557A.7  Arrangements for management and operation of a time-share estate program.
  The time-share instruments for a time-share estate program shall prescribe reasonable arrangements for management and operation of the program and for the maintenance, repair, and furnishing of units, which shall include, but not be limited to, provisions for the following:
  1.  Creation of an association of time-share estate owners.
  2.  Adoption of bylaws for organizing and operating the association.
  3.  Payment of costs and expenses of operating the time-share program and owning and maintaining the units.
  4.  Employment and termination of employment of the managing agent.
  5.  Preparation and dissemination to time-share estate owners of an annual budget and of operating statements and other financial information concerning the time-share program.
  6.  Adoption of standards and rules of conduct for the use and occupancy of units by time-share estate owners.
  7.  Procedures for imposing and collecting assessments from time-share estate owners to defray the expenses of management of the time-share program and maintenance of the units.
  8.  Comprehensive general liability insurance for death, bodily injury, and property damage arising out of, or in connection with, the use of units by time-share estate owners, their guests, and other users.
  9.  Methods for providing compensating use periods or monetary compensation to a time-share estate owner if a unit cannot be made available for the period to which the time-share estate owner is entitled by schedule or by confirmed reservation.
  10.  Procedures for imposing a monetary penalty or suspension of a time-share estate owner’s rights and privileges in the time-share program for failure of the owner to comply with the time-share instruments or the rules of the association with respect to the use of the units. The time-share estate owner shall be given notice and the opportunity to refute or explain the charges in person or in writing to the governing body or the association before a decision to impose discipline is rendered.
  11.  Employment of attorneys, accountants, and other professional persons as necessary to assist in the management of the time-share program and the units.
85 Acts, ch 155, §7