On the heels of yesterday's revelation that Disney Vacation Club is apparently reallocating the points charts for 2010 , we thought we would share some of the legalese which makes this move legally permissible.
The following passage is taken from the Saratoga Springs Resort Public Offering Statement dated 7/2003. Specifically, this is section 3.3 of the Disney Vacation Club Membership Agreement for Disney's Saratoga Springs Resort. Other resort POS' or later revisions may have slight variations.
See paragraph 2 for the language related to the reallocation of points.
3.3 Home Resort Vacation Point Reservation Values. A certain number of Home Resort Vacation Points have been or will be established by DVCMC in its sole, absolute and unfettered discretion for the use of each Vacation Home in the Condominium during each Use Day, with variations that will take into account, among other factors, anticipated seasonal and geographical demand factors and the related actual use demand of Club Members experienced in the operation of the Club. The number of Home Resort Vacation Points that a Club Member has with respect to an Ownership lnterest will remain fixed and will always be symbolic of the Club Members Ownership Interest. The Home Resort Vacation Point values established by DVCMC that are symbolic of all Ownership Interests will be based upon a 365 Use Day calendar year containing a minimum number of Fridays and Saturdays distributed through high demand periods (the "Base Year'). During the Base Year the total number of Home Resort Vacation Points required to reserve all Vacation Homes during all Use Days in the Condominium must always equal, and be symbolic of, the total number of Ownership Interests owned by Club Members in the Condominium. Any excess availability that may exist from time to time shall be subject to the Breakage Period priorities set forth in the Home Resort Rules and Regulations.
In order to meet the Club Members' needs and expectations as evidenced by fluctuations in Use Day demand at the Condominium experienced by DVCMC during a given calendar year, DVCMC may, in its soie, absolute and unfettered discretion, increase or decrease the Home Resort Vacation Point requirements for reservation of a given Use Day within a given Vacation Home during the given calendar year by any amount not to exceed twenty percent (20%) of the Home Resort Vacation Points required to reserve that Use Day during the previous calendar year; provided, however, that the total number of Home Resort Vacation Points existing within a given Unit at any time may not be increased or decreased because of any such reallocation. The twenty percent (20%) reallocation limitation shall not apply to increases or decreases in Home Resort Vacation Point reservation requirements relating to special periods of high demand based upon Club Member use patterns and changes in Club Member use demand (including, without limitation, use demand during special or holiday seasons), as determined by DVCMC in its sole, absolute and unfettered discretion.
Any increase or decrease in the Home Resort Vacation Point reservation requirement for a given Use Day pursuant to DVCMC's right to make this Home Resort Vacation Point adjustment must be offset by a corresponding decrease or increase for another Use Day or Days. Except as otherwise provided above, adjustments in excess of twenty percent (20%) in any calendar year will require approval of not less than sixty percent (60%) of all then-existing Club Members at the Condominium. The right to reallocate Home Resort Vacation Points is reserved by DVCMC solely for adjusting the Home Resort Reservation Component to accommodate Club Member demand. However, with respect to the Condominium, each Club Member will always be eligible to reserve at the Condominium, subject to availability: at least one (1) Use Day in a Studio Vacation Home for every (16) Home Resort Vacation Points; at least one (1) Use Day in a One-Bedroom Vacation Home for every (32) Home Resort Vacation Points; at least one (1) Use Day in a Two-Bedroom Vacation Home for every (41) Home Resort Vacation Points; or at least one (1) Use Day in a Grand Villa Vacation Home for every sixty-four (64) Home Resort Vacation Points. A maximum reallocation of Vacation Point reservation requirements could result in a 'leveling' of all seasons, such that Home Resort Vacation Point reservation requirements would have no variation based upon seasonality or different times of the year. Similarly, a maximum reallocation of Home Resort Vacation Point reservation requirements could result in a 'leveling' of differences in Vacation Point reservation requirements based upon particular Use Days in the week.
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