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- Part 3. Membership Camping Act
T.C.A. § 66-32-307 Prerequisites to Selling Membership Camping Contracts
Library | Tennessee Statutes |
Edition | 2023 |
Currency | Current through Acts 2023-2024, ch. 488, and 2023EX1, ch. 4 |
Year | 2023 |
Citation | T.C.A. § 66-32-307 |
With respect to any campground in this state acquired and put into operation by a membership camping operator after July 1, 1985, the membership camping operator shall not sell membership camping contracts in this state granting the right to use such campground until one (1) of the following requirements has been satisfied:
(1) Each person holding an interest in a blanket encumbrance shall have executed and delivered a nondisturbance agreement and such agreement shall have been recorded in the real estate records of the county in which the campground is located;
(2) The financial institution providing the major hypothecation loan to the membership camping operator, the "hypothecation lender", shall have a lien on, or security interest in, the membership camping operator's interest in the campground, and the hypothecation lender shall have executed and delivered a nondisturbance agreement and recorded such agreement in the real estate records of the county in which the campground is located. In addition, each person holding an interest in a blanket encumbrance superior to the interest held by the hypothecation lender shall have executed, delivered, and recorded an instrument stating that such person shall give the hypothecation lender notice of, and at least thirty (30) days to cure, any default under the blanket encumbrance before such person commences any foreclosure action affecting the campground. For the purposes of this provision, a major hypothecation loan to a membership camping operator is a loan or line of credit secured by substantially all of the contracts ...
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