The interesting aspect that I never really gave much thought to is that the HRR requires an owner to notify MS when a "guest" is staying at a
DVC resort on the points of a member. The HRR says, in part:
"19. Guest shall mean a non-Club Member staying with or on behalf of a Club Member at a DVC Resort."
3. Making Reservations for Guest.
a. Club Members may use their Home Resort Vacation Points to reserve Vacation Homes that will be occupied by Guests.
b. When a Club Member uses Home Resort Vacation Points to reserve Vacation Homes on behalf of a Guest, and the Club Member does not charge any rental or other fees to the Guest for the reservation, then the Guest may be eligible for all or some of the Club Member privileges and benefits that a Club Member would normally receive during the Club Member’s stay in the reserved Vacation Home.
If the Guest is renting, it is the responsibility of the Member to notify Member Services when making the reservation. Member privileges and benefits cannot be extended to Guests who rent Vacation Homes from Club Members.
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 Clubmembership either at their Home Resort or at any other DVC Resort through the DVC Reservation Component, checkingin 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 accessingor 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.
No mention here of the "20 reservation rule," so it looks like DVC can cancel reservations if you violate the rules. In this instance, not notifying MS that your guest paid to rent could put the reservation at risk of cancellation. The scary thing is the last bolded text, which states that if DVC locks you out of your home resort for violating the rules, you will also be prohibited from using any other resort. I wonder how many owners tell MS that their guest has paid to rent?
Interesting stuff. DVC clearly isn't enforcing this little policy codicil, but it sure looks like they could.