? on Breakage Period and Banking Points

[mmparri]

My husband and I are getting ready to close on 250 points OKW through Timeshare Store. We are trying to understand the lengthy Public Offering Statement prior to closing. A reference is made to the "Breakage Period" but we can't find the definition. Can anyone help? Also, language about banking points is unclear. I assumed if we banked points prior to the 60 day end of our year, we could bank all 250 for the following year. However, language in the document suggests that the # of points you can bank depends on when during the year you decide to bank as opposed to using? Am I off track? Thanks for any help - we are totally new to DVC and frankly this is the first time I have ever posted a question this way. We have been reading the board and have learned a lot from all of your questions and responses. Thanks!!

 

[drusba]

Breakage period begins 60 days before any calendar date. It is the period in which any leftover DVC rooms not yet reserved by DVC members for that calendar date can be rented by Disney to the general public.

You are somewhat off on banking. The rule to remeber is 6/9/10 months and 100/50/25%. You have only until the end of the 6th month of your use year to bank 100% of your points into the next, the end of the 9th month to bank 50%, and the end of the 10th to bank 25%. Those are cumulative totals--if you bank 50% or more during your 6th month you will not be able to bank anymore after your 6th month.

Example: Feb use year, Runs Feb 1 to Jan 31. You have until July 31 to bank 100%,October 30 50%, and November 30 25%. If you bank say 52% July 15, then after July 31 you will be able to bank no more because you are already over the 50% limit that applies for your 7th to 9th month.

 

[TriciaT]

I also have a banking question...

Following that example:

If my use year is February, and I am not certain if I am going to use my points for the year, can I immediately bank them and if I do decide a trip, say in July before my next use year, can I use those banked points? Or once they are banked, they can no longer be used during that use year.

Sorry if that is a dumb question. We are hopefully buying into WLV in the fall (if they do not sell out by then) and want to understand this banking/borrowing system.

Tricia

Always dreaming of Disney
CBR 8/96
AS Sports 11/98
AS Movies 3/00
WL 7/00
PO 12/17/02 - 12/27/02

 

[drusba]

You could bank them now; but there is no reason to do it immediately as you have until July 31 to bank them all. Points once banked remain banked; they cannot be brought back into the current year for use. Nevertheless, you could borrow from the next year's points for that July trip.

 

[PamOKW]

Borrowing would be the solution. However, remember that once you "borrow" those points are now locked into the Use Year and must be used by the end of the year.