AZ LAW BOOK

10. The membership camping broker is responsible at all times for the lawful and proper conduct of any lottery or drawing. E. No campground facility may be advertised or promoted in any way that appears to guarantee the unimpeded use of or access to campground properties, if a blanket encumbrance exists on the properties, unless a nondisturbance or other acceptable agreement has been recorded, filed and accepted by the department pursuant to section 32-2198.14. 32-2198.11. Purchaser's remedies A. A membership camping contract entered into in substantial reliance on any false, fraudulent or misleading information, representation, notice or advertisement of the campground operator or its agents is voidable at the option of the purchaser. Reasonable attorney fees shall be awarded to the prevailing party in any action under this chapter. B. Any waiver of the provisions of this article by the purchaser is void. C. A purchaser who is injured by a violation of this article may bring an action for the recovery of damages, reasonable attorney fees and, if the violation is wilful, punitive damages in the amount of five thousand dollars per violation. 32-2198.13. Construction of this article The provisions of this article are in addition to all other causes of action, remedies and penalties available to this state or to the purchaser. A. No membership campground may be advertised or promoted in any way that guarantees the unimpeded use of or access to the campground's properties unless the membership camping operator applies for and receives approval by filing information satisfactory to the department guaranteeing that the purchasers of membership camping contracts cannot be denied access to and use of campground properties pursuant to the membership camping contracts. The department may require the applicant to pay for any costs of experts hired by the department to evaluate the application, nondisturbance clause or financial condition of the applicant. No lien or encumbrance may be construed to deny access and use. B. The applicant shall include satisfactory evidence that purchasers of campground memberships acquire an unimpeded and irrevocable right of access to and use of campground properties by means acceptable to the department, including: 1. A duly recorded nondisturbance agreement from each holder of a lien or encumbrance on a membership campground that provides minimally for: a) Enforcement of the agreement by individual campground members. (b) Effectiveness of the agreement notwithstanding insolvency, bankruptcy of the membership campground operator or sale of the campground. c) Binding successors in interest of both the campground membership operator and each holder of a lien or encumbrance. (d) Alternative means to continue operation of the campground if the campground operator, holder of a lien or encumbrance or purchaser who obtains title or possession of the campground ceases to act as operator. 2. A bond or irrevocable letter of credit posted by the membership camping operator in an aggregate principal amount sufficient to cover the indebtedness remaining under any lien or encumbrance. 3. Other financial assurances reasonably acceptable to the department. Article 11. Administrative Hearings 32-2199 Administrative Hearings Pursuant to title 41, chapter 6, article 10, an administrative law judge shall adjudicate complaints regarding and ensure compliance with: 1. Title 33, chapter 9 and condominium documents. 2. Title 33, chapter 16 and planned community documents. 32-2198.14. Advertising availability of campgrounds to campground members; blanket encumbrances

Page 128

Law Book Revised 11.02.2017