VII. DISNEY VACATION CLUB OPERATIONS
1. Annual Dues.
Around the beginning of each calendar year, Club Members will receive a statement setting forth their Annual Dues. Annual Dues are based on calendar years, not on Use Years. These Annual Dues may be paid in one of two ways :
a. A single lump-sum payment due on or before the due date. Annual Dues are considered past due on the date set forth in the governing documents for each DVC Resort or the arrival date of a reservation made with Home Resort Vacation Points, whichever is earlier. If the Club Member’s payment arrives on or after the past due date, interest will accrue from due date, and a late fee may be imposed.
b. Equal monthly direct debit installments collected by the 1st or 15th of each month. The number of such installments will be determined by the mailing of the statement of Annual Dues. The monthly payment option is only available on a direct debit basis from a U.S. bank account .Notwithstanding the Annual Dues payment procedure set forth in these Rules and Regulations, the board of directors of the Association for each DVC Resort may amend the due date, past due date, the number of direct debit installments, and the collection date for direct debit installments from time to time.
2. Lock-Out.
Pursuant to the governing documents for each DVC Resort and applicable law, DVC Operator is authorized to deny membership privileges to any Club Member who fails to pay Annual Dues with respect to any Ownership Interest that the Club Member owns or fails to adhere to the requirements of any of the governing documents for their Home Resort or another DVC Resort or the Club (“Lock-out”). Reservations associated with a Club membership that is in Lock-out status may be canceled and all cancellation fees or penalties will be the responsibility of the Club Member. Lock-out status will prevent the Club Member from making any reservations with respect to their Club membership either at their Home Resort or at any other DVC Resort through the DVC Reservation Component, checking in at any DVC Resort in the event of an already confirmed reservation, Banking or Borrowing Home Resort Vacation Points, Transferring Home Resort Vacation Resorts, making an External Exchange Program reservation, or accessing or using any other Club Member benefit program. It will also prohibit the use of any of the accommodations and facilities of the Club Member’s Home Resort or any other DVC Resort unless and until the total amount of the delinquent Annual Dues is satisfied in full with guaranteed funds or the violation of the governing document is remedied, as determined by DVC Operator in its discretion. If a Club Member is prohibited from making a reservation or using accommodations and facilities at their Home Resort, the Club Member will also automatically be prohibited from making a reservation or using accommodations and facilities at any other DVC Resort, except as permitted by DVC Operator in its discretion
