sincerely yours,
Angie R[redacted]
Kuhio Banyan Accounting Manager
October 22,2014 Kuhio BanyanCertified MailReturn Receipt Requested[redacted] [redacted] [redacted] [redacted]Re: [redacted]Kuhio Banyan Club Unit [redacted], Week **Dear Ms. [redacted]:It appears that your client failed to inform you of the following dispositive facts: 1.Your client freely chose to extend her leasehold ownership by way of the "KUHIO BANYAN CLUB EXTENSION OF VACATION LEASE FORM" signed and dated by Ms. [redacted] [redacted] on April 20, 2008 (emphasis in original, copy enclosed).2. Consequently, the Kuhio Banyan Owners Association ("KBOA") was obligated to regard her as an owner after the expiration of the prior lease term on March 31, 2010, and has duly honored all of her requests for transfers of her time into her RCI SpaceBank account in 2011, 2012, 2013, 2014, and even for 2015 (copy of owners card enclosed).3. In accordance with your clients' instructions, her Vacation Lease extension was prepared and deposited, postage paid, into the US Mail on January 15, 2008 (copy of transmittal letter attached). Ms. [redacted]'s willful failure to execute and return this document in no way excuses her current refusal to honor her on-going commitment.The KBOA has performed all of its obligations arising from the contract created when your client exercised her option to extend her ownership, and is ready,willing, and able to continue to do so. Therefore, uuless and until your client brings her account current, the KBOA must take all necessary and proper steps to collect all amounts now or hereafter owing pursuant to said contract until the lease ends on March 31, 2040.Sincerely Yours,KUHIO BANYAN OWNERS ASSOCIATION[redacted] [redacted]President [redacted] [redacted] • [redacted]. [redacted] • [redacted] • TOLL FREE [redacted]
Thank you very much to the Revdex.com for reviewing our complaint regarding the Kuhio Banyan Owners Association and the automatic extension to our 20 year lease, due to the 30 year extension granted to them thru March 2040. We were not mistaken regarding the 20 year lease we agreed upon back in December of1995.However, moving forward,we will sign the re-conveyance document before a notary upon receipt, returning the title back to the Kuhio Bayan Owners Association. As we have done for the past 20 years, we will comply with our obligation and pay any outstanding fees due, referring to the final 4th Quarter 2016 maintenance fees in the amount of $205.Again, we appreciate your prompt attention in this matter.
August 25, 2014
Ms. [redacted]
[redacted]
Revdex.com of Hawaii, Inc.
[redacted]
[redacted]
Re: Case #[redacted]
Dear Ms. [redacted]:
1. The Kuhio Banyan Owners Association ("KBOA"), DBA "Kuhio Banyan Club," and It's Board of...
Directors Are Solely Responsible for Managing the Project.
Paragraph 6.6 of the Time Share Declaration (the KBOA's governing document, approved by the DCCA, which created the project) provides: "All Association powers and duties may be exercised by or under the power of the Board, unless the time share documents or the law limits that exercise. The business and the affairs of the Association are controlled by the Board." Paragraph 7.1 of the Declaration also provides: "Administration and management of the time share plan, including the project time share units and the common furnishings, is vested in the Association. Owners may not participate in the management or administration of the time share plan directly, only indirectly through the Association."
2. The KBOA Was Legally Empowered to Obtain and Pay For The Sublease Extension.
The KBOA's legal counsel, Mr. [redacted], formally advised the Board by letter dated February 17, 2006 that it was legally empowered to obtain an extension of the project's lease and pay for all associated costs by way of a special assessment to be paid on a per-interval basis by all owners whether or not they personally wised to extend their ownership.
3. The KBOA Board of Directors Approved a Policy of Refunding Special Assessment Payments To Non-Extending Owners, Not [redacted] Management Company.
At its February 23, 2005, meeting, the KBOA Board of Directors adopted a policy of refunding the lease extension special assessment to non-extending owners in-good-standing, out of concern for "older owners who had little or no interest in extending their ownership past 2010," but delayed addressing "the timing and manner of the refund and the anticipated value of the intervals after the lease is extended.
4. All KBOA Owners Were Legally Obligated to Pay the Lease Extension Special Assessment.
Paragraph 10.10 (c) of the projects Time Share Declaration provides:
"Each owner is personally obligated to pay on time all assessments charged to his time share interest and all personal charges charged to him. An owner cannot avoid liability for the assessments and personal charges by not using his time share interest or by abandoning it. Even if the owner transfers his time share interest to another, he is still personally obligated to pay all assessments and personal charges due before the transfer is effective. This includes all costs of collection, including attorney's fees."
All Kuhio Banyan owners were notified of their obligations in the official "Notice of Lease Extension & Special Assessment," which included lengthly, pertinent quotes from the governing project documents. Thus, notwithstanding the Board's refund policy, every owner knew they were legally bound to pay the lease extension special assessment.
5. All Special Assessment Proceeds Were Used To Defray KBOA Costs for the Lease Extension.
The Board extended the lease as to all seventy (70) apartments that comprise the project, not on an interval-by-interval basis. Thus, the payments made to the KBOA by the individual complainants represented their proportionate share of plan expenses, and were in no sense a payment for the purchase or lease of individual timeshare interests. All proceeds of the lease extension special assessment were used for that purpose, as shown in the Association's "Independent Auditor's Report" for 2007.
6. The Board Took Reasonable Steps to Raise the Funds Needed for the Refund via Resales.
Acting in good faith to implement its voluntary refund policy, the Board of Directors took reasonable steps to raise the funds needed for the special assessment refund via a resale program with knowledgeable and reliable timeshare sales professionals. It was never the intent of the Board to raise such funds by way of another special assessment on the remaining owners -- the only other method available -- nor has it ever promised to do so.
7. KBOA Was Forced to Delay the Resale Program Due To Circumstances Beyond Its Control.
Almost immediately after the lease extension was finalized in December 2007, the energy spike -- which put [redacted] Airlines out of business and caused the two largest timeshare operations in Hawaii to close their doors -- led the gentlemen who had agreed to run the resale program to recommend delaying launching until market conditions improved. The subsequent financial crisis and deep recession that began in late 2008, however, caused these gentlemen to withdraw entirely from the project. After periodic reviews of the status of the timeshare resale market, he Board has subsequetnly determined that -- in view of its greatly increased costs and generally poor financial situation -- it has no alternative but to delay the resale program indefinitely, pending a full economic recovery. All owners were notified of these developments, including the complainants.
At this point in time, it is the Board's considered opinion that market conditions do not yet justify implementing the resale program, and that other possible options for addressing the refund issue would place an unfair financial burden on the KBOA's remaining owners.
8. Non-Extending Owners Are Free to Extend Their Leases At Any Time.
Pending the recovery of the vacation industry and the commencement of a successful resale program, any non-extending owner who wishes to get value for his payment of the mandatory lease extension special assessment is free to request an extension of his interval ownership, which will be honored upon payment of the necessary document/recording fees, etc.
Very Truly Yours,
KUHIO BANYAN OWNERS ASSOCIATION
[redacted]
President