Cases & Deals
Resort Development and Timeshare Financing
With over 25 years of combined experience, we have provided clients, including lenders and developers in this market niche, with legal services tailored to their needs. We represent lenders in the financing of the acquisition, development and construction of resort projects in a variety of locations throughout the United States. Often times these transactions involve receivables loan financing or purchases of consumer loans extended to timeshare, fractional interest or condominium owners and include the financing of amenities related to resort projects, such as golf courses, water parks and clubhouses, along with the development of residential lots surrounding the resort projects. We have also represented developers in the creation of resort projects and have advised them on land use requirements and compliance, as well as consumer protection laws.
We have represented lenders not only during good economic times, but also during challenging times. We have handled the work out of defaulted loans, the sale of loans and other transactions to enable lenders to mitigate their risks and reduce their exposure. These matters involve forbearance arrangements, foreclosures, liquidations, bankruptcies and debt restructures.
- Represented institutional lender in the financing of four different beachfront timeshare projects located on the mid-Atlantic coast; financing for these projects included construction loans, pre-sales loans, receivables loans and inventory loans; several of these loans were syndicated agented loans; all of the loans were cross-defaulted and cross-collateralized with complex collateral packages and a complicated collateral waterfall
- Represented institutional lender in the receivables financing of a timeshare project, which was part of a master community development and was located in the southeastern U.S.; the exclusive sales and marketing agent for this project was an internationally recognized hotel and resort company; purchasers of timeshare interests in this project had the option to transfer their deeded timeshare interest in exchange for a membership in a points-based club; transaction included a complicated tri-party agreement addressing the purchase from the lender of delinquent pledged receivables
- Represented institutional lender in the receivables financing of two timeshare projects located in the Midwestern U.S.; transactions involved contract for deed timeshare interests; to address inventory control and protect against overselling, these deals were structured with a streamlined process in which fee simple title to the timeshare interests were conveyed to an SPE third party nominee, subject to a blanket insured mortgage in favor of the lender
- Represented institutional lender in the receivables financing for a timeshare project located in the southern U.S.; transaction involved licensed timeshare interests sold to U.S. and to Mexican citizens; worked closely with local Mexican counsel, in order to confirm that all of the consumer loan documentation and disclosures given to Mexican citizens were in compliance with Mexican regulations and consumer protection laws
- Represented institutional lender (who also acted as the administrative and collateral agent for other lenders) in the financing of the acquisition, development and construction of a timeshare project located in the western U.S.; the borrower defaulted on the financing; helped the lender sell the project to another developer who assumed control of the project and day-to-day operations under the management agreement; ultimately, the project was completed and the loans were repaid in full.
- Represented institutional lender in the receivables financing of a timeshare project, hotel and casino located in the western U. S.; during the term of the loan, the guarantor and a principal of the borrower filed for bankruptcy and the principals of the borrower were under investigation for fraud; a receiver was appointed by the bankruptcy court and the project was put up for sale; trustee filed an adversary proceeding against the borrower to enjoin the borrower from selling the project; successfully represented the lender in intervening in the bankruptcy proceedings and ultimately obtained relief from the bankruptcy court; eventually, the project was sold to another developer and the loan was repaid in full
- Represented institutional lender in the construction and receivables financing of a multi-phase timeshare project located in the heart of a major U.S. city; financing was secured by various pools of collateral, including mortgages on the underlying real property, assignments of consumer notes and mortgages, the pledge of management company notes and liens against management fees; there were multiple loan tranches, including a tranche for pre-sales; deal also included a complex subordination and intercreditor agreement with another institutional lender who held a mortgage on the underlying real property and a junior lien on the management fees