Question

In the event a bond is revoked or canceled by the surety company, what happens to the timeshare registration of the named bondholder?

1) It remains active.
2) It is automatically suspended until a new bond is filed with the Commission.
3) It is transferred to another bondholder.
4) It is canceled permanently.

Answer 1

If a surety company cancels a bond, the associated timeshare registration is likely automatically suspended until a new bond is filed. The registration would not remain active, be transferred, or canceled permanently without the possibility of reactivation.

Step-by-step explanation:

When a surety company revokes or cancels a bond, it typically affects any registrations or permits associated with that bond. In the context of a timeshare registration, if the named bondholder's bond is revoked, the most likely outcome is that the registration would be automatically suspended until a new bond is filed with the Commission. The registration would not remain active, as it is contingent upon the validity of the bond, and it would not be transferred to another bondholder as bonds are specific to the parties involved. The registration is not necessarily canceled permanently, as it may be reactivated upon fulfilling the bond requirement again.