61B-40.001. Definitions

For purposes of Chapter 721, F.S., and Chapter 61B-40, F.A.C., the following definitions shall apply:

(1) “Books and financial records” as stated in Section 721.13(3)(d), F.S., means any records that identify, measure, record, or communicate financial information whether the records are maintained electronically or otherwise.

(2) “Capital contribution” means cash, property or services contributed to a timeshare plan by its developer or purchasers, which includes amounts contributed to replacement reserves.

(3) “Capital expenditure” means any expenditure of funds for:

(a) The purchase of an asset or capital reserve item whose useful life is greater than one year;

(b) The replacement of an asset or capital reserve item whose useful life is greater than one year; or

(c) The addition, major repair of or improvement to an asset or capital reserve item that extends the useful life of the previously existing asset for a period of greater than one year.

This definition shall not preclude the managing entity from establishing its own capitalization policies.

(4) “Deferred maintenance” means any maintenance or repair that:

(a) Will be performed less frequently than yearly; and

(b) Will maintain the useful life of an asset or capital reserve item.

This definition shall not preclude the managing entity from establishing its own capitalization policies.

(5) “Fiscal period” means a period of time for which financial statements are prepared, such as a month, quarter or year.

(6) “Fiscal year” means a period of 12 consecutive months chosen by a timeshare plan as the accounting period for annual reports.

(7) “Funds” means money and negotiable instruments including, for example, cash, checks, notes, and other investments authorized by law.

(8) “Reserve fund balance” means the cumulative excess or deficit of reserve revenues over reserve expenses for a reserve category at a particular point in time.

(9) “Reserves” means categories of funds, other than operating funds, that are restricted for deferred maintenance and capital expenditures, including the categories roof replacement, building painting, pavement resurfacing, replacement of unit furnishings and equipment and any other component of the facilities whose useful life is less than that of the overall structure, as required by Section 721.07(5)(t)3., F.S. Funds that are not restricted as to use shall not be considered reserves within the meaning of this rule regardless of the label attached to such items.

(10) “Timeshare condominium” means a condominium in which any unit is a “timeshare unit” as defined in Section 721.05, F.S.

Rulemaking Authority 718.501(1)(f), 721.03(2), 721.26(6) FS. Law Implemented 718.104, 721.03(3), 721.07(5)(u)3., 721.13(3)(d)3., 4. FS. History–New 2-5-96, Amended 12-18-01.