The Trust Protection
The Trustee has two main roles that are outlined below.
Custodial
To safeguard The Crane Private Residence Club's assets under the club trustee system, the trustee will only permit property which is clear of all mortgages, charges and other impediments to be taken into trust (into the owning Company).
First National Trust Company (FNTC) relies on its legally qualified professional advisors to ensure that all property that is transferred into trust meets this requirement. FNTC's lawyers in the jurisdictions concerned will liaise with the client and their lawyers to ensure that clear title to the property is obtained. This means that if, for any reason, the project runs into difficulties, the timeshare buyers' interests remain protected as the title to the property remains secure and cannot be taken away by any creditors or others who could otherwise claim the timeshare property.
The trustee is most active during the building and selling phases of the resort. However, once the resort is sold out, the trustee remains central to the ongoing operation and success of the club. The trustee continues to hold the club's assets and acts as trustee for the entire duration of the club's life. This involves a number of duties such as maintaining the owning companies and making sure that local taxes are paid. In addition to these core trustee activities, the trustee can also provide a variety of other services, such as management fee collection.
Fiduciary
To ensure that payments are properly channeled and only made once all agreements are met, under the club trustee system, all funds are paid to the trustee - not to the developer or marketer. The trustee will hold these funds in a separate escrow (or blocked) account and will not release the funds to the developer until the timeshare property is fully completed, furnished and transferred safely into trust. The trustee also plays an important role in distributing monies owed to the marketer, the exchange network and also to any bank that may have loaned money to the developer.
The independent control of the sales monies is a key benefit for all parties involved in the timeshare sale - the developer, the marketer, the exchange company, the consumer finance company and the timeshare buyer. |
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Residence Club 
