Stripped Contracts

[kandlsutton]

I just passed ROFR for a 180pt AKL stripped contract with DEC UY. I knew it was stripped but was ok with that since we are using our Riviera contract for DEC 2021 trip and I didn’t want to pay ‘21 MF and higher $pp. there are a lot of stripped contracts out there for resale.

With the 50% limit on borrowed points (in place since spring/summer 2020?), I’m trying to figure out how my contract has 0 points in 2021?? DEC UY is a little confusing (have to think harder, ha ha) since you don’t get points for that UY until the end of the calendar year.

Currently, this contract is in UY 2020 with points allocated on 12/1/2020 (2.5 months ago) and the 50% borrowing limit was still in place. UY 2021 points will be allocated on 12/1/2021 (9.5 months from now) unless 90 points (max) had been previously borrowed from UY 2021. Points could not have been borrowed from UY 2021 except for reservations that occurred after 12/1/2020, correct? So how are there 0 points left in UY 2021?

I have an email out to my broker, but thought I would ask here as I’m still a DVC newbie. What am I missing???

 

[vicarrieous]

Could they have transferred out the points to another DVC contract? I am not sure if this is possible outside of use year, but only thought I had. Good luck and report back!

 

[kandlsutton]

Could they have transferred out the points to another DVC contract?

Maybe??? But don’t the borrowing rules apply to transfers as well? 2021 UY is still next years points (would have to borrow) for DEC UY, right?

 

[FinnFogg]

They could have borrowed 100% of those Dec 2021 points into Dec 2020 use year and used them for a big trip this past December if they made the booking before the borrowing restrictions came into place last March. Their 11 month window would have opened in Jan 2020 and they could have made the booking anytime up until the restrictions were put in place and they would have been grandfathered in.

 

[vicarrieous]

Maybe??? But don’t the borrowing rules apply to transfers as well? 2021 UY is still next years points (would have to borrow) for DEC UY, right?

I found this:

• (a)Transfers can only occur during your current Use Year and your next Use Year. For example, with a Sep UY, today 6/7/05 you could transfer into or out of your 9/2004 or 9/2005 Use Years. In other words, you can transfer points that you haven't "received" yet. When you are working with future Use Year points, make sure to request that a Manual Transfer be done.

This would be applicable. They could transfer those points as their next use year.

 

[JETSDAD]

The points could have been transferred. Transfers are different than borrowing. They are 2021 points that would be transferred as 2021 points.

 

[CarolynFH]

They could have borrowed 100% of those Dec 2021 points into Dec 2020 use year and used them for a big trip this past December if they made the booking before the borrowing restrictions came into place last March. Their 11 month window would have opened in Jan 2020 and they could have made the booking anytime up until the restrictions were put in place and they would have been grandfathered in.

I agree that this is a likely scenario. In January 2020 I made reservations for December 2020 that used all of our Sept. 2020 and 2021 points, and we had a lovely family trip, the culmination of 2 years of coordination and planning.